Loading...
HomeMy WebLinkAbout09924ORDINANCE NO. 9924 AN ORDINANCE APPROVING A HANGAR LEASE AGREEMENT BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND THE NATIONAL MUSEUM OF WWII AVIATION, A COLORADO CHARITABLE ORGANIZATION, FOR SPACE TO STORE A GRUMMAN HU-16 ALBATROSS IN THE BLITZ HANGAR AT PUEBLO MEMORIAL AIRPORT, AND AUTHORIZING THE MAYOR TO EXECUTE SAME WHEREAS, the City of Pueblo is the owner and operator of the Pueblo Memorial Airport together with the land on which said Airport is situated; and WHEREAS, The National Museum of WWII Aviation is desirous of leasing space in the Blitz Hangar (32451 Walt Bassett Avenue) that is owned by the City of Pueblo; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. A certain Pueblo Memorial Airport Blitz Hangar Lease Agreement (“Lease”) by and between the City of Pueblo, a Municipal Corporation, and the National Museum of WWII Aviation, a Colorado charitable organization, to lease space in the Blitz Hangar at Pueblo Memorial Airport, 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, is hereby approved. SECTION 2. The Mayor is hereby authorized to execute the Lease in the name and on behalf of the City of Pueblo, where the Mayor may execute the Lease by electronic signature and such electronic signature shall be attributable to the Mayor and the City of Pueblo. SECTION 3. The officers and staff of the City are authorized and directed to perform any and all acts consistent with the intent of this Ordinance and the attached Lease to effectuate the terms and conditions described therein. SECTION 4. This Ordinance shall become effective on the date of final action by the Mayor and City Council. Action by City Council: Introduced and initial adoption of Ordinance by City Council on April 26, 2021 . Final adoption of Ordinance by City Council on May 17, 2021 . President of City Council Action by the Mayor: ☒ Approved on May 19, 2021 . □ Disapproved on based on the following objections: _ Mayor Action by City Council After Disapproval by the Mayor: □ Council did not act to override the Mayor's veto. □ Ordinance re-adopted on a vote of , on □ Council action on _______ failed to override the Mayor’s veto. President of City Council ATTEST City Clerk City Clerk’s Office Item # C-4 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: April 26, 2021 TO: President Lawrence W. Atencio and Members of City Council CC: Nicholas A. Gradisar, Mayor VIA: Marisa Stoller, City Clerk FROM: Greg Pedroza, Interim Director of Aviation SUBJECT: AN ORDINANCE APPROVING A HANGAR LEASE AGREEMENT BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND THE NATIONAL MUSEUM OF WWII AVIATION, A COLORADO CHARITABLE ORGANIZATION, FOR SPACE TO STORE A GRUMMAN HU-16 ALBATROSS IN THE BLITZ HANGAR AT PUEBLO MEMORIAL AIRPORT, AND AUTHORIZING THE MAYOR TO EXECUTE SAME PREVIOUS COUNCIL ACTION: Not applicable to this Ordinance. BACKGROUND: The City of Pueblo and the Greatest Generation Naval Museum, a subsidiary of the National Museum of WWII Aviation, entered into the Pueblo Memorial Airport Blitz Hangar Lease Agreement dated November 1, 2016, which was terminated as of April 16, 2021 in accordance with the terms thereof. This new lease is for six months, giving time for the Museum to find alternative storage for the Grumman HU-16 Albatross. FINANCIAL IMPLICATIONS: The hangar will be leased for $700.00 per month for the single aircraft. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Ordinance. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: If this Ordinance is not approved, the plane will remain in the hangar at no charge because this historic WWII amphibious seaplane is not currently able to be moved due to extensive repairs and the need to find a specialized pilot. RECOMMENDATION: It is the recommendation of the Department of Aviation that this Ordinance be approved. Attachments: Pueblo Memorial Airport Blitz Hangar Lease Agreement Blitz Hangar PUEBLO MEMORIAL AIRPORT BLITZ HANGAR LEASE AGREEMENT THIS LEASE AGREEMENT ("Lease") is made and entered into as of April 17, 2021 ("Effective Date") by and between the City of Pueblo, a Municipal Corporation, ("Lessor" or"City") and the National Museum of WWII Aviation ("Lessee"). WHEREAS, Lessor owns and operates the Pueblo Memorial Airport("Airport"); and WHEREAS, Lessor and Lessee entered into the Pueblo Memorial Airport Blitz Hangar Lease Agreement dated November 1, 2016 ("Prior Lease"), which terminated as of April 16, 2021 in accordance with the terms thereof and the letter from Lessor to Lessee dated March 16, 2021 ("Termination Letter"); and WHEREAS,Lessee is desirous of leasing a hangar at the Airport upon the terms and conditions hereinafter set forth. NOW, THEREFORE, in consideration of the foregoing and mutual promises, covenants, and conditions contained herein, Lessor and Lessee hereby agree as follows: 1. LEASED PREMISES a. Lessor hereby leases to Lessee the area generally known as a portion of the Blitz Hangar, shown on Exhibit "A", attached hereto and made a