HomeMy WebLinkAbout09535RESOLUTION NO. 9535
A RESOLUTION APPROVING A HANGAR GROUND LEASE
AGREEMENT BETWEEN THE CITY OF PUEBLO, A
MUNICIPAL CORPORATION, AND AIRPORT PROPERTIES,
INC., A TEXAS CORPORATION, AND AUTHORIZING THE
PRESIDENT OF CITY COUNCIL TO EXECUTE SAME
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, 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 Airport Properties, Inc., a Texas Corporation, 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 the City of Pueblo, a Municipal Corporation, and the City Clerk shall affix the Seal of
the City thereto and attest the same.
INTRODUCED: February 25, 2002
BY: Robert Schilling
CO CIL PERSON
APPROVED:
PRE ENT OF CITY COUNCIL
ATTESTED BY:
18TY CLERK
PUESL�
Background Paper for Proposed
RESOLUTION
fi, . , 953s
AGENDA ITEM # 4
DATE: February 19, 2002
DEPARTMENT: AVIATION - JOHN O'NEAL
TITLE
A RESOLUTION APPROVING A HANGAR GROUND LEASE AGREEMENT
BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND
AIRPORT PROPERTIES, INC., A TEXAS CORPORATION, AND AUTHORIZING
THE PRESIDENT OF CITY COUNCIL TO EXECUTE SAME
ISSUE
Should City Council approve a lease agreement between the City of Pueblo and Airport
Properties, Inc.?
RECOMMENDATION
Approval of this Resolution.
BACKGROUND
Airport Properties, Inc. would like to lease approximately 22,000 sq. ft. of ground on
which to build hangars. They would like to build several different types of hangars from
T- hangars to hangars large enough to house different types of aviation businesses, such as
aircraft sales, aircraft maintenance, propeller repair shops. The lease is for a twenty year
period with two ten year options to extend the lease. The Airport Advisory Committee
has been advised of this lease agreement and is recommending City Council approve the
agreement.
FINANCIAL IMPACT
The ground rent will be $.10 per sq. ft. annually with a combined service fee of $295 per
acre per year. For services and activities which are authorized to be performed in the
hangar, Airport Properties will pay 1% commission from all sales, operations, and
services.
WA NOV 2 9 1001
HANGAR GROUND LEASE
THIS LEASE made and entered into as of February 25, 2002 ) "XA.D. between the
City of Pueblo, a municipal corporation, "Lessor ", and Airport Properties, Inc., a Texas Corporation,
"Lessee."
WITNESSETH:
WHEREAS, the Lessor is the owner and operator of the Pueblo Memorial Airport ( "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 new Hangar(s), of approximately 22,000 square feet,
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 shown on Exhibit "A ",
attached hereto and made a part hereof, situated in the County of Pueblo, State of Colorado
subject to a drainage easement approximately twenty-five (25) feet in width. The attached Exhibit
"B" consists of a plot plan and diagram of the Hangars. The term 'leased premises" means and
includes the real property, hangar and other improvements located on the real property. Lessee
shall cause a surrey and legal description to be prepared for the land shown on Exhibit "A" within
sixty (60) days after commencement date of this Lease. The legal description, after approval of
Lessor, will be affixed to this Lease as Exhibit "A" in substitution for the attached Exhibit "A ".
2. Term
A. The initial term on this Lease is for a period of twenty (20) years commencing January 1,
2002 ( "commencement date ") and ending December 31, 2021 unless sooner terminated
or extended 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 options may be exercised at any time at the discretion of Lessee;
however, such option to extend 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.
C. All conditions and covenants contained herein shall remain in full force and effect during
any and all extension periods.
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
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each quarter at the Director of Aviation's Office. The commencement date of this lease,
as set forth in paragraph 2, Term, shall be the date upon which rent begins. The initial
annual rent shall be calculated by multiplying the gross leased land area by $.10 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 or decreased by a percentage equal to the percentage increase or decrease 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. Venue for any such proceeding shall be in Pueblo
County, Colorado.
