HomeMy WebLinkAbout09020RESOLUTION NO. 9020
A RESOLUTION APPROVING A HANGAR GROUND LEASE AGREEMENT FOR
LOT NO. 7 IN THE GENERAL AVIATION HANGAR DEVELOPMENT AREA
BETWEEN PUEBLO, A MUNICIPAL CORPORATION, AND ALLEN J. HANANO,
AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE SAME,
Be it resolved by the City Council of Pueblo, Colorado, that:
SECTION 1
A certain Lease Agreement, a copy of which is attached hereto and made a part hereof by
reference, after having been approved as to form by the City Attorney, by and between the City
of Pueblo, a Municipal Corporation, and Allen J. Hanano covering the lease of Lot No. 7 located
at Pueblo Memorial Airport General Aviation Hangar Development Area, be and the same is
hereby approved; subject to the conditions as set forth in said Lease Agreement.
SECTION 2-
The President of City Council is hereby authorized to execute said Lease Agreement on behalf
of Pueblo, a Municipal Corporation, and the City Clerk shall affix the Seal of the City thereto and
attest the same.
Introduced May 22, 2000
By
ATTEST:
r
City C rk
Al Gurule
Councilperson
APPRPVED:
I t / � ---
President of City Council
Council Agenda
HANGAR GROUND LEASE BETWEEN CITY &
TITLE: ALLEN J. HANANO FOR HANGAR LOT N0. 7 AGENDA ITEM #
DEPARTMENT: PUEBLO MEMORIAL AIRPORT DATE: MAY 22, 2000
ISSUE
Should the City Council approve a Hangar Ground Lease Agreement for Lot No. 7 in the
General Aviation Hangar Development Area between the City of Pueblo and Allen J. Hanano.
RECOMMENDATION
Approval of this Resolution.
BACKGROUND
This lease is for Lot No. 7 of the General Aviation Hangar Development Area. This hangar is
for non - commercial use as Mr. Hanano will be storing his 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).
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.
HANGAR GROUND LEASE
THIS LEASE, made and entered into this 22nd day of May 1 2000 A. D.
between the City of Pueblo, a municipal corporation, "Lessor ", and Allen J. Hanano "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 48' by 60' 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 May 23, 2000 and
ending May 22, 2020 unless sooner terminated as herein provided.
B. Lessor grants unto Lessee the right and option to extend the lease term for two consecutive
ten (10) year periods immediately following the original twenty (20) year lease term. Such
option shall be exercised no later than one hundred eighty days before the end of the original
term or the first extended term, as the case may be. Exercise of such options to extend, shall
be in writing but in no event shall Lessee be entitled to exercise this option, even though such
notice be timely given, unless Lessee shall have timely performed all of its obligations
hereunder and not be in default hereunder.
3. Rental Rate and Other Fees
A. Lessee shall pay rent to the Lessor for the ground lease herein granted a sum per month equal
to one - twelfth (1 /12) of the initial annual rent during the original term, payable in advance
without notice, offset or deduction, and shall be due quarterly on the first day of each quarter
at the Director of Aviation's Office. The commencement date of this lease, as set forth in
paragraph 2, Term, shall be the date upon which rent begins. The initial annual is $ 490.00
calculated by multiplying the gross leased land area by $.05 per square foot. The amount of
rent the Lessee pays will be adjusted based upon the consumer price index for all urban
consumers, CPI -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
HANGAR GROUND LEASE
percentage increase in the CPI -U for the preceding 5 -year period over the comparable CPI -U
for the first month of said 5 -year period. Any rent overdue for more than thirty (30) days will
have an additional fee added to cover extra administrative costs. The additional fee will equal
ten percent (10 %) of the gross amount of all overdue rents. In the event the Lessor initiates
any proceedings to collect any unpaid rent from Lessee or to enforce any other provision of
this Lease, Lessee shall pay all of the Lessor's expenses in connection therewith, including
reasonable attorney's fees.
B. Lessee shall pay combined service fee for services and facilities now furnished by the Lessor
at the Pueblo Memorial Airport, namely: public street maintenance, fire protection and street
lighting based upon the amount established by Lessor which is currently $297.50 per acre
per year. The Lessor may, from time to time, reduce, alter, or eliminate any or all of the
services or facilities presently being furnished and may modify, increase, or decrease the
annual combined service fee therefore and the manner by which it is calculated, including
making separate charges, therefore, provided (i) such services and fee shall be non-
discriminatory among other tenants and owners of land at Pueblo Memorial Airport receiving
such services and facilities then being furnished and (ii) such fee shall be reasonable in relation
to the Lessor's actual cost and expense of furnishing the services and facilities then being
furnished. The Lessor's cost may include the cost of capital improvements amortized over the
useful life of the improvements. Only domestic waste water shall be discharged from the
leased premises to Lessor's sanitary sewer system. Lessee shall be subject to the same
restrictions, conditions, fees and charges as other users of Lessor's sanitary sewer system.
4. Improvements and Use
A. Lessee shall cause to be constucted and installed upon the leased premises the Hangar and
other improvements in accordance with plans and specifications approved by Lessor including
architectural approval, which consent will not unreasonably be withheld. The Hangar and
other improvements shall be constructed in a good and workmanlike manner in accordance
with the applicable ordinances and building codes of the City of Pueblo and pursuant to a
building permit issued by the Regional Building Department. Lessee shall diligently take all
action reasonably required and appropriate to (1) commence construction and installation of
the Hangar and other improvements within six (6) months from commencement date, and (2)
complete such construction and installation within twelve (12) months from commencement
date.