part hereof, located at Airport for the storage of a Grumman HU-16 Albatross, tail number N85303, which shall be continually registered with the Federal Aviation Administration ("FAA") throughout the life of this Lease. Lessee agrees to report any changes in this aircraft tail number within fourteen(14)days in order for Lessor to comply with FAA reporting requirements. b. This Lease and Lessee's use of the leased premises are subject to the easements, rights of way, covenants, conditions, restrictions, reservations, and limitations appearing of record, and all applicable zoning and land use laws,ordinances, codes, and regulations, including but not limited to all conditions, regulations, restrictions, and requirements imposed by the FAA, governing and regulating the leased premises and its use. 2. TERM a. The term of this Lease shall be for six calendar months, which shall begin on April 17, 2021 and terminate on October 15, 2021. This Lease shall not automatically renew, and Lessee shall have no right to hold-over the leased premises. b. Either party may terminate this Lease by providing at least thirty(30) days prior written notice to the other party stating that the Lease shall terminate on a certain date. 3. RENT a. In consideration of the rights and privileges contained herein, Lessee agrees to pay a monthly fee, payable in advance without notice by the 17th of April 2021 and by the fifteenth(15th)of each month thereafter,of$700.00 for use of the leased premises. Rent not paid by the twenty-fifth(25th) of each month shall accrue a late fee of eight percent Revision:April 2021 1 Blitz Hangar (8%) per month. Rent shall include utility costs for electricity. No other utilities shall be provided or allowed at the leased premises. b. Should Lessee not vacate the leased premises by October 15, 2021 and attempt to hold- over and remain on the premises, the monthly fee, payable in advance without notice by the 16th of October 2021 and by the fifteenth (15th) of each month thereafter, shall increase to $800.00 for use of the leased premises. Should Lessor and Lessee negotiate an alternative monthly fee, such fee shall be evidenced by a signed written amendment and be binding upon the parties. c. Should the Director of Aviation authorize additional services and activities for which Lessee may use the leased premises, Lessee shall pay as additional rent two percent (2%) 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 fifteenth (15th) 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 require. Lessor shall have the right to examine and audit Lessee's books and records to determine the accuracy of the additional rent. d. All payments shall be made or mailed via United States mail to the following address: Director of Aviation's Office, 31201 Bryan Circle, Pueblo, Colorado 81001, or to such other person or address as Lessor may from time to time designate to Lessee in writing. 4. DEPOSIT a. Lessee also agrees to pay a security deposit to the airport equal to one month's rent. The security deposit and first month's rent shall be paid upon execution of this agreement. Deposits shall be refunded following termination of this agreement, less any rent due or damages to the leased premises. b. In the event that Lessee fails,neglects, or refuses to pay any rent,fee,or other sum due, or fails to perform any obligation under this Lease, then Lessor may, in its sole and absolute discretion, draw from the security deposit to remedy Lessee's default. Nothing contained in this Lease shall require Lessor to remedy Lessee's default in this manner, and Lessor may instead, in its sole and absolute discretion, refuse to remedy Lessee's default by drawing on the security deposit, and instead pursue the remedies for default provided in this Lease or by law. c. In the event that Lessor draws from this security deposit to remedy Lessee's default, Lessor shall notify Lessee in writing and require Lessee to replenish the deposit to its original level. Failure of Lessee to comply with this section shall constitute a material breach of this Lease. 5. TAXES a. Lessee shall promptly pay when due all taxes, fees, licenses, and other governmental charges assessed against or applicable to the leased premises. Possessory interest tax is assessed by the County of Pueblo and is the responsibility of the Lessee. The Lessor is a tax-exempt entity and shall not be liable for any tax of the Lessee. Lessee should be aware that there are multiple taxes and costs associated with owning and operating an aircraft, including the leasing of hangar space. All applicable taxes and costs shall be paid by Lessee, even if Lessee was unaware of such taxes and costs. Revision:April 2021 2 Blitz Hangar 6. RELEASE; INSURANCE a. Lessee assumes all risk of loss, damage, injury, and liability for the same that may occur to Lessee, Lessee's guests, Lessee's aircraft and Lessee's improvements and property in or upon the leased premises and Lessor shall not be liable or responsible for any such loss, damage, or