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HomeMy WebLinkAbout8665RESOLUTION NO. 8665 A RESOLUTION APPROVING AN AGREEMENT BETWEEN PUEBLO, A MUNICIPAL CORPORATION AND PUEBLO DEVELOPMENT FOUNDATION, A COLORADO NONPROFIT CORPORATION RELATING TO THE REMODELING AND LEASE OF THE BLITZ HANGAR AT PUEBLO MEMORIAL AIRPORT, AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE THE AGREEMENT AND GROUND LEASE ATTACHED THERETO, AND AUTHORIZING THE TRANSFER OF FUNDS FROM THE 1992 -2001 SALES AND USE TAX CAPITAL IMPROVEMENT PROJECTS FUNDS FOR THE PURPOSE OF SUCH REMODELING BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The Agreement between Pueblo, a Municipal Corporation and Pueblo Development Foundation, a Colorado nonprofit corporation, dated March 22, 1999 and attached Ground Lease, copies of which are attached hereto and incorporated herein, having been approved as to form by the City Attorney, are hereby approved. SECTION 2. The President of the City Council is authorized to execute and deliver in the name of the City the Agreement and Ground Lease and the City Clerk is directed to affix the seal of the City thereto and attest same. SECTION 3. An amount not to exceed $1,011,224.00 (including $55,000.00 to be advanced by City under its March 22, 1998 Agreement with ALM Aviation Management Labor, Inc.) is hereby authorized to be transferred from the Projects To Be Determined Account of the 1992 -2001 Sales and Use Tax Capital Improvement Projects Fund to the Pueblo Development Foundation Account for the specific purpose of remodeling the Blitz Hangar at Pueblo Memorial Airport. SECTION 4. The City Council does hereby find and determine that the Agreement dated March 22, 1999 and the expenditure of funds described therein meets and complies with the criteria and standards established by Ordinance No. 6381 and will create employment opportunities justifying the expenditure of public funds. INTRODUCED March 22, 1999 BY: Rich Golenda Cou } ncilperson APPROVED: . +t President of of the Council ATTEST: •~ ,► Pa AGREEMENT THIS AGREEMENT entered into as of the 22nd day of March, 1999 between Pueblo, a Municipal Corporation (the "City ") and Pueblo Development Foundation, a Colorado nonprofit corporation (the "Foundation "), WITNESSETH: In consideration of the mutual promises herein contained, City and Foundation agree as follows: 1. City will, subject to prior approval of the Federal Aviation Administration, lease to Foundation ramp area and Blitz Hangar at Pueblo Memorial Airport ( "Leased Premises ") pursuant to a lease in substantially the same form as the Ground Lease attached hereto. Foundation will remodel the Leased Premises and make the Leased Premises available by sublease to ALM Aviation Labor Management, Inc. who will locate and conduct an aircraft painting, maintenance and repair business on the Leased Premises pursuant to a Sublease approved as to form by the City Attorney (the "Sublease "). 2. City will make available and advance to Foundation as needed, an amount not to exceed $1,011,224.00 (including $55,000.00 to be advanced by City under its March 22, 1999 Agreement with ALM Aviation Labor Management, Inc. and $25,000.00 for exterior improvements) from the City's 1992 -2001 Sales and Use Tax Capital Improvement Projects Fund to be used solely for remodeling of the Leased Premises. No funds shall be advanced to Foundation except pursuant to approved and verified requests for payment under construction contracts which have been awarded to the lowest and best bidder after competitive bidding on the basis of the approved plans and specifications prepared by a Colorado licensed architect. 3. Foundation shall after receipt of rent or any other payments under the Sublease of the Leased Premises or insurance thereon pay or cause such rent or other payments to be immediately paid to the City. Foundation shall have no other financial obligations to the City under this Agreement of the Ground Lease. 4. The attached Ground Lease for the Leased Premises will be executed by Foundation and City contemporaneously with the execution and delivery of this Agreement. 5. Foundation acknowledges that it has read and understands the covenants, conditions and restrictions contained in the attached Ground Lease and agrees that Foundation will be bound thereby the same as if such covenants, conditions and restrictions were set forth in this Agreement in full. 6. This Agreement shall not be assigned by Foundation and shall be binding upon and inure to the benefit of City and Foundation and their respective successors. Executed the day and year first above written. [SEAL] ATTEST: City Cl [SEAL] ATTEST: Secretary PU B O, A MUN C AL CORPORATION By President of the City Council PUEBLO DEVELOPMENT FOUNDATION By President F.