B. In addition to constructing the Hangar and improvements, Lessee shall cause all utilities to be
used by Lessee to be extended underground to the leased premises within easements and
locations to be designated by Lessor and the Lessee shall be responsible for constructing and
maintaining a concrete ramp area in front of the Hangar in accordance with plans and
specifications approved by Lessor. This concrete ramp area must be designed for a minimum
weight bearing capacity of 12,500 pounds for single wheel aircraft and must be built to the
width of the Hangar door opening, less the area required for the Hangar. Should development
take place adjacent to the leased premises, the Director of Aviation at his sole discretion may
require Lessee to pave sections of the leased premises to the full width of the leased
premises. This concrete area must be built so as to connect onto any adjacent ramp, taxiway,
or other paved areas in order that a continuous and safe pavement section results. It is the
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HANGAR GROUND LEASE
responsibility of the Lessee to maintain the entire ramp area in a manner which is safe and
clean of debris so as not to cause danger or unsafe conditions for taxiing aircraft and airport
users.
C. The leased premises shall be used and occupied by Lessee as a Hangar facility for the storage
of aircraft owned or leased by Lessee and for such incidental purposes directly related to such
use. Lessee shall have no right to utilize the leased premises, or any improvement thereon,
other than as specifically allowed under this subsection, and it is specifically understood that
the leased premises shall not be used for any commercial purpose including, without limitation,
an aviation fixed base operation or other commercial aviation operation or the sale of aviation
fuel.
D. No aircraft service or maintenance shall be performed on the leased premises on any aircraft
not owned or leased by the Lessee or Subtenant of the Lessee, provided, however, in no
event shall Lessee or any Subtenant of Lessee conduct or operate an aircraft service or
maintenance business on the leased premises.
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.
3
HANGAR GROUND LEASE
5. Maintenance Obligations
Lessee, at its expense, shall keep the the leased premises, and utilities extended to the leased
premises, in good repair and condition, and in a safe, sanitary, orderly, and sightly condition.
6. Title to Improvements
It is hereby stipulated and agreed that the Hangar and all improvements erected and constructed on
the leased premises by Lessee shall be attached to the leased premises and title to same shall remain
in the Lessee while this Lease is in effect.
7. Right of First Refusal
If Lessee desires to sell the Hangar and other Lessee improvements during the term of this Lease,
Lessee shall first offer in writing to sell same to Lessor upon the price, terms and conditions Lessee
would be willing to accept in a good faith arms - length sale to a third party (the "Offer "). Lessor shall
have thirty (30) days after receipt of the Offer to accept the Offer. If Lessor does not accept the
Offer in writing within said thirty (30) day period, Lessee may sell the Hangar and other Lessee
improvements to a third party free of Lessor's right of first refusal granted by this section, but not
at a price less than, nor upon terms and conditions more favorable than those contained in the Offer.
If Lessee sells the Hangar and other Lessee improvements to Lessor, this Lease shall terminate. If
Lessee sells the Hangar and other Lessee Improvements to a third party, Lessee shall remain
obligated and liable under this Lease unless and until Lessee assigns this Lease pursuant to Section
16(A) hereof.
8. Signs
Lessee shall not erect, paint or maintain any signs whatsoever upon the leased premises without first
securing the written consent of the Lessor. Any such signs shall comply with all ordinances and
regulations of the Lessor or standards which might be developed by the Department of Aviation.
Only one identification sign, logo, or name may be permitted on the exterior of the Hangar.
9. Right of Inspection
The Lessor reserves and retains for its officers, employees and authorized representatives the right
to enter the leased premises during reasonable business hours, and after prior notice, for the purpose
of inspecting and protecting the leased premises, and of doing any and all things which the Lessor
may deem necessary for the proper general conduct and operation of the Pueblo Memorial Airport,
and in the exercise of the Lessor's police power.
10. Taxes and Licenses
Lessee covenants and agrees to pay promptly all valid taxes and other government charges of
whatever nature assessed against or applicable to the leased premises or Lessee or Lessee's property
or operations on the leased premises. Lessee also covenants and agrees not to permit any
mechanic's or materialman's lien to be filed against the leased premises or any part or parcel thereof
by reason of any work or labor performed or materials furnished by any contractor, subcontractor,
4
HANGAR GROUND LEASE
mechanic or materialman. Lessee further covenants and agrees to pay promptly when due all bills,
debts and obligations incurred by it in connection with its operations on the leased premises, and not
to permit the same to become delinquent and to suffer no lien, mortgage, judgment or execution to
be filed against the leased premises which will be in any way an impairment of the rights of the
Lessor under this Lease Agreement.
11. Indemnification
Lessee assumes the risk of loss or damage to the leased premises and property thereon, whether
from windstorm, fire, earthquake, snow, water run -off, or any other causes whatsoever. Lessee
covenants and agrees that it will indemnify and save harmless Lessor, its officers, agents and
employees from all demands, claims, costs, causes of action or judgments, and from all expenses
incurred by Lessor, in investigating or resisting the same, including reasonable attorney fees, arising
from or growing out of the negligent acts or omissions of Lessee, its contractors, agents, members,
stockholders, employees, invitees, servants, subtenants, successors or assigns in connection with
its use or occupancy or their use or occupancy of any portion of the Pueblo Memorial Airport,
including the leased premises.
