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HomeMy WebLinkAbout12296 RESOLUTION NO. 12296 A RESOLUTION APPROVING AN AIRPORT USE AGREEMENT BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND ALLEGIANT AIR, LLC, A NEVADA LIMITED LIABILITY COMPANY, AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE SAME BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The Airport Use Agreement dated October 1, 2011, a copy of which is attached hereto and made a part hereof by reference, by and between the City of Pueblo, a Municipal Corporation, and Allegiant Air, LLC, a Nevada Limited Liability Company, relating to the use of facilities at Pueblo Memorial Airport, after having been approved as to form by the City Attorney, is hereby approved, subject to the conditions as set forth in said Airport Use Agreement. SECTION 2. The President of City Council is hereby authorized to execute said Airport Use 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: January 9, 2012 BY: Leroy Garcia COUNCIL PERSON Background Paper for Proposed R ESOLUTION AGENDA ITEM # M-5 DATE: January 9, 2012 DEPARTMENT: DEPARTMENT OFAVIATION MARK LOVIN, DIRECTOR TITLE A RESOLUTION APPROVING AN AIRPORT USE AGREEMENT BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND ALLEGIANT AIR, LLC, A NEVADA LIMITED LIABILITY COMPANY, AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE SAME ISSUE Should City Council approve an Airport Use Agreement between the City of Pueblo and Allegiant Air, LLC? RECOMMENDATION Approval of this Resolution. BACKGROUND Allegiant Air has been providing direct airline flights to Las Vegas since October 7, 2010 per an airline incentive package established by City Council under Resolution 11867. The incentive package was due to expire October 6, 2011. In September of 2011, Allegiant Airlines was given this agreement to sign. However, in the past few months, they have experienced some management changes and, therefore, this agreement was just recently signed. They have continued to operate their flights with no interruptions and so the agreement will be made retroactive to October 1, 2011 and will end September 30, 2012. FINANCIAL IMPACT Allegiant Air will pay $7,600.08 per annum for counter space, office space, and storage space. They will also pay $10 per month for each reserved equipment parking space (approximately $40 per month). They will also pay landing fees at the rate of $.75 per thousand pounds of maximum allowable gross landing weight per flight. PUEBLO MEMORIAL AIRPORT AIRPORT USE AGREEMENT - THIS INDENTURE of Lease, made and entered into this 1 day of October, 2011, by and between THE CITY OF PUEBLO, a Municipal Corporation, hereinafter called "Lessor ", and Allegiant Air, LLC, a Nevada Limited liability Company, whose address is 8360 South Durango Drive, Las Vegas, NV, 89113, hereinafter called "Lessee," WITNESSETH: WHEREAS, Lessor now owns certain real property in the County of Pueblo, State of Colorado, known as the Pueblo Memorial Airport, hereinafter called "Airport" and Lessee is engaged in the business of transporting persons, property, cargo, and mail by air; and Lessor desires to grant the use of, and Lessee desires to use, certain premises and facility on the Airport, together with certain rights, licenses, and privileges thereon. NOW, THEREFORE, Lessor does hereby grant unto Lessee for the purpose of conducting its air transportation service business, and Lessee does take and accept from Lessor, for such purpose, the use of certain premises and facilities, rights, licenses, services, and privileges in connection with and on the Airport as follows, to -wit: I. RIGHTS A. Use of Airport The use in common with others of the common use areas of the Airport and its appurtenances including, if available and functioning, but not limited to: landing field, runways, aprons, taxiways, roadways, sewer and water facilities, flood lights, landing lights, and all conveniences for flying, landing, and take -offs of aircraft of Lessee, which use shall include the operation of a transportation system by it's aircraft for the carriage of persons, property, cargo and mail, including without limitation: loading and unloading of it's aircraft, the right to load and unload persons, property, cargo and mail at the Airport by such motor cars, buses, trucks or other means of }doriveyances as Lessee may require in the conduct of it's business, and the right to install, maintain, use and operate such radio, communications, meteorological and aerial navigation equipment and facilities in, on, or about the Airport as may be deemed necessary by Lessee for it's operations provided same shall not interfere with Lessor's, or Federal Aviation Administration's, existing or expanded equipment and facilities as well as the right, subject to Lessor's approval, to install advertising signs, and any other operation or activity reasonably necessary to the conduct by Lessee of it's air transportation service business or training of it's personnel, provided such other operation or activities will not interfere with the use of the Airport by Lessor or it's employees, agents, or other tenants and used on the Airport. B. Terminal Building 1. Lessee shall be entitled to the use of the following space in the terminal building: a. Counter Space — 180 square feet b. Office Space — 240 square feet c. Storage Space — 96 square feet 2. The Lessor shall designate the specific areas to be used by Lessee. Lessee's designated space is shown on Exhibit "A" attached hereto. 