injury, regardless of the cause thereof, including, without limitation, the negligence of Lessor, its officers, agents, or employees. b. Lessee, at its sole cost and expense, shall, during the life of this agreement, procure, pay for and keep in full force and affect a comprehensive policy of commercial general liability insurance. The policy shall have limits in an amount of not less than Five Hundred Thousand Dollars ($500,000.00) per occurrence and Five Hundred Thousand Dollars ($500,000.00) in the aggregate. Such coverage shall include, without limitation, legal liability of the insured for property damage, bodily injuries, and deaths of persons in connection with the operation, maintenance or use of the leased premises (including acts or omissions of the Lessee). This policy shall name the City of Pueblo as additional insured and loss payee for the policy. The policy shall contain a provision that the policy cannot be canceled or materially altered either by the insured or the insurance company unless thirty (30) days prior written notice thereof is given to the Lessee and City. Upon issuance or renewal of any such insurance policy, the Lessee shall furnish to the City a certificate of insurance evidencing coverage required under this contract. c. A current and valid certificate of insurance for the above described policies shall be submitted to the City at the time of signing of this agreement, and Lessee shall notify the Director of Aviation of any changes, expiration or renewal of said policies within two (2) weeks of such change. 7. RIGHTS AND PRIVILEGES OF THE LESSEE a. Lessee shall have the exclusive use of the designated areas of the leased premises as indicated by Exhibit A for the purpose of storing Lessee's aircraft and aeronautical property except as specifically set forth hereinafter. Lessee shall not assign nor sublet the leased premises or any part thereof. b. Except as may be specifically authorized herein to the contrary, Lessee shall not, without the prior written approval of the Director of Aviation, make improvements, modifications, revisions, installation of signs, or other alterations to the leased premises. Costs of improvements,revisions, signs, and alterations shall be borne solely by Lessee and all such improvements, modifications, revisions, or alterations shall upon expiration or termination of this agreement be removed without cost to the Lessor. Lessor may, on a case by case basis, allow the improvements to remain, in which case Lessor shall not be liable for the cost of the improvements. All improvements must be done by trade professionals licensed, insured, and permitted to conduct business within the City. c. Lessee, it's employees and invitees shall have the right of ingress and egress between designated airport access points and the leased premises over, upon, and through such streets and not others as from time to time shall be designated by the Director of Aviation. Driveways from existing streets into the leased premises shall be located as designated by the City of Pueblo through the Director of Aviation. Revision:April 2021 3 Blitz Hangar d. Lessee shall only use the leased premises for the storage of aircraft and minor incidental materials. The leased premises shall not be used for the storage of non-aeronautical personal property, living accommodations, or in any other way inconsistent with this Lease or federal regulations. Failure to abide by this provision shall constitute a material breach of this Lease. 8. RIGHTS AND PRIVILEGES OF THE LESSOR a. 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 as amended. b. Lessor shall have full and unrestricted right to enter upon those portions of the Airport occupied and leased herein by the Lessee, and Lessor, its agents and representatives shall be permitted to inspect same during any regular business hours or upon twenty- four(24) hours' notice to Lessee. c. Lessor reserves the right to maintain and keep in repair the landing areas 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. d. Lessee recognizes that from time to time it will be necessary for Lessor to initiate and carry forward programs of construction, reconstruction, expansion, relocation, maintenance and repair at and to the Airport in order that the Airport and its facilities may be suitable for the volume and character of air traffic and flight activity which will require accommodation, and that such construction, reconstruction, expansion, relocation, maintenance, and repair may inconvenience or interrupt Lessee's operations at the Airport. Lessee agrees that no liability shall attach to Lessor, its officers, agents, employees, contractors, subcontractors and representatives by reason of such inconvenience or interruption, and for and in further consideration of the premises, Lessee waives any right to claim damages or other consideration, therefore. The Lessee shall be obligated to pay all rent and fulfill all obligations of this Lease at all times, including, but not limited to, when access to the Airport is temporarily restricted due to routine construction, reconstruction, expansion, or other potential alteration of the airfield. e. 