12. Insurance and Damage
A. At all times during the term of this Lease Agreement, and of any renewal or extension hereof,
Lessee agrees that it will, at its own cost and expense, provide and keep in force commercial
liability insurance which includes personal injury and property damage with a combined single
limit not less than $1,000,000. Lessee shall insure the Hangar and other improvements in an
amount equal to their full insurable value. Lessee shall provide Lessor with copies showing
proof of such insurance and subsequent renewals or changes as might occur during the term
of this lease. With respect to any insured loss to the leased premises and property thereon,
including aircraft, Lessee releases Lessor, it's officers, agents, and employees from any claim
or liability Lessee may have on account of such loss and waives any right of subrogation
which might otherwise exist in or occur to any person on account thereof.
B. Such policies shall provide that they may not be materially changed, altered, or canceled by
the insurer during its terms without first giving ten (10) days written notice by certified or
registered United States mail to the Lessor.
C. Lessee shall not violate the terms or prohibitions of any insurance policy herein required to be
furnished by Lessee.
D. If the Hangar or other improvements (the "Improvements ") are damaged or destroyed by fire
or other casualty, Lessee shall within one hundred twenty (120) days from the occurrence of
such casualty either (1) repair and restore the damaged or destroyed Improvements, (2)
demolish the damaged or destroyed Improvements, restore the leased premises to their
original condition, and terminate this Lease, or (3) demolish the damaged or destroyed
Improvements and commence constructionof replacement Improvements, and thereafter
complete such construction within nine (9) months from the occurrence of such casualty. All
repairs to or restoration of Improvements and /or construction of replacement Improvements
5
HANGAR GROUND LEASE
shall be in compliance with applicable laws and codes, and in accordance with plans and
specifications therefor approved by Lessor, which approval will not be unreasonably withheld.
13. Waivers
No provision of this lease may be waived except by an agreement signed by the waiving party. A
waiver of any term or provision shall not be construed as a waiver of any other term or provision.
14. Holding Over
Should Lessee hold over the use of or continue to occupy the leased premises after the termination
or cancellation of this Lease Agreement, such holding over shall be deemed merely a tenancy for
successive monthly terms upon the same conditions as provided in this Lease Agreement subject to
termination upon thirty (30) days prior written notice.
15. Inconvenience During Construction
Lessee recognizes that from time to time it will be necessary for the Lessor to initiate and carry
forward extensive programs of construction, reconstruction, expansion, relocation, maintenance and
repair at and to the Pueblo Memorial Airport in order that the Pueblo Memorial Airport and its facilities
may be suitable for the volume and character of air traffic and flight activity which will require
accommodation, and that such construction, reconstruction, expansion, relocation, maintenance, and
repair may inconvenience or interrupt Lessee's operations at the Pueblo Memorial Airport. Lessee
agrees that no liability shall attach to Lessor, its officers, agents, employees, contractors,
subcontractors and representatives by reason of such inconvenience or interruption, and for and in
further consideration of the premises, Lessee waives any right to claim damages or other
consideration therefor, provided, however, that this waiver shall not extend to, or be construed to
be a waiver of, any claim for physical damage to property resulting from negligence or willful
misconduct of the Lessor, its officers, agents, employees, contractors, subcontractors and
representatives.
16. Place and Manner of Payments
In all cases where Lessee is required by this Lease Agreement to pay any rentals, rates, fees or other
charges or to make other payments to Lessor, such payments shall be made at the office of the
Director of Aviation at the Pueblo Memorial Airport, or at such other place as Lessor may hereafter
designate by notice in writing to Lessee and shall be made in legal tender of the United States and
any check shall be received by Lessor subject to collection. Lessee agrees to pay any bank charges
made for the collection of any such checks.
17. Assignments and Subletting
A. Lessee shall not assign or transfer this Lease without the prior written consent of Lessor,
which consent shall not be unreasonably withheld. Any assignment or transfer without the
prior written consent of Lessor shall be void.
R
HANGAR GROUND LEASE
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.
(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.
7
HANGAR GROUND LEASE
(2) Failure of Lessee to perform or comply with any obligations, covenant or agreement
of Lessee hereunder for a period of thirty (30) days after written notice specifying such
failure is given by Lessee to Lessor, except that if such obligation, covenant or
agreement is not capable of being performed within said thirty (30) day period, Lessee
shall not be in default if Lessee shall commence such performance within said thirty
(30) day period and thereafter prosecute the same with diligence and continuity to
completion.
B. In the case of any event of default by Lessee, Lessor shall have the following remedy in
addition to all other rights and remedies provided by law or in equity, including without
limitation, damages and specific performance:
(1) Terminate this Lease by one hundred twenty (120) days prior written notice given to
Lessee specifying the date of termination. In the event of such termination, Lessee
shall have the right during said one hundred twenty (120) day period to either:
(a) remove the Hangar and other improvement of Lessee from the leased premises
and restore the leased premises to their original condition; or,
(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: Allen J. Hanano 1551 Larimer St. #1902 Denver CO 80202 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.
E:
HANGAR GROUND LEASE
21. Rules and Regulations
A. In addition to all other provisions of this Lease Agreement, Lessee agrees to comply with all
Federal, State, and Lessor's Rules and Regulations, and all amendments, thereto, including
Chapter 1 of Title III of the 1971 Code of Ordinances.
B. Lessee, its officers, agents and employees shall faithfully observe all rules and regulations
affecting the use of the Pueblo Memorial Airport or motor vehicles thereon or the use and
occupancy of the leased premises, whether established by the Director of Aviation, the City
of Pueblo, the State of Colorado, or the United States or agencies thereof and Lessee's use
and occupancy of the leased premises and improvements thereon are subject to all ordinances
of the City of Pueblo the same as though the Property and Pueblo Memorial Airport was
located within the jurisdictional limits of the City of Pueblo.
