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RESOLUTION NO. 5963
A RESOLUTION ACCEPTING THE PROPOSAL OF ROCKY A. DE VENCENTY
FOR A FIXED BASE OPERATION AT PUEBLO MEMORIAL AIRPORT
AND APPROVING A LAND LEASE AND OPERATING AGREEMENT BETWEEN
PUEBLO, A MUNICIPAL CORPORATION AND TRAVELAIRE SERVICE, INC.
AND AUTHORIZING THE PRESIDENT OF THE COUNCIL TO EXECUTE SAME;
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, COLORADO, THAT:
SECTION 1:
THE PROPOSAL FOR A FIXED BASE OPERATION AT PUEBLO MEMORIAL AIRPORT
SUBMITTED BY ROCKY A. DE VENCENTY, PRESIDENT OF TRAVELAIRE SERVICE, INC.
IS HEREBY APPROVED AND ACCEPTED.
THE LAND LEASE AND OPERATING AGREEMENT DATED JANUARY 26, 1987, A
COPY OF WHICH IS ATTACHED HERETO AND MADE A PART HEREOF BY REFEUENCE, BY
AND BETWEEN PUEBLO, A MUNICIPAL CORPORATION, AND TRAVELAIRE SERVICE, INC.
RELATING TO A LAND LEASE AND OPERATION AS A FIXED BASE OPERATOR LOCATED AT
PUEBLO MEMORIAL AIRPORT, BE, AND THE SAME IS HEREBY APPROVED.
SECTION 2:
THE PRESIDENT OF THE COUNCIL IS HEREBY AUTHORIZED TO EXECUTE SAID
LAND LEASE AND OPERATING AG" DID T ON BEHALF OF PUEBLO, A MUNICIPAL
CORPORATION, AND THE CITY CLERK SHALL AFFIX THE SEAL OF THE CITY THERETO AND
ATTEST THE SAME.
SECTION 3:
ALL NET PROCEEDS DERIVED FROM SAID LAND LEASE AND OPERATING AGREEMENT
WILL BE USED FOR THE OPERATION, MAINTENANCE AND IMPROVEMENT OF THE AIRPORT.
INTRODUCED JANUARY 26. 1987
BY KENNETH HUNTER
COUNCC
APP•Oggi :
4 O /
ATTEST: P'--=IDENT OF THE CITY COUNC L
II 0i
C Y' CLERK
PUEBLO MEMORIAL AIRPORT
OPERATING AGREEMENT AND LAND LEASE
This Lease made this 26TH day of JANUARY 1987, between the CITY
OF PUEBLO, a
Municipalipal Corporation (herein "City" )
and _ TRAVELAIRE SERVICE, INC. (herein "Lessee" ) ,
WITNESSETH
In consideration of the payment of rent hereinafter provided and
the keeping and performance of each of the covenants and agreements
of the Lessee hereinafter set forth, City has and does hereby lease
unto the Lessee the land 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" ) for .a term of ten (10) years from February
1, 1987 to January 31, 1997 .
For and in consideration of the leasing of the Property, Lessee
does hereby covenant and agree as follows:
1. Lessee shall fulfill the basic minimum standards and offer
the mandatory services and activities set forth and described in the
Pueblo Memorial Airport Minimum Standards For Airport Aeronautical
Services, May 17, 1977, (herein "Standards" ) . Lessee hereby
acknowledges receipt of a copy of the Standards . In addition to
such services and activities, Lessee may on the Property (a) lease
automobiles belonging to responsible rental companies or (b) sell
and dispense soft drinks, candy and tobacco from coin operated
vending machines but not food or food products .
2 . Lessee shall without notice or demand and without abatement,
deduction or setoff pay to City as and for rent, the following:
(a) For use of services and facilities presently being
provided at the Airport, namely: sewage disposal, public street
maintenance, fire protection and public street lighting, an
annual service fee based on $297 .50 per acre in monthly install-
ments of $29. 25 in advance without notice on or before the tenth
day of each month during the effective period of this Lease.