\FILES\ CITY\ AIRPORT\HANGARS\BLITZ \AGREEMNT. WPD -� GROUND LEASE THIS GROUND LEASE (the "Lease ") entered into as of the 22nd day of March, 1999, by and between the City of Pueblo, a municipal corporation (herein "Landlord ") and Pueblo Development Foundation, a Colorado nonprofit corporation (herein "Tenant "), WITNESSETH: WHEREAS, Landlord is the owner of the property described in attached Exhibit "A "; and WHEREAS, Tenant is desirous of leasing the property from Landlord on the terms and conditions hereinafter set forth; NOW, THEREFORE, in consideration of the mutual promises, covenants and conditions contained herein, Landlord and Tenant hereby agree as follows: ARTICLE 1. LEASED PREMISES 1.01 Landlord hereby leases to Tenant and Tenant hereby leases from Landlord those certain premises situate at the Pueblo Memorial Airport in the County of Pueblo, State of Colorado and more particularly described and shown on the attached Exhibit "A" which is made a part hereof including the Blitz Hangar located thereon to be remodeled by Tenant (the "Building ") ( the "Leased Premises "). Landlord reserves the right to the unrestricted use of the easement shown on attached Exhibit "A." 1.02 This Lease and Tenant's use of the Leased Premises are subject to the covenants, provisions and conditions of this Lease and the conditions, restrictions and limitations, if any, appearing of record, and all applicable zoning and land use laws, ordinances and regulations governing and regulating the use of the Leased Premises. 1.03 Tenant acknowledges that the Federal Aviation Administration (the "FAA ") occupies space in the Building under lease with the City of Pueblo (the "FAA Space "). Tenant understands and agrees that the FAA lease will continue in effect and FAA shall have the right to continued use and occupancy of the FAA Space and access thereto. ARTICLE 2. REMODELING BY TENANT 2.01 Tenant shall cause the Building to be remodeled in accordance with plans and specifications therefor prepared by HGF Architects, Inc. and approved by Landlord and Tenant and certain exterior appearance improvements to be made to the exterior of the Building (the "Remodeling "). The approval of Landlord and Tenant shall be made by signature of Landlord and Tenant affixed to the plans and specifications for the Remodeling prior to the commencement of construction of the Remodeling. 2.02 Landlord shall advance funds to pay the actual cost of Remodeling up to but not exceeding the sum of $1,011,224.00 including (a) $55,000.00 to be advanced by City under its March 22, 1999 Agreement with ALM Aviation Labor Management, Inc., and (b) $25,000.00 for exterior improvements to be made to the Building. All other costs of Remodeling including but not limited to any other or additional work or improvements ordered or approved by Tenant shall be paid by Tenant. ARTICLE 3. TERM 3.01 The term of this Lease shall be for a period of ten (10) years, commencing upon the date notice of substantial completion of the Remodeling is given by Tenant to Landlord (the "Effective Date ") and ending ten (10) years thereafter unless sooner canceled or terminated as provided herein. Landlord and Tenant acknowledge and agree that certain obligations under this Lease shall commence upon the date hereof prior to the Effective Date, and the parties agree to be bound thereby. 3.02 If not in default hereunder, Tenant shall have the option to extend the term of this Lease for two (2) successive five (5) year periods upon the same terms and conditions. In order to exercise the option to extend hereby granted, Tenant shall give to Landlord written notice of its exercise of this option at least six (6) months prior to the expiration of the initial ten year term or first extended period, whichever the case may be. Failure to timely give Landlord notice of the exercise of this option shall constitute waiver thereof by Tenant and the option hereby granted shall be canceled and terminated. ARTICLE 4. RENT 4.01 Tenant shall pay to Landlord rent for the Leased Premises during the term in the sum of $8,639.75 per month, payable monthly in advance, without notice or demand, for each full month (partial months shall be prorated) during said term, with the first payment due on the Effective Date and subsequent payments due on the first day of each month thereafter. $500.00 of the monthly rent represents rent for the ramp area which is part of the Leased Premises. All payments shall be made at or mailed by United States mail to the following address: 1 City Hall Place, Pueblo, Colorado, 81003, or such other address as Landlord may from time to time designated to Tenant in writing. 4.02 Tenant's obligation to pay rent to Landlord hereunder is absolute and unconditional and rent shall not be offset, abated, reduced or withheld for any cause or reason whatsoever. 