HomeMy WebLinkAbout10323
ORDINANCE NO. 10323
AN ORDINANCE APPROVING A HANGAR LEASE
AGREEMENT FOR 530 SKYWAY STREET AT PUEBLO
MEMORIAL AIRPORT BETWEEN THE CITY OF PUEBLO, A
MUNICIPAL CORPORATION, AND JAMES SPITZER, 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, James Spitzer, is desirous of leasing 530 Skyway Street, which is owned
by the City of Pueblo; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
A certain Hangar Lease for 530 Skyway Street (“Lease”), by and between the City of
Pueblo, a Municipal Corporation, and James Spitzer dba Spitzer Aviation Management, to lease
hangar space, office space, and a portion of the landside parking lot at 530 Skyway Street 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
subject to the conditions as set forth in said Lease.
SECTION 2.
The Mayor is hereby authorized to execute the Lease on behalf of the City of Pueblo,
and the City Clerk shall affix the Seal of the City thereto and attest same.
SECTION 3.
The officers and staff of the City are authorized to perform any and all acts consistent
with the intent of this Ordinance and the attached Lease to implement 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 October 24, 2022.
Final adoption of Ordinance by City Council on November 14, 2022 .
President of City Council
Action by the Mayor:
☒ Approved on November 17, 2022 .
□ 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 # R6
Background Paper for Proposed
Ordinance
October 24, 2022
COUNCIL MEETING DATE:
TO: President Heather Graham and Members of City Council
CC: Mayor Nicholas A. Gradisar
VIA: Marisa Stoller, City Clerk
FROM:
Greg Pedroza, Director Aviation
SUBJECT: AN ORDINANCE APPROVING A HANGAR LEASE AGREEMENT FOR
530 SKYWAY STREET AT PUEBLO MEMORIAL AIRPORT BETWEEN
THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND JAMES
SPITZER, AND AUTHORIZING THE MAYOR TO EXECUTE SAME
SUMMARY:
Attached is an Ordinance approving and authorizing the Mayor to sign a Hangar Lease
Agreement with James Spitzer dba Spitzer Aviation Management.
PREVIOUS COUNCIL ACTION:
Not applicable to this Ordinance.
BACKGROUND:
The City owns 530 Skyway Street at the Pueblo Memorial Airport, which can be leased
out on a month-to-month basis for the repair of aircraft. The building was vacant
effective June 1, 2020, and can be leased to James Spitzer, starting November 14,
2022.
FINANCIAL IMPLICATIONS:
The hangar, office space, landside parking lot, and ramp will be leased for $400.00 per
month and two percent (2%) of Lessee’s gross revenues derived from all activities
conducted at Pueblo Memorial Airport.
BOARD/COMMISSION RECOMMENDATION:
Not applicable to this Ordinance.
STAKEHOLDER PROCESS:
Not applicable to this Ordinance.
ALTERNATIVES:
If this Ordinance is not approved, the hangar space will remain vacant.
RECOMMENDATION:
It is the recommendation of the Department of Aviation that this Ordinance be
approved.
ATTACHMENTS:
1. 530 Skyway Street Lease
a HANGAR LEASE
HANGAR 530
THIS LEASE AGREEMENT ("Lease") is made and entered into as of November 14,
2022 ("Effective Date"), between the City of Pueblo, a Municipal Corporation, "Lessor," and
James Spitzer dba Spitzer Aviation Management, a general aviation repair business, together
jointly and severally liable as the "Lessee."
WHEREAS, the Lessor is the owner and operator of the Pueblo Memorial Airport
("Airport"), together with the land on which said Airport is situated; and
WHEREAS, Lessee is desirous of utilizing hangar space of the Lessor on a short-term
basis, the property generally known as 530 Skyway Street, Pueblo,Colorado 81001.
NOW THEREFORE, in consideration of the mutual covenants set forth herein, the parties agree
as follows:
1. Leased Premises:
A. The Lessor hereby leases unto the Lessee and Lessee hereby leases from Lessor for
the term and upon the requirements and conditions hereinafter stated,
approximately 2,058 sq. ft. of hangar space ("Hangar"), including certain office
space contained therein, and certain parking spaces with landside access
("Parking") (both together the "Leased Premises"), all with the street address of
530 Skyway Street, Pueblo, Colorado,depicted in Exhibit "A" attached hereto and
incorporated herein, situated in the County of Pueblo, State of Colorado, subject to
existing restrictions and easements.
