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HomeMy WebLinkAbout8060RESOLUTION NO. 8060 A RESOLUTION APPROVING A HANGAR GROUND LEASE AGREEMENT BETWEEN PUEBLO, A MUNICIPAL CORPORATION, AND SAM C. BROWN JR., AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE SAME, Be it resolved by the City Council of Pueblo, Colorado, that: SECTION 1 A certain Lease Agreement, a copy of which is attached hereto and made a part hereof by reference, after having been approved as to form by the City Attorney, by and between the City of Pueblo, a Municipal Corporation, and Sam C. Brown Jr., covering the lease of land located at Pueblo Memorial Airport General Aviation Hangar Development Area, be and the same is hereby approved; subject to the conditions as set forth in said Lease Agreement. SECTION 2 The President of City Council is hereby authorized to execute said Lease Agreement on behalf of Pueblo, a Municipal Corporation, and the City Clerk shall affix the Seal of the City thereto and attest the same. Introduced February 24, 1997 ATTEST: .` 1 - . .z BY Al Gurule Councilperson APPROVED: President ift Cit Council AGREEMENT THIS AGREEMENT is entered into this 1041-day of May, 2017 by and between Sam C. Brown Jr., 27350 East State Highway 96, Pueblo, Colorado 81001 ("Brown") and LaStella, Inc., 27350 East State Highway 96, Pueblo, Colorado 81001 ("LaStella") and the City of Pueblo, a Municipal Corporation, through the Pueblo Memorial Airport, 31201 Bryan Circle, Pueblo, Colorado 81001 ("City"). Recitals WHEREAS,on February 24, 1997 City and Brown entered into a lease of Lot No. 5 located in the General Aviation Hangar Development Area of the Pueblo Memorial Airport ("Lot 5 Lease"); and WHEREAS Brown wishes to assign the Lot 5 Lease to LaStella and LaStella wishes to assume said Lot 5 Lease, as amended; and WHEREAS the City consents to said assignment and assumption of the Lot 5 Lease as amended; NOW, THEREFORE, in consideration of the foregoing recitals and the terms, conditions and mutual promises set forth in this agreement, the parties agree as follows: 1. Assignment. Brown hereby assigns the Lot 5 Lease to LaStella. 2. Assumption. LaStella hereby assumes and agrees to observe, perform and otherwise discharge when due the obligations of the Lot 5 Lease, as amended, a copy of which, marked as Exhibit A, is attached hereto and is incorporated herein by reference. 3. Consent. City hereby consents to the foregoing assignment and assumption of the Lot 5 Lease and City agrees to afford LaStella the same rights under the Lot 5 Lease as previously enjoyed by Brown. 4. Effective Date. This Agreement shall become effective on the date set forth above. LASTELLA, INC. CITY OF PUE O ;' C -7? _Jts1-1 ( %I—NA B Print Name: SAM C BROWN PRESIDENTB : Sam Azad Y Authorized Representative City Manager ATTEST: SAM C. �,(�r-�.�BROWN JR. City . erk HANGAR GROUND LEASE THIS LEASE, made and entered into this 24th day of February , 19 97 A.D. between the City of Pueblo, a municipal corporation, "Lessor ", and Sam C. Brown Jr. , " Lessee." WITNESSETH: WHEREAS, the Lessor is the owner and operator of the Pueblo Memorial Airport together with the land on which said airport is situated, and WHEREAS, Lessee is desirous of leasing a tract of ground on said Airport property for the purpose of constructing and occupying a new Hangar, approximately 60'wde b y 75'deep in size, NOW THEREFORE, in consideration of the mutual covenants set forth herein, the parties agree as follows: 1. Land Parcel The Lessor hereby leases unto the Lessee and Lessee hereby leases from Lessor for the term and upon the rental and conditions hereinafter stated, the real property described in Exhibit "A ", attached hereto and made a part hereof, situated in the City of Pueblo, State of Colorado. The attached Exhibit "B" consists of a diagram of the Hangar. The term "leased premises" means and includes the real property, hangar and other improvements located on the real property. 2. Term A. The term on this Lease is for a period of twenty (20) years commencing 2 /25 /i99 7and ending 2LZV,2oL7unless sooner terminated as herein provided. B. Lessor grants unto Lessee the right and option to extend the lease term for two consecutive ten (10) year periods immediately following the original twenty (20) year lease term. Such option shall be exercised no later than one hundred eighty days before the end of the original term or the first extended term, as the case may be. Exercise of such options to extend, shall be in writing but in no event shall Lessee be entitled to exercise this option, even though such notice be timely given, unless Lessee shall have timely performed all of its obligations hereunder and not be in default hereunder. 