4.03 It is the intent of the parties hereto that this Lease be a "triple net" Lease with Landlord incurring no obligation, monetary or otherwise, except for advancing funds to complete the Remodeling as provided in Article 2.02. ARTICLE 5. USE OF THE PREMISES 5.01 The Leased Premises and improvements situated thereon shall be used and occupied -2- by Tenant exclusively for aircraft painting, maintenance and repair. ARTICLE 6. ENVIRONMENTAL PROVISIONS 6.01 For the purpose of this Lease, "Hazardous Materials" means any hazardous or toxic substance, material or waste which is or become regulated by any local government authority, the State of Colorado or the United States government and shall include, but not be limited to (1) substances defined as "hazardous waste," "restricted hazardous waste," "hazardous substance" or "hazardous material" under any applicable federal, state or local law or regulation ( "Environmental Regulations "), (2) asbestos - containing materials, (3) PCBs, (4) petroleum or petroleum based products, and (5) lead. 6.02 Tenant will comply with Environmental Regulations that are applicable to the Tenant and its use of the Leased Premises. No activity shall be undertaken by Tenant, its employees, agents, licensees, invitees, contractors or subcontractors, on all or any portion of the Leased Premises which would cause or permit: (i) the presence, use, generation, release, discharge, storage or disposal of any Hazardous Material in, on, under, about, or from the Leased Premises or any part thereof in violation of any Environmental Regulations; (ii) any portion of the Leased Premises to become a hazardous waste treatment, storage or disposal facility without receiving proper governmental authorization, and in compliance with all Environmental Regulations; or (iii) the discharge of pollutants or effluents into any water source or system, or the discharge into the air of any emissions without receiving proper governmental authorization, and in compliance with all Environmental Regulations, including, without limitation, the Federal Water Pollution Control Act, U.S.C. Section 1251 et sea. and the Clean Air Act, 42 U.S.C. Section 7401 et sea. 6.03 Tenant agrees to indemnify and forever hold harmless Landlord and the City of Pueblo, their agents, successors, and assigns, from all claims, losses, damages, expenses and costs, including, but not limited to, attorneys' fees, remedial and cleanup costs, incurred by reason of the use, storage, generation, release, discharge, maintenance, disposal, or removal of Hazardous Materials in, on, under, about, or from the Leased Premises, or any part thereof, by Tenant, its employees, agents, licensees, invitees, contractors and subcontractors. The provisions of the Article 6.03 shall expressly survive the expiration of the Term or other termination of this Lease. ARTICLE 7. ALTERATIONS AND IMPROVEMENTS 7.01 Tenant shall not make any alterations or improvements to the Leased Premises without first obtaining Landlord's written approval. All Remodeling and other alterations and improvements shall become part of the Leased Premises, subject to Lessee's right to use same during the term hereof. 7.02 All alterations and improvements to the Building and all activities on the Leased Premises constructed and conducted by Tenant shall be in compliance with all applicable federal, state and local law, regulations, and codes. -3- ARTICLE 8. REPAIRS AND MAINTENANCE 8.01 Except for advancing funds for the Remodeling as provided in Article 2.02, Landlord shall not be obligated to repair, maintain or alter the Leased Premises or any part thereof. Tenant, at its expense, shall keep and maintain the Leased Premises, including without limitation, the ramp area and Building and all its component parts in good condition and repair and in a good, clean and safe condition at all times during the effective term of this Lease and return the same to Landlord at any termination hereof in as good condition and state of repair as the same were in as of the Effective Date, except for reasonable wear and tear. 8.02 If Tenant becomes obligated to make repairs caused by an occurrence covered by insurance described in Article 12, the net proceeds of such insurance shall be made available to Tenant to offset the cost of such repairs. ARTICLE 9. TENANT'S PROPERTY AND TRADE FIXTURES 9.01 Any and all property, goods, chattels and fixtures, including trade fixtures (but excluding Remodeling) placed in or upon and /or affixed to the Leased Premises by Tenant with its own funds shall remain the exclusive property of Tenant, and Landlord shall have no interest of any kind therein. Unless in default of its obligation to pay rent, Tenant shall have the right to remove any or all such property, goods, chattels and fixtures, including trade fixtures, at any time during the term of this Lease, and /or at the termination hereof, provided Tenant shall promptly repair any damage to the Leased Premises caused by such removal. ARTICLE 10. LANDLORD'S ACCESS TO LEASED PREMISES 10.01 Landlord, or Landlord's officers, employees, agents and representatives, as the case may be, may enter the Leased Premises during normal business hours upon 48 hour prior written notice to Tenant, except notice shall not be required in case of emergency, such as fire. ARTICLE 11. INSURANCE AND INDEMNIFICATION 11.01 Tenant shall indemnify and hold Landlord and its officers, agents and employees harmless from and defend Landlord and its officers, agents and employees against any and all claims or liability, including costs of defense and reasonable attorney fees, for any injury or damage to Tenant or its agents or employees or third persons or property while upon, about or around the Leased Premises, caused or occurring by reason of Tenant's use or occupancy of the Leased Premises or the negligent acts or omissions of Tenant, its agents or employees. 