The service fee, at the sole option of the City, may be
modified, increased or decreased five years after the commence-
ment of the original term and every five years thereafter during
the effective period of this Lease, provided, that if the City
shall reduce or eliminate any or all of the services and
facilities presently being provided, the service fee for the
reduced services or facilities shall be determined by mutual
agreement of the City and the Lessee but such fee shall not be
less than the City' s actual cost and expense of providing such
services or facilities . For purposes hereof the City and the
Lessee agree that the Property contains 1 .18 acres and that the
annual service fee for the first five years is $297. 50 per year.
(b) For aviation fuel sold or dispensed on or from the
Property, a flow fee equal to 5 .5 cents per gallon for the first
40, 000 gallons sold or dispensed each month and 6.5 cents per
gallon for each additional gallon. The flow fee shall be paid
monthly on or before the tenth day of the following month.
(c) For other services and activities authorized to be
performed on the Property, a fee of one percent (1%) of Lessee ' s
monthly gross revenue from all sales , operations, services and
activities made, furnished or conducted on or from the Property,
except revenue from the sale of aviation fuel. Such fee shall
be paid monthly on or before the tenth day of the following
month.
(d) For use of the Property, the Lessee shall pay as
rental an annual fee of $240.00 per acre, in monthly
installments of $23 .60 in advance without notice on or before
the tenth day of each month during the effective period of this
Lease. This rental fee is subject to increase by the City every
five years from commencement of this Lease.
(e) If the total fees payable under (b) , and (c) above are
less than $ 1200.00 (annual guarantee) for any calendar year,
Lessee shall pay the difference between the annual guarantee and
the total fees paid on or before the twentieth day of January of
the following calendar year. If any portion of the term of the
Lease is less than a calendar year, the annual guarantee and
rent paid hereunder shall be prorated.
3 . Lessee shall not permit or authorize any person, firm or
corporation to conduct commercial flying operations or activities on
or from the Property or to use the Property as a base for commercial
aviation operations unless authorized by Resolution of the City
Council of the City and unless such person, firm or corporation pays
a landing fee to the City for the use of the Airport as established
by Resolution of the City Council of the City. Lessee shall collect
all such landing fees and remit same to the City less five percent
(5%) thereof for collection costs . Landing fee schedules are
available at the office of the Airport Superintendent.
4. Lessee shall not engage in any business or conduct any
activity at the Airport or upon the Property other than that which
is specifically authorized herein.
5 . Lessee shall properly grade .and surface with concrete,
asphalt, asphaltic concrete or other cover material approved by the
City all areas of the Property used for motor vehicle travel or
parking and maintain such areas in good condition.
6 . Lessee shall keep and maintain the Property in a clean, safe
and orderly condition free of waste, rubbish, debris, trash and
weeds and shall provide for the sanitary handling and disposal of
all trash, garbage, waste and other refuse from the Property. All
unsightly areas of the Property used for the storage of parts,
materials, supplies, equipment or damaged aircraft pending repairs
shall be completely enclosed or screened from public view by a solid
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fence not less than six (6 ) feet in height . Such fence shall be
maintained in good and sightly condition and shall not be used as a
sign or for the support of signs . All signs or advertising placed
on the Property including any painted or installed on any building
or improvement thereon shall be first approved by the City. If
Lessee within 48 hours after receipt of notice from the City shall
not remove waste, rubbish or other debris from the Property and
dispose of same, City may cause the waste, rubbish or other debris
to be removed and disposed of and the cost thereof plus an amount
equal to 100% thereof shall be charged to Lessee as additional rent
and be paid by Lessee immediately upon billing therefor.
7 . Lessee shall promptly pay when due and discharge all lawful
charges, taxes, assessments and liens of whatever kind or nature
which may be levied upon or assessed against the Lessee, Property or
improvements thereon. Lessee shall furnish and pay all charges for
utilities used by Lessee.