3. Rental Rate and Other Fees A. Lessee shall pay rent to the Lessor for the ground lease herein granted a sum per month equal to one - twelfth (1/12) of the initial annual rent during the original term, payable in advance without notice, offset or deduction, and shall be due quarterly on the first day of each quarter at the Director of Aviation's Office. The commencement date of this lease, as set forth in paragraph 2, Term, shall be the date upon which rent begins. The initial annual rent is $ 410.00 , calculated by multiplying the gross leased land area by .05 per square foot. The amount of rent the Lessee pays will be adjusted based upon the consumer price index for all urban consumers, CPI-L1 (all items 1982- 1984 = 100). The rent shall be adjusted on the 5th, 10th, 15th, and 20th anniversary of the commencement date of this lease and each five (5) year HANGAR GROUND LEASE increment of any extended term. The rent will be increased by a percentage equal to the percentage increase in the CPI -U for the preceding 5 -year period over the comparable CPI -U for the first month of said 5 -year period. Any rent overdue for more than thirty (30) days will have an additional fee added to cover extra administrative costs. The additional fee will equal teri percent (10 %) of the gross amount of all overdue rents. In the event the Lessor initiates any proceedings to collect any unpaid rent from Lessee or to enforce any other provision of this Lease, Lessee shall pay all of the Lessor's expenses in connection therewith, including reasonable attorney's fees. B. Lessee shall pay combined service fee for services and facilities now furnished by the Lessor at the Pueblo Memorial Airport, namely: public street maintenance, fire protection and street lighting based upon the amount established by Lessor which is currently $297.50 per acre per year. The Lessor may, from time to time, reduce, alter, or eliminate any or all of the services or facilities presently being furnished and may modify, increase, or decrease the annual combined service fee therefore and the manner by which it is calculated, including making separate charges, therefore, provided (i) such services and fee shall be non - discriminatory among other tenants and owners of land at Pueblo Memorial Airport receiving such services and facilities then being furnished and (ii) such fee shall be reasonable in relation to the Lessor's actual cost and expense of furnishing the services and facilities then being furnished. The Lessor's cost may include the cost of capital improvements amortized over the useful life of the improvements. Only domestic waste water shall be discharged from the leased premises to Lessor's sanitary sewer system. Lessee shall be subject to the same restrictions, conditions, fees and charges as other users of Lessor's sanitary sewer system. 4. Improvements and Use A. Lessee shall cause to be constucted and installed upon the leased premises the Hangar and other improvements in accordance with plans and specifications approved by Lessor including architectural approval, which consent will not unreasonably be withheld. The Hangar and other improvements shall be constructed in a good and workmanlike manner in accordance with the applicable ordinances and building codes of the City of Pueblo and pursuant to a building permit issued by the Regional Building Department. Lessee shall diligently take all action reasonably required and appropriate to (1) commence construction and installation of the Hangar and other improvements within six (6) months from commencement date, and (2) complete such construction and installation within twelve (12) months from commencement date. B. In addition to constructing the Hangar and improvements, Lessee shall cause all utilities to be used by Lessee to be extended underground to the leased premises within easements and locations to be designated by Lessor and the Lessee shall be responsible for constructing and maintaining a concrete ramp area in front of the Hangar in accordance with plans and specifications approved by Lessor. This concrete ramp area must be designed for a minimum weight bearing capacity of 12,500 pounds for single wheel aircraft and must be built to the width of the Hangar door opening, less the area required for the Hangar. Should development take place adjacent to the leased premises, the Director of 2 HANGAR GROUND LEASE Aviation at his sole discretion may require Lessee to pave sections of the leased premises to the full width