HomeMy WebLinkAbout8583RESOLUTION NO. 8583
A RESOLUTION RESCINDING RESOLUTION NO. 8239 AND TERMINATING A
HANGAR GROUND LEASE AGREEMENT FOR LOT NO. 8 IN THE GENERAL
AVIATION HANGAR DEVELOPMENT AREA BETWEEN THE CITY OF PUEBLO,
• MUNICIPAL CORPORATION, AND KENNETH S. GUNTER AND APPROVING
• NEW HANGAR GROUND LEASE AGREEMENT FOR LOT NO. 8 IN THE
GENERAL AVIATION HANGAR DEVELOPMENT AREA BETWEEN THE CITY OF
PUEBLO, A MUNICIPAL CORPORATION, AND PUEBLO AERO PARTNERS, LTD.,
AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE SAME,
WHEREAS, a Hangar Ground Lease Agreement for Lot No. 8 in the General Aviation Hangar
Development area at Pueblo Memorial Airport was signed by Kenneth S. Gunter and approved by City
Council under Resolution No. 8239 on September 22, 1997; and
WHEREAS, both parties wish to terminate this Lease Agreement; and
WHEREAS, Kenneth S. Gunter has formed a limited partnership with Robert C. Davis and John
J. Schmidt under the name of Pueblo Aero Partners, Ltd.; and
WHEREAS, Pueblo Aero Partners, Ltd. wish to enter into a Lease Agreement for Lot No. 8 in
the General Aviation Hangar Development area at Pueblo Memorial Airport;
NOW, THEREFORE, 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 Pueblo Aero Partners, Ltd., covering the lease of Lot No. 8 located in the
General Aviation Hangar Development Area at Pueblo Memorial Airport, 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.
MWE SIn"
Resolution No. 8239 is hereby rescinded and the Hangar Ground Lease Agreement between the City
of Pueblo and Kenneth S. Gunter for Lot No. 8 in the General Aviation Hangar Development area at
Pueblo Memorial Airport, dated September 22, 1997, is hereby terminated.
Introduced December 14, 1998
B Rich Golenda
Councilperson
ATTEST:
APPROVED:
President of
7
ty Co ncil
Council Agenda
HANGAR GROUND LEASE BETWEEN CITY OF PUEBLO
TITLE AND PUEBLO HERO PARTNERS FOR HANGAR LOT AGENDA ITEM #
No. 8
DEPARTMENT PUEBLO MEMORIAL AIRPORT DATE DECEMBER 14 1998
ISSUE
Should the City Council approve a Resolution to rescind Resolution No. 8239 and terminate
a Hangar Ground Lease Agreement for Lot No. 8 in the General Aviation Hangar
Development Area between the City of Pueblo and Kenneth S. Gunter and approve a new
Hangar Ground Lease Agreement for Lot No. 8 in the General Aviation Hangar Development
Area between the City of Pueblo and Pueblo Aero Partners, Ltd.
RECOMMENDATION
Approval of this Resolution.
r.]F,A �
On September 22, 1997, City Council approved a Hangar Ground Lease Agreement
between the City and Kenneth S. Gunter for Lot No. 8 in the General Aviation Hangar
Development Area. Mr. Gunter has now entered into a limited partnership with Robert C.
Davis and John J. Schmidt under the name of Pueblo Aero Partners, Ltd. Mr. Gunter would
like to terminate his current lease for Lot No. 8 and Pueblo Aero Partners, Ltd. would like
to enter into a new lease with the City for Lot No. 8.
The hangar Pueblo Aero Partners, Ltd. is proposing to build is for non - commercial use as
they will be storing their personal aircraft in the hangar. The term of the lease is for 20
years. The lot to be leased is 9800 sq. ft. (or 0.2250 acres) and the building is 50 ft. wide
X 75 ft. long.
It should be noted that this lease does permit the subleasing of space within the hangar,
something previous leases have not permitted. The Air Service Task Force is in support of
this sublease language. However, the Fixed Base Operators have expressed opposition to
subleasing as they feel it is in direct competition with them. Currently no hangar space is
available at the Airport.