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 aircraft in the airspace above the surface of the premises hereby leased, together with the right to cause in said airspace such noise as may be inherent in the operation of aircraft, now known or hereafter used for navigation of or flight in the air, using such airspace or landing at, taking off from, or operating at Pueblo Memorial Airport. f. Lessor reserves the right,without any obligation on its part to do so,to develop, modify, change, improve, or abandon the Airport or any part thereof, as it may determine in its sole discretion, at any time, regardless of the desires or view of Lessee, and without interference or hindrance from Lessee or liability to Lessee. 9. OBLIGATIONS OF THE LESSEE a. Lessee shall, at its own expense, keep the premises neat, clean, safe, and orderly at all times, free 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 Revision:April 2021 4 Blitz Hangar refuse resulting from Lessee's activities at the Airport. No outside storage of parts, materials, equipment, inventory, or other material shall be permitted. Lessee understands that snow removal within five (5) feet of the hangar door is the responsibility of Lessee. b. Lessee agrees to indemnify, defend, and save the Lessor, it's agents, officer's representatives and employees, harmless from and against any and all penalties, liability, or loss including costs and attorney fees resulting from claims or court action, whether civil, criminal, or in equity, and arising directly or indirectly out of: (i) acts of the Lessee, its agents, employees, or servants; (ii) occurring in on or about the leased premises; (iii) arising out of or resulting from the leased premises, or any condition thereon, or from Lessee's use and occupancy of the leased premises, or any equipment thereon or appurtenances thereto, or any activity conducted therein; or(iv)through any injury or damage that may be caused or occasioned. c. All disputes among tenants shall be brought to the Director of Aviation who shall have sole and absolute discretion in deciding said disputes. Lessee agrees to indemnify, defend, and save the Lessor, it's agents, officers, representatives, and employees, harmless from and against any and all penalties, liability, or loss including costs and attorney fees resulting from claims or court action, whether civil, criminal, or in equity, and arising directly or indirectly out of Lessee's disputes or actions towards other tenants. d. Only Lessee shall park, move, and/or relocate its aircraft. Lessor shall not park, move, or relocate said aircraft for any reason unless required to do so by law or as otherwise provided for in this Lease. e. 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 leased premises or the airport, irrespective of how such injury or damage may be caused or occasioned. 10. OBLIGATIONS OF THE LESSOR a. Lessor shall maintain the floor, walls, roof, and doors of said premises, except that the cost of repair for any damages to same caused by Lessee, its employees, agents, or invitees shall be borne solely by Lessee. b. All risk of loss or damage to Lessee's aircraft and other personal property in or upon the leased premises 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. c. Where its aircraft or other property is not moved in a timely fashion by Lessee, Lessor may move Lessee's aircraft or other property if the aircraft or property obstruct Lessor's or another tenant's use of the hangar or access ways. Should Lessor be required to move said aircraft or property for any reason, Lessor shall not be liable or in any way responsible for damage to the aircraft or property. d. Locks shall be provided by the Lessor and shall be the only locks placed on the hangar. Locks shall be removed and replaced solely by the Lessor. Lessee shall have no right to alter, change, or replace the Lessor's locks. 11. GENERAL CONDITIONS Revision:April 2021 5 Blitz Hangar a. The Airport and the terms and conditions of this Lease and Lessee's rights hereunder are hereby made subject to the provisions of the Code of Ordinances of the City of Pueblo, as same may be subsequently amended. In the event of conflict between said Code and this Lease, said Code shall control. Title III of said Code specifically relates to the Department of Aviation. b. The Lessee, as a part of the consideration hereof, does hereby covenant and agree, as a covenant running with the land, that in the event facilities are constructed, maintained or otherwise operating on the property described in the Lease for the purpose of which a United States 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. c. The Lessee, for itself, its successors and assigns, as a part of the consideration hereof, does hereby covenant and agree as a covenant running with the land that (i)no person on the grounds