of the leased premises. This concrete area must be built so as to connect onto any adjacent ramp, taxiway, or other paved areas in order that a continuous and safe pavement section results. It is the responsibility of the Lessee to maintain the entire ramp area in a manner which is safe and clean of debris so as not to cause danger or unsafe conditions for taxiing aircraft and airport users. C. The leased premises shall be used and occupied by Lessee as a Hangar facility for the storage of .aircraft owned or leased by Lessee and for such incidental purposes directly related to such use. Lessee shall have no right to utilize the leased premises, or any improvement thereon, other than as specifically allowed under this subsection, and it is specifically understood that the leased premises shall not be used for any commercial purpose including, without limitation, an aviation fixed base operation or other commercial aviation operation or the sale of aviation fuel. D. No aircraft service or maintenance shall be performed on the leased premises on any aircraft not owned or leased by the Lessee. E. Lessee grants to the Lessor the right to enter the leased premises to do what is necessary for the purposes of repairing, replacing and /or maintaining any and all utility lines under the leased premises which serve other uses at the Pueblo Memorial Airport, it being understood that the Lessor will repair, in a good and workmanlike fashion, any and all damage done to the leased premises as the result of work done hereunder. F. Lessee shall maintain the leased premises in accordance with the requirements and regulations of the Lessor and Lessor's fire code. The Lessee shall be responsible for all costs, fees, charges and penalties associated with the discharge or release of any hazardous material (including petroleum products) or mitigating the containment or removal of any contamination or hazardous material (including petroleum products) on the leased premises which is caused by the Lessee, its officers, agents, or employees. It is understood that the Lessee is not responsible for any conditions which may be determined to have existed prior to the commencement date of this lease. The storage and accumulation of flammables, explosive liquids, or solids, waste, debris or other hazardous materials within on the leased premises shall be in an environmentally sound manner and comply with all Federal, State and Local laws and regulations. G. Lessee will not modify, alter, paint or improve the completed Hangar except to the extent required to maintain its original state. Any additional modification, painting or improvements to the Hangar or leased premises must receive prior written approval from the Lessor, which approval shall not unreasonably be withheld. H. Lessee shall not park or leave aircraft on the taxiways or on pavement adjacent to the Hangar in a manner which interferes with or obstructs access to adjacent hangars. Parking of automobiles will be permitted only in paved designated parking areas or within the Hangar. C-1 HANGAR GROUND LEASE 5. Maintenance Obligations Lessee, at its expense, shall keep the the leased premises, and utilities extended to the leased premises, in good repair and condition, and in a safe, sanitary, orderly, and sightly condition. 6. Title to Improvements It is hereby stipulated and agreed that the Hangar and all improvements erected and constructed on the leased premises by Lessee shall be attached to the leased premises and title to same shall remain in the Lessee while this Lease is in effect. 7. Right of First Refusal If Lessee desires to sell the Hangar and other Lessee improvements during the term of this Lease, Lessee shall first offer in writing to sell same to Lessor upon the price, terms and conditions Lessee would be willing to accept in a good faith arms - length sale to a third party (the "Offer "). Lessor shall have thirty (30) days after receipt of the Offer to accept the Offer. If Lessor does not accept the Offer in writing within said thirty (30) day period, Lessee may sell the Hangar and other Lessee improvements to a third party free of Lessor's right of first refusal granted by this section, but not at a price less than, nor upon terms and conditions more favorable than those contained in the Offer. If Lessee sells the Hangar and other Lessee improvements to Lessor, this Lease shall terminate. If Lessee sells the Hangar and other Lessee Improvements to a third party, Lessee shall remain obligated and liable under this Lease unless and until Lessee assigns this Lease pursuant to Section 16(A) hereof. 