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
$295.00 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 (1) such services and
fee shall be nondiscriminatory among other tenants and owners of land at Pueblo
Memorial Airport receiving such services and facilities then being furnished and (2) 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.
C. For services and activities authorized to be performed within the Hangar on the leased
premises pursuant to Section 41, Lessee shall pay as additional rent one percent (1 %) of
the monthly gross revenues derived from all sales, operations and services made,
furnished or conducted on or from the leased premises except revenues from Hangar
rentals. Such additional rent shall be paid monthly without notice, offset or deduction on
or before the tenth (10'") of the following month at the Director of Aviation's office and
shall be accompanied with such reporting forms as the Director of Aviation shall
determine. Lessor shall have the right to examine and audit Lessee's and its subtenant's
books and records to determine the accuracy of the additional rent.
D. All unpaid rent and other charges shall accrue interest at the rate of ten (10) percent per
annum.
4. Improvements and Use
A. Lessee, at its sole cost and expense, shall cause to be constructed 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
be unreasonably withheld or arbitrarily delayed. The Hangar and other improvements
shall be constructed in a good and workmanlike manner in accordance with the applicable
laws, ordinances and building codes and pursuant to a building permit issued by the
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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 nine (9) months from commencement date. If by
reason of delays in obtaining construction permits or approvals from the Federal Aviation
Administration or other governmental authorities after Lessee's diligent and good faith
efforts to obtain such permits or approvals, Lessee is prevented from commencement or
completion of construction within the time limits herein specified, such time limits shall be
extended by a period equal to such delays, but in no event longer than ninety (90) days.
B. In addition to constructing the Hangar and improvements, Lessee shall cause all utilities
to be used by Lessee to be extended underground to the leased premises within
easements and locations to be designated by Lessor and the Lessee shall be responsible
for constructing and maintaining a concrete ramp area in front of the Hangar in
accordance with plans and specifications approved by Lessor. This concrete ramp area
must be designed for a minimum weight bearing capacity of 12,500 pounds for single
wheel aircraft and must be built to the width of the Hangar door opening, less the area
required for the Hangar. Should development take place adjacent to the leased premises,
the Director of Aviation at his sole discretion may require Lessee to pave sections of the
leased premises to the full width of the leased premises. This concrete area must be built
so as to connect onto any adjacent ramp, taxiway, or other paved areas in order that a
continuous and safe pavement section results. It is the responsibility of the Lessee to
maintain the entire ramp area in a manner, which is safe and clean of debris so as not to
cause danger or unsafe conditions for taxiing aircraft and airport users.
C. The leased premises shall be used and occupied by Lessee or its subtenants as a
Hangar facility for the storage of aircraft and for such incidental purposes directly related
to such use including storage or aircraft equipment and office space. 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 for 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 Sub - tenant of the Lessee, provided,
however, in no event shall Lessee or any Sub - tenant 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 aviation fuel, flammables, explosive liquids, or solids, waste, debris
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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 be unreasonably or arbitrarily denied or withheld.
H. Lessee shall not park or leave or allow to be parked or left aircraft on the taxiways or on
pavement adjacent to the Hangar in a manner which interferes with or obstructs access to
adjacent hangars or public ramp area. Parking of automobiles will be permitted only in
paved designated parking areas or within the Hangar.
I. Notwithstanding the limitations set forth in subsections C. and D. above, with the prior
written approval of Lessor's Director of Aviation, the following activities may be conducted
within the Hangars located on the leased premises, provided that no such activity will
unreasonably interfere as determined by the Director of Aviation with the use of taxiways
and aprons or the activities of other tenants of land within the hangar area of the Airport:
aircraft sales and office, aircraft engine and overhaul shop, flight training, aircraft parts
sales, aircraft charter services, air photography, aircraft interior repair shop, aircraft
inspection, and aircraft general maintenance. Subject to the foregoing, the approval of
the Director of Aviation will not be arbitrarily or unreasonably withheld, delayed, or denied.