B. The Hangar will be used solely for the repair and subsequent storage of third-party
aircraft that Lessee maintains in the course of its aviation repair business. Lessee
agrees that if storage of any given aircraft extends past 30 days, it will submit the
aircraft tail number, commission report, and any other required information to the
Director of Aviation for the duration of the storage.
C. Lessee shall have exclusive use of the Leased Premises subject to the terms of this
Lease.
D. 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. This Lease is made on a month-to-month basis commencing on the Effective Date
and shall automatically renew for successive one-month terms, unless earlier
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terminated by a party as provided herein. After six months from the Effective Date,
the terms of this Lease may be renegotiated by the parties.
B. All conditions and covenants contained herein shall remain in full force and effect
during any and all extension periods.
C. Either party may terminate this Lease at any time and for any reason upon thirty
(30)days prior written notice to the other party.
3. Rental Rate and Other Fees:
A. In consideration of the rights and privileges contained herein, Lessee agrees to pay
a monthly fee, payable in advance without notice or offset by the first day of each
month, of$400.00 ("Rent") for use of the Leased Premises. Water and electricity
will be provided by Lessor, but no other utilities shall be provided or allowed at the
Leased Premises.
B. Rent not paid by the tenth(10th)of the month shall accrue a late fee of eight percent
(8%) per month, starting with the month which is past due and compounding on
the first day of the month for every subsequent past due payment.
C. Rent shall increase annually on the anniversary of the Effective Date by three and
one-half percent (3.5%) over the previous monthly rent beginning with the first
anniversary of the Effective Date and continuing every year thereafter.
D. The Lessee hereby agrees to pay when due all rent, fees and charges imposed by
the Lessor for the use and operation of the Airport. The fees and charges include,
but are not limited to, fuel flowage fees, landing fees,permit fees, self-fueling fees,
security charges, and administrative or service fees.
E. In consideration for this Lease and commercial use of the Airport, Lessee shall
pay to Lessor two percent(2%) of Lessee's gross revenues derived from all
activities conducted at Pueblo Memorial Airport. Lessee shall file with Pueblo
Memorial Airport monthly activity reports on or before the tenth (10th) day of
each calendar month throughout the effective term indicating gross revenues and
commissions derived from activity on any part of the Airport.
4. Deposit:
A. Lessee agrees to pay a security deposit to the airport equal to one month's rent of
$400.00.The security deposit and first month's rent shall be paid immediately upon
execution of this agreement. Deposit 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
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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. Use of Leased Premises:
A. Lessee shall make no alterations or adjustments to the Leased Premises,without the
prior written approval of the Director of Aviation.
B. Lessee shall not sublease or assign any portion of the Leased Premises.
C. The Hangar shall be utilized for the repair and storage of aircraft, and minor
incidental material storage and aeronautical purposes only. All aircraft stored in
City owned buildings for 30 or more days must be reported to Airport
administration. Lessee may perform maintenance and repairs in the Hangar,
including routine maintenance, preventative maintenance,and regular maintenance
required prior to flight. No repairs, maintenance, storage, or other work will be
allowed outside of the Hangar. 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. Failure to abide by this provision shall
constitute a material breach of this Lease.
D. Lessee may wash aircraft within the Hangar but shall at all times protect the
Lessor's stormwater system and abide by any requirements Lessor places on Lessee
with regards to the cleaning of aircraft, including for the disposal of used water and
other products.
E. The office shall be used for Lessee's business and other incidental office work.
Lessee shall have no right to utilize the Leased Premises, or any improvement
thereon, other than as specifically allowed under this Lease, and it is specifically
understood that the Leased Premises shall not be used for an aviation fixed base
operation or for the sale of aviation fuel.
F. Lessor retains and Lessee grants to the Lessor the right to enter the Leased Premises
to do what is necessary for the purposes of repairing, replacing, and/or maintaining
any and all utility lines under the Leased Premises which serve other uses at the
Pueblo Memorial Airport, it being understood that the Lessor will repair, in a good
and workmanlike fashion, any and all damage done to the Leased Premises as the
result of work done hereunder.