8. Signs Lessee shall not erect, paint or maintain any signs whatsoever upon the leased premises without first securing the written consent of the Lessor. Any such signs shall comply with all ordinances and regulations of the Lessor or standards which might be developed by the Department of Aviation. Only one identification sign, logo, or name may be permitted on the exterior of the Hangar. 9. Right of Inspection The Lessor reserves and retains for its officers, employees and authorized representatives the right to enter the leased premises during reasonable business hours, and after prior notice, for the purpose of inspecting and protecting the leased premises, and of doing any and all things which the Lessor may deem necessary for the proper general conduct and operation of the Pueblo Memorial Airport, and in the exercise of the Lessor's police power. 10. Taxes and Licenses Lessee covenants and agrees to pay promptly all valid taxes and other government charges of whatever nature assessed against or applicable to the leased premises or Lessee or Lessee's property or operations on the leased premises. Lessee also covenants and agrees not to permit any mechanic's or materialman's lien to be filed against the leased premises or any part or parcel thereof by reason of any work or labor 4 HANGAR GROUND LEASE performed or materials furnished by any contractor, subcontractor, mechanic or materialman. Lessee further covenants and agrees to pay promptly when due all bills, debts and obligations incurred by it in connection with its operations on the leased premises, and not to permit the same to become delinquent and to suffer no lien, mortgage, judgment or execution to be filed against the leased premises which will be in any way an impairment of the rights of the Lessor under this Lease Agreement. 11. Indemnification Lessee assumes the risk of loss or damage to the leased premises and property thereon, whether from windstorm, fire, earthquake, snow, water run -off, or any other causes whatsoever. Lessee covenants and agrees that it will indemnify and save harmless Lessor, its officers, agents and employees from all demands, claims, costs, causes of action or judgments, and from all expenses incurred by Lessor, in investigating or resisting the same, including reasonable attorney fees, arising from or growing out of the negligent acts or omissions of Lessee, its contractors, agents, members, stockholders, employees, invitees, servants, subtenants, successors or assigns in connection with its use or occupancy or their use or occupancy of any portion of the Pueblo Memorial Airport, including the leased premises. 12. Insurance and Damage A. At all times during the term of this Lease Agreement, and of any renewal or extension hereof, Lessee agrees that it will, at its own cost and expense, provide and keep in force commercial liability insurance which includes personal injury and property damage with a combined single limit not less than $ 1,000,000. Lessee shall insure the Hangar and other improvements in an amount equal to their full insurable value. Lessee shall provide Lessor with copies showing proof of such insurance and subsequent renewals or changes as might occur during the term of this lease. With respect to any insured loss to the leased premises and property thereon, including aircraft, Lessee releases Lessor, it's officers, agents, and employees from any claim or liability Lessee may have on account of such loss and waives any right of subrogation which might otherwise exist in or occur to any person on account thereof. B. Such policies shall provide that they may not be materially changed, altered, or canceled by the insurer during its terms without first giving ten (10) days written notice by certified or registered United States mail to the Lessor. C. Lessee shall not violate the terms or prohibitions of any insurance policy herein required to be furnished by Lessee. D. If the Hangar or other improvements (the "Improvements ") are damaged or destroyed by fire or other casualty, Lessee shall within one hundred twenty (120) days from the occurrence of such casualty either (1) repair and restore the damaged or destroyed Improvements, (2) demolish the damaged or destroyed Improvements, restore the leased premises to their original condition, and terminate this Lease, or (3) demolish the damaged or destroyed Improvements and commence constructionof replacement Improvements, and thereafter complete such construction within nine (9) months from the occurrence of such casualty. All repairs to or restoration of Improvements and /or construction of HANGAR GROUND LEASE replacement Improvements shall be in compliance with applicable laws and codes, and in accordance with plans and specifications therefor approved by Lessor, which approval will not be unreasonably withheld. 