5. Maintenance Obligations
Lessee, at its expense, shall keep 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
The Hangars and improvements to the leased premises constructed or erected hereunder by
Lessee shall constitute a part of the leased premises and therefore such Hangars and
improvements cannot be removed from the land. Fee simple title to such Hangars and
improvements shall vest with the Lessor upon completion of construction of such Hangars and
improvements, free of liens and encumbrances. Notwithstanding that title vests in Lessor, Lessor
shall have no obligation or responsibility to maintain, repair, or restore the Hangar and other
improvements on the leased premises; all such obligation and responsibility shall be that of the
Lessee.
7. Right of First Refusal
If Lessee desires to sell the Hangar and other Lessee improvements in whole or in part 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 specifically
otherwise agreed by Lessor.
8. Signs
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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 material man's lien to be filed against the leased premises or any part or parcel
thereof by reason of any work or labor performed or materials furnished by any contractor,
subcontractor, mechanic or material man. 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 naming the Lessor as a loss
payee. 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.
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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, in which event the net
proceeds of the property damage insurance required to be provided by Lessee pursuant
to Section 12.A. shall be retained by Lessor, or (3) demolish the damaged or destroyed
Improvements and commence construction of replacement Improvements, and thereafter
complete such construction within nine (9) months from the occurrence of such casualty.
All repairs to or restoration of Improvements and /or construction of replacement
Improvements shall be in compliance with applicable laws and codes, and in accordance
with plans and specifications therefor approved by Lessor, which approval will not be
unreasonably withheld. Except in the event of (2) above, the net proceeds of property
damage insurance provided by Lessee pursuant to Section 12.A. shall be released by
City and paid to Lessee for the purpose of Lessee repairing, restoring or replacing
improvements damaged or destroyed by such insured fire or other casualty.
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.
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.
14. Inconvenience During Construction
Lessee recognizes that from time to time it will be necessary for the Lessor to initiate and carry
forward 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.
15. 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
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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.
16. Assignments and Subletting
A. Lessee shall not assign or transfer this Lease in whole or in part without the prior written
consent of Lessor, which consent shall not be unreasonably or arbitrarily withheld,
delayed, or denied. Any assignment or transfer without the prior written consent of Lessor
shall be void. No assignment, subletting or transfer of this Lease or the leased premises
shall release or discharge Lessee from its obligations under this Lease.
B. Lessee may sublet space in the Hangar to a Subtenant pursuant to a written sublease,
which shall contain among other provisions the following:
(1) The sublease shall be subject to and governed by the basic covenants and
provisions of this Hangar Ground Lease. Subtenant shall abide by all of the other
terms and conditions thereof applicable to the leased premises and use thereof.
The sublease may be for a lesser term than specified in Section 2 and for a rental
greater than that specified in Section 3.
(2) The Subtenant shall maintain and keep in force commercial liability insurance
with a combined single limit not less than $1,000,000. Such insurance require-
ment may be complied with by Subtenant's coverage under Lessee's Master
liability insurance policy.
(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 Lessor'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 mortgaging 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.
Lessor hereby further agrees to recognize the leasehold mortgage or any purchaser of the
mortgaged leasehold at foreclosure in the same manner as an "assignee" under this
Lease. Such assignee shall be bound by the terms of this lease, including, but not limited
to, the curing of any known defaults. Notwithstanding the foregoing, no mortgagee or
trustee or anyone that claims by, through or under a leasehold mortgage shall, by virtue
thereof, acquire any greater right in the leased premises and in any building or
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improvement thereon than Lessee then had under this Lease, and provided further that
any leasehold mortgage and the indebtedness secured thereby shall at all time be and
remain inferior and subordinate to all of the conditions, covenants and obligations of this
Lease and to all of the rights of the Lessor hereunder. In no event shall Lessee, its heirs,
successors, mortgagee or assignees have the right to encumber, subordinate or render
inferior in any manner Lessor's fee simple title in and to the leased premises.