8 . Lessee shall maintain and keep the Property including all
buildings and improvements whether now located or subsequently
constructed thereon in good order and repair at its sole cost and
expense . All work and materials required to so maintain the
Property shall be performed and furnished promptly and in a workman-
like manner. The City reserves the right to specify colors to be
used in painting the exteriors of buildings and improvements on the
Property. Lessee shall paint all buildings in need of painting
within six months from the effective date of the original term and
thereafter maintain all painting in good condition.
9 . Lessee shall keep and maintain records of all business
conducted or transacted on or from the Property in accordance with
accepted accounting practices . Such records shall be open for
inspection by the City or its agents for purpose of examination and
audit upon reasonable notice .
10 . Lessee shall construct and maintain at its own expense, free
from leaks and unsanitary conditions, all water and sewer service
lines other than as shown and designated as "Mains" on the Utilities
Map of the Pueblo Memorial Airport, on file in the office of the
Airport Superintendent, as may be necessary to his enjoyment and use
of the Property. Lessee ' s use of the sewer is restricted by and
made subject to the City' s ordinances relating to sewer user,
pretreatment, industrial cost recovery and sanitary sewer
restrictions as same may now exist or may hereafter be amended.
11 . The Lessee represents that he has inspected the Airport and
all its premises and facilities including the Property and that he
accepts the condition of same and fully assumes the risk incident to
the use thereof. The City shall not be liable to the Lessee for any
damages or injuries to persons or property which results from
hidden, latent, or other conditions of the Airport.
12 . Lessee, its employees and invitees shall have the right of
ingress and egress between the main entrance of the Airport, as
presently exists, or may hereafter be relocated and the Property
over, upon and through such streets and no other as from time to
time shall be designated by the Director of Aviation of the City.
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13 . The City shall have full and unrestricted right to enter
upon and inspect the Property at all times .
14. Lessee shall make no alterations in or additions to the
Property without first obtaining the written consent of the City.
All buildings, additions or improvements presently located upon or
hereafter placed upon the Property by Lessee shall be and become the
property of City upon termination of this Lease free of all liens,
taxes and encumbrances.
15 . If Lessee defaults in the payment of rent or any part
thereof or fails to perform or observe any of the conditions and
covenants on its part to be performed or observed hereunder, and
such default or failure shall continue for a period of ten (10) days
after written notice thereof has been given to Lessee by first class
mail addressed to Lessee at its last known address at Pueblo
Memorial Airport, then, in that event, and as often as same may
happen, it shall be lawful for the City, at its election, with or
without notice, to terminate this Lease and to re-enter and re-
possess the Property, using such force as may be necessary, and to
remove from the Property all personal property of Lessee without
prejudice to any claim for rent or for breach of covenants, or
without being guilty of trespass or forceable entry or detainer.
City is hereby granted a lien and security interest for payment of
rent and damages for breach of covenants upon all Lessee ' s goods and
personal property which is or may be placed upon the Property
including without limitation business fixtures, equipment, inventory
and proceeds thereof 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.
16 . If the Property is left vacant and any part of the rent
remains due and unpaid, the City may, without being obligated to do
so, and without terminating this Lease, retake possession of the
Property and rent the same for such rent and upon such terms as the
City may think best, making such changes and repairs as may be
required, giving credit for the amount of rent received less all
expenses of such changes and repairs, and the Lessee shall be liable
for the balance of the rent until expiration of this Lease. Lessee
agrees to pay to City all costs, including reasonable attorney fees,
of any action brought by City to recover rent or other money due and
unpaid under the Lease or to recover possession of the Property,
whether such action proceeds to judgment or not.