of race, color, religion, sex, sexual orientation, ancestry, disability, age, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of the leased premises or ramp; (ii)that in construction of any improvements on, over or under such land and the furnishing of services thereon, no person on the grounds of race, color, religion, sex, disability, or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination; and (iii) that the Lessee shall use the leased premises and ramp in compliance with all other requirements imposed by or pursuant to 49 CFR, Part 21, Non-discrimination in Federally Assisted Programs of the Department of Transportation, and as the regulations may be amended. d. The Lessee, by accepting this Lease expressly agrees for itself, its successors and assigns that it will not make use of the leased premises in any manner which might interfere with the landing and taking-off of aircraft from Pueblo Memorial Airport or otherwise constitute a hazard. In the event the aforesaid covenant is breached, the Lessor reserves the right to enter upon the premises hereby leased at any time and cause the abatement of such interference at the expense of the Lessee. e. 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 Airport including the leased premises. f. The Lessee shall observe faithfully all rules and regulations affecting use of the Airport, whether established by the Director of Aviation, the City or other political subdivision having jurisdiction, the State of Colorado or the United States, or agencies thereof, including but not limited to rules affecting the operation of motor vehicles upon, to and from the Airport. g. The Lessee, and all officers, agents, and employees of Lessee,hereby agree to be bound by and subject to all Police Ordinances of the City of Pueblo at all times while on the Airport, whether acting in the course of Lessee's business or otherwise. Revision:April 2021 6 Blitz Hangar h. The leased premises is leased"As Is, Where Is, With All Its Faults" and Lessor has not at any time made any warranty or representation of any kind or character, express or implied, with respect to the leased premises, including but not limited to, any warranty or representation as to suitability or fitness for a particular purpose, title, zoning, physical or environmental conditions, utilities, governmental approvals, the compliance of the leased premises with governmental and environment laws and regulations, the truth, accuracy or completeness of any document or other information provided to Lessee by Lessor or any other person,or any other matter or thing regarding the leased premises. i. The Lessee represents that it has inspected the Airport, leased premises, and facilities and accepts the conditions of same and fully assumes the risk incident to the use thereof. 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 leased premises. Lessee's taking of possession of the leased premises shall be conclusive evidence that Lessee accepts the leased premises in its present condition and that the leased premises is in good and satisfactory condition at the time such possession was taken. j. The acts and omissions of Lessee's employees, agents, contractors, and guests shall be imputed to Lessee for purposes of this Lease. 12. DEFAULT, HOLDOVER,AND NON-PERFORMANCE CONDITIONS a. If after the expiration of the term of this Lease, Lessee shall remain in possession of the leased premises and continue to pay rent without any express written agreement as to such holding over,then Lessee agrees that all terms and covenants of the Lease shall remain in effect, except that Lessee shall be a tenant from month-to-month at the increased monthly stated in Section 3 and subject to adjustments as determined by Lessor. During the term of any month-to-month tenancy, Lessor or Lessee may terminate this Lease upon fourteen (14) days prior written notice to the other party. b. 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 if Lessee'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 his option, immediately with or without notice, notice being expressly waived, terminate this Lease and immediately retake possession of said premises without the same working any forfeiture of any accrued obligations of the Lessee hereunder. c. If the rent or any part thereof shall be in default, or in case of any breach by the Lessee of any of the covenants or agreements herein, Lessor may declare this Lease terminated, and after the expiration of fourteen (14) days from the date of the service of a written notice to that effect, be entitled to the possession of said premises. After the expiration of this Lease or any violation of any term or provision as herein provided for, if Lessee shall refuse to surrender and deliver possession of the leased premises after notice of termination,then in that event Lessor may, without further notice or demand, enter into and upon said premises, or any part thereof, and take possession thereof and repossess them, and expel, remove and put