Any such Leasehold Mortgagee or assignee, at its option, at any time before the rights of
Lessee shall have been terminated, may pay any of the rents due hereunder or may do
any other act or thing or make any other payment required of the Lessee by the terms of
this Lease, or may do any act or thing which may be necessary and proper to be done in
the observance of the covenants and conditions of this Lease to prevent the termination of
this Lease so as to prevent a forfeiture of the rights of the Lessee hereunder as the same
would have been if done and performed by the Lessee instead of by such leasehold
mortgagee or assignee.
Provided Lessor has received written notice of a leasehold mortgage and copy of all
leasehold mortgage documents, during such time as Lessee's leasehold estate is subject
to a leasehold mortgage, this Lease may not be modified or voluntarily surrendered
without the prior written consent of the leasehold mortgagee; provided however, that this
Lease may be terminated without the consent of the leasehold mortgagee if a default or
other cause for termination under this lease occurs and is not corrected or satisfied in
accordance with the terms and conditions of the Lease.
17. 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.
18. 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 thirty (30) days after written notice and demand
therefor are given by Lessor to Lessee.
(2) Failure of Lessee to perform or comply with any obligation, 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 a continuing 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:
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(1) Terminate this Lease by sixty (60) days prior written notice given to Lessee
specifying the date of termination and Lessee shall within said 60 -day period
vacate the leased premises and surrender possession thereof to Lessor.
19. 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 Airport Properties, Inc. @ 3303 McKamy
Oaks Trail Arlington, Texas 76017, 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.
20. Law. Rules and Regulations
A. Lessee, its officers, agents and employees shall faithfully observe and comply with all
applicable federal, state and local laws, regulations and ordinances now existing or
hereafter adopted relating to the use and occupancy of the Airport or leased premises
including without limitation Chapter 1 of Title III of the Pueblo Municipal Code.
B. Lessee, its officers, agents and employees shall faithfully observe and comply with all
minimum standards and rules regulating operations and activities from and upon the
Airport adopted from time to time by Lessor. Such minimum standards and rules shall not
be applied arbitrarily, discriminatorily, or unreasonably. Except with respect to matters of
public health and safety, if any provision of this Lease shall conflict with any provision of
the minimum standards and rules adopted or amended by Lessor after commencement
date, the conflicting provision of this Lease shall control.
21. 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.
91
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 25 feet
above ground level. In the event the aforesaid covenant is breached, the Lessor reserves
the right to enter upon the leased premises and to remove the offending structure or
object and cut the offending tree, all of which shall be at the expense of the Lessee.
H. Lessee shall not make use of the leased premises in any manner which might interfere
with the landing and taking off of aircraft at Pueblo Memorial Airport or otherwise
constitute a hazard to aviation. In the event the aforesaid covenant is breached, the
Lessor reserves the right to enter upon the leased premises and cause the abatement of
such interference at the expense of the Lessee.
If during the term of this lease, all or part of the leased premises should be taken or
threatened to be taken for any public or quasi - public use under any governmental law or
by right of eminent domain, or sold to the condemning authority under threat of
condemnation, this Lease shall terminate and the proceeds, if any, from such taking or
sale shall be allocated between Lessor and Lessee in accordance with applicable
condemnation law.
J. Lessor reserves the right to grant and to take easements or rights of way in, under, over
and across the leased premises, in which event, Lessor shall only be entitled to
compensation for damages to Hangars and other improvements of the Lessee destroyed
or damaged thereby, but not to damages for loss of use of the leased premises.
22. Option:
If Lessee is not in default hereunder, Lessee is granted the right and option to lease the
approximately 17,500 square feet of land adjacent to the leased premises shown on attached
Exhibit C upon the same terms, conditions and provisions of this Lease. The legal description of
the land shall be determined as provided in Section 1 hereof. In order to exercise this option,
Lessee shall give to Lessor written notice of its exercise of this option on or before November 1,
2002 and execute and deliver to Lessor a lease for the Option Parcel acceptable to Lessor on or
before December 21, 2002. The term of such lease shall commence on January 1, 2003 and
terminate contemporaneously with the termination and /or cancellation of this Lease. If Lessee
does not give written notice of the exercise of the option hereby granted on or before November 1,
2002, or if Lessor and Lessee are unable for any reason to execute and enter into a mutually
agreeable lease for the Option Parcel on or before December 31, 2002, the option to lease hereby
granted shall terminate and cancel and Lessee shall have no rights or remedies under this
paragraph 22.