22. F.A.A. Lease Requirements
A. The Lessor reserves the right, without any obligation on its part to do so, to develop, modify,
change, improve or abandon the Pueblo Memorial Airport or any part thereof, as it may
determine in its sole discretion, at any time, regardless of the desires or view of Lessee, and
without interference or hindrance from Lessee or liability to Lessee.
B. The Lessor reserves the right, without any obligation on its part to do so, to maintain and keep
in repair the landing area of the Airport and all publicly owned facilities of the Airport, together
with the right to direct and control all activities of Lessee in this regard.
C. This Lease Agreement shall be subordinate to the provisions and requirements of any existing
or future agreement between the Lessor and the United States, relative to the use,
development, operation, or maintenance of the Airport.
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
9
HANGAR GROUND LEASE
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.
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 CI k
LESSOR:
CITY !PUEBLO, A NICIPAL CORPORATION
President of the City Council
APPROVED AS TO FORM:
City Attorney
LESSEE:
AlleW Hanano
ice
EXHIBIT "A"
August 6, 1997
LEGAL DESCRIPTION FOR PARCEL FOR GA -7 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, 2,805.00 feet along the Runway centerline to a point;
Thence S 1'4' '24 "E, 1,882.50 feet, to a point 1,882.50 feet right of Runway 8L/26R
Station 28 +05.00, to the True Point of Beginning;
Thence N 88 °16'36 "E, 70.00 feet;
Thence S 1'4'1'24"E, 140.00 feet;
Thence S 88 °16'36 "W, 70.00 feet;
Thence N 1 °43'24 "W, 140.00 feet, to the True Point of Beginning.
Said lease parcel contains 9,800 square feet (0.2250 acres) more or less.
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MIRACLE STEEL STRUCTURES INC.
May !1, 2000
Pueh`.c Mem. Air_�ort Restaurant
Allen ?lar_ano
31201 Bryan Circle
Pueblo, CO 81001
RE: CONFZRZZATION OF CHA2 GES TO YOUR BUILDING MATERIAL PACKAGE
ATTY. Allen Hp-nano
This s to Col: =irm tha most recent changes made to your ordar
of May 04, 2000. Your shipment now reads as follows:
1 - MIRkCLE TRUSS MA TERIAL PACKAG
48' WID x 60' LONG x 18' EAVE
2:12 ROOF PITCH
INCLUDES: TRUSSES
TRUSS HARDWARE
STEEL ENDWA.LLS
SHEETING WALLS /ENDS - LTGHT STONE
ROOT - LIGHT STONE
TRIM - RED
FASTENERS (STANDARD) AND CLOSURE STRIPS
CERTIFIETD PLANS
1 - 4VW X 16'H SIFOLD DOORS) W ELECTRIC
BIFOLD OPENING 46' X 15 1/2'
22' PEAK HEIGHT
? ASSEMBLY PLPLrTS AND INSTRUCTYONS
SNOOD SCI?EDULE
F.O.B. - PUEFLO, CO
TOTAL STEEL MATERIAL COST 28244.00
LESS DEPOSIT RECEIVEn 3900.00
BALANCE DUE UPON DZLIVER`r 24344.00
sincerely,
�j
Ch=as No r
MI1 -ACLE STEEL STRUCT=FS, ItiIC,
tj c
Waterford Tower, Suite 500 50y North Highway 169 ® Mi mneapolis, MN 55 -6420
PH (763) 593 -1000 FAX(763)544-J.835 • www.miracletruss.com
ASSIGNMENT OF HANGAR GROUND LEASE
THIS ASSIGNMENT is entered into thiso21 day of.Sa,I L_, 2018 ("Effective Date") by
and between Allen J. Hanano, 1551 Larimer Street #1902, Denver, Colorado 80202 ("Hanano"),
Richard P. Fazio and Teresa A. Fazio, 14995 Crooked Spur Lane, Colorado Springs, CO 80921
(together jointly and severally liable as"Fazio"), and the City of Pueblo, a Municipal Corporation,
through its Department of Aviation, 31201 Bryan Circle, Pueblo, Colorado 81001 ("City").
Recitals
WHEREAS, City and Hanano entered into a Hangar Ground Lease dated May 22, 2000
for Lot No. 7 located in the General Aviation Hangar Development Area of the Pueblo Memorial
Airport("Hangar Ground Lease"); and
WHEREAS,Hanano wishes to assign the Hangar Ground Lease to Fazio,and Fazio wishes
to assume said Hangar Ground Lease;and
WHEREAS, the City consents to said assignment and Fazio's assumption of the Hangar
Ground Lease.
NOW, THEREFORE, in consideration of the foregoing recitals and the terms, conditions
and mutual promises set forth in this agreement,the parties agree as follows:
1. Assignment. Hanano hereby transfers, sells, and assigns to Fazio, Hanano's right,
title, and interest in and to the Hangar Ground Lease.
2. Assumption. Fazio accepts the assignment of the Hangar Ground Lease and
hereby assumes and agrees to observe, perform and otherwise discharge when due
all obligations of the Hangar Ground Lease a copy of which, marked as Exhibit I,
is attached hereto and incorporated herein by reference. This shall include, but is
not limited to, the making of all payments and performance of all covenants and
duties.
3. Consent. City hereby consents to the foregoing assignment and assumption of the
Hangar Ground Lease and City agrees to afford Fazio the same rights under the
Hangar Ground Lease as previously enjoyed by Hanano. No further assignment of
the Hangar Ground Lease, or any part thereof, shall be made without the prior
written consent of City. Any assignment or transfer without City's prior written
consent shall be void.