out of possession the Lessee, using such help, Revision:April 2021 7 Blitz Hangar assistance, and force in so doing as may be needful and proper, without prejudice to any remedy allowed by law, available in such cases. d. That in case said premises are left vacant and any part of the rent herein reserved be due and unpaid, then the Lessor may, without in anyway being obligated to do so, and without terminating this Lease, retake possession of said premises and rent the same 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. e. In the event the Lease be terminated, as herein provided, Lessor should have and is hereby given a lien upon Lessee's aircraft and property, including equipment, fixtures, furniture and inventory, in or upon the leased premises 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 shall have thirty (30) days from any notice of default to cure the default prior to Lessor taking and selling Lessee's aircraft and property to enforce such lien. f. Lessee agrees to pay the Lessor all costs, including reasonable attorney fees, incurred by Lessor in recovering any rent or other money due and unpaid under the terms of this Lease or to recover possession of the leased premises after termination hereof. g. Without affecting any other rights granted to Lessor under this Lease, Lessee shall remove its airplane and any personal property from the leased premises within seven (7)days after termination of this Lease. Should Lessee fail to remove its property within that seven (7) day period,Lessor shall have the right to enter and remove the property, where Lessee shall be liable for all costs of removal. Unclaimed property shall be considered abandoned and may be disposed of in any manner Lessor deems appropriate. Should Lessor choose to sell the abandoned property, any money so derived shall first go to pay costs due to the Lessor, while any left-over amounts shall be forwarded to the Lessee. 13. SPECIAL CONDITIONS a. Lessee agree that no flammable liquids or hazardous materials shall be used or stored on the premises, excepting the fuel in the aircraft fuel tanks or in the tank of a stored automobile, properly parked. b. It is expressly understood that no person other than the Lessee or his regular employee may perform services on any aircraft on the leased premises in such a manner as not to exceed the definition of preventative maintenance in 14 CFR Part 43 -Appendix A and in accordance with local ordinance. c. Lessee agrees not to use the leased premises for commercial or residential uses and that all uses shall be substantially aeronautical. d. Lessee agrees to provide drip pans of a non-flammable material under the aircraft to prevent damage to the floor, should said aircraft leak any fluids. e. It is expressly understood by Lessee that security within the air operations area of the Airport is vital. The drive through gate entering the air operations area shall be kept closed and locked at all times except for ingress and egress. Only automobiles Revision:April 2021 8 Blitz Hangar belonging to owners of aircraft hangered therein will be permitted on the air operations area. Any automobile brought by Lessee shall be the sole responsibility of the Lessee. f. Violation of airport security rules as now, or in the future may, exist shall be grounds for immediate termination of this Lease. g. No person or automobile shall go beyond the immediate vicinity of the leased premises without the express written consent of the Director of Aviation. h. Automobiles must be parked in designated parking spaces or within the hangar, except that the hangar cannot be used solely for storage of automobiles. i. Mounting, hanging, suspending, or otherwise installing any item from the ceiling, support beams, or roofing structure is expressly forbidden. j. Hangar doors shall remain closed and locked except during periods when the hangar is attended by Lessee. This is to prevent damage from sudden storms and the creation of foreign object debris. 14. ENVIRONMENTAL PROVISIONS a. For the purpose of this Lease, "Hazardous Materials" means any hazardous or toxic substance, material or waste which is or becomes regulated by any local government authority, the State of Colorado or the United States government and shall include, but not be limited to: (i) substances defined as "hazardous waste," "restricted hazardous waste," "hazardous substance" or "hazardous material" under any applicable federal, state or local law or regulation (Environmental Regulations); (ii) asbestos-containing materials; (iii) PCBs; (iv)petroleum or petroleum based products; and (v) lead. b. Lessee will comply with Environmental Regulations that are applicable to Lessee and its use of the leased premises. No activity shall be undertaken by Lessee, its guests, employees, agents, contractors or subcontractors, on all or any portion of the Leased Premises which would cause or permit: (i) the presence, use, generation, release, discharge, storage or disposal of any Hazardous Material