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.
-10-
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.
D. Lessee is leasing the leased premises "AS IS" in its present condition. Lessor makes no
representation or warranties with respect to the present or future condition, or suitability
for a particular use of the leased premises or the Pueblo Municipal Airport. Lessor shall
be under no obligation to maintain the Pueblo Memorial Airport or any part thereof in a
particular location or condition. If the Pueblo Memorial Airport shall permanently close or
relocate, the use restrictions stated in paragraph 4.C. shall not apply, and the Lessee
may use the leased premises for any lawful use or purpose allowed by the then existing
Pueblo Municipal Code, or in the alternative, Lessee may terminate this Lease upon thirty
(30) days prior written notice given to Lessor.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed as of the day and
year first above written.
LESSOR
CITY OF PUEBLO,
A Municipal Corporation
By
K Occhiato
Title: President of Ci Council
LESSEE:
AIRPORT PROPERTIES, INC.
By `;�
Its Pres nt, Jack H. Cox
Attest:
City Cle
Approved as to form:
City Attorney
SEE
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Exhibit A - Preliminary Leased Tract.max
Exhibit A (Preliminary Leased Tract)
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- Preliminary Layout Exhibit B
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Exhibit C (Proposed Option Area)
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Airport Properties, Inc.
Telephone 817 - 784 -8051 Fax 817 - 468 -9436 Mobile 817 - 233 -6612
Email: landon110-home.com
P.O. Box 173215- Arlington, TX 76003 -3215
Sunday, December 08, 2002
Mr. John O'Neal
Director of Aviation, City of Pueblo
Pueblo Memorial Airport
31201 Bryant Circle
Pueblo, Colorado 81001
Dear John,
RE: Parcel A
Enclosed are the legal meets and bounds, survey plat and Leasehold Map
for the final survey for Parcel A. This survey will replace any other surveys
previously submitted. This is the "survey of record" which is being filed
with the county.
Sincerely
P i:;-X e/�
Jack Cox
President
Airport Properties, Inc.
Ill DEC 1' 3 2002 D
Over 18 Years of Excellence in Airport Leasehold Developments
Airport Properties Inc.
Leasehold Plat - Parcel A
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Reeves Land Stiwveyine
119 Burke Court ♦ Pueblo West, Co. 81007
Phone 719 -547 -1984 ♦ Fax 719- 547 -1986 ♦ Email rls- @Pnxfigy.net
AIRPORT PROPERTIES, INC.
LEASE PARCEL A
HANGARIOFFICE DEVELOPMENT PHASE I
PUEBLO MEMORIAL AIRPORT
PUEBLO, COLORADO
A parcel of land located in Section 25, Township 20 South, Range 64 West of the Sixth
Principal Meridian, located within the County of Pueblo, State of Colorado, being more
particularly described as follows:
Beginning at the northwest comer of said Section 25; thence S 75 °49'09" E, 1,666.99
feet to the centerline at the west end of Runway 81J26R, also know as Station 0+00;
Thence N 88 0 16'36" E, a distance of 2,718.00 feet along the centerline of said Runway
8L/26R to a point;
Thence S 01 0 43'24" E, a distance of 2,107.50 feet, to a point 2,107.50 feet right of the
centerline of said Runway 8L/26R at Station 27 +18, being the True Point of Beginning;
Thence N 88 °16'36" E, a distance of 238.00 feet;
Thence S 01 0 43'24" E. a distance of 55.00 feet;
Thence S 88 0 16'36" W, a distance of 238.00 feet;
Thence N 01 W, a distance of 55.00 feet, to the Point of Beginning.