17 . No waiver of any breach of any one or more of the conditions
or covenants of this Lease by the City shall be deemed to imply or
constitute a waiver of such breach or of any succeeding or other
breach hereunder. The acceptance of rent by the City shall not
constitute a waiver of any breach then existing.
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18 . If Lessee remains in possession of the Property after
termination of the Lease without written agreement, such possession
shall be deemed to be a tenancy from month to month upon the same '
covenants and conditions set forth herein and at a monthly rental
equal to two times the average of the monthly payments payable
hereunder for the prior twelve months.
19. City reserves for itself, its agents, officers and employees
the right to ingress and egress over, upon and through the Property.
20. The General Provisions consisting of paragraph 1 through 22,
attached hereto as Exhibit "B", are incorporated herein and shall be
binding upon and inure to the benefit of Lessee and City as if set
out herein in full.
21 . The flow fee paragraph 2(b) is subject to review every five
(5) years after the commencement of the original term of the Lease.
Any increase in flow fee will not exceed a 20% increase. Any
increase or decrease in flow fee will be uniformly applied to all
fixed base operators .
22 . Lessee shall make available and provide on a continuous
twenty-four hour daily basis during the effective term of this Lease
aircraft fuel and oil dispensing services and the services of a
qualified mechanic.
23 . Lessee shall maintain the ramp area of the Property in good
condition, free of snow, ice, dirt and debris . If Lessee requests
City to sweep or remove snow from the ramp or other areas of the
Property, City may, at its option, provide such services as time
permits at a charge to Lessee equal to 150% of City' s cost therefor
including a reasonable charge for City' s equipment.
24 . In the event of a conflict between any provision of the
Lease, the Standards or the General Provisions, the General
Provisions shall control .
25 . Lessee understands that the City reserves the right to
further develop or improve the Airport as it sees fit, regardless of
the desires or views of the Lessee,and without interference or
hindrance .
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t .
26 . If Lessee is not in default hereunder, Lessee shall have the
right and option to renew this Lease upon the same terms and
provisions, except the right to renew granted by this paragraph, for
an additional term of ten (10) years upon giving the City twelve
(12) months prior written notice of Lessee ' s exercise of its right
and option to renew. Failure of Lessee to timely give such written
notice to City shall constitute a waiver of Lessee' s right and
option hereby granted and result in the cancellation and termination
thereof.
27 . Neither Lessee, nor any of its officers, directors or share-
holders , if Lessee is a corporation, nor any of its general or
limited partners, if Lessee is a partnership, shall, during the
effective term of this Lease:
(a) directly or indirectly, own or have any interest, whether
financial or otherwise, in any business or activity conducted on or
from the Airport, except that which is specifically authorized upon
the Property by the Lease; or,
(b) permit or allow any person or entity, or any officer,
shareholder, director or partner of such entity, which, directly or
indirectly, owns or has any interest, whether financial or other-
wise, in any other business or activity conducted on or from the
Airport, to, directly or indirectly, own or have any interest,
whether financial or otherwise, in the Lease, improvements on the
Property, or any business or activity conducted hereunder by
Lessee. Any breach or violation of this paragraph 27 shall
constitute grounds for immediate termination of the Lease.
PUEBLO MUNIC IPA CORPORAT ON
By//
Pr-- ident of the City Council
ATTEST:-
TRAM AIRE S it iw CE'
4P64
4/. � i /iii...L��
C y Clerk0 Lessee R�fi -. r; DE VENCENTY,PRES0
APPROVED AS TO FORM: ATTEST:
City Atte, Secretary (Lessee)
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EXHIBIT "A"
A parcel of land located in the County of Pueblo, State of
Colorado, to-wit:
A parcel of land located in the E 1/2 of the NE 1/4 of Section
25, Township 20 South, Range 64 West of the 6th Principal Meridian,
said parcel being more particularly described as follows;
Beginning at a point from which the E 1/4 corner of said Section
25 bears S 410 51 ' 15" E (Bearings are based on the east line of
said NE 1/4 to bear N 000 03 ' 21" W with all bearing contained
herein being relative thereto) , a distance of 931 .64 feet; thence S
88° 30 ' 13" W, a distance of 181 .54 feet; thence N 010 22 ' 30" W, a
distance of 285 feet; thence N 88° 36" 30" E, a distance of 180.62
feet; thence S 010 37" 57" E, a distance of 285 feet to the Point of
Beginning.
