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HomeMy WebLinkAbout09927RESOLUTION NO. 9927 A RESOLUTION APPROVING A HANGAR LEASE AGREEMENT BETVVEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND STEEL CITY AVIATION, LLC, 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 Steel City Aviation, LLC, for land, hangar and other improvements located at Pueblo Memorial Airport, by 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 August 11, 2003 BY Al Gurule/Councilperson APPROVED: Bill Sova/President of City Council ATTEST: Gina Dutcher/City Clerk Background Paper for Proposed RESOLUTION DATE: August 11, 2003 DEPARTMENT: AVIATION - JOHN B. O~EAL, C.M. AGENDA ITEM TITLE A RESOLUTION APPROVING A HANGAR LEASE AGREEMENT BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND STEEL CITY AVIATION, LLC, AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE SAME ISSUE Should the City Council approve a Hangar Lease Agreement for land, hangar and other improvements at Pueblo Memorial Airport between the City and Steel City Aviation, LLC? RECOMMENDATION Approval of this resolution. BACKGROUND Steel City Aviation would like to lease the land, hangar and other improvements in order to operate a flight school. The lease term is one month, which will be automatically renewed from month to month unless terminated by a 30-day written notice fi.om either the City or Steel City Aviation. FINANCIAL IMPACT Steel City Aviation will lease the land, hangar and other improv~nnents for the rental of $500 per month and combined service fee of $24.65 per month. Also, an additional 1% of the monthly gross revenues are to be paid as additional rent. HANGAR LEASE AGREEMENT THIS LEASE made and entcred into as of August 11,2003 A.D. bctwccn the City of Pueblo, a municipal corporation, "Lessor", and Steel City Aviation~ LLC, "Lessee." WITNESSETH: That in consideration of the payment of rent hereinafter provided and the keeping and performance of each of the covenants and agreements of the said Lessee hereinafter set forth, said Lessor has and does hereby lease unto the said Lessee the land, hangar and other improvements located at Pueblo Memorial Airport, Pueblo County, Colorado (herein "Airport") described in Exhibit "A" attached hereto and incorporated herein as if set out in full (herein "Property") commencing August l, 2003 for a term of one calendar month, said term shall automatically be renewed from month to month thereafter, unless terminated by either party by written notice delivered at least 30 days prior to termination, specifying the date of termination. 1. Rental Rate and Other Fees: Lessee hereby leases the Property from Lessor and shall pay to Lessor a rental fee of $500.00 per month, payable in advance on or before the tenth day of each month throughout the term, without notice, demand, deduction or setoff. Bo Lessee shall pay combined service fee at $24.65 per month 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 (i) 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 (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 wastewater 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. For services and activities authorized to be performed within the Hangar on the leased premises pursuant to Section 3.G., 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. Such additional rent shall be paid monthly without notice, offset or deduction on or before the tenth (10th) 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 -t- 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. All unpaid rent and other charges shall accrue interest at the rate of ten (10) percent per annum. Place and Manner of Payments In all cases where Lessee is required by this Lease 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 Airpo~ 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. Rights and Privileges of Lessee: The leased premises shall be used and occupied by Lessee as a Hangar facility for the storage of aircraft and for such incidental purposes directly related to such use including storage of aircraft equipment. 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 an aviation fixed base operation or for the sale of aviation fuel. Lessee shall not, without the prior written consent of the Director of Aviation, make improvements, modifications, revisions, installation of signs or other alterations to the Property. Costs of approved improvements, modifications, revisions, signs and alterations shall be borne solely by Lessee and all such improvements, modifications, revisions or alterations shall upon expiration of the original term or any renewal term or prior termination of this lease for any reason become and remain the property of the Lessor. Lessee, it's employees and invitees shall have the right of ingress and egress between the Main entrance of the Airport as the same now exists or mayherea~er be relocated and the Property over, upon and through such streets and not other as fi'om time to time shall be designated by the Director of Aviation. Driveways from existing streets into the Property shall be located as designated by the Director of Aviation. No aircraft service or maintenance shall be performed on the leased premises on any aircraft not owned or leased by the Lessee, provided, however, in no event shall Lessee conduct or operate an aircraft