HomeMy WebLinkAbout09536RESOLUTION NO. 9536
A RESOLUTION APPROVING A CREDIT CARD SELF
SERVE FUELING OPERATION 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: Al Gurule
—`� C'JNCIL PERSON
APPROVED:
PRESIDENT OF CITY COUNCIL
ATTESTED BY:
Y CLERK
L k
Background Paper for Proposed
RESOLUTION
AGENDA ITEM # 5
DATE: February 19, 2002
DEPARTMENT: AVIATION -JOHN O'NEAL
TITLE
A RESOLUTION APPROVING A CREDIT CARD SELF SERVE FUELING
OPERATION 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 5,000 sq. ft. of ground to construct and install
an above ground UL approved 100LL aviation fuel tank and credit card self service
dispensing system for the purpose of storage, selling and dispensing of 10OLL aviation
fuel to the aviation users of the Airport. The lease is for a ten year period with one ten
year option 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 ($500) with a combined service fee of
$295 per acre per year. Also, Airport Properties will pay a fuel flowage fee of $.10 for
each gallon of fuel sold or dispensed on or from the leased premises.
CREDIT CARD SELF SERVE FUELING OPERATION GROUND LEASE
THIS LEASE made and entered into as of February 25, 2002 WW A.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 5000 square foot tract of ground on said Airport property for the
purpose of constructing and installing an above ground UL Approved 1 WILL fuel tank, credit card self service
100LL fuel dispensing system and credit card reader equipment, for the sole purpose of storage, selling and
dispensing of 100LL aviation fuel to the aviation users of the Airport. The credit card fueling equipment will
include all necessary fueling hoses and reels, grounding rods, computer equipment, phone lines and modems,
security cameras, and all other necessary equipment required for a safe and modern self serve fueling
operation. The self service credit card fueling system and all related and required accessories are herein
collectively referred to as "Improvements."
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. The attached
Exhibit "B" consists of a plat plan and diagram of the Improvements. The term "leased premises"
means the real property. Lessee shall cause a survey 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 ten (10) years commencing January 1', 2002
( "commencement date ") and ending December 31, 2011 unless sooner terminated or
extended as herein provided.
B. Lessor grants unto Lessee the right and option to extend the lease term for one consecutive
ten (10) year period immediately following the original ten (10) year lease term. Such option
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.
Exercise of such option 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
extension period.
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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
amount is $500.00 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 5'" and 10th 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 Pueblo County, Colorado.
B. Lessee, as additional rent, shall pay to Lessor a monthly fuel flowage fee equal to ten (10)
cents for each gallon of fuel sold or dispensed on or from the leased premises. Said
additional rent shall be paid without notice, offset, or deduction, on or before the 10'" day of
each calendar month for all fuel sold or dispenses during the prior calendar month. Lessee
shall submit with each payment of the fuel flowage fee a report of all fuel sold or dispenses
and calculation of the fuel flowage fee on forms to be approved by the Director of Aviation.
The fuel flowage report shall be delivered to the office of the Director of Aviation. If the fuel
flowage fee is not timely paid and /or the report not timely filed, Lessee shall pay a late fee
equal to ten (10) percent of the unpaid fuel flowage fee.
C. 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 overthe 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.
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 Improvements in accordance with plans and specifications approved by
Page 2 of 10 Pages GROUND LEASE - CREDIT CARD FUELING
Lessor including architectural approval, which consent will not be unreasonably withheld or
arbitrarily delayed. The Improvements shall be constructed in a good and workmanlike
manner in accordance with the applicable laws, ordinances and building codes and, if
required, 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 Improvements within six (6) months from commencement
date, and (2) complete such construction and installation within nine (9) months from
commencement date.
B. In addition to constructing the 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.
C. The leased premises shall be used and occupied by Lessee as a self serve credit card
fueling and storage facility. Lessee shall have no right to utilize the leased premises, or any
improvement thereon, other than as specifically allowed under this subsection.