3. Indoor operation of gasoline - powered equipment is prohibited in the terminal building, including the baggage and freight handling area. 4. Lessor further grants Lessee the option of taking use for it's operation of an air transportation system of similar space in any new passenger terminal building which Lessor may construct during the term hereof, said space and rental therefore to be mutually agreed upon between Lessor and Lessee. Such use shall include, without limitation, the sale of tickets, cargo, and the operation of a traffic operations and communication office. Lessee, it's employees, passengers, guests, patrons and invitees shall also have the use, in common with others, of any public space now available in the terminal building, or which may hereafter be made available, including, but not limited to, waiting rooms, restrooms. C. Miscellaneous Rights of Lessee Including, But Not By Way of Limitation Lessee shall have: 1. The right of ingress and egress, without charge, to and from the premises outlined in Paragraph I.B above. 2. The right to purchase or otherwise obtain property, facilities or services deemed by Lessee to be required by, or incident to it's operation from any persons or organizations it may choose, provided that such suppliers of materials and furnishers of service have complied with the requirements of Section 3- 1 -2(c) of the Pueblo Municipal Code to the extent applicable; and further provided, that in consideration of Lessee's agreement to pay landing fees for it's flights that land at the Airport, persons or organizations furnishing charter aircraft services to Lessee in substitution of Lessee's scheduled flights shall be exempt from the requirements of said Section 3- 1 -2(c). 3. Except as herein otherwise specifically provided, the right to use the Airport and appurtenances free of any other charges, fees or tolls by Lessor of any nature, direct or indirect, (Except sales and use taxes) or any discriminatory restrictions by Lessor against Lessee or it's suppliers or contractors of property, facilities or services, for the privilege of using the Airport and appurtenances, including, without limitation, the privilege of purchasing, using, storing, withdrawing, handling, consuming, loading, unloading or delivering of any such property or of transporting the same to, from, or on the Airport, provided such activities are reasonably necessary to the conduct by Lessee of it's air transportation service business. II. TERM The term of this Lease shall be for the period commencing October 1, 2011, and ending September 30, 2012. Unless terminated earlier as provided herein, this Lease shall terminate at the end of the term and Lessee shall have no further right or interest in the leased premises, except that upon termination of this Lease for any reason, Lessee shall have the right for a period of ten days after the date of termination, to remove any or all of it's property from the Airport, provided, however, that 2 Lessee shall not be in default in it's payments to the Lessor hereunder and Lessee shall repair all damage to the Airport caused by such removal. III. RENTALS AND FEES Lessee agrees to pay to Lessor for the, use of the premises, facilities, rights, licenses, services and privileges granted hereunder, rentals, fees and charges (there being no other rentals, fees, or charges, and no tolls payable to Lessee during the term hereof) according to terms specified in Exhibit "B" attached hereto and made part hereof; provided, however, that in the event Lessee meets the requirements of Resolution No. 11867 providing Airline Incentives for new scheduled passenger service, attached hereto as Exhibit "C" and incorporated herein by reference, lease payments and landing fees shall be waived or adjusted as set forth in said Exhibit "C ". IV. MAINTENANCE OF AIRPORT BY LESSOR Lessor shall provide all maintenance services required to keep in good repair the Airport terminal building and all appurtenances, facilities and services now or thereafter connected with the foregoing, and shall operate the Airport in all respects in a manner at least equal to the standards or ratings of Airports of similar size and character issued by the Federal Aviation Administration. Without limiting the generality of the foregoing, the maintenance provided for herein shall include the keeping of