11.02 Tenant shall secure and maintain, or cause to be secured and maintained by any Sublessee, commercial liability insurance with coverage in amounts not less than hereinafter specified for the protection of Landlord and Tenant: Gd' $1,000,000 Property damage. $1,000,000 For death, bodily injury, or personal injury to any one person in any one occurrence. $2,000,000 For death, bodily injury, or personal injury to any two or more persons in any one occurrence. 11.03 Tenant shall procure and maintain, or cause to be procured and maintained by any Sublessee, workers' compensation insurance required by Colorado law. 11.04 A copy of each insurance policy, or certificate thereof, issued by an association or company authorized to issue such policy or policies under the laws of the State of Colorado and containing a provision prohibiting cancellation or material modification of the insurance with respect to the Leased Premises, except after thirty (30) days' notice to Landlord, shall be delivered to the Landlord within a reasonable time after the same has been issued, and thereafter the Tenant will furnish to Landlord evidence of the continuance of the insurance coverage required herein within a reasonable time after the same has been issued. ARTICLE 12. FIRE AND EXTENDED COVERAGE 12.01 Tenant shall, at its expense, or at the expense of any Sublessee, secure and maintain in full force and effect during the effective term of this Lease "All Risk" (including fire, extended coverage, boiler and contractual coverage) insurance upon the Leased Premises. Such insurance shall be in an amount not less than the full replacement value of the Building and improvements, shall contain a standard Colorado loss payee clause in favor of the Landlord, and shall not be subject to cancellation, reduction or modification upon less than thirty (30) days' written notice to the Landlord. Such insurance, by its terms or by its endorsement, shall waive any right of subrogation of the insurer against Landlord and its officers, agents and employees, for any loss or damage covered by such insurance. Tenant shall furnish to the Landlord evidence of such insurance and its continuance during the term of this Lease. 12.02 Tenant shall, at its expense, or at the expense of any Sublessee, secure and maintain fire and extended coverage insurance on all equipment and fixtures installed by Tenant on the Leased Premises. Such insurance, by its terms or by endorsement, shall waive any right of subrogation of the insurer against the Landlord, and its agents and employees, for any loss or damage covered by such insurance. ARTICLE 13. LIENS. TAXES AND ASSESSMENTS 13.01 Tenant shall promptly pay and discharge or cause any Sublessee to pay and discharge as they become due and before delinquency all liens, taxes, charges, levies or excises, whether private or governmental in nature or whether general or special or ordinary or extraordinary, of every -5- name, nature and kind whatsoever, including all mechanics' or judgment liens, and property, sales and use taxes and governmental charges of whatsoever name, nature or kind, which may be levied, charged or imposed, or which may become a lien or charge on or against the Leased Premises or any part thereof, the Leasehold of Tenant herein, or the improvements situated on the Leased Premises during the term of this Lease. 13.02 Tenant shall pay or cause any Sublessee to pay all personal property taxes levied or charges against any of the personal property belonging to it and situated on or used in connection with the operation and maintenance of the Leased Premises during the term of this Lease. 13.03 Tenant shall have the right to contest or review, by legal proceedings at its own expense, and if necessary in the name of Landlord, or in such other manner as it may deem suitable, any lien, tax, assessment, levy or charge herein agreed to be paid by Tenant under this Article 13. Tenant may defer payment of any such contested item if in connection with the proceeding instituted by Tenant there shall have been obtained a stay of the collection of the item so contested. In the event of such contest, Tenant shall give Landlord written notice prior to the commencement of any such contest which shall be at least ten (10) days prior to delinquency of the item in contest and, on request of Landlord, Tenant shall give to Landlord a good and sufficient surety bond indemnifying Landlord and the Leased Premises against any such lien, tax assessment, levy or other charge and from any cost, liability or damage arising out of such contest. In the event any notices of liens or proposed increases in taxes, assessments, levies or charges which are the obligation of Tenant are received by Landlord, it shall promptly forward the same to Tenant in order that Tenant may proceed with payment or contest procedures within the periods provided for such purposes. 