FINANCIAL IMPACT
The initial lease amount will be $490.00 annually. The combined service fee will be $66.94
per year based on $297.50 per acre annually.
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HANGAR GROUND LEASE
THIS LEASE, made and entered into this 14+k1 day of aumLgr 19 A.D. between
the City of Pueblo, a municipal corporation, "Lessor ", and Pueblo Aero Partners. Ltd ., "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 50' by 75' 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 December 14. 1998
and ending December 14. 2018 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.
-, ffifTr= •
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 is $ 490.00
calculated by multiplying the gross leased land area by 5.05 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
HANGAR GROUND LEASE
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.
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.
EMENNITIT 11141711 •
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.
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HANGAR GROUND LEASE
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.
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.
Y •
m
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.
M
HANGAR GROUND LEASE
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 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.
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HANGAR GROUND LEASE
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 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.
HANGAR GROUND LEASE
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.
(3) An indemnification provision substantially the same as set forth in paragraph 11 hereto.
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HANGAR GROUND LEASE
(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:
7
(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,
(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: Pueblo Aero Partners. Ltd., ATTN: Robert C. Davis. 902 W. 29th Street, Pueblo, CO
81003 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.
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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.
23. 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.
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HANGAR GROUND LEASE
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 Clerk
LESSOR:
CITY OF PUEBLO, A MUNICIPAL CORPORATION
By r
President of e City ouncil
APPROVED AS TO FORM:
711-0,4 -
City Attorney
LESSEE:
PUEBLO AERO PARTNERS, LTD.
Ke eth S. Gunter
Limited Partner
Robert C. Davis
General Partner
-Ul�-
John 1. Schmidt
Limited Partner
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August 6, 1997
LEGAL DESCRIPTION FOR PARCEL FOR GA -8 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, 2,875.00 feet along the Runway centerline to a point;
Thence S 1 °43'24 "E, 1,882.50 feet, to a point 1,882.50 feet right of Runway 8L/26R
Station 28 +75.00, to the True Point of Beginning;
Thence N 88 0 16'36 "E, 70.00 feet; '
Thence S 1 °43'24 "E 140.00 feet;
Thence S 88'16'36"W, 70.00 feet;
Thence N 1 140.00 feet, to the True Point of Beginning.
Said Tease parcel contains 9,800 square feet (0.2250 acres) more or less.
1 r
CERTIFICATE OF LIMITED PARTNERSHIP
We, the undersigned general partners, for the purpose of forming a limited
partnership under the Revised Uniform Limited Partnership Act as set forth in
the Statutes of the State of Colorado, hereby certify and affirm under penalty
of perjury as follows:
1. Name. The name of the limited partnership is Pueblo Aero Partners, LTD..
2. Office. The address of the office of the limited partnership at which the
official records of the limited partnership shall be kept is 902 W. 29 Street,
Pueblo, CO 81008.
3. Agent. The name and address of the agent for service of process for the
limited partnership is ROBERT C. DAVIS, 902 W. 29 Street, Pueblo, CO 81008.
4. General Partners. The name and business address of each general partner
of the limited partnership is:
Name Business Address
ROBERT C. DAVIS 902 W. 29 Street, Pueblo, CO
5. Dissolution. The latest date upon which the limited partnership is to
dissolve is September 23, 2017.
6. Other Matters.
1. The purpose of the Limited Partnership is to acquire, develop, trade
or sell that parcel of real estate located in the County of Pueblo in the State
of Colorado, described as follows:
A tract of land located in Section 25 of Township 20 S, Range 64 W of the
Sixth Principal Meridian, more specifically described in Exhibit "A ",
attached hereto and made a part hereof.
2. The number of limited partners that may be admitted to the limited
partnership shall not exceed ten and the minimum capital contribution for each
limited partner shall -b�-e/ $1,000.00.
Dated this day of J U l- 19 5W' in
Pueblo, Colorado.