Said Parcel contains 1 . 18 acre, more or less .
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---- F.B.O. Site Sketch
(1.18 Acres 2)
EXHIBIT "B"
GENERAL PROVISIONS
1. This Lease is subject and subordinate to the provisions of
any existing or future agreement between City and the United States
Government or any agency thereof relating to the operation or
maintenance of the Pueblo Memorial Airport. The United States
Government has reserved the right of immediate re-entry in, to and
upon the Pueblo Memorial Airport including the Property in the event
of a National Emergency. If such right is exercised, the Lease
shall terminate and Lessee shall immediately quit and vacate the
Property and remove all its property and equipment therefrom. If
the Lease is so terminated, neither the City or the Lessee shall be
liable or responsible to the other party for any damages or injury
resulting from or occasioned by such termination or on account of
any covenants of the Lease or herein otherwise contained.
2 . The terms and provisions of the Lease and these General
Provisions are subject to the provisions of Chapter 1 of Title III
of the 1971 Code of Ordinances by the City in effect at the time of
execution of the Lease or as same may be hereafter amended. In the
event of a conflict between the provisions of said Chapter 1 of
Title III and any provision of the Lease or these General
Provisions, the provisions of said Chapter 1 of Title III shall
control.
3 . City reserves for the use and benefit of the public, a right
of flight for the passage of aircraft 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 any aircraft now known
or hereafter used, for navigation of or flight in said airspace, and
for use of said airspace for landing on, taking off from, or opera-
tion on or over the Pueblo Memorial Airport.
4. Lessee shall restrict the height of structures, buildings,
objects of natural growth and other obstructions on the Property to
a height of not more than 4, 669 feet above sea level . Lessee shall
not erect or permit the erection of any structure, or allow trees to
grown, or use or permit the Property to be used, 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. The City reserves the right to take any action it
considers necessary to protect the aerial approaches and
aeronautical use of the Pueblo Memorial Airport against obstruction
or hazards including, without limitation, removing from the Property
at Lessee 's expense any offending structure, object, use, or growth .
5 . City reserves the right, without any obligation on its part
to do so, to maintain and keep in repair the landing area of the
airport or other public areas or facilities and to develop, modify,
change, relocate, abandon or improve the Pueblo Memorial Airport, or
any part thereof, as it may determine, in its sole and absolute
discretion, at any time. Lessee hereby releases and forever dis-
charges City from any and all damages or injuries resulting from or
occasioned by any such actions taken or omitted to be taken by the
City.
6 . Lessee shall fence non-public areas from public areas within
or immediately adjacent to the Property and police the non-public
areas within or immediately adjacent to the Property, keeping
unauthorized persons or vehicles out of same.
7 . Lessee in performing its operations or providing services
under the Lease shall: (a) furnish good, prompt and efficient
services; (b) operate and furnish services on a fair, equal and
nondiscriminatory basis to all users thereof; and (c) charge fair,
equal, reasonable and nondiscriminatory prices for each unit of sale
or service, including parts, materials, and supplies, provided,
Lessee may be permitted to make reasonable and nondiscriminatory
discounts, rebates or other similar type of price reductions to
quantity purchasers .
8. The Lessee, as a part of the consideration hereof does
hereby further 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 a purpose for which a
Department of Transportation program or activity is extended or for
another purpose involving the provisions 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 Transporta-
tion, Subtitle A, Office of the Secretary, Part 21, Nondiscrimina-
tion in Federally-assisted Programs of the Department of Transporta-
tion--Effectuation of Title VI of the Civil Rights Act of 1964, and
as such Regulations may be amended (herein "Regulations" ) .