service or maintenance business on the leased premises. Lessee shall maintain the leased premises in accordance with the terms and conditions of this lease and the requirements and regulations of the Lessor and -2- 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, over or under 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 or on the leased premises shall be in an envimumentally sound manner and comply with all Federal, State and Local laws and regulations. Lessee shall not park or leave or allow to be parked or left aircra~ 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. Notwithstanding the limitations set forth in subsections A. and D. above, with the prior written approval of Lessor's Director of Aviation, the following activities may be conducted within the Hangar located on the leased premises, provided that no such activity will unreasonably interfere as determined by the Director of Aviation with the use oftaxiways and aprons or the activities of other tenants of land 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 aircraf~ general maintenance. Subject to the foregoing, the approval of the Director of Aviation will not be arbitrarily or unreasonably withheld, delayed, or denied. Lessee shall not assign this lease or sublet the property without the prior written consent of the Lessor. Rights and Privileges of Lessor All rights not herein granted to the Lessee are reserved to Lessor and nothing herein contained shall be construed to grant or authorize the granting of an exclusive right within the meaning of Section 308 of the Federal Aviation Act of 1958. Lessor shall have full and unrestricted right to enter upon those portions of the Airport occupied and leased herein by the Lessee, and Lessor, it's agents or representatives shall be permitted to inspect same at any reasonable hour. Lessor reserves the right to maintain and keep in repair the landing area and other components of the Airport and all publicly owned facilities of the Airport but shall not be obligated to the Lessee for any failure to so maintain or keep in repair. -3- There is hereby reserved to the Lessor, it's successors and assigns, for the use and benefit of the public, a right of flight for the passage of aircrait in the airspace above the surface of the Property, together with the right to cause in said airspace such noise as may be inherent in the operation of aircraft, now known or hereatter used for navigation of or flight in the air, using such airspace or landing at, taking off from, or operating on Pueblo Memorial Airport. It is further understood and agreed that this Agreement is subject to the written prior approval of the Federal Aviation Administration and that the provisions hereof cannot be modified without prior written approval by said Federal Aviation Administration. 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 fi.om Lessee or liability to Lessee. Lessor shall be under no obligation to maintain the Pueblo Memorial Airport or any part thereof in any particular location or condition. Obligations of Lessee: Ao The Lessee, shall, at it's own expense, maintain and keep the Property in good order and repair, clean, safe and orderly at all times, flee of waste, rubbish and debris, and shall provide a complete and proper arrangement for the sanitary handling and disposal of all trash, garbage and other refuse resulting from Lessee's activities at the Airport. No outside storage of parts, materials, equipment, inventory, or other material shall be permitted. B. Lessee shall furnish at it's own expense and promptly pay for all utilities. The Lessee agrees to indemnify, defend, and save the Lessor, it's agents, officers, representatives and employees, harmless from and against any and ail penalties, liability or loss including costs and attorney fees resulting from claims or court action, whether civil, criminal or in equity, arising directly or indirectly out of acts of the Lessee, his agents, employees, or contractors or through any injury or casualty occurring on the Property. Do Lessee shall not hold or attempt to hold Lessor liable for any injury, including loss of life, to any person, or for damage to any property while on the Property or the Airport, irrespective of how such injury or damage may be caused or occasioned. All risk of loss or damage to Lessee's aircraft and other personal property in or upon the Property is assumed by Lessee, and Lessor shall not be liable or responsible for any loss or damage to such aircraft and other personal property regardless of the cause thereof, including, without limitation, the negligence of Lessor, its officers, agents or employees. 6. Insurance and Damage: 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 bodily 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. 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. Lessee shall not violate the terms or prohibitions of any insurance policy herein required to be furnished by Lessee. If the Hangar or other improvements (the "Improvements") are damaged or destroyed by fire or other casualty, Lessee shall within ninety (90) days from the occurrence of such casualty either (1) repair and restore the damaged or destroyed Improvements, or (2) terminate this Lease, in which event the proceeds of the property damage insurance required to be provided by Lessee pursuant to Section 6.A. shall be retained by Lessor. All repairs to or restoration oflmpmvaments 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 6.