C. 9a- �,
ROBERT C. DAVIS, General Partner
f
LIMITED PARTNERSHIP AGREEMENT
This Agreement of Limited Partnership dated June 17, 1998, by and among the
persons set forth below, all of whom agree as follows:
ARTICLE 1
Formation of Limited Partnership
1.01. The parties hereby form a limited partnership under the Revised Uniform
Limited Partnership Act of the State of Colorado.
1.02. The names and addresses of the general partner is: ROBERT C. DAVIS.
1.03. The names and addresses of the limited partners are: KENNETH S. GUNTER and
JOHN J. SCHMIDT.
1.04. The general partners shall forthwith prepare and execute a Certificate of
Limited Partnership, which shall be duly filed in the office of the Secretary of
State of the State of Colorado, in accordance with the provisions of the Revised
Uniform Limited Partnership Act of said state. A true copy of the filed
Certificate of Limited Partnership shall be delivered to each limited partner.
ARTICLE 2
Partnership Business and Term
2.01. The business of the partnership shall be conducted under the name of
Pueblo Aero Partners, LTD.
2.02. The purpose of the partnership shall be to engage in the business of
acquiring, developing, trading and selling real estate.
2.03. The principal place of business of the partnership shall be at 902 W. 29
Street, Pueblo, CO 81008, but additional places of business may be conducted at
such locations as may from time to time be agreed upon by the general partner.
2.04. The partnership shall commence on June 17, 1998, and shall continue until
September 23, 2017.
ARTICLE 3
Capital Contributions and Withdrawals
3.01. Each partner shall make the contribution to the capital of the partnership
shown below:
Form of
Value of
Percentage
Name
Contribution
Contribution
of Total
KENNETH S. GUNTER
Cash
$1,000.00
33.334
JOHN J. SCHMIDT
Cash
$1,000.00
33.333
ROBERT C. DAVIS
Cash
$1,000.00
33.333
$3,000.00
100.000
3.02. Each partner may make additional contributions to the capital of the
partnership in the amounts agreed upon by the general partner.
3.03. A partner may not withdraw any portion of his or her capital contribution
without the written consent of the general partner, except that a limited
partner may withdraw all or a portion of his capital contribution upon giving
six months' notice in writing to all other partners.
3.04. An individual capital account shall be maintained for each partner, to
which shall be credited or debited his contributions or withdrawals, as the case
may be.
3.05. No partner shall assign such partner's rights to the partner's capital
account without the prior written consent of the general partner.
ARTICLE 4
Profits and Losses
4.01. Each fiscal year of the partnership shall end on December 31. The net
profits or losses of the partnership shall be determined in accordance with
generally accepted accounting practices as soon as possible after the close of
each fiscal year.
4.02. The net profits or losses of the partnership during each fiscal year shall
be credited or.debited as of the close of the fiscal year to the capital
accounts of the partners in proportion to the capital contributions of the
partners as shown in Section 3.01 of this agreement.
4.03. Any accumulated net profits contained in the capital account of a partner
shall be delivered to the partner within 30 days after a written demand therefor
is delivered by the partner to the general partner.
4.04. No partner shall assign such partner's rights to partnership profits to
another person without the prior written consent of the general partner.
ARTICLE 5
Management and Records
5.01. The partnership shall be managed by the general partner, who shall devote
his full time and best efforts to the conduct of the partnership business.
Except as otherwise provided in this agreement, questions related to the conduct
and management of the partnership business shall be determined by the general
partner.
5.02. Checks drawn on partnership bank accounts shall be signed by the general
partner.
5.03. The general partner shall receive no salary.
5.04. Except as otherwise provided in this agreement, the limited partners shall
not take part in the management of the partnership business or transact any
business for the partnership, and they shall have no power to obligate the
partnership. No salary shall be paid to a limited partner.