runways, taxiways, aprons, and ramps free of snow and other obstructions insofar as reasonably possible. Lessor shall maintain the premises leased hereunder for Lessee's use in an attractive condition and shall provide maintenance necessary to accomplish that end. Notwithstanding the foregoing, Lessee shall be responsible to repair any damage to Pueblo Memorial Airport or it's facilities caused by it or it's agents, employees, or invitees other than due to normal wear and tear or fire. If Lessor fails to make such repairs or if Lessor shall be in default in the performance of any provision of this Airport Use Agreement on it's part to be performed, such failures or default shall not give rise to any action or claim by Lessee or it's agents, employees or invitees against Lessor; Lessee's only remedy for such failure or breach is to terminate this Airport Use Agreement. V. BUILDING BY LESSEE Lessee, at it's own expense, may construct, install, alter, modify, repair, and maintain in or on any space which is or may be leased by Lessee hereunder and described in Paragraph I.B, any improvements that it shall determine to be necessary for use in connection with it's business. No restrictions shall be placed upon Lessee as to the architects, contractors or material men who may be employed by it in connection therewith, who shall have free . ingress and egress from said premises. Notwithstanding the foregoing, no improvement to or modification of the leased premises shall be made by Lessee until plans and specifications therefore have been first approved by Lessor, which approval shall not be unreasonably withheld, and provided the construction and installation of such improvement to or modifications of the leased premises shall be in compliance with all applicable laws and codes and shall not unreasonably interfere with Lessor's operation of the Pueblo Memorial Airport or terminal building or other Lessee's use thereof. VI. LIABILITY AND INSURANCE A. Lessee agrees to indemnify, defend and save and keep Lessor, its officers, agents and employees, harmless from any and all loss, expense, including reasonable attorney fees, claims, demands, or liability, resulting from the use of the Airport, Terminal Building, 3 Lessee's designated space, and all other Airport facilities, by Lessee or any of its employees, agents, licensees, or invitees in their use and occupancy thereof. B. Lessee shall obtain and maintain in effect, at Lessee's expense, during the term of this Agreement, Aircraft Liability Insurance covering both owned and non -owned aircraft with coverage for both aircraft passengers and non - passengers. The Aircraft Liability Insurance shall be written with a combined single limit for bodily injury and property damage of $1,000,000 per occurrence and $2,000,000 aggregate. C. Lessee shall also obtain and maintain in effect at Lessee's expense, during the term of this Agreement, Airport Liability Insurance, covering the premises operations of Lessee, including operation of mobile equipment, with a combined single limit of not less than $1,000,000 per occurrence for bodily injury and property damage, and such insurance shall include Products & Completed Operations, Contractual Legal Liability and Personal Injury Legal Liability. The policy shall apply to liability assumed by the Lessee under this Agreement, and this Agreement shall be deemed to be an "Airport Contract" required by Lessor as a governmental authority as a prerequisite for the use of the Airport, the Terminal Building and Lessee's designated space. D. Lessee shall maintain in force, at Lessee's expense, during the term of this Agreement, Pollution Liability Insurance covering its liability for bodily injury, property damage, and environmental damage resulting from sudden and accidental releases of pollution, and covering related or resultant characterization, cleanup and /or remediation costs arising from the occupancy and use of the Airport, Terminal Building and designated space. Combined single limit bodily injury, property damage, environmental liability and cleanup /remediation shall not be less than $1,000,000 in the annual aggregate. E. Lessee shall obtain and maintain Workers' Compensation and Employer's Liability coverage protecting Lessee against all claims under applicable State Workers Compensation laws. Limits of liability shall be not less than: Workers' Compensation — Statutory Employer's Liability Each Accident - $100,000 Disease — Policy Limit - $500,000 Disease — Each Employee - $100,000 This coverage shall include all of Lessee's employees, including the owner(s) and shall contain an endorsement waiving subrogation against the City of Pueblo. F. Prior to the effective date of this Agreement, Lessee shall furnish Lessor with a certificate of insurance executed by a duly authorized representative of each insurer, showing compliance with the insurance requirements shown above. G. Coverage and limits enumerated in this lease insurance provision represent only the minimum insurance required by the City of Pueblo, and Lessee should rely on its expertise to obtain any additional insurance coverage needed to protect the City of Pueblo and the Lessee under this lease agreement. 