13. Waivers No provision of this lease may be waived except by an agreement signed by the waiving party. A waiver of any term or provision shall not be construed as a waiver of any other term or provision. 14. Holding Over Should Lessee hold over the use of or continue to occupy the leased premises after the termination or cancellation of this Lease Agreement, such holding over shall be deemed merely a tenancy for successive monthly terms upon the same conditions as provided in this Lease Agreement subject to termination upon thirty (30) days prior written notice. 15. Inconvenience During Construction Lessee recognizes that from time to time it will be necessary for the Lessor to initiate and carry forward extensive programs of construction, reconstruction, expansion, relocation, maintenance and repair at and to the Pueblo Memorial Airport in order that the Pueblo Memorial Airport and its facilities may be suitable for the volume and character of air traffic and flight activity which will require accommodation, and that such construction, reconstruction, expansion, relocation, maintenance, and repair may inconvenience or interrupt Lessee's operations at the Pueblo Memorial Airport. Lessee agrees that no liability shall attach to Lessor, its officers, agents, employees, contractors, subcontractors and representatives by reason of such inconvenience or interruption, and for and in further consideration of the premises, Lessee waives any right to claim damages or other consideration therefor, provided, however, that this waiver shall not extend to, or be construed to be a waiver of, any claim for physical damage to property resulting from negligence or willful misconduct of the Lessor, its officers, agents, employees, contractors, subcontractors and representatives. 16. Place and Manner of Payments In all cases where Lessee is required by this Lease Agreement to pay any rentals, rates, fees or other charges or to make other payments to Lessor, such payments shall be made at the office of the Director of Aviation at the Pueblo Memorial Airport, or at such other place as Lessor may hereafter designate by notice in writing to Lessee and shall be made in legal tender of the United States and any check shall be received by Lessor subject to collection. Lessee agrees to pay any bank charges made for the collection of any such checks. 17. Assignments and Subletting A. Lessee shall not assign or transfer this Lease without the prior written consent of Lessor, which consent shall not be unreasonably withheld. A HANGAR GROUND LEASE B. Lessee shall not sublet the leased premises or any space in the Hangar. If Lessee for any reason ceases to use the leased premises as a Hangar facility for the storage of aircraft owned or leased by Lessee, Lessee, with the prior written consent of Lessor, may sublet all of the space in the Hangar to a third party for the storage of aircraft owned or leased by such third party. C. Any assignment, transfer or subletting of the leased premises or Hangar without the prior written consent of the Lessor by Resolution duly adopted by the City Council of Lessor shall be void. 18. Agreements with United States This Lease Agreement is subject and subordinate to the terms, reservations, restrictions, provisions, and conditions of the deed of conveyance from the United States Government to the Lessor and of any other existing or future agreement between the Lessor and the United States, relative to the use, operation or maintenance of the Pueblo Memorial Airport and its appurtenant facilities, the execution of which has been or may be required as a condition precedent to the participation by any Federal Agency in the extension, expansions, or development of said Airport and facilities. 