in, on, under, about, or from the leased premises or any part thereof in violation of any Environmental Regulations; (ii) any portion of the leased premises to become a hazardous waste treatment, storage or disposal facility without receiving proper governmental authorization, and in compliance with all Environmental Regulations; or (iii) the discharge of pollutants or effluents into any water source or system, or the discharge into the air of any emissions without receiving proper governmental authorization, and in compliance with all Environmental Regulations, including, without limitation, the Federal Water Pollution Control Act,U.S.C. Section 1251 et seq. and the Clean Air Act,42 U.S.C. Section 7401 et seq. c. Lessee agrees to defend, indemnify, and forever hold harmless Lessor, and its officers, employees, agents, successors, and assigns, from all claims, losses, damages, penalties, expenses and costs, including, but not limited to, attorneys' fees, characterization, remediation, and cleanup costs, incurred by reason of the use, storage, generation, release, discharge, maintenance, disposal, or removal of Hazardous Materials in, on, under, about,or from the leased premises, or any part thereof, by Lessee, its employees, agents, guests, contractors and subcontractors. 15. MISCELLANEOUS PROVISIONS Revision:April 2021 9 Blitz Hangar a. No assent, express or implied, to any breach of any one or more of the covenants and agreements hereof, shall be deemed or taken to be a waiver of any succeeding or other breach. b. All covenants and agreements in this Lease shall be binding upon and inure to the benefit of the heirs, successors, assigns and legal representatives of Lessor and Lessee. c. Any notice, demand or request provided in this Lease shall be in writing and sent by certified mail, return receipt requested to the other party at the addresses listed above or at such other address as each party may provide the other by written notice. Such notice shall be deemed given on the day it is properly mailed. d. Nothing in this Lease is intended, nor should it be construed, to create any rights, claims,or benefits or assume any liability for or on behalf of any third party,or to waive any immunities or limitations conferred under federal or state law, including but not limited to the Colorado Governmental Immunity Act, § 24-10-101 et seq., C.R.S. e. This Lease shall be governed by the laws of the State of Colorado. Venue for any action arising under this Lease or for the enforcement of this Lease shall be in a state court with jurisdiction located in Pueblo County, Colorado. f. This Lease shall not be assigned by Lessee for any reason. g. Nothing in this Lease is intended to nor shall be deemed to constitute a parmership or joint venture between the parties, or to create any agency or partner relationship between the parties. Neither party shall hold itself out as a partner,joint venture, agent, or representative of the other under this Lease. Executed at Pueblo, Colorado as of the day and year first above written. LESSEE: LESSOR: National Museum of WWII Aviation City of Pueblo, A Municipal Corporation BY: /l.4C.�.1 By: • „ .ae Nicholas A. radisar, Mayor ATTEST: By: Ci erk Revision:April 2021 10 Blitz Hangar Exhibit A ,, .... . r - , 1 .,........,! ' .„ -,i,. , . . , , . L . . .., . . ... . , ae . , i,.. I . !‘ I Leased .-.7... . 1 Area .,.. itile* II di mil' err -41" . _ rs 'i 6 0. - 4*°*' a, to _ ,..., MSCDT.I5V,X0,i I, atti3actiaciD tfnCrozCatrp .. . . 11 Revision:April 2021 Pueblo Memorial Airport Termination of Hangar Lease Agreement This Termination ("Termination") is entered into this 18th day of October, 2022 ("Effective Date"), between the City of Pueblo, a Municipal Corporation ("Lessor"), and National Museum of WWII Aviation ("Lessee"). WHEREAS, Lessor owns and operates the Pueblo Memorial Airport ("Airport") and leases various on-site hangars to interested parties; and WHEREAS, Lessor and Lessee entered into the Pueblo Memorial Airport Hangar Lease Agreement dated April 26, 2021 ("Lease"); and WHEREAS, Lessee no longer has a use for the leased premises, and both Lessor and Lessee desire a mutual termination of the Lease. NOW, THEREFORE, in consideration of the foregoing and mutual promises, covenants, and conditions contained herein, Lessor and Lessee hereby agree to immediately terminate the Lease as follows: I. Lessor and Lessee mutually agree that as of the Effective Date, the Lease shall be terminated in full and of no further force or effect. Said termination shall be without default to either party. Lessor will retake full and exclusive control of the leased premises on the Effective Date, and Lessee will have removed its aircraft and all other property from the leases premises by said date. IN WITNESS WHEREOF, the parties have executed this Amendment as of the Effective Date. LESSEE: LESSOR: National Museum of WWII Aviation City of Pueblo, A Municipal Corporation By: - U By:` 41, Willi. Kl. : Nicho as A. Gradisar, Mayor ATTEST: By: City rk