4 H. In the event the premises covered by this Agreement are wholly or partially destroyed or damaged so as to render the whole or a substantial part thereof unfit for occupancy, and the same cannot be repaired with reasonable diligence within one hundred twenty (120) days after the happening of such destruction or damage, or if Lessor, in its sole judgment determines that it is not economically feasible to repair same, then this Lease, at the option of the Lessee or Lessor, shall cease and terminate as of the date of such damage or destruction. Upon such termination, Lessor shall repay to Lessee any rents theretofore paid by Lessee with respect to any period subsequent to the date of such termination. Lessee shall surrender possession of the premises to the Lessor upon such termination. If, in the sole opinion of Lessor, such destruction or damage can be repaired within one hundred twenty (120) days, Lessor shall forthwith repair the same with all reasonable diligence, and at its own expense, and this Lease shall continue in force and effect. During the period of such repair, the rent shall be abated in the same ratio as that portion of the premises which is rendered unfit for occupancy bears to the whole. VII. CANCELLATION BY LESSOR Lessor, in addition to other rights of termination or cancellation given herein or by law, may cancel this Lease and terminate all or any of its obligations hereunder by giving Lessee thirty (30) days advance notice, upon or after the happening of any one of the following events: A. The filing of Lessee of a voluntary petition in bankruptcy. B. The adjudication of Lessee as a bankrupt pursuant to such proceeding. C. The appointment of a receiver of Lessee's assets or the divestiture of Lessee's estate herein by operation of Law. D. The abandonment by Lessee of its conduct of air transportation service at the Airport. E. The default by Lessee in the performance of any covenant or agreement herein required to be performed by Lessee and the failure by Lessee to remedy such default for a period of thirty (30) days after receipt from Lessor of written notice to remedy the same; provided, however, that no notice of cancellation, as above provided, shall be of any force or effect if Lessee shall have remedied the default prior to receipt of Lessor's notice of cancellation. F. Recapture of the Airport by the Federal Government and assumption of control over aviation activities at the Airport by the Federal Government for a period of more than thirty (30) days. G. Issuance by any Court of Competent Jurisdiction of any injunction in any way preventing or restraining the use of the Airport or any part thereof for airport purposes, and the remaining in force of such injunction for a period of at least thirty (30) days. H. No waiver of default by Lessor of any of the terms or conditions hereof to be performed, kept and observed by Lessee, shall be construed to be an act as a waiver of any subsequent default of any of the terms and conditions herein contained to be performed, kept and observed by Lessee and acceptance of rent or part thereof by Lessor shall not constitute a waiver or any breach by Lessee then existing. 5 VIII. CANCELLATION BY LESSEE Lessee, in addition to any other rights of termination or cancellation given herein or by law, may cancel this Lease and terminate all or any of it's obligations hereunder at any time that Lessee is not in default in ifs payments to Lessor, hereunder, by giving Lessor thirty (30) days advance written notice, upon or after the happening of any one of the following events: A. The order or the action of the Department of Transportation or other governmental authority terminating, suspending or relieving Lessee's right or obligation to operate. B. Issuance by any Court of Competent Jurisdiction of any injunction in any way preventing or restraining the use of the Airport or any part thereof for airport purposes, and remaining in force of such injunction for a period of at least thirty (30) days. C. Any action by the Federal Government or it's agencies refusing to permit Lessee to operate into, from, or through the Airport such aircraft as Lessee may reasonably desire to operate thereon, as long as services provided are not less than essential air service to Pueblo. D. The breach by Lessor of any of the covenants or agreements herein contained and the failure of Lessor to remedy such breach for a period of thirty (30) days after receipt of a written notice of the existence of such breach; provided, however, that no notice of cancellation, as above provided, shall be of any force or effect if Lessor shall have remedied the default prior to receipt of