13.04 All rebates or refunds on account of any tax assessments, levy or charge required to be paid and paid by Tenant shall belong to Tenant, and Landlord will, on request of Tenant, execute any documents which may be necessary in order to secure the recovery of any rebates or refunds and will pay over to Tenant any such rebates or refunds that may be received by Landlord. 13.05 Tenant shall furnish Landlord within thirty (30) days after any amount is payable by Tenant under this Article 13, official receipts of the appropriate person or taxing authority or other proof satisfactory to Landlord evidencing such payments as are required under this Article 13. ARTICLE 14. UTILITIES 14.01 Tenant shall pay, or cause any Sublessee to pay, before delinquent all charges for water, sewer, gas, electricity, telephone and all other utility services used in or supplied to the Leased Premises. ARTICLE 15. DAMAGE TO OR DESTRUCTION OF PREMISES 15.01 If, during the term of this Lease, the Leased Premises shall be destroyed or damaged, or partially destroyed or damaged, to such a limited extent that the repair of such destruction or -6- damage and the restoration of the Leased Premises can be accomplished, with reasonable diligence, within one hundred twenty (120) days after such destruction or damage, Tenant shall promptly repair or cause any Sublessee to repair such destruction or damage and cause the Leased Premises to be restored to their condition prior to the event causing the destruction or damage. If, during the term of this Lease, the Leased Premises shall be destroyed or damaged, or partially destroyed or damaged to such an extent that the repair of such destruction or damage and the restoration of the Leased Premises cannot be accomplished, with reasonable diligence, within one hundred twenty (120) days after destruction or damage, then Tenant shall promptly notify Landlord in writing of such fact, and either party shall have the right, during a period of thirty (30) days following such notification, to terminate this Lease by written notice to the other party, declaring this Lease to be terminated. If this Lease is so terminated, all proceeds of insurance required to be maintained under Article 12.01 shall be paid to the City of Pueblo. Unless such notice of immediate termination shall be given within such 30 -day period, this Lease shall continue in full force and effect and Tenant shall promptly repair such destruction or damage and cause the Leased Premises to be restored to their condition prior to the event causing the destruction or damage. In the event the Leased Premises are destroyed or damaged, or are partially destroyed or damaged, the rent per month payable by Tenant while this Lease shall remain in effect shall not be reduced or abated. ARTICLE 16. CONDEMNATION 16.01 If the whole or any substantial part of the Leased Premises shall be taken or condemned by any competent authority for any public or quasi - public use or purpose, then this Lease shall terminate on the date when the possession of the part so taken shall be required for such use or purpose. There shall be no apportionment of the award for taking or condemnation, the entire award going to Landlord, provided, that Tenant shall have the right to recover any award which may be made for damages to or condemnation of Tenant's movable trade fixtures, furniture and furnishings. ARTICLE 17, ASSIGNMENT AND SUBLETTING 17.01 Neither this Lease nor the Leased Premises shall be assigned or sublet by Tenant, by process or operation of law, or in any manner whatsoever, without the prior written consent of Landlord. Landlord consents to Tenant subleasing a portion of the Leased Premises to ALM Aviation Labor Management, Inc. pursuant to Sublease approved as to form by the City Attorney. ARTICLE 18. HOLDING OVER 18.01 In the event that Tenant shall retain possession of the Leased Premises after the expiration of the term of this Lease or any extension thereof, this Lease shall continued on a month - to -month basis upon all the terms, covenants and conditions herein. -7- ARTICLE 19. QUIET POSSESSION 19.01 Landlord covenants that Tenant, upon paying the rent and complying with the terms, covenants and conditions of this Lease, shall and may peaceably and quietly have, hold, and enjoy the Leased Premises subject to the terms and conditions herein. ARTICLE 20. DEFAULT 20.01 In the event of default at any time by Tenant in the payment of the rent herein provided for or in the performance of any other of its agreements or covenants herein contained, Landlord shall have the right, after written notice to Tenant and Tenant's failure within thirty (30) days after Landlord's delivery of such notice to Tenant to cure or undertake and diligently pursue action to cure said default, to either: (a) declare the term of this Lease ended and re -enter and take possession of the Leased Premises, and /or (b) pursue any remedy whatsoever provided by law; and /or (c) re -enter and take possession of the Leased Premises and use its best efforts to relet the same for and on account of Tenant for the then