The Lessee does further hereby covenant and agree, as a covenant
running with the Property, that (a) 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, (b) that in the con-
struction of any improvements on, over, or under the Property and
the furnishing of service 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,
and (c) that the Lessee shall use the Property in compliance with
all other applicable requirements imposed by or pursuant to the
Regulations .
That in the event of breach of any of the above nondiscrimina-
tion covenants, the City shall have the right to terminate the Lease
and to re-enter and repossess the Property and the facilities
thereon, and hold the same as if the Lease had never been made or
issued.
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9. Lessee, its officers , agents and employees shall faithfully
observe all rules and regulations affecting the use of the Pueblo
Memorial Airport or motor vehicles thereon or the use and occupancy
of the Property, whether established by the Director of Aviation,
the City, the State of Colorado, or the United States or agencies
thereof and Lessee ' s use and occupancy of the Property and improve-
ments thereon are subject to all ordinances of the City the same as
though the Property and Pueblo Memorial Airport was located within
the jurisdictional limits of the City.
10. Notwithstanding any provision in the Lease or these General
Provisions to the contrary, the Lease and the rights granted to
Lessee thereunder are not and shall not be construed to be a grant
of an exclusive right, privilege or franchise. Lessee further
understands and agrees that no right or privilege granted by the
Lease will operate to prevent any person, firm or corporation
operating aircraft on Pueblo Memorial Airport from performing any
services on its own aircraft with its own regular employees, in-
cluding, but not limited to, maintenance and repairs that it may
choose to perform.
11 . The Property and Lessee ' s use thereof is subject to recorded
and unrecorded rights of way and easements and existing lines and
facilities for water, gas, sewer, electrical, telephone and other
utilities . No buildings or other structures of a permanent nature
shall be constructed on, over, adjacent to or under any waterline,
sewer line or other utility lines or appurtenant facilities on the
Property. Lessee after prior written consent of City may move and
relocate such utility lines at its sole cost and expense to another
location pursuant to plans and specifications approved by City.
12. Lessee shall indemnify and save harmless the City, its
officers, agents and employees from and against any and all claims,
demands, actions, suits and expenses (including reasonable attorney
fees) of any nature including those based upon injury to persons,
including death, or damage to property, including loss of use,
arising out of, caused by, or sustained by the acts or omissions of
Lessee, its officers, agents or employees, or in connection with the
performance of the Lease, or by conditions created thereby, or by
conditions of the Property, or based upon any violation of any
statute, ordinance, or regulation, except those caused by the
negligence of the City, its officers, agents or employees .
13 . Lessee shall maintain at its expense during the effective
period of the Lease (a) comprehensive general liability, products
liability, and automobile insurance against liability for injuries
to or death of any person for damage to or loss of property with
limits not less than $500,000 combined single limit per occurrence,
and (b) workmen' s compensation insurance with policy provisions as
required by Colorado law. Lessee shall furnish to City certificates
from an insurance company acceptable to City certifying such
insurance to be in force during the effective term of the Lease.
All such insurance shall provide for a minimum of ten (10) days
notice to City in the event of cancellation or material change in
the terms thereof. City reserves the right to reasonably increase
the minimum insurance limits set forth in (a) above.
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14 . The Lease and these General Provisions are intended as the
complete integration of all understandings and agreements between
the parties . No prior or contemporaneous addition, deletion, or
other amendment shall have any force or effect whatsoever unless
specifically included in the Lease. No subsequent novation, re-
newal, addition, deletion, or other amendment to the Lease or hereto
shall have any force or effect unless embodied in a written agree-
ment and approved by resolution or ordinance of the City Council of
the City.