4. Effective Date. This assignment shall become effective on the date set forth above.
IN WITNESS WHEREOF the parties have executed this assignment as of the Effective Date.
RICHARD P. FAZIO CITY OF P BLO,
A I ► CORPORATION
14244R
By: am Azad
City Manager
TERESA A. FAZIO
&(J2),aet- ATTEST:- 1dJt
Acting City Clerk 'J
ALLEN J. •1 A)1O
EXHIBIT I
HANGAR GROUND LEASE
THIS LEASE, made and entered into this 22nd day of May 2000 A.D.
between the City of Pueblo, a municipal corporation, "Lessor", and Allen J. Hanano, "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 48' by 60' 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 May 23, 2000 and
ending May 22, 2020 unless sooner terminated as herein provided.
B. Lessor grants unto Lessee the right and option to extend the lease term for two consecutive
ten (10) year periods immediately following the original twenty (20) year lease term. Such
option shall be exercised no later than one hundred eighty days before the end of the original
term or the first extended term, as the case may be. Exercise of such options to extend, shall
be in writing but in no event shall Lessee be entitled to exercise this option,even though such
notice be timely given, unless Lessee shall have timely performed all of its obligations
hereunder and not be in default hereunder.
3. Rental Rate and Other Fees:
A. Lessee shall pay rent to the Lessor for the ground lease herein granted a sum per month equal
to one-twelfth (1/12) of the initial annual rent during the original term, payable in advance
without notice, offset or deduction, and shall be due quarterly on the first day of each quarter
at the Director of Aviation's Office. The commencement date of this lease, as set forth in
paragraph 2, Term, shall be the date upon which rent begins. The initial annual is $490.00
calculated by multiplying the gross leased land area by $.05 per square foot. The amount of
rent the Lessee pays will be adjusted based upon the consumer price index for all urban
consumers, CPI-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
1
HANGAR GROUND LEASE
percentage increase in the CPI-U for the preceding 5-year period over the comparable CPI-U
for the first month of said 5-year period. Any rent overdue for more than thirty (30)days will
have an additional fee added to cover extra administrative costs. The additional fee will equal
ten percent (10%) of the gross amount of all overdue rents. In the event the Lessor initiates
any proceedings to collect any unpaid rent from Lessee or to enforce any other provision of
this Lease, Lessee shall pay all of the Lessor's expenses in connection therewith, including
reasonable attorney's fees.
B. Lessee shall pay combined service fee for services and facilities now furnished by the Lessor
at the Pueblo Memorial Airport, namely: public street maintenance, fire protection and street
lighting based upon the amount established by Lessor which is currently $297.50 per acre
per year. The Lessor may, from time to time, reduce, alter, or eliminate any or all of the
services or facilities presently being furnished and may modify, increase, or decrease the
annual combined service fee therefore and the manner by which it is calculated, including
making separate charges, therefore, provided (i) such services and fee shall be non-
discriminatory among other tenants and owners of land at Pueblo Memorial Airport receiving
such services and facilities then being furnished and (ii)such fee shall be reasonable in relation
to the Lessor's actual cost and expense of furnishing the services and facilities then being
furnished. The Lessor's cost may include the cost of capital improvements amortized over the
useful life of the improvements. Only domestic waste water shall be discharged from the
leased premises to Lessor's sanitary sewer system. Lessee shall be subject to the same
restrictions, conditions, fees and charges as other users of Lessor's sanitary sewer system.
4. Improvements and Use:
A. Lessee shall cause to be constucted and installed upon the leased premises the Hangar and
other improvements in accordance with plans and specifications approved by Lessor including
architectural approval, which consent will not unreasonably be withheld. The Hangar and
other improvements shall be constructed in a good and workmanlike manner in accordance
with the applicable ordinances and building codes of the City of Pueblo and pursuant to a
building permit issued by the Regional Building Department. Lessee shall diligently take all
action reasonably required and appropriate to (1) commence construction and installation of
the Hangar and other improvements within six (6) months from commencement date, and (2)
complete such construction and installation within twelve (12) months from commencement
date.
B. In addition to constructing the Hangar and improvements, Lessee shall cause all utilities to be
used by Lessee to be extended underground to the leased premises within easements and
locations to be designated by Lessor and the Lessee shall be responsible for constructing and
maintaining a concrete ramp area in front of the Hangar in accordance with plans and
specifications approved by Lessor. This concrete ramp area must be designed for a minimum
weight bearing capacity of 12,500 pounds for single wheel aircraft and must be built to the
width of the Hangar door opening, less the area required for the Hangar. Should development
take place adjacent to the leased premises, the Director of Aviation at his sole discretion may
require Lessee to pave sections of the leased premises to the full width of the leased
premises. This concrete area must be built so as to connect onto any adjacent ramp,taxiway,
or other paved areas in order that a continuous and safe pavement section results. It is the
2
HANGAR GROUND LEASE
responsibility of the Lessee to maintain the entire ramp area in a manner which is safe and
clean of debris so as not to cause danger or unsafe conditions for taxiing aircraft and airport
users.
C. The leased premises shall be used and occupied by Lessee as a Hangar facility for the storage
of aircraft owned or leased by Lessee and for such incidental purposes directly related to such
use. Lessee shall have no right to utilize the leased premises, or any improvement thereon,
other than as specifically allowed under this subsection, and it is specifically understood that
the leased premises shall not be used for any commercial purpose including,without limitation,
an aviation fixed base operation or other commercial aviation operation or the sale of aviation
fuel.