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. Sil~ns: Ao 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. -5- Inconvenience Durintl Construction: Lessee recognizes that fi.om time to time it will be necessary for the Lessor to initiate and carry forward programs of construction, reconslxuction, 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 Lessoe's operations at the Pueblo Memorial Airpo~. 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 conslxued to be a waiver of, any claim for physical damage to property resulting fi.om negligence or willful misconduct of the Lessor, its officers, agents, employees, contractors, subcontractors and representatives. General Conditions: Ao The terms and conditions of this Lease and Lessee's rights hereunder are hereby made subject to the provisions of Title III Chapter 1 of the Pueblo Municipal Code and as same may be subsequently amended. In the event of conflict between said Code of Ordinances and any provision herein said Code shall control. Bo The Lessee, as a part of the consideration hereof, does hereby covenant and agree, as a covenant running with the Property, that in the event facilities are constructed, maintained or otherwise operated on the Property for the purpose for which a Department of Transportation program or activity is extended or for another purpose involving the provision of similar services or benefits, the Lessee shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally-assisted programs of the Department of Transportation-Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended. The Lessee, as a part of the consideration hereof, does hereby covenant and agree, as a covenant running with the Property, that (1) no person on the grounds of race, color or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of the Property, (2) that in the construction of any improvements on, over, or under the Property and the furnishing of services thereon, no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination, (3) that the Lessee shall use the Property in compliance with all other applicable requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part -6- Fo 21, Nondiscrimination in Federally-assisted programs of the Department of Transportation--Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended. That in the event of breach of any of the above nondiscrimination covenants, Lessor shall have the right to terminate this lease and to re-enter and repossess said land and the facilities thereon, and hold the same as if said Lease had never been made or issued. Lessee shall not make use of the leased premises in any manner which might interfere with the landing and taking offof almraft 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. This Lease and all the provisions hereof are subject to all rights the United States Government now has or in the future may have or acquire, affecting the control, operation, regulation, re-entry upon and taking over of the said Airport including the Property. 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. 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. The Lessee represents that it has inspected thc Property, Airport and all of City's premises and facilities and that it accepts the conditions of same and fully assumes the risk incident to the use thereof. The Property is being leased by Lessor and accepted by Lessee "AS IS" and 'WITH ALL ITS FAULTS," without warranty or representation by Lessor as to the present or future quality, quantity or condition of the Property, environmental or otherwise, or fitness for a particular purpose. The Lessor shall not be liable to the Lessee for any damages or injuries to the property or personnel of the Lessee which result from hidden, latent or other dangerous conditions on the Airport or Property. -7- 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. 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. Lessor reserves the right to grant and to take easements or rights of way in, under, over and across the Property. All services to the public shall be famished by Lessee on a fair, equal, and not unjustly discriminatory basis to all users thereof; and Lessee shall charge fair, reasonable, and not unjustly discriminatory prices for each unit of services, provided, that Lessee may be allowed to make reasonable and nondiscriminatory discounts, rebates, or other similar types of price reductions to volume purchasers. 