full remaining portion of the term of this Lease or for any shorter period, and to collect and receive payment of rent therefor and apply any and all monies so received as rent to the credit of Tenant for the rent accruing under the term of this Lease, but no such re- letting shall be construed as a termination of this Lease or as a release of Tenant from Tenant's obligation to pay rent provided during the full term of this Lease, or from Tenant's obligation to perform any other covenant herein contained, it expressly being understood and agreed that in the event of any such re -entry by Landlord such re -entry shall not operate to terminate this Lease or alter the obligation of Tenant to perform its covenants to pay rent pursuant to the terms hereof unless Landlord expressly so elects pursuant to paragraph 20.01(a) above. 20.02 Tenant shall pay all Landlord's costs, charges and expenses including costs and fees of legal counsel, agents and others retained by Landlord, incurred in enforcing Tenant's obligations hereunder or incurred by Landlord in any litigation, negotiation or transaction which Tenant causes Landlord without Landlord's fault to become involved or concerned. 20.03 If Tenant violates any of the terms and provisions of this Lease or defaults in any of its obligations hereunder other than the payment of rent or other sum payable hereunder, such violation may be restrained or such obligation enforced by injunction at the instance and request of Landlord and without the showing of any special damages or other adequate remedy at law. ARTICLE 21. NONDISCRIMINATION 21.01 Tenant, for itself, its successors and approved assigns, as part of the consideration -8- hereof, does hereby covenant and agree as a covenant running with the Leased Premises that (a) No person on the grounds of race, creed, color, sex, national origin, age or handicap shall be excluded from participation in, denied the benefits of, or be otherwise subject to discrimination in the use of the Leased Premises. (b) In the construction of any improvements on, over, or under the Leased Premises and the furnishing of services thereon, no person on the grounds of race, color, religion, sex, national origin, age or handicap shall be excluded form participating in, denied the benefits of, or otherwise be subjected to discrimination. (c) Tenant shall use the Leased Premises in compliance with all other applicable requirements imposed by or pursuant to 49 CFR, Subtitle A, Part 21, and as said Regulations may be amended. 21.02 Tenant assures that (a) Tenant will undertake an affirmative action program as required by 14 CFR, Part 152, Subpart E, to insure that no person shall, on the grounds of race, creed, color, national origin, or sex, be excluded from participating in any employment, contracting or leasing activities covered in 14 CFR, Part 152, Subpart E. Tenant assures that no person shall be excluded, on these grounds, from participating in or receiving the services or benefits of any program or activity covered by said Subpart E. (b) Tenant will comply with all other applicable requirements imposed by or pursuant to 14 CFR, Part 152, Subpart E, and as said Regulations may be amended. ARTICLE 22. FEDERAL AVIATION ADMINISTRATION REQUIREMENTS 22.01 Tenant hereby acknowledges and agrees that the Landlord has reserved unto itself, its successors and assigns, for 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 any aircraft, now known or hereafter used, for navigation of flight in said airspace, and for the use of said airspace for landing on, taking off from, or operation on or over the Pueblo Memorial Airport. 22.02 Tenant shall not permit and shall restrict the height of structures, objects of natural growth and other obstructions on the Leased Premises to a height of not more than 52 feet above ground level, in the event this covenant is breached, Landlord reserves the right to enter upon the Leased Premises at the expense of Tenant to remove the offending structure or object and to cut the offending growth. 22.03 Tenant shall not permit and shall prevent any use of the Leased Premises which -9- would interfere with landing or taking off of aircraft at Pueblo Memorial Airport, or otherwise constitute an airport hazard. 22.04 Tenant shall comply with the notification and review requirements of the Federal Aviation Administration prior to the construction, modification or alteration of any structure or building on the Leased Premises. 22.05 This Lease is and shall be subject and subordinate to the provisions and requirements of any existing or future agreement between the City of Pueblo and the United States Government or any agency thereof relating to the use, development, operation, or maintenance of the Pueblo Memorial Airport. 22.06 Neither this Lease nor any provision hereof shall be construed to grant or authorize the granting of an exclusive right, privilege or franchise. 