D. No aircraft service or maintenance shall be performed on the leased premises on any aircraft
not owned or leased by the Lessee or Subtenant of the Lessee, provided, however, in no
event shall Lessee or any Subtenant of Lessee conduct or operate an aircraft service or
maintenance business on the leased premises.
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.
3
HANGAR GROUND LEASE
5. Maintenance Obligations:
Lessee, at its expense, shall keep the the leased premises, and utilities extended to the leased
premises, in good repair and condition, and in a safe, sanitary, orderly, and sightly condition.
6. Title to Improvements:
It is hereby stipulated and agreed that the Hangar and all improvements erected and constructed on
the leased premises by Lessee shall be attached to the leased premises and title to same shall remain
in the Lessee while this Lease is in effect.
7. Right of First Refusal:
If Lessee desires to sell the Hangar and other Lessee improvements during the term of this Lease,
Lessee shall first offer in writing to sell same to Lessor upon the price, terms and conditions Lessee
would be willing to accept in a good faith arms-length sale to a third party (the "Offer"). Lessor shall
have thirty (30) days after receipt of the Offer to accept the Offer. If Lessor does not accept the
Offer in writing within said thirty (30) day period, Lessee may sell the Hangar and other Lessee
improvements to a third party free of Lessor's right of first refusal granted by this section, but not
at a price less than, nor upon terms and conditions more favorable than those contained in the Offer.
If Lessee sells the Hangar and other Lessee improvements to Lessor, this Lease shall terminate. If
Lessee sells the Hangar and other Lessee Improvements to a third party, Lessee shall remain
obligated and liable under this Lease unless and until Lessee assigns this Lease pursuant to Section
16(A) hereof.
8. Signs:
Lessee shall not erect, paint or maintain any signs whatsoever upon the leased premises without first
securing the written consent of the Lessor. Any such signs shall comply with all ordinances and
regulations of the Lessor or standards which might be developed by the Department of Aviation.
Only one identification sign, logo, or name may be permitted on the exterior of the Hangar.
9. Right of Inspection:
The Lessor reserves and retains for its officers, employees and authorized representatives the right
to enter the leased premises during reasonable business hours, and after prior notice, for the purpose
of inspecting and protecting the leased premises, and of doing any and all things which the Lessor
may deem necessary for the proper general conduct and operation of the Pueblo Memorial Airport,
and in the exercise of the Lessor's police power.
10. Taxes and Licenses:
Lessee covenants and agrees to pay promptly all valid taxes and other government charges of
whatever nature assessed against or applicable to the leased premises or Lessee or Lessee's property
or operations on the leased premises. Lessee also covenants and agrees not to permit any
mechanic's or materialman's lien to be filed against the leased premises or any part or parcel thereof
by reason of any work or labor performed or materials furnished by any contractor, subcontractor,
4
HANGAR GROUND LEASE
mechanic or materialman. Lessee further covenants and agrees to pay promptly when due all bills,
debts and obligations incurred by it in connection with its operations on the leased premises, and not
to permit the same to become delinquent and to suffer no lien, mortgage,judgment or execution to
be filed against the leased premises which will be in any way an impairment of the rights of the
Lessor under this Lease Agreement.
11. Indemnification:
Lessee assumes the risk of loss or damage to the leased premises and property thereon, whether
from windstorm, fire, earthquake, snow, water run-off, or any other causes whatsoever. Lessee
covenants and agrees that it will indemnify and save harmless Lessor, its officers, agents and
employees from all demands, claims, costs, causes of action or judgments, and from all expenses
incurred by Lessor, in investigating or resisting the same, including reasonable attorney fees, arising
from or growing out of the negligent acts or omissions of Lessee, its contractors, agents, members,
stockholders, employees, invitees, servants, subtenants, successors or assigns in connection with
its use or occupancy or their use or occupancy of any portion of the Pueblo Memorial Airport,
including the leased premises.
12. Insurance and Damage:
A. At all times during the term of this Lease Agreement, and of any renewal or extension hereof,
Lessee agrees that it will, at its own cost and expense, provide and keep in force commercial
liability insurance which includes personal injury and property damage with a combined single
limit not less than $1,000,000. Lessee shall insure the Hangar and other improvements in an
amount equal to their full insurable value. Lessee shall provide Lessor with copies showing
proof of such insurance and subsequent renewals or changes as might occur during the term
of this lease. With respect to any insured loss to the leased premises and property thereon,
including aircraft, Lessee releases Lessor, it's officers, agents, and employees from any claim
or liability Lessee may have on account of such loss and waives any right of subrogation
which might otherwise exist in or occur to any person on account thereof.
B. Such policies shall provide that they may not be materially changed, altered, or canceled by
the insurer during its terms without first giving ten (10) days written notice by certified or
registered United States mail to the Lessor.
C. Lessee shall not violate the terms or prohibitions of any insurance policy herein required to be
furnished by Lessee.
D. If the Hangar or other improvements (the "Improvements") are damaged or destroyed by fire
or other casualty, Lessee shall within one hundred twenty (120) days from the occurrence of
such casualty either (1) repair and restore the damaged or destroyed Improvements, (2)
demolish the damaged or destroyed Improvements, restore the leased premises to their
original condition, and terminate this Lease, or (3) demolish the damaged or destroyed
Improvements and commence constructionof replacement Improvements, and thereafter
complete such construction within nine (9) months from the occurrence of such casualty. All
repairs to or restoration of Improvements and/or construction of replacement Improvements
5
•
HANGAR GROUND LEASE
shall be in compliance with applicable laws and codes, and in accordance with plans and
specifications therefor approved by Lessor, which approval will not be unreasonably withheld.
