HomeMy WebLinkAbout8080RESOLUTION NO. 8080
A RESOLUTION APPROVING A HANGAR GROUND LEASE AGREEMENT FOR
LOT NO. 3 IN THE GENERAL AVIATION HANGAR DEVELOPMENT AREA
BETWEEN PUEBLO, A MUNICIPAL CORPORATION, AND K & N PARTNERS, A
CO- PARTNERSHIP, 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 K & N Partners, a Co- Partnership, covering the
lease of Lot No. 3 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 March 24, 1997
ATTEST:
.200 or
By Al Gurule
Councilperson
APPROVED:
Presidenflof ty Council
HANGAR GROUND LEASE
THIS LEASE, made and entered into this a`f' day of _YY_ o& j0-N , 1947 A.D. between the City of
Pueblo, a municipal corporation, "Lessor ", and K & N Partners, a Co- Partnership "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 42 by 60 in size,
NOW THEREFORE, in consideration of the mutual covenants set forth herein, the parties agree as follows:
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 March 25. 1997 and
ending March 25. 2017 unless 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
317.75 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 -U (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 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 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.
HANGAR GROUND LEASE
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 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 or Subtenant of the Lessee, provided, however, in no event
shall Lessee or any Subtenant of Lessee conduct or operate an aircraft service or maintenance
business on the leased premises.
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HANGAR GROUND LEASE
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.
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.
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.
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HANGAR GROUND LEASE
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 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 Damaae
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
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HANGAR GROUND LEASE
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 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. Any assignment or transfer without the prior
written consent of Lessor shall be void.
B. Lessee may sublet space in the Hangar to a Subtenant pursuant to a written sublease which
shall contain among other provsions the following:
(1) The sublease shall be subject to and governed by the covenants and provisions of this
Hangar Ground Lease and Subtenant shall abide by all the terms and conditions thereof
applicable to the leased premises and use thereof.
(2) The Subtenant shall maintain and keep in force commercial liability insurance with a
combined single limit not less than $ 1,000,000.
HANGAR GROUND LEASE
(3) An indemnification provision substantially the same as set forth in paragraph 11 hereto.
(4) The sublease shall not become effective until an executed copy thereof is delivered to
the City's Department of Aviation.
C. Lessor consents to Lessee assigning its leasehold estate created hereby (the "Leasehold
Estate ") to a financial institution (the "Lender ") as collateral security for the repayment of a
construction and /or permanent loan from Lender to Lessee for the sole and only purpose of
financing the original acquisition, construction and installation of the Hangar and other
improvements (the "Improvements ") (the "Loan "). For purposes of such Loan, Lessor further
consents to Lessee morgaging or otherwise encumbering its right, title and interest in the
Improvements as security for the Loan (the "Mortgage "), provided, however, that at no time
shall Lessor's interest and title in and to the leased premises and Improvements, if any, be or
become subordinate or subject to such Loan and Mortgage. If Lessee so assigns its Leasehold
Estate and mortgages or otherwise encumbers its interest in the Improvements, the Lender or
any subsequent holder of the Loan may cause the Mortgage to be foreclosed in any lawful
manner, or by instrument of conveyance in lieu of foreclosure, acquire Lessee's title and
interest in and to the Leasehold Estate and Improvements subject to the terms, covenants and
provisions of this Lease.
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 in 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,
C.
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.
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: K & N Partners. a Co- Partnership, 1 Chism Trail, Pueblo, CO 81008 and 9 Silversmith
Ct., Pueblo, CO 81008 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 III 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
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.
HANGAR GROUND LEASE
23.
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.
Miscellaneous
A. This Lease and all of its covenants and provisions shall be binding upon and inure to the benefit
of the parties hereto and their respective heirs, personal representatives, successors,
subtenants 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:
� , . i
APPROVED AS TO FORM:
City Attorney
LESSOR:
CITY OF PUEBLO, A MUNICIPAL CORPORATION
By -- —
President the 1ty Council
LESSEE: K & N Partners, a Co- Partnership
Paul R. Nunn
rank T. Krutzke
.1
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LEGAL DESCRIPTION FOR PARCEL FOR K & N PARTNERS HANGER
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 °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. 2,895.00 feet along the Runway centerline to a point;
Thence S 1 °43'24 "E, 1,730.00 feet, to a point 1730.00 feet right of Runway 8L/26R
Station 28 +95.00, to the True Point of Beginning;
Thence N 88 °16'36 "E, 62.00 feet;
Thence S 1 °43'24 "E, 102.50 feet;
Thence S 88 °16'36 "W, 62.00 feet;
Thence N 1'43'24"W, 102.50 feet, to the True Point of Beginning.