D. Except for the operation of a self serve credit card fueling and storage facility, no aircraft
service or maintenance shall be performed 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 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 and Improvements in accordance with the
requirements and regulations of the Lessor and Lessor's fire code.
G. 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 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.
H. Lessee shall not park or leave or allow to be parked or left aircraft on the taxiways or on
pavement adjacent to public ramp area or the leased premises in a manner, which interferes
with or obstructs access to adjacent property or public ramp area. Parking of automobiles will
be permitted only in paved designated parking areas.
5. Maintenance Obligations
Lessee, at its expense, shall keep the leased premises, Improvements, 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 Improvements located upon the leased premises constructed or erected hereunder by Lessee
shall be deemed movable trade fixtures. Upon completion of construction of such Improvements, fee
Page 3 of 10 Pages GROUND LEASE - CREDIT CARD FUELING
simple title to such Improvements shall vest with the Lessee.
Right of First Refusal
If, during the term of this Lease and any extension, Lessee desires to sell, assign or convey all the
Improvements located upon the Leased Premises, Lessee shall first offer in writing to sell, convey or
assign the 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 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 all the Improvements to Lessor, this Lease shall
terminate. If Lessee sells all the Improvements to a third party, Lessee shall remain obligated and
liable under this Lease.
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.
9. Right of Inspection
The Lessor reserves and retains for its officers, employees and authorized representatives the right
to enterthe 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 Improvements 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
Improvements or any part or parcel thereof by reason of any work or labor performed or materials
furnished by any contractor, subcontractor, mechanic ormaterialman. 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, Improvements 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 orjudgments, 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.
Page 4 of 10 Pages GROUND LEASE - CREDIT CARD FUELING
12. Insurance and Damane
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 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, Improvement, 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 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 ordestroyed 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.
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, 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.
Page 5 of 10 Pages GROUND LEASE - CREDIT CARD FUELING
1s. 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.
16. Assignments and Subletting
A. Lessee shall not assign, sublet, or transfer this Lease or the leased premises 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 any of its obligations under this
Lease.
B. 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 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 mortgagee 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 all 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 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 successors, mortgagees 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.
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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
such 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, fuel flowage fees,
and /or combined service fees for a period of thirty (30) days after written notice and
demand thereof 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.
In the case of a continuing event of default by Lessee, Lessor shall have the following
remedies 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 sixty (60) 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 sixty (60) day period to either:
(a) remove the Improvements 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 Improvements and assign this Lease to a third person with the prior
written consent of Lessor, which consentwill 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 underthis
Lease.
If Lessee fails to complete either 1(a) or (b) above within said sixty (60) day period, Lessee
shall vacate the leased premises and other Lessee Improvements thereon and surrender
Page 7 of 10 Pages GROUND LEASE - CREDIT CARD FUELING
possession of same to Lessor, and, at the option of the Lessor, all Lessee Improvements
shall remain on the leased premises as the property of Lessor, or, Lessor may, at the
expense of Lessee, cause the Improvements to be removed and the leased premises
restored to their original condition.
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. Laws. 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.
Page 8 of 10 Pages GROUND LEASE - CREDIT CARD FUELING
Lessor reserves for the use and benefit of the public, a right of flight for the passage of aircraft
in the airspace above the surface of the leased premises, together with the right to cause in
said airspace such noise as may be inherent in the operation of aircraft now known or
hereafter used for navigation or flight in said airspace, and for use of said airspace for landing
on, taking off from, or operations on or over the Pueblo Memorial Airport.
G. Lessee by accepting this Lease Agreement expressly agrees for itself, its successors and
assigns that it will not erect nor permit the erection of any structure, building or object nor
permit the growth of any tree on the leased premises to a height not to exceed 22 feet above
ground level. In the event the aforesaid covenant is breached, the Lessor reserves the right
to enter upon the leased premises and to remove the offending structure or object and cut the
offending tree, all of which shall be at the expense of the Lessee.