13. Waivers:
No provision of this lease may be waived except by an agreement signed by the waiving party. A
waiver of any term or provision shall not be construed as a waiver of any other term or provision.
14. Holding Over:
Should Lessee hold over the use of or continue to occupy the leased premises after the termination
or cancellation of this Lease Agreement, such holding over shall be deemed merely a tenancy for
successive monthly terms upon the same conditions as provided in this Lease Agreement subject to
termination upon thirty (30) days prior written notice.
15. Inconvenience During Construction:
Lessee recognizes that from time to time it will be necessary for the Lessor to initiate and carry
forward extensive programs of construction,reconstruction,expansion, relocation,maintenance and
repair at and to the Pueblo Memorial Airport in order that the Pueblo Memorial Airport and its facilities
may be suitable for the volume and character of air traffic and flight activity which will require
accommodation,and that such construction,reconstruction,expansion,relocation,maintenance,and
repair may inconvenience or interrupt Lessee's operations at the Pueblo Memorial Airport. Lessee
agrees that no liability shall attach to Lessor, its officers, agents, employees, contractors,
subcontractors and representatives by reason of such inconvenience or interruption, and for and in
further consideration of the premises, Lessee waives any right to claim damages or other
consideration therefor, provided, however, that this waiver shall not extend to, or be construed to
be a waiver of, any claim for physical damage to property resulting from negligence or willful
misconduct of the Lessor, its officers, agents, employees, contractors, subcontractors and
representatives.
16. Place and Manner of Payments:
In all cases where Lessee is required by this Lease Agreement to pay any rentals, rates,fees or other
charges or to make other payments to Lessor, such payments shall be made at the office of the
Director of Aviation at the Pueblo Memorial Airport, or at such other place as Lessor may hereafter
designate by notice in writing to Lessee and shall be made in legal tender of the United States and
any check shall be received by Lessor subject to collection. Lessee agrees to pay any bank charges
made for the collection of any such checks.
17. Assignments and Subletting:
A. Lessee shall not assign or transfer this Lease without the prior written consent of Lessor,
which consent shall not be unreasonably withheld. Any assignment or transfer without the
prior written consent of Lessor shall be void.
6
HANGAR GROUND LEASE
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.
(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.
7
•
HANGAR GROUND LEASE
(2) Failure of Lessee to perform or comply with any obligations, covenant or agreement
of Lessee hereunder for a period of thirty (30) days after written notice specifying such
failure is given by Lessee to Lessor, except that if such obligation, covenant or
agreement is not capable of being performed within said thirty (30) day period, Lessee
shall not be in default if Lessee shall commence such performance within said thirty
(30) day period and thereafter prosecute the same with diligence and continuity to
completion.
B. In the case of any event of default by Lessee, Lessor shall have the following remedy in
addition to all other rights and remedies provided by law or in equity, including without
limitation, damages and specific performance:
(1) Terminate this Lease by one hundred twenty (120) days prior written notice given to
Lessee specifying the date of termination. In the event of such termination, Lessee
shall have the right during said one hundred twenty (120) day period to either:
(a) remove the Hangar and other improvement of Lessee from the leased premises
and restore the leased premises to their original condition; or,
(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: Allen J. Hanano, 1551 Larimer St. #1902, Denver, CO 80202 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.
8
HANGAR GROUND LEASE
21. Rules and Regulations:
A. In addition to all other provisions of this Lease Agreement, Lessee agrees to comply with all
Federal, State, and Lessor's Rules and Regulations, and all amendments, thereto, including
Chapter 1 of Title III of the 1971 Code of Ordinances.
B. Lessee, its officers, agents and employees shall faithfully observe all rules and regulations
affecting the use of the Pueblo Memorial Airport or motor vehicles thereon or the use and
occupancy of the leased premises, whether established by the Director of Aviation, the City
of Pueblo, the State of Colorado, or the United States or agencies thereof and Lessee's use
and occupancy of the leased premises and improvements thereon are subject to all ordinances
of the City of Pueblo the same as though the Property and Pueblo Memorial Airport was
located within the jurisdictional limits of the City of Pueblo.
22. F.A.A. Lease Requirements:
A. The Lessor reserves the right, without any obligation on its part to do so, to develop, modify,
change, improve or abandon the Pueblo Memorial Airport or any part thereof, as it may
determine in its sole discretion, at any time, regardless of the desires or view of Lessee, and
without interference or hindrance from Lessee or liability to Lessee.
B. The Lessor reserves the right,without any obligation on its part to do so,to maintain and keep
in repair the landing area of the Airport and all publicly owned facilities of the Airport,together
with the right to direct and control all activities of Lessee in this regard.
C. This Lease Agreement shall be subordinate to the provisions and requirements of any existing
or future agreement between the Lessor and the United States, relative to the use,
development, operation, or maintenance of the Airport.
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
9
HANGAR GROUND LEASE
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.
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: LESSOR:
CITY 0 UEBLO, NICIPAL CORPORATION
By It-City CI
President of the City Council
APPROVED AS TO FORM: LESSEE:
City Att• " All- � . Hanano
10
EXHIBIT .'iAn
August 6, 1997.
LEGAL DESCRIPTION FOR PARCEL FOR GA-7 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, 1666.9.9 feet to V
the centerline at the west end of Runway 8L/26R,more specifically known as Station
0+00; .