5.05. Proper and complete records and books of account of the business of the
partnership shall be kept by or under the supervision of the general partner at
the principal place of business of the partnership and shall be open to
inspection by any partner, or by the representative of a partner, at any
reasonable time during business hours. The books and records of account of the
partnership shall be examined and reviewed at the close of each fiscal year by
an independent certified public accountant chosen by the general partner, and
the accountant shall issue a report thereon, a copy of which shall be promptly
sent to each limited partner. The records kept by the partnership shall include
the following:
(a) a current list of the full name and last known business address of each
partner, separately identifying the general partners (in alphabetical order) and
the limited partners (in alphabetical order);
(b) a copy of the certificate of limited partnership and all certificates of
amendment thereto, together with executed copies of any powers of attorney
pursuant to which any certificate has been executed;
(c) copies of the partnership's federal, state and local income tax returns and
reports, if any, for the three most recent years;
(d) copies of any then effective written partnership agreements and of any
financial statements of the partnership for the three most recent years; and
(e) records setting out:
(i) the amount of cash and a description and statement of the agreed value of
the other property or services contributed by each partner and which each
partner has agreed to contribute;
(ii) the times at which or events on the happening of which any additional
contributions agreed to be made by each partner are to be made;
(iii) any right of a partner to receive, or of a general partner to make,
distributions to a partner which include a return of all or any part of the
partner's contribution; and
(iv) any events upon the happening of which the limited partnership is to be
dissolved and its affairs wound up.
ARTICLE 6
General Partner
6.01. The general partner may not, without the consent of all partners:
(a) Assign, transfer, or pledge a partnership claim except upon payment in full.
(b) Make, execute, or deliver an assignment for the benefit of creditors or a
bond, confession of judgment, lease, mortgage, deed, guarantee, or other
contract involving the transfer of an interest in all or substantially all of
the partnership property.
(c) Lease, mortgage, or transfer of any of the partnership property, other than
in the normal course of partnership business.
6.02. The general partner may withdraw from the partnership by giving 90 days'
notice thereof in writing to each partner. A withdrawing general partner shall
be compensated for his or her partnership interest as provided in Section 6.05
of this agreement.
6.03. The general partner may be removed from the partnership upon the unanimous
vote of the limited partners for any reason.
6.04. In the event of the withdrawal, removal, death, or legal incompetency of
the general partner, the limited partners, shall have the right to continue the
business of the partnership under its present name by themselves, or in
conjunction with any person or persons whom they may select as a general
partner, but they shall pay to the departing general partner, or to the legal
representatives of a deceased or legally incompetent general partner, as the
case may be, the value of such partner's interest in the partnership, as
provided in Section 6.05 of this agreement.
6.05. The value of the partnership interest of a withdrawing, removed, deceased,
or legally incompetent general partner, as of the date of the exercise of the
option given in Section 6.05 of this agreement, shall be the sum of such
partner's capital account plus the partner's proportionate share of accrued net
partnership profits. If a net loss has been incurred to the date of
dissolution, the partner's shares of such loss shall be deducted from the
partner's capital account. The assets of the partnership shall be valued at
book value for purposes of this Section. In computing the value of a
partnership interest under this Section, no value shall be attributed to
goodwill.
6.06. A new or substituted general partner may be admitted to the partnership
only with the unanimous written consent of the limited partners.
ARTICLE 7
Limited Partners
7.01. A limited partner shall have the following rights:
(a) The right to vote on partnership matters as otherwise provided in this
agreement.
(b) The right to inspect and copy the partnership records and to promptly obtain
copies of the partnership's income tax returns.
(c) The right to obtain from the general partner upon reasonable demand true and
complete information regarding the financial condition of the partnership and
the state of its business, and other reasonable information regarding the
affairs of the partnership.
(d) The right to consult with and advise the general partner regarding the
partnership business.
(e) The right to bring a derivative action in the right of the partnership.
(f) The right to request or attend a meeting of the partners.
(g) The right to wind up the limited partnership as provided by law, to the
extent permitted under this agreement.
(h) The right to propose, approve, or disapprove, by voting or otherwise, any of
the following matters:
(i) the dissolution and winding up of the partnership,
(ii) the sale, exchange, lease, mortgage, pledge, or other transfer of all or
substantially all of the assets of the partnership,
(iii) the incurrence of indebtedness by the partnership other than in the
ordinary course of its business,
(iv) a change in the nature of the partnership business,
(v) the admission or removal of the general partner or a limited partner,
(vi) a transaction involving an actual or potential conflict of interest between
the general partner and the partnership or a general partner and the limited
partners, and
(vii) an amendment to the partnership agreement or to the certificate of limited
partnership; and
(i) The right to exercise any other power or right permitted to limited partners
by applicable law.