19. Lessee's Default A. Any one of the following shall constitute an event of default by Lessee hereunder: (1) Failure of Lessee to pay in full all delinquent installments of rent and /or combined service fees for a period of ten (10) days after written notice and demand therefor are given by Lessor to Lessee. (2) Failure of Lessee to perform or comply with any obligations, covenant or agreement of Lessee hereunder for a period of thirty (30) days after written notice specifying such failure is given by Lessee to Lessor, except that if such obligation, covenant or agreement is not capable of being performed within said thirty (30) day period, Lessee shall not be in default if Lessee shall commence such performance within said thirty (30) day period and thereafter prosecute the same with diligence and continuity to completion. B. In the case of any event of default by Lessee, Lessor shall have the following remedy in addition to all other rights and remedies provided by law or M equity, including without limitation, damages and specific performance: (1) Terminate this Lease by one hundred twenty (120) days prior written notice given to Lessee specifying the date of termination. In the event of such termination, Lessee shall have the right during said one hundred twenty (120) day period to either: (a) remove the Hangar and other improvement of Lessee from the leased premises and restore the leased premises to their original condition; or, 7 HANGAR GROUND LEASE (b) provided Lessee has first complied with the provisions of Section 7 hereof, sell the Hangar and other improvements of Lessee and assign this Lease to a third person with the prior written consent of Lessor, which consent will not be unreasonably withheld, contingent upon such third person (i) curing and correcting all existing events of default by Lessee, and (ii) assuming and agreeing to comply with and perform all obligations, covenants and agreements of Lessee under this Lease. (2) If Lessee fails to complete either 1(a) or (b) above within said one hundred twenty (120) day period, Lessee shall vacate the leased premises, Hangar and other Lessee improvements thereon and surrender possession of same to Lessor, and, at the option of the Lessor, the Hangar and all Lessee improvements shall remain on the leased premises as the property of Lessor, or, Lessor may, at the expense of Lessee, cause the Hangar and other Lessee improvements to be removed and the leased premises restored to their original condition. MY -- -- - - -- - - -- -- - - - -- - - - -- -- - - -- -- 20. Notices All notices required to be given to Lessor hereunder shall be in writing and be sent by certified mail to Pueblo Memorial Airport Administration Office, 31201 Bryan Circle, Pueblo, Colorado 81001 All notices required to be given to Lessee hereunder shall be in writing and sent by certified mail, addressed to: Sam C. Brown Jr.. 27350 E. Hwy. 96, Pueblo, CO 81001 ; provided, that the parties, or either of them, may designate in writing from time to time subsequent or supplementary persons or address in connection with said notices. The effective date or service of any such notice shall be the date such notice is mailed by Lessee or Lessor. 21. Rules and Regulations A. In addition to all other provisions of this Lease Agreement, Lessee agrees to comply with all Federal, State, and Lessor's Rules and Regulations, and all amendments, thereto, including Chapter 1 of Title ill of the 1971 Code of Ordinances. B. Lessee, its officers, agents and employees shall faithfully observe all rules and regulations affecting the use of the Pueblo Memorial Airport or motor vehicles thereon or the use and occupancy of the leased premises, whether established by the Director of Aviation, the City of Pueblo, the State of Colorado, or the United States or agencies thereof and Lessee's use and occupancy of the leased premises and improvements thereon are subject to all ordinances of the City of Pueblo the same as though the Property and Pueblo Memorial Airport was located within the jurisdictional limits of the City of Pueblo. 22. F.A.A. Lease Requirements HANGAR GROUND LEASE 22. F.A.A. Lease Requirements A. The Lessor reserves the right, without any obligation on its part to do so, to develop, modify, change, improve or abandon the Pueblo Memorial Airport or any part thereof, as it may determine in its sole discretion, at any time, regardless of the desires or view of Lessee, and without interference or hindrance from Lessee or liability to Lessee. B. The Lessor reserves the right, without any obligation on its part to do so, to maintain and keep in repair the landing area of the Airport and all publicly owned facilities of the Airport, together with the right to direct and control all activities of Lessee in this regard. C. This Lease Agreement shall be subordinate to the provisions and requirements of any existing or future agreement between the Lessor and the United States, relative to the use.. development, operation, or maintenance of the Airport. D. Lessee shall comply with the notification and review requirements covered in Part 77 of the Federal Aviation Regulations with respect to the construction of any structure or building on the leased premises, or in the event of any planned modification or alteration