Said lease parcel contains 6,355.00 square feet (0.1459 acres) more or less.
EXHIBIT "A"
CO- PARTNERSHtP AGREEMENT
THIS AGREEMENT, made and entered into this 30th day of May, 1996, between Paul R. Nunn, whose
address is 9 Silversmith, Pueblo, Colorado, and Frank T. Krutzke, whose address is 1 Chism Trail, Pueblo,
Colorado.
WITNESSETH, That the said parties above named have agreed and by these presents do agree for
themselves and their respective heirs and personal representatives to become co- partners in the joint venture
business of building aircraft hangers for their personal, individual partner, use at the Pueblo Memorial Airport,
or other airport as the parties hereto hereafter mutually agree, under the name of
K and N Partners, a Co- Partnership
for the term of five (5) years from the date hereof, with extensions by mutual agreement, upon the terms and
conditions hereinafter stated.
That the principal place of business of said co- partnership shall be in the City of Pueblo, County of
Pueblo, in the State of Colorado, and that said co- partnership may extend its business from time to time to
other cities, towns and counties, as the parties hereto hereafter mutually agree.
That at all times during the continuance of their co- partnership they, and each of them, will give their
attention and use, and each of their best endeavors, and to the utmost of their skill and power exert themselves
for their joint interest, profit, benefit and advantage and to the interest, profit, benefit and advantage of said co-
partnership.
That proper books of account shall be kept at the principal place of business of said co- partnership and
therein shall be duly entered from time to time all dealings, transactions, matters and things whatsoever in or
relating to said co- partnership proper to be kept, and each of said parties shall have full and free access thereto
at all times, but shall not remove the same from the principal place of business unless it shall be mutually agreed
that said books may be so removed.
That the principal place of business shall be at a location mutually agreed to by the parties within the
confines of Pueblo County, Colorado, and any notices to the partnership may be sent to that location or to
either of the residences of the partners as above disclosed.
That the capital requisite for carrying on the said business shall be advanced by each of the parties in
equal shares so long as the respective hangers and other assets of the respective partners, that are being
developed, are of equal value. To this end, if the respective hangers and other assets of the respective partners
are not of equal value, then capital will be advanced by the respective partners based upon the percentage share
of their respective asset value in relation to the total project value. Not withstanding the aforementioned, it is
understood that certain front end costs, including, but not limited to engineering, shall be shared equally. That
the said capital and all assets purchased out of co- partnership funds shall belong to said partners in the same
proportions as the capital was advanced.
That it is understood by the said partners that the purpose of said co- partnership is the development of
various hangers and associated property for the personal use of said partners, and the partners, for themselves,
their respective heirs and personal representatives, agree to convey, at any time either partner wishes to take
personal title to their respective partnership asset share, the assets of the partnership, real and personal, to the
aforementioned partners or their designee.
That the purpose of this co- partnership is not for profit making purposes, and each partner for
themselves, their respective heirs and personal representatives, waives any rights to draw from the capital assets
of the co- partnership, unless it is to distribute excess capital from the development of the partnership hangers,
or any other developed partnership asset, and that said distribution will be made according to the percentage
contributions of the partners.
That neither of the said co- partners shall become bail or surety for any other person, nor lend, spend,
give or make away with any part of the partnership property, or draw or accept any bill, note, or security, in the
name of said co- partnership, accept in the due course of said co- partnership business.
That an account of the property and assets of the co- partnership and of any book debts, and capital,
shall be taken, and a statement of the affairs of said co- partnership be made bi- monthly.
This agreement is executed this 30th day of May, '1996.
Paul R. Nunn
c
Frank T. Krutzke
State of Colorado
) ss.
County of Pueblo
The foregoing instrument was acknowledged before me this 30th day of May, 1996, by Paul R. Nunn
and Frank T. Krutzke.
My Commission expires /1— I ,191 . Witness my hand and official seal.
Notary Public
Notary address: 15 non