15 . Lessee shall not assign or otherwise transfer the Lease or
any of Lessee's interest therein or sublease the Property or any
portion thereof without the prior written consent of the City first
had and obtained. If Lessee is a corporation or partnership, a
majority interest in the voting stock of the corporation or majority
interest in the partnership shall not be sold or otherwise trans-
ferred without the prior written consent of the City. Any such
assignment, transfer or sublease made without prior written consent
of the City shall be void and ineffective as to the City and shall
constitute grounds to terminate the Lease.
16 . In case any one or more of the provisions contained herein
or in the Lease shall be invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining
provisions contained herein or in the Lease shall not be affected or
impaired thereby.
17 . Whenever in the Lease or in these General Provisions any of
the parties hereto is named or referred to, the successors and
assigns of such party shall be deemed to be included and all the
covenants, promises and agreements contained herein or in the Lease
by or on behalf of the Lessee, or by and on behalf of the City,
shall bind and inure to the benefit of the respective successor and
assigns , whether so expressed or not .
18. It is the intention of the parties hereto that the Lease and
these General Provisions and the rights and obligations of the
parties hereunder shall be governed by and construed and enforced in
accordance with the laws of the State of Colorado.
19. Lessee shall at its expense, throughout the term of this
Lease, maintain and keep in force the following additional
insurance:
(a) Insurance on all buildings and improvements on the Property
against loss or damage by fire and against loss or damage by other
risks embraced by the so-called "Broad Extended Coverage Endorse-
ment" in the amounts at all times sufficient to prevent City or
Lessee, or both, from becoming a coinsurer under the terms of the
applicable policies, but, in any event, in an amount not less than
90% of the then full insurable value of the buildings and improve-
ments on the Property. In the event of a covered loss, the loss
will be adjusted by City and Lessee. All insurance proceeds shall
be payable to City and Lessee and be used to repair the damage or
replace the buildings or improvements . Lessee shall cause City' s
name to be included on said insurance as a Co-recipient of such
proceeds .
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(b) Contractual liability insurance to insure the performance by
Lessee of the indemnification agreement of paragraph 12 hereof.
All such insurance shall provide for a minimum of ten (10) days
notice to City in the event of cancellation, non-renewal or material
modification. Lessee shall provide City with certificates of such
insurance.
20 . Neither City nor Lessee shall be liable to the other for any
business interruption or any loss or damage to property or injury to
or death of persons occurring on the Airport, or in any manner
growing out of or connected with the Lessee 's use and occupancy of
the Property or the condition thereof, whether or not caused by the
negligence or other fault of City or Lessee, or their respective
officers, agents or employees . This release shall apply to the
extent such business interruption, loss, or damage to property or
injury to or death of persons is covered by insurance regardless of
whether such insurance is payable to or protects City or Lessee, or
both. Nothing herein shall be construed to impose any other or
greater liability upon either City or Lessee than would have
existed in the absence of this provision. This release shall be in
effect so long as the applicable insurance policies contain a clause
to the effect that this release shall not affect the right of the
insured to recover such policies . Such clauses shall be obtained by
the parties whenever possible. The release in favor of City con-
tained herein, is in addition to, and not in substitution for, or in
diminution of the hold harmless and indemnification provisions
hereof.
21 . If Lessee fails for any reason to actively conduct business
on the Property as permitted and authorized under the Lease for a
period of 120 consecutive days or longer, City may terminate and
cancel the Lease upon twenty (20) days prior written notice to
Lessee, provided, that if the Property becomes untenable because of
fire or other casualty not caused by the fault or negligence of
Lessee, the 120 day period shall be extended by such reasonable time
as may be required for Lessee to make necessary repairs or replace-
ments to the Property.
22 . The Lease and any amendment or modification thereto are
subject to the prior written approval of the Federal Aviation
Administration. Lessee agrees to comply with notification and
review requirements of the Federal Aviation Administration prior to
commencement of construction, modification or alteration of any
building or structure on the Property.
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