Thence N 88°16'36"E, 2,805.00 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 V -
Station 28+05.00, to the True Point of Beginning;
Thence N 88°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°43'24"W, 140.00 feet, to the True Point of Beginning.
Said lease parcel contains 9,800 square feet(0.2250 acres)more or less_
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N C.A.T. HANANO PUEBLO ._-;: --=•--..VS ------ --- -ROUKEMA N
"'PARTNERS AERO -HOLDINGS -
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Sta. 26+50 2047.5 Rt S 88.16'361V Sta. 31+20 20475"Rt
7 R/W 8L/26Rlel R/W 8L/26R-�
Taxilane _ _
ccv Sta. 29+56.01 2072.34'Rt "B" Sta. 31+16.01 2072.34'Rf
R/W 8L/26R R/W 8L/26R
N 8816'36 ' 160.00'
LOT 11
BLITZ AVIATION
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N c°nt°•n5 N
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, Sta. 29+56.01 2197.34'Rt Z Ste. 31+16.01 219734"Rt 0
'\ R/W 8L/26R \ R/W 8L/26R \
Sta. 26+50 2222.5'Rt S 8816'361V 160.00'
R/W 8L/26R
-- - -- - - - a Taxilane — — --- -- --- —-
Ste. 30+95 2222.5',4t
R/W 3L/26R
AMENDMENT TO LEASE
This Amendment is entered into as of the i6"day of , , 2020 ("Effective Date"), by
and between the City of Pueblo, a Municipal Corporation "Lessor"), and Richard P. Fazio and
Teresa A. Fazio (together jointly and severally liable as "Lessee").
WHEREAS, Lessor entered into a certain Hangar Ground Lease with Allen J. Hanano dated May
22, 2000 ("Lease"); and
WHEREAS, the Lease was assigned from Allen J. Hanano to Lessee on June 29, 2018 through the
Assignment of Hangar Ground Lease ("Assignment"); and
WHEREAS, Lessee failed to extend the term of the Lease for two consecutive ten(10)year periods
per Section 2(B) of the Lease and is currently in a month-to-month tenancy under Section 14 of
the Lease; and
WHEREAS, in consideration for the terms of this Amendment, Lessor waives Lessee's failed
extension and allows Lessee to extend the term per Section 2(B) of the Lease.
NOW THEREFORE, in consideration of the foregoing recitals, and the promises and conditions
set forth below, the parties agree to amend the Lease as follows:
1. The Lease is hereby extended for two consecutive terms of ten (10) years as if Lessee had
met the time limits contained within Section 2(B) of the Lease. The first term of ten (10)
years shall expire on May 22, 2030 and the second term of ten (10) years shall expire on
May 22, 2040.
2. A new Section 3(C) of the Lease is hereby added to read:
Beginning on the renewal date, Lessee shall pay rent to the Lessor for the ground lease
herein granted a sum per month equal to one-twelfth (1/12) of the renewed annual rent,
payable in advance without notice, offset, or deduction, and shall be due quarterly on the
first day of each quarter at the Director of Aviation's Office. The "renewal date" of this
Lease shall be May 23, 2020, the day following the initial term. The"renewed annual rent"
is $1,666.00, calculated by multiplying the gross leased land area by $0.17 per square foot.
The amount of rent the Lessee pays will be adjusted based upon the consumer price index
for all urban consumers, CPI-U (all items 1982-1984=100). The renewed rent shall be
adjusted on the 5th, 10th, 15th, and 20th anniversaries of the renewal date. The rent will be
increased by a percentage equal to the percentage increase in the CP1-U for the preceding
five-year period over the comparable CP1-U for the first month of said five-year period.
The renewed rent shall also be adjusted each year past the 20th anniversary, where any
month-to-month tenancy is held pursuant to Section 14 of this Lease. The rent will be
increased by a percentage equal to the percentage increase in the CPI-U for the preceding
year over the comparable CPI-U for the first month of said year. Any rent overdue for more
than thirty (30) days will have an additional fee added to cover extra administrative costs.
The additional fee will equal ten percent (10%) of the gross amount of all overdue rents.
In the event the Lessor initiates any proceedings to collect any unpaid rent from Lessee or
to enforce any other provision of this Lease, Lessee shall pay all of the Lessor's expenses
in connection therewith, including reasonable attorney's fees.
3. Section 4(C) of the Lease is hereby deleted in its entirety and replaced with the following:
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, the sale of aviation
fuel, or other commercial aviation operation. Subletting space within the Hangar pursuant
to Section 17(B) of this Lease shall be considered commercial use of this Hangar and must
be approved by the Director of Aviation prior to such subletting. The Director of Aviation
may approve commercial uses of the Hangar subject to federal, state, and local law and any
prior agreements governing commercial operations at the Airport. A two percent (2%)
commission shall be paid to Lessor for any commercial use of the Hangar.
4. The parties hereto further agree that nothing contained within this Amendment alters or
modifies any other paragraphs or provisions of the Lease.
IN WITNESS WHEREOF the parties have executed this amendment as of the Effective Date.
ATTEST: CITY OF PUEBLO,
A MUNICIPAL CORPORATION
B j&Q 1CtO (Lj4By /IGG
City Clerk Nicholas A. Gradisar, Mayor
RICHARD P. FAZIO AND
TERESA A. FAZIO
r• .
By /) ie
Printed Name G'(i6,( �fil
Title at 12-k
By avviatx.
Printed Name 1 f;r"•E', c.z 4kx [Gk_' IC_.
,
Title / ,t