Said parcel contains 13,090 square feet more or less.
Z, zoo z_
6DYtRAS PLS 22101 DATE
Airport Properties, Inc.
Lease Parcel Fuel Farm Site
Credit Card Self Fueling Operation
Pueblo Memorial Airport. Pueblo, Colorado.
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for .
Airport
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Properties in
$ Fuel FOM
parcw
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Airport Properties, Inc.
P.O. Box 173215
I
Arlington, Texas 760032 -3216
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Jack Cox R e w" La nd $14►wC ' V410
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i
A irport Properties, Inc.
Telephone 817 - 7848051 Fax 817 - 468 -9436 Mobile 817 - 233 -6612
Email: landon 11 Chome.com
P.O. Box 173215- Arlington, TX 76003 -3215
Sunday, December 08, 2002
Mr. John O'Neal
Director of Aviation, City of Pueblo
Pueblo Memorial Airport
31201 Bryant Circle
Pueblo, Colorado 81001
Dear John,
RE: Parcel B
Enclosed are the legal meets and bounds, survey plat and Leasehold Map
for the final survey for Parcel B. This survey will replace any other surveys
previously submitted. This is the "survey of record" which is being filed
with the county.
Sincerely
p i: � 4 4;/r�
Jack Cox
President
Airport Properties, Inc.
DEC l 3 2002
Over 18 Years of Excellence in Airport Leasehold Developments
Airport Properties, Inc.
Leasehold Plat - Parcel B
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Unit 115 -117 18' clear height
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Private Executive Honyers
For Sole or Lease
Airport Properties, in::
Hnngers For Sole Lease
Contoct+ Jock ro. G 817 -233 -9007
wrr W.o it Por' tPr cPe r t ie. Cow
1ReeveS Lana SUeVexivtg
119 Burke Court ♦ Pueblo West, Co. 81007
Phone 719 -547 -1984 ♦ Fax 719- 547 -1986 ♦ Email rls- @Prodigy.net
AIRPORT PROPERTIES, INC.
LEASE PARCEL B
HANGAR/OFFICE DEVELOPMENT PHASE I
PUEBLO MEMORIAL AIRPORT
PUEBLO, COLORADO
A parcel of land located in Section 25, Township 20 South, Range 64 West of the Sixth
Principal Meridian, located within the County of Pueblo, State of Colorado, being More
particularly described as follows:
Beginning at the northwest corner of said Section 25; thence S 75 0 49'09" E, 1,666.99
feet to the centerline at the west end of Runway 8L/26R, also know as Station 0+00;
Thence N 88 0 16'36 "•E, a distance of 2,717.00 feet along the centerline of said Runway
8L/26R to a point;
Thence S 01 0 43'24" E, a distance of 2,280.00 feet, to a point 2,280.00 feet right of the
centerline of said Runway 8L/26R at Station 27 +17, being the True Point of Beginning;
Thence N 88 0 16'36" E, a distance of 398.00 feet;
Thence S 01 0 43'24" E, a distance of 60.00 feet;
Thence S 88 0 16'36" W, a distance of 398.00 feet;.
Thence N Ol °43'24" w, a distance of 60.00 feet, to the Point of Beginning
Said parcel contains 23,880 square feet more or less.
7- ZnDZ
RAN YD . REEVES PLS 22101 DATE
9s3� Airport Properties, Inc.
Lease Parcel Fuel Farm Site
Credit Card Self Fueling Operation
Pueblo Memorial Airport. Pueblo, Colorado.
1't ,5,d
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for
Airp ort +
a Prop tties,lnc N
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Airport Properties, Inc.
i . P.O. Box 173215
Arlington, Texas 760 032 -32 1 6
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Airport P perties, Inc. Blitz Aviation, Ltd.
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5� First Right of Refusal Option Area
1y �a
RANDY R PLS WE
Jack Cox Reeves .L.O S( %nt�
02176Fue13.dwg 11Y & a, - p 11wt. Co (779) 547-11* ;,
Airport Properties, Inc. g
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