10. Non-Performance Conditions Ao That if the Lessee shall be declared insolvent or bankrupt, or if any assignment of the Lessee's property shall be made for the benefit of creditors or otherwise, or ifLessee's leasehold interest herein shall be levied upon under execution, or seized by virtue of any writ of any Court of Law, or a Trustee in Bankruptcy or a Receiver appointed for the property of the Lessee, whether under the operation of the State or the Federal statutes, then and in any such case, the Lessor may, at its option and if lawful, immediately with or without notice, notice being expressly waived, terminate this Lease and immediately retake possession of the Property without the same working any forfeiture of any accrued obligations of the Lessee hereunder. That if the rent above reserved, or any part thereof shail be in default, or in case of a breach by the Lessee of any of the covenants or agreements herein, the said Lessor may declare this Lease terminated, and after the expiration of three (3) days from the date of the service of a written notice to that effect, be entitled to the possession of the Property either by the expiration of this Lease or by any violation on any term or provision as herein provided for, and if the said Lessee shall refuse to surrender and deliver up the possession of the Property, after the service of said notice as aforesaid, then and in that event, the said Lessor may, without further notice or demand, enter into and upon the Property, or any part thereof, and take possession thereof and repossess them, and expel, remove and put out of possession the Lessee, using such help, assistance and force in so doing as my be needful and proper, without prejudice to any remedy allowed by law, available in such cases. That in case the Property is left vacant and any part of the rent herein reserved be due and unpaid, then the Lessor may, without in any way being obligated to do so, and without terminating this Lease, retake possession of the Property and rent the same -8- 11. for such rent, and upon such conditions as the Lessor may think best, making such changes and repairs as may be required, giving credit for the amount of rent so received less all expenses of such changes and repairs, and said Lessee shall be liable for the balance of the rent herein reserved until the expiration of this Lease. In the event the Lease Agreement be terminated as herein provided, Lessor should have and is hereby given a lien upon Lessee's equipment, fixtures, furniture and inventory located in or upon the Property for all rent, expenses, attorney fees and costs then due or to become payable by Lessee hereunder, and such lien may be enforced by the taking and sale of such property in the same manner and as provided for the disposition of collateral under the Colorado Uniform commercial Code. Lessee agrees to pay the Lessor all costs, including a reasonable attorney fee, incun'ed by Lessor in recovering any rent or other money due and unpaid under the terms of this Lease, to enforce this Lease, or to recover possession of the Propei~ after termination hereof. Venue for any action under this Lease shall be Pueblo County, Colorado. 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 Steel City Aviation, 33200 South Road, Pueblo, CO 81006, 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. 12. Special Conditions: Lessee agrees that no inflammable liquids or hazardous materials shall be used or stored on the Property; excepting the fuel in the aircrat~ fuel tanks or in the tank ora stored automobile. Bo It is expressly understood that no person other than the Lessee or his regular employee may perform services (including, but not limited to, maintenance and repair) on any aircrait on the Property. Lessee agrees to provide drip pans of a non-inflammable material under the aircraf~ to prevent damage to the asphalt floor in the building on the Property from dripping oil or fluid. Violations of Airport Security Rules shall be sufficient grounds for termination of this Lease. -9- 13. Miscellaneous: 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, and approved assigns and subtenants. 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. Co In the event that any provision of this Lease shall be held invalid or unenfomeable by any court of competent jurisdiction, such holding shall not invalidate or render enfomeable any other provision of this Lease. Lessor and Lessee are the only parties to the Lease and are the only patties entitled to enfome this Lease. Nothing contained in this Lease nor any provision hereof is intended to give or shall be construed to give or confer, directly or indirectly, or otherwise, upon any third party any fight, remedy or benefit hereunder. No term provision or condition of this Lease shall be construed or interpreted as a waiver, express or implied, by Lessor of any immunity, right, benefit, protection or other provision of the Colorado Governmental Immunity Act or any other law, common or statutory, granting immunity or protection to Lessor. This Lease is subject to and shall be interpreted under the laws of the state of Colorado and the charter and ordinances of Lessor. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed as of the day and year first above written. LESSOR: LESSEE: CITY OF PUEBLO, STEEL CITY AVIATION, LLC A Municipal Corporation~_~._ .... ~ ~' J ? ~ ~ By , (., , .,.~ ~ lDerek Genova, President/Owner Bill S~ova ~ J Title: President 0f City Council / Attest: Approved as to form: City ~erk City Attorney -10- EXHIBIT NORTHEAST 1/,I OF SECTION 25, TOWNSHIP 20 SOUTH, RANGE 64 WEST OF THE 6th PRINCIPAL MERIDIAN COUNTY OF PUEBLO, STATE OF COLORADO N 88' 15' 43" E 210.80' 0 N SCALE: 1": 60' 4BEL ENGINEERING PROFESSIONAL~ INk P.O. BOX 1826 PUEBLO, COLORADO 81002 (719) 546-22J5 &~ 2001-2t2 211.00' FOUND J" CAP IN'j/~ MONUMENT BOX ~S PER MONUMENT RECORDS) FOUND PK NAIL & SHINER PLS //16128 · FOUND ~14 REBAR 0 SET ~4 REBAR WITH PLASTIC YELLOW DAP, PLS ,//,30107 --O--FENCE 0 TREE + FIRE HYDRANT