Lessor's notice of cancellation. E. The inability of Lessee to use said premises and facilities continuing for a longer period of thirty (30) days due to any deficiency of the Airport or unsafe condition for operating at the Airport of the type of aircraft then being flown by Lessee or any law, order, rule or regulation of any appropriate Governmental Authority having jurisdiction over the operations of Lessee or due to war, or other casualty. F. The assumption by the United States Government or any authorized agency thereof of control of said Airport and facilities or any substantial parts thereof. G. The erection of any obstacle on or in the vicinity of the Airport which would occasion a modification of Lessee's air carrier operating certificate or similar authorization establishing minimum safety standards for the operation of Lessee. H. No waiver of default by Lessee of any of the terms, covenants or conditions hereof to be performed, kept and observed by Lessor shall be construed to be or act as a waiver by Lessee of any subsequent default of any of the terms, covenants and conditions therein contained to be performed, kept and observed by Lessor. IX. ASSIGNMENT Lessee may not assign or sublease the premises leased hereunder without the consent of Lessor . which shall not be unreasonably withheld, except an assignment to a successor corporation which has merged with, or acquired substantially all the assets of the Lessee, if such successor corporation should specifically agree in writing to perform this Airport Agreement. 6 X. APPLICATION OF PUEBLO MUNICIPAL CODE All terms and conditions of this Lease are hereby made subject to the provisions of Title III, Chapter 1 of the Pueblo Municipal Code, and in event of conflict between said Pueblo Municipal Code and any provision herein, said Pueblo Municipal Code shall control. XI. QUIET ENJOYMENT Lessor represents that it has the right to lease the Airport, together with the rights, licenses, and privileges herein granted, and has full power and authority to enter into this Lease in respect thereof, subject to the right of Recapture reserved by the United States of America. Except otherwise provided herein, Lessor agrees that, on payment of the rent and performance of the covenants and agreements hereunder by Lessee, Lessee shall peaceably have and enjoy the leased premises and all rights and privileges specified herein of the Airport, it's appurtenances and facilities. XII. REGULATION A. Lessee agrees to observe and obey all reasonable regulations imposed by Lessor during the term hereof, provided the same are consistent with safety and do not conflict with the regulations and procedures prescribed by the Federal Aviation Administration for operation of Lessee's aircraft at the Airport. B. This lease is subject to prior FAA approval. XIII. NOTICES Notices to Lessor provided for herein shall be sufficient if served personally or sent by certified mail, return receipt requested, addressed to: Director of Aviation, Pueblo Memorial Airport, 31201 Bryan Circle, Pueblo, CO 81001 and notices to Lessee, if sent by certified mail, return receipt requested, addressed to: Allegiant Air LLC, 8360 South Durango Drive, Las Vegas, NV 89113, or to such other respective addresses as the parties may designate to each other in writing from time to time. XIV, INVALID PROVISION It is further expressly understood and agreed by and between the parties hereto that in the event that any covenant, condition or provision herein contained is held to be invalid by any Court of Competent Jurisdiction, the invalidity of any such covenant, condition or provision shall in no way affect any other covenant, condition or provision herein contained, provided, however, that the invalidity of any such covenant, condition or provision does not materially prejudice either the Lessee or the Lessor in their respective rights and obligations contained in the valid covenants, conditions or provisions in this Lease. XV. SECURITY Lessee shall comply with and be responsible for all applicable: (1) Federal Aviation Administration Regulations; (2) Transportation Security Administration Regulations; (3) City Ordinances; and (4) Airport Rules and Regulations, involving all of their leased area and use of the Airport and terminal building, including TSAR Part 1540, Lessor's FAA approved Airport Security Program and all other Department of Transportation and FAA directives pertaining to airport security. 