22.07 Tenant acknowledges and agrees that the Landlord has reserved and shall have the right, without any obligation on its part to do so and without penalty or liability, to maintain and keep in repair the landing area and other public areas or facilities of the Pueblo Memorial Airport and to develop, modify, change, repair, improve, remove or abandon the Pueblo Memorial Airport or any part thereof as it may determine, in its sole and absolute discretion, at any time and from time to time, and to direct and control all activities of Tenant with respect thereto. Tenant hereby waives, releases and discharges the Landlord from any and all claims, demands and liabilities for any damage or injuries resulting from or occasioned by any such actions taken or omitted to be taken by the Landlord, provided, however, if Landlord's actions materially impair Tenant's ability to conduct its business on the Leased Premises, Tenant may terminate this Lease upon thirty (30) days prior written notice to Landlord. 22.08 Tenant shall comply with all Federal Aviation Administration and Landlord's rules and regulations relating to the use, occupancy or operation of the Pueblo Memorial Airport. ARTICLE 23. WAIVER AND TIME OF ESSENCE 23.01 No waiver of any breach or breaches of any provision, covenant or condition of this Lease by Landlord shall be construed to be a waiver of any preceding or succeeding breach of such provision, covenant or condition, or of any other provision, covenant or condition; and time is of the essence for each and every provision, covenant and condition herein contained and on the part of Tenant to be done and performed. The acceptance of rent or partial payment of rent by Landlord shall not be construed to be a waiver of any then existing breach of this Lease. ARTICLE 24. NOTICES 24.01 All notices, demands or communications of any kind which may be required or desired to be served, given or made by Tenant upon or to Landlord, under the terms of or in connection with this Lease, shall be sufficiently served, given or made (as an alternative to personal -10- service upon Landlord) if sent by certified United States Mail, addressed to: City of Pueblo 1 City Hall Place Pueblo, CO 81003 Attn: City Manager (or such other address as may hereafter from time to time be designated for this purpose by Landlord to Tenant in writing). All notices, demands or communications of any kind which may be required or desired to be served, given or made by Landlord upon or to Tenant, under the terms of or in connection with this Lease, shall be sufficiently served, given or made (as an alternative to personal service upon Tenant) if such notice, demand or communication if sent by certified United States Mail, addressed to: Pueblo Development Foundation Post Office Box 1663 Pueblo, Colorado 81002 (or to such other address as may hereafter from time to time be designated for this purpose by Tenant to Landlord in writing). ARTICLE 25. SIGNS 25.01 Tenant shall not inscribe, paint or affix any signs, advertisements, placards or awnings on the exterior or roof of the Building or Land without the prior written consent of the Landlord. ARTICLE 26. MISCELLANEOUS PROVISIONS 26.01 Colorado Law This Lease shall be governed by the laws of the State of Colorado and shall be construed in accordance therewith. 26.02 Writing for Waiver or Modification No provision of this Lease may be waived or modified except by an agreement in writing 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. 26.03 Bindiniz Effect This Lease shall inure to the benefit of and be binding on the parties and their respective successors and approved assigns. The parties agree to do any and all things lawful and necessary to effectuate the purposes of this Lease. 26.04 Construction Throughout this Lease, the singular shall include the plural; the plural shall include the singular; and the masculine and neuter shall include the feminine, wherever the context so requires. -11- 26.05 Text to Control The headings of sections are included solely for convenience of reference. If any conflict between any heading and the text of this Lease exists, the text shall control. 26.06 Severability If any provision of this Lease is declared by any court of competent jurisdiction to be invalid for any reason, such invalidity shall not affect the remaining provisions. On the contrary, such remaining provisions shall be fully severable, and this Lease shall be construed and enforced as if such invalid provisions had never been inserted in the Lease. 26.07 Relationships The relationship between Landlord and Tenant is purely contractual and that of Landlord- Tenant. Tenant acts as an independent contractor and not as an agent of Landlord. 26.08 Entire Aureement This Lease constitutes the entire understanding between the parties and supersedes all prior or independent agreements between the parties covering the subject matter hereof. 