of any present or future building or structure on the leased premises. E. It is understood and agreed that nothing contained in this Lease Agreement shall be construed to grant or authorize the granting of an exclusive right within the meaning of Section 308 of the Federal Aviation Act. F. Lessor reserves for the use and benefit of the public, a right of flight for the passage of aircraft in the airspace above the surface of the leased premises, together with the right to cause in said airspace such noise as may be inherent in the operation of aircraft now known or hereafter used for navigation or flight in said airspace, and for use of said airspace for landing on, taking off from, or operations on or over the Pueblo Memorial Airport. G. Lessee by accepting this Lease Agreement expressly agrees for itself, its successors and assigns that it will not erect nor permit the erection of any structure, building or object nor permit the growth of any tree on the leased premises to a height not to exceed 22 feet above ground level. In the event the aforesaid covenant is breached, the Lessor reserves the right to enter upon the leased premises and to remove the offending structure or object and cut the offending tree, all of which shall be at the expense of the Lessee. H. Lessee shall not make use of the leased premises in any manner which might interfere with the landing and taking off of aircraft at Pueblo Memorial Airport or otherwise constitute a hazard to aviation. In the event the aforesaid covenant is breached, the Lessor reserves the right to enter upon the leased premises and cause the abatement of such interference at the expense of the Lessee. 41 HANGAR GROUND LEASE 23. Miscellaneous A. This Lease and all of its provisions shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors and approved assigns. B. No waiver by the Lessor of any failure by Lessee to comply with any term or condition of this Lease shall be or shall be construed to be a waiver by the Lessor of any other failure by Lessee to comply with any term or condition of this Lease Agreement. C. This Lease and any amendments hereto are subject to prior approval of the Federal Aviation Administration. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed as of the day and year first above written. ATTEST: City Cler APPROVED AS TO FORM: City Atto ney LESSOR: CITY OF PUEBLO, A MUNICIPAL CORPORATION By 4. . President f the ity Council LESSEE: ':�' �8 Sam C. llioxin,Jr. 10 LEGAL DESCRIPTION FOR PARCEL FOR BROWN HANGAR PUEBLO MEMORIAL AIRPORT PUEBLO, COLORADO A tract of land located in Section 25 of Township 20 S, Range 64 W of the Sixth Principal Meridian, more specifically described as follows: Beginning at the northwest corner of Section 25, thence S 75 1 49'09 "E, 1666.99 feet to the centerline at the west end of Runway 8L/26R, more specifically known as Station 0 + 00; Thence N 88 °16'36 "E, 3,019.00 feet along the Runway centerline to a point; Thence S 1 0 43'24 "E, 1,730.00 feet, to a point 1730.00 feet right of Runway 8L/26R Station 30 + 19.00, to the True Point of Beginning; Thence N 88 80.00 feet; Thence S 1 102.50 feet; Thence S 88'1 6' 36 "W, 80.00 feet; Thence N 1 °43'24 "W, 102.50 feet, to the True Point of Beginning. Said lease parcel contains 8,200.00 square feet (0.1882 acres) more or less. EXHIBIT A AMENDMENT TO LEASE rd This Amendment is entered into as of the 3 day of 1'►\ R Y , 2017 ("Effective Date"), by and between the City of Pueblo,Colorado,a Municipal Corporation("Lessor"),and Sam C. Brown Jr. ("Lessee"). WHEREAS, Lessor entered into a certain lease with Lessee, dated February 24, 1997 ("Lease") and evidenced by Resolution No. 8060; and WHEREAS,Lessee failed to extend the term of the Lease for two consecutive ten(10)year periods per Section 2(B) of the Lease, and is currently in a month-to-month tenancy under Section 14 of the Lease; and WHEREAS, in consideration for the terms of this amendment, Lessor waives Lessee's failed extension and allows Lessee to extend the term per Lease Section 2(B); NOW THEREFORE, in consideration of the foregoing recitals, and the promises and conditions set forth below, the parties agree to amend the Lease as follows: 1. Lessor hereby extends the Lease for two consecutive terms of ten (10) years, each as if Lessee had met the time limits contained within Section 2(B) of the Lease. 