7 XVI. CONDUCT OF BUSINESS Lessee agrees to operate the premises leased for the use and benefit of the public and that in the operation of its business upon the leased premises, Lessee agrees: A. To furnish good, prompt and efficient services adequate to meet all the demands for its services at the Airport, B. To furnish such services on a fair, equal and non - discriminatory basis to all users thereof; and, C. To charge fair, reasonable and non- discriminatory prices for each unit of sale or service, provided that the Lessee may be allowed to make reasonable and non - discriminatory discounts, rebates or other similar types of price reductions to volume purchases. XVII. NON - DISCRIMINATION The Lessee, in the operations to be conducted pursuant to the provisions of this Airport Use Agreement and otherwise in the use of the Airport, will not discriminate or permit discrimination against any persons or class of persons by reason of race, color, religion, sex, disability, or national origin in any manner prohibited by 49 CFR Part 21 of the Regulations of the Office of the Secretary of Transportation, or any amendments thereto. The Lessor reserves the right to take such action as the United States Government may direct to enforce this covenant. XVIII. AFFIRMATIVE ACTION The Lessee assures that it will undertake an Affirmative Action Plan as required by 14 CFR Part 152, Subpart E, to ensure that no person shall, on the grounds of race, creed, color, sex, disability, or national origin, be excluded from participating in any employment activities covered in 14 CFR Part 152, Subpart E. The Lessee assures that no person shall be excluded on these grounds from participating in or receiving the services or benefits of any program or activity covered by such Subpart. The Lessee assures that it will require that its covered sub - organizations provide assurances to the Lessor that they similarly will undertake an Affirmative Action Plan and that they will require assurances from the sub organizations as required by 14 CFR Part 152, Subpart E to the same effect. XIX. OTHER AIRCRAFT It is clearly understood by the Lessee that no right or privilege has been granted which would prevent any person, firm or corporation operating aircraft on the Airport from performing any services on its own aircraft with its own regular employees (including, but not limited to, maintenance and repair) that it may choose to perform. XX. NON- EXCLUSIVE RIGHT It is understood and agreed nothing herein contained shall be construed to grant or authorize the granting of an exclusive right. 8 XXI. DEVELOPMENT OF AIRPORT Lessor reserves the right to further develop or improve the public areas of the Airport including the landing area of the Airport as it sees fit, regardless of the desires or views of the Lessee, and without interference or hindrance from Lessee or liability to Lessee. XXII. MAINTENANCE Lessor reserves the right, but shall not be obligated to Lessee, 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. XXIII. NATIONAL EMERGENCIES During the time of war or national emergency, Lessor shall have the right to lease the landing area or any part thereof to the United States Government for military or naval use, and if such lease is executed, the provisions of this lease insofar as they are inconsistent with the provisions of the lease to the Government, shall be suspended. XXIV. AERIAL APPROACHES Lessor reserves the right to take any action it considers necessary to protect the aerial approaches of the Airport against obstruction, together with the right to prevent Lessee from erecting, or permitting to be erected, any building or any other structure on or adjacent to the Airport which, in the opinion of the Lessor, would limit the usefulness of the Airport or constitute a hazard to aircraft. XXV. UNITED STATES This Lease shall be subordinate to the provisions of any existing or future Agreement between Lessor and the United States, relative to the operation or maintenance of the Airport, the execution of which has been, or may be, required as a condition precedent to the expenditure of the federal funds for the development of the Airport. XXVI. EFFECTIVE DATE Regardless of the date of execution, the effective date of this Airport Use Agreement is October 1, 2011. XXVII. MISCELLANEOUS A. This Airport Use Agreement expresses the entire understanding and agreement between the Lessor and Lessee with respect to the subject matter hereof and shall be binding and inure to the benefit of Lessor and Lessee and their respective successors and approved assigns. No amendment or modification hereof shall be effective unless in writing signed by Lessor or Lessee. B. This Airport Use Agreement shall be governed by and construed in accordance with the laws of the State of Colorado. Venue for any action arising out of this Airport Use Agreement shall be Pueblo County, Colorado. Lessor and Lessee, to the extent permitted by law, waive trial by jury in any action brought on or with respect to this Airport Lease Agreement. 