26.09 Venue Tenant and Landlord agree that the venue for all actions or causes of action relating to this Lease or the Leased Premises shall be in Pueblo County, Colorado. All such actions shall be filed in the District Court, County of Pueblo, State of Colorado, and Tenant and Landlord submit to the jurisdiction of that Court for such purposes. To the extent authorized by law, each parry waives the right to a jury trial. IN WITNESS WHEREOF, Landlord and Tenant, by their duly authorized representatives, have executed this Lease on the day and year first above written. PUEBLO DEVELOPMENT FOUNDATION PUEBLO, A MUNICIPAL C RPORATION BY B Y President of the City Council Title: Attest: OA. Attest: City Cle Secretary -12- A PARCEL OF LAND LOCATED IN THE NORTH HALF OF SECTION 30, TOWNSHIP 20 S, RANGE 63W OF THE 6TH PRINCIPLE MERIDIAN, ALSO BEING A PORTION OF PARCEL H OF THE PUEBLO MEMORIAL AIRPORT INDUSTRIAL PARK SUBDIVISION BOOK 2836 PAGE 665 -670 AS RECORDED IN THE PUEBLO COUNTY COURT HOUSE PUEBLO, COLORADO, MORE PARTICULARLY DESCRIBED AS FOLLOWS. BASIS OF BEARINGS: BEARINGS BASED ON THE CENTER LINE OF WALT BASSET AVENUE IN THE PUEBLO MEMORIAL AIRPORT INDUSTRIAL PARK SUBDIVISION AS BEING N 88' 26' 39" E. THE WESTERLY POINT IS AN ALUMINUM MONUMENT AT THE INTERSECTION OF WALT BASSETT AVENUE AND FAIRCHILD STREET, THE EASTERLY POINT BEING AN ALUMINUM MONUMENT AT THE INTERSECTION OF WALT BASSETT AVENUE AND BRANIFF STREET. COMMENCING FROM THE MONUMENT AT THE INTERSECTION OF WALT BASSETT AVENUE AND FAIRCHILD STREET, THENCE N 72° 26' 39" W A DISTANCE OF 145.08' TO A POINT ON THE NORTH R.O.W. LINE OF WALT BASSETT AVENUE ALSO THE POINT OF BEGINNING, THENCE N 01' 28' 35" W A DISTANCE OF 493.15', THENCE N 88° 31' 33" E A DISTANCE OF 606.66', THENCE S 01' 28' 35" E A DISTANCE OF 492.29' TO A POINT ON THE NORTH R.O.W. LINE OF WALT BASSETT AVENUE, THENCE S 88' 26' 39" W A DISTANCE OF 606.66' ALONG THE NORTH R.O.W. LINE OF WALT BASSETT AVENUE TO THE P.O.B. SAID PARCEL CONTAINS APPROXIMATELY 6.86 ACRES, MORE OR LESS. NOTE: THE CENTERLINE INTERSECTION OF FAIRCHILD STREET AND WALT BASSETT AVENUE IS APPROXIMATELY LAT. 104° 29' 30" LONG. 38' 17' 00" BASED UPON NGS DEVINE, CO QUADRANGLE 7.5 MINUTE SERIES (TOPOGRAPHIC) MAP PREPARED BY USGS DATED 1960 PHOTOREVISED 1974 LC EXHIBIT "A" UNSUBDIVIDED ��CITY LIM LINE r - TE NAIL IN ASPHALT N 88' 31 33 606.66' ARCEL H W HANGAR N - 0) rn C14 O O Z I/l 60 PENNY I� W �.L.I C-- I� I 3tI I �I I� � t O Z! l I � L P. 0.8. 606.66' S 88' 26' 39" W ? 45 08 VI AL T _ BA -- - - N 88'2639 "E 1300.30' BASIS OF BEARINGS I' Lo I I I I Iz �(lo I I I I II ,I �I! I �I Ili I I; I I I II li .I N88' 27' 34T EXCELLENCE AVE LOT 43 \ LOT 42 NAIL IN ASPHALT PARCEL H PENNY SPIKE A VENU E -.. ... ,. . -. _- ._........._........... .. ... . - o I� _ Lit �I LOT 52 O1 � I� LOT 5' �T SCALE: 1 " = 200' DEPARTMENT OF PUBLIC 'WORKS CITY OF ENGINEERING DiVI SIGN �I �"`✓ 211 East 'D' St. 91003 (7 19 ) 543 -2960 COLORADO FAX 542 -6244 PROJECT NO: LEASE DESCRIPTION PROJECT NAME: BLITZ HANGAR PROPERTY DRAWN g'!: M DATE: 02/11/97 CHECKED BY: B.M. FIELD BOOK: C- DISK: APPROVED BY .M.B PAGE. Rev. 40] Date I AOOl—a By 8.M. E!—, Shoat . I OF I Mangini & Associates Inc. 631 Lake Avenue Pueblo, Colorado 81004 (719) 544 -0865 (719) 544 -0876 Fax I' EAS u A parcel of land being a portion of the N /2 of Section 30, Township 20 South; Range 63 West, also being a portion of Parcel H of the Pueblo Memorial Airport Park Subdivision filed for record in Book 2836 at Page 665 -670 in the records of the Pueblo County Clerk and Recorder, County of Pueblo, State of Colorado, being more particularly described as follows: BEGINNING at a point from which the centerline intersection of Walt Bassett Avenue and Fairchild Street bears S 56° 19'47 "W (bearing based on the said centerline of Walt Bassett Avenue from the intersection of Walt Bassett and Fairchild Street, to the centerline intersection of Walt Bassett and Braniff Street, monumented at each end with a 30" x 3 1 /4 aluminum monument in cast iron monument box to bear N 88 °26'39 "E) a distance of 1000.97 feet; thence N 01 °48'56 "W a distance of 473.02 feet; thence N 88 °25'38 "E a distance of 176.18 feet; thence S 01 °45'00 "E a distance of 473.32 feet; thence S 88 °31'33 "W a distance of 175.64 feet to the POINT OF BEGINNING Said Parcel contains 1.91 acres more or less. RESERVING THEREFROM: An access easement for the purpose of ingress and egress across the above described parcel, said easement being (20) twenty feet in width, (10) ten feet on each side of the following described centerline. COMMENCING at a point from which the centerline intersection of Walt Bassett Avenue and Fairchild Street bears S 56'19'47"W (bearing based on the said centerline of Walt Bassett Avenue from the intersection of Walt Bassett and Fairchild Street, to the centerline intersection of Walt Bassett and Braniff Street, monumented at each end with a 30" x 3 1 /4" aluminum monument in cast iron monument box to bear N 88 °26'39 "E) a distance of 1000.97 feet; thence N 01'48'56"W a distance of 278.35 feet to the POINT OF BEGINNING; thence along an arc of a non - tangent curve to the left whose center bears N 02 °39'34 "W having a central angle of 10 °34'48" an arc length of 79.03 feet and a radius of 428.00 feet; thence N 76 °45'38 "E a distance of 99.49 feet to the POINT OF TERMINUS. O� Q S T O h a 16128 ROCKY L. MANGI DATE �, q�. f'P PROFESSIONAL LAND SURVEYOR 16128 OF CQ�- Professional Engineers & Land Surveyors