H. Lessee shall not make use of the leased premises in any manner which might interfere with
the landing and taking off of aircraft at Pueblo Memorial Airport or otherwise constitute a
hazard to aviation. In the event the aforesaid covenant is breached, the Lessor reserves the
right to enter upon the leased premises and cause the abatement of such interference at the
expense of the Lessee.
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.
Lessor reserves the right to grant or take easements or rights of way in, under, over and
across the leased premises, in which event, Lessee shall only be entitled to compensation
for damage to Improvements destroyed or damaged thereby, but not to damages for loss of
use of the leased premises.
22. 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.
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
Page 9 of 10 Pages GROUND LEASE - CREDIT CARD FUELING
year first above written.
LESSEE:
AIRPORT PROPERTIES, IN �, C /r /f
By its President: Jack H. Cox
LESSOR:
CITY OF PUEBL A MUNICIPAL CORPORATION
By
Title: Pr�si dent of - City Counril
Attest:
City Cle
Approved as to form:
City Attorney
Page 10 of 10 Pages GROUND LEASE - CREDIT CARD FUELING
Airport Propertie Inc.
Telephone 817 - 784 -8051 Fax 817-468 -9436 Mobile 817 - 233 -6612
Email: landon 11 Ahome.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: Fuel Farm Final Survey
Enclosed are the legal meets and bounds, survey plat and Leasehold Map
for the final survey for the Fuel Farm Tract This final survey includes all of
yours and Wayne's most recent requested changes. This survey will
replace any other surveys previously submitted. This is the survey of
record" which is being filed with the county.
Sincerely
6�� 41
Jack Cox
President
Airport Properties, Inc.
DEC l 3 2002 D
Over 18 Years of Excellence in Airport Leasehold Developments
Ree Ve—S Land Sti►V
♦1♦
119 Burke Court 1 Pueblo West, Co. 81007
Phone 719- 547 -1984 ♦ Fax 719 -547 -1986 ♦ Email rls- @Prodigy.net
AIRPORT PROPERTIES, INC.
LEASE PARCEL FUEL FARM SITE
CREDIT CARD SELF FUELING OPERATION
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 8L/26R, also know as Station 0+00;
Thence N 88 °16'36" E, a distance of 2,779.00 feet along the centerline of said Runway
8L/26R to a point;
Thence S 01 E, a distance of 1,510.00 feet, to a point 1,510.00 feet right of the
centerline of said Runway 8L/26R at Station 27 +79, being the True Point of Beginning;
Thence N 88 °16'36" E. a distance of 107.00 feet;
Thence S 01 °43'24" E, a distance of 80.00 feet;
Thence S 88 °16'36" W, a distance of 107.00 feet;
Thence N 01 °43'24" W, a distance of 80.00 feet, to the Point of Beginning.
Said parcel contains 8,560 square feet more or less.
9.a 22101:
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RANDY . REEVES PLS 22101 DATE
Airport Properties, Inc.
Lease Parcel Fuel Farm Site
Credit Card Self Fueling Operation
Pueblo Memorial Airport. Pueblo, Colorado.
6ae 1P11' 16'36 '7=
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` Properties,lnc
2 e5tt0
sq. rt. 2
NW1636E
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Airport Properties, Inc.
2515• P.O. Box 173215
Arlington, Texas 760 032 -32 1 6
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a . Airport Properties, Inc. Blitz Aviation, Ltd.
parcel A
13090 54 n
Airport Properties, Inc.
Parcel 8
23M Sq. fe
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— -- NBB' 16'.36E
Airport Properties, Inc. W.
First Right of Refusal option Area =A� �� 221
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•.....
RANDY REEVES PLS 22101 DATE
Jack Cox Reeves Land Surveying
02178Fue/J.dwg II9 Bubo CG — Pueblo West. 00 fno) 517_i9e4