7.02. A new or substituted limited partner may be admitted to the partnership
only upon the majority vote of all partners, except as provided in Section 7.06
of this agreement.
7.03. A limited partner may be removed from the partnership only upon the
unanimous vote of all partners for: (a) willful and continued breach of this
agreement, or (b) conduct prejudicial to the carrying out of the business and
affairs of the partnership. Prior to expulsion, a limited partner for whom
expulsion is contemplated shall be entitled to appear before the partners for
the purpose of refuting the charges. An expelled limited partner shall be
compensated for his or her partnership interest as provided in Section 7.05 of
this agreement.
7.04. A limited partner may withdraw from the partnership by giving 60 days
notice thereof to each partner. A withdrawing limited partner shall be
compensated for his or her partnership interest as provided in Section 7.05 of
this agreement.
7.05. The value of the partnership interest of a withdrawing or removed limited
partner shall be the sum of such partner's capital account plus the partner's
proportionate share of accrued net partnership profits. If a net loss has been
incurred to the date of dissolution, the partner's shares of such loss shall be
deducted from the capital account. The assets of the partnership shall be
valued at book value for purposes of this Section. In computing the value of a
partnership interest under this Section, no value shall be attributed to
goodwill.
7.06. In the event of the death of a limited partner, the partner's personal
representative during the period of administration of the estate shall succeed
to the deceased partner's rights hereunder, and that interest may be assigned to
any member of the family of the deceased limited partner,in distribution of the
partner's estate, or to any person in pursuance of a bequest in the last will
and testament of such partner, and the family member or person shall thereupon
succeed to the deceased partner's interest as a limited partner and have all the
rights of a substituted limited partner.
ARTICLE 8
Termination
8.01. The partnership shall be dissolved upon the occurrence of any of the
following events:
(a) The time specified in Section 2.04 of this agreement or in the Certificate
of Limited Partnership.
(b) The time specified in a written consent to dissolve the partnership signed
by all partners.
(c) Ninety days after the death, withdrawal, removal, or legal incompetence of
the last remaining general partner if at that time a new general partner has not
been appointed.
1 �
(d) Two consecutive fiscal years without net profits by the partnership business
followed within 120 days thereafter by a majority vote of limited partners to
dissolve the partnership.
(e) The entry of a decree of judicial dissolution by a court of competent
jurisdiction.
8.02. Upon the dissolution of the partnership, the general partner, or, if there
are no remaining general partner, the limited partners, or a person appointed by
a majority of the limited partners, shall wind up the business and affairs of
the partnership.
8.03. Upon the winding up of the partnership and its business and affairs, the
assets of the partnership shall be distributed as follows:.
(a) First, to the creditors of the partnership, including partners who are
creditors, in satisfaction of the liabilities of the partnership other than
liabilities for distributions to partners.
(b) Second, proportionately to partners and former partners as distributions
owed under Sections 6.05 and 7.05 of this agreement.
(c) Third, proportionately to partners as distributions for the return of their
respective capital contributions.
(d) Fourth, to partners as distributions in respect to their partnership
interests in proportion to their respective capital contributions.
ARTICLE 9
Amendment and Interpretation
9.01. This agreement may be amended only by the unanimous written consent of all
persons who are then partners.
9.02. Any matter not specifically covered by a provision of this agreement shall
be governed by the laws of the state of Colorado, including the applicable
provisions of the Revised Uniform Limited Partnership Act of that state.
9.03. This agreement shall be binding on the partners, their heirs, personal
representatives, assignees, and successors in interest.
IN WITNESS WHEREOF, the parties have executed this agreement as of the day and
year first above appearing.
ROBERT C. DAVIS, General Partner
NNETH S. GUNTER, Limited Partner
JO L i IDT, Limited Partner