2. A new Section 3(C) of the lease is hereby added to read: Lessee shall pay rent to the Lessor for the ground lease herein granted a sum per month equal to one-twelfth (1/12) of the renewed annual rent beginning on the first date of the renewed term, payable in advance without notice, offset or deduction, and shall be due quarterly on the first day of each quarter at the Director of Aviation's Office. The renewal date of this lease shall be February 26, 2017, the day following the initial term. The renewed annual rent is $1,312.00, calculated by multiplying the gross leased land area by $0.16 per square foot. The amount of rent the Lessee pays will be adjusted based upon the consumer price index for all urban consumers, CPI-U (all items 1982-1984=100). The renewed rent shall be adjusted on the 5th, 10`", 15`", and 20th anniversaries of the renewal date.The rent will be increased by a percentage equal to the percentage increase in the CPI- U for the preceding five-year period over the comparable CPI-U for the first month of said five-year period. The renewed rent shall also be adjusted each year past the 20th anniversary, where any month-to-month tenancy is held pursuant to Section 14 of this Lease. The rent will be increased by a percentage equal to the percentage increase in the CPI-U for the preceding year over the comparable CPI-U for the first month of said year. Any rent overdue for more than thirty(30) days will have an additional fee added to cover extra administrative costs. The additional fee will equal ten percent (10%) of the gross amount of all overdue rents. In the event the Lessor initiates any proceedings to collect any unpaid rent from Lessee or to enforce any other provision of this Lease, Lessee shall pay all of the Lessor's expenses in connection therewith, including reasonable attorney's fees. 3. The parties hereto further agree that nothing contained within this Amendment alters or modifies any other paragraphs or provisions of the Lease. IN WITNESS WHEREOF the parties have executed this amendment as of the Effective Date. ATTEST: CITY OF PUEBLO, A MUNICIIPAL CORPORATION B alL'Irritr. By 411 City Clerk City Manager (� Printed Name Sam Azad Sam C. Brown Jr. By Printed Name Sam C. Brown Jr. Title President ASSIGNMENT OF LEASE n1D THIS ASSIGNMENT is entered into as of this72 day of July, 2020 ("Effective Date"), by and between the City of Pueblo,a Municipal Corporation,through the Pueblo Memorial Airport,31201 Bryan Circle, Pueblo, Colorado 81001 ("Lessor"), and LaStella, Inc., 27350 East State Highway 96, Pueblo, Colorado 81001 ("LaStella"), and Western Enterprises, LLC, P.O. Box 8612, Pueblo, Colorado 81008 ("Western Enterprises"). WHEREAS, Lessor entered into a certain Hangar Ground Lease with Sam C. Brown Jr. dated February 24, 1997 ("Lease") and evidenced by Resolution No. 8060; and WHEREAS, Lessor and Sam C. Brown Jr. amended the Lease on May 3, 2017 ("Amendment"), extending the term of the Lease and amending the rent; and WHEREAS, the Lease was assigned from Sam C. Brown Jr. to LaStella on May 10, 2017 ("Assignment No. 1"); and WHEREAS, LaStella now wishes to assign the Lease as amended to Western Enterprises, and Western Enterprises wishes to assume said Lease as amended; and WHEREAS, Lessor consents to said assignment and Western Enterprises' assumption of the Lease as amended. NOW, THEREFORE, in consideration of the foregoing recitals and the terms, conditions and mutual promises set forth in this agreement, the parties agree as follows: 1. Assignment. LaStella hereby transfers, sells, and assigns to Western Enterprises, LaStella's right, title, and interest in and to the amended Lease. 2. Assumption. Western Enterprises accepts the assignment of the Lease and hereby assumes and agrees to observe, perform, and otherwise discharge when due all obligations of the amended Lease,a copy of which,marked as Exhibit A, is attached hereto and incorporated herein by reference. This shall include, but is not limited to, the making of all payments and the performance of all covenants and duties. 3. Consent. Lessor hereby consents to the foregoing assignment and assumption of the Lease, and Lessor agrees to afford Western Enterprises the same rights under the Lease as previously enjoyed by LaStella. No further assignment of the Lease, or any part thereof, shall be made without the prior written consent of Lessor. Any assignment or transfer without Lessor's prior written consent shall be void. 4. Effective Date. This Agreement shall become effective on the date set forth above. A IN WITNESS WHEREOF, the parties have executed this assignment as of the Effective Date. WESTERN ENTE'PRISE., LLC CITY OF PUEBLO, A MUNICIPAL CORPORATION I ,' ` ktitt By: 1 Ce Man -iler By: Nicholas A. Gradisar Title: � ► A •' Title: Mayor LASTELLA, INC. ATTEST-' Iuk(ta , Ytt B che ,Rene Brown City Clerk Title: I L R ,