9 C. Lessee is leasing and using the leased premises and Airport "AS IS, WITH ALL ITS FAULTS" in its present condition. Except as expressly provided herein, Lessee acknowledges and agrees that Lessor has not made any representation or warranty with respect to the present or future condition or suitability for a particular use of the leased premises or Airport. D. Lessee shall be responsible for all costs, fees, charges or penalties associated with the discharge or release of any hazardous material (including petroleum products), or mitigating, containing, or removal of any contamination or hazardous material (including petroleum products) on, over and under the leased premises or Airport caused, in whole or in part, by Lessee, its officers, agents, employees, contractors or fuel suppliers. It is understood that Lessee is not responsible for any conditions which may be determined to have been caused by parties other than the Lessee, its officers, agents, employees, contractors or fuel suppliers, or caused or existing prior to the effective date of this Airport Use Agreement. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of this day and year first above written. DATED THIS 9th day of January , 2012. ATTEST: _ CITY OF PUEBLO, a Municipal Corporation by � % /,' ozia,,L) City erk Pre • dent of City Council ATTEST: - - Allegiant Air, LLC by Title: Di/*Z0/2 - AuP°19/2,5 [comment; must be signed by member or manager of LLC, or accompanied by certificate of authority] APPROVED AS TO FORM: City Attorn 10 II V MMMMM j7: `I ,A S A I MM 0 O E " d —T, 1 y J • A b44 2602 N. ELIZABETH Si.' a SECU 30� Y AREA REMODEL DD C�SL� lI� Pueeuo coLOAAOO e l000 6 B4 IPUEERLO MEMORIAL AIRPORT' 1LJ 0 9 aH(CIS) sa — o 51001 BRYAN CIRCLE PUEBLO, COLORADO 01001 F %(719) 545 - 0 p LR �J O Q�I�� WEB : HGFARCHCOM EXHIBIT "B" RENTALS AND FEES PUEBLO MEMORIAL AIRPORT AIRPORT USE AGREEMENT BETWEEN THE CITY OF PUEBLO AND ALLEGIANT AIR, LLC. RENTALS For the period October 1, 2011 through September 30, 2012 the following rental rates should apply: (1) 180 square feet of Counter Space at $16.10 per square foot per annum. (2) 240 square feet of Office Space at $16.10 per square foot per annum. (3) 96 square feet of Storage Space at $8.73 per square foot per annum. Rentals shall be paid in 12 equal monthly installments in advance without notice and without setoff or deduction on the first day of each calendar month commencing November 1, 2011. EQUIPMENT PARKING SPACE The rental rate for reserved equipment parking at Pueblo Memorial Airport is $10.00 per month for each space, payable monthly in advance. ACTIVITIES FEES Lessee agrees to pay landing fees at the Pueblo Memorial Airport for all revenue - producing and non - revenue (training) flights of the Lessee that land at the Airport at the rate of seventy -five (75) cents per thousand pounds of maximum allowable gross landing weight of such aircraft, to include any flight that is diverted to the Airport by the Lessee, provided, however, that no landing fees shall be due and payable in the event an aircraft departs from the Airport to return and land at the Airport because of meteorological conditions, mechanical or operating causes or for any similar emergency or precautionary reason. Within five (5) days following the end of each calendar month, the Lessee shall transmit to the Director of Aviation a true and accurate report, giving data necessary to calculate the amount of landing fees. Data for training flights at Pueblo is to be included. Lessee agrees to pay landing fees monthly within thirty (30) days of date of statements from Lessor. EXHIBIT "C" NEW SERVICE INCENTIVES PUEBLO MEMORIAL AIRPORT AIRPORT USE AGREEMENT BETWEEN THE CITY OF PUEBLO AND ALLEGIANT AIR, LLC. SECTION 1. Any 14 CFR, Part 121, FAA certificated Air Carrier shall be eligible to receive temporary promotional incentives to operate out of Pueblo Memorial Airport provided the following conditions are satisfied: 1. The Air Carrier must, within the Opportunity Period, enter into a lease with the City of Pueblo which includes the City's standard air carrier lease terms, except as modified by the incentives authorized herein. 2. The Air Carrier must agree to provide a minimum of 2 departures per week, commencing within 30 days of the effective date of the lease. 3. The Air Carrier must initiate new, non stop, direct commercial air service to destinations not currently being served at the Airport. SECTION 2. The following incentives shall be offered during the Promotional Period, not to exceed one year, to any Part 121 certificated airline who satisfies the conditions set forth in Section 1: 1. Airport landing fees will be waived for up to a one year Promotional Period or until discontinuation of service, whichever occurs first. 2. Terminal rental fees will be waived for up to a one year Promotional Period or until discontinuation of service, whichever occurs first. Terminal rental, for which fees are waived, shall include a maximum of two ticket counter positions, a baggage makeup area, and administrative support space. 3. Fuel flowage fees for up- loaded fuel at Pueblo Memorial Airport will be waived. 4. The City will provide an advertising match promoting the new destination, provided that the cost thereof shall not exceed $30,000 during the Promotional Period.