G. Lessee shall maintain the Leased Premises in accordance with the requirements and
regulations of the Lessor and Lessor's fire code. The Lessee shall be responsible
for all costs, fees, charges,and penalties associated with the discharge or release of
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any hazardous material (including petroleum products) or mitigating the
containment or removal of any contamination or hazardous material (including
petroleum products) on, over or under the leased premises which is caused by the
Lessee, its officers,agents,or employees.The storage and accumulation of aviation
fuel, flammables, explosive liquids, or solids, waste, debris, or other hazardous
materials within or on the Leased Premises shall be in an environmentally sound
manner and comply with all federal, state, and local laws and regulations. Lessee
agrees 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. 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.
H. Lessee will not modify, alter, paint, or improve the Leased Premises except to the
extent required to maintain its original state. Any additional modification,painting,
or improvements to the Leased Premises must receive prior written approval from
the Director of Aviation and will be at Lessee's sole cost and expense.
Lessee shall not park or leave or allow to be parked or left aircraft or equipment on
the taxiways or on pavement adjacent to the Leased Premises in a manner which
interferes with or obstructs access to adjacent hangars or public ramp area. Parking
of automobiles will be permitted only designated spaces outside of the airport fence.
No person or automobile shall go beyond the immediate vicinity of the Leased
Premises without the express written consent of the Director of Aviation.
Automobiles must be parked in designated parking spaces or within the Hangar,
except that the Hangar cannot be used solely for storage of automobiles.
J. Lessee, its 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 Lessor through the Director of Aviation.
K. 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
refuse resulting from Lessee's activities at the Airport. No outside storage of parts,
materials, equipment, inventory, or other material shall be permitted.
L. 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.
M. 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.
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6. Ramp Use:
A. Lessee's use of the ramp, taxiways, and runways is non-exclusive and same may
be used by the Airport, other tenants, users, and occupants of the Airport("Airport
Users"). Use of the ramp shall be limited to the movement of aircraft, fueling of
aircraft, movement and parking of aircraft service vehicles, temporary parking of
aircraft, servicing and tie-down of aircraft.
B. Lessee and Airport users shall use the ramp in compliance with Lessor's ground
traffic and aircraft parking plans and regulations, which will reasonably
accommodate Lessee's current and future use for the purposes set forth in
Subsection A above.
C. Lessee acknowledges that portions of the ramp, taxiways, and runways are
currently in need of repairs and resurfacing and accepts in whole the ramp,
taxiways, and runways in their present condition "AS IS" and "WITH ALL ITS
FAULTS," without warranty or representation, express or implied, including,
without limitation, any warranties of merchantability or fitness for a particular
purpose or condition or usability in their present condition. Lessee agrees that
Lessor shall have no obligation to upgrade, repair, resurface, or maintain the
taxiways,runways,and ramp. Lessor maintains the right to close any portion of the
Airport not limiting Lessee's access to airport runways.
7. Maintenance Obligations:
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
refuse resulting from Lessee's activities at the Airport.No outside storage of parts,
materials, equipment, inventory, or other material shall be permitted.
B. Lessee, at its sole cost and discretion, shall maintain all walkways, sidewalks, and
apron access on the Leased Premises, including to the public taxiway or ramp area.
This includes pavement maintenance, pest control, and other such activities
necessary to access said areas. At no time shall snow, dirt, or other debris be piled
or stored on these areas. It is the Lessee's responsibility to keep these areas free and
clear of all snow,dirt,and other debris. Lessee understands that snow removal from
the hangar door to the taxi lane is always the responsibility of Lessee.
8. Utility Costs:
A. Lessee shall be responsible for all utilities supplied to the Leased Premises other
than electricity and water. Agreements for service with utility providers are the
responsibility of Lessee.
B. Additions, deletions, or adjustments to utilities extended to the Leased Premises
shall not be made without prior written approval from the Director of Aviation.
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9. Signs:
Lessee shall not erect, paint, or maintain any signs whatsoever upon the Leased Premises
without first securing the written consent of the Lessor. Any such signs shall comply with
all ordinances and regulations of the Lessor and standards which might be developed by
the Department of Aviation.
10. Right of Inspection:
The Lessor reserves and retains for its officers, employees, and authorized representatives
the right to enter the Leased Premises during reasonable business hours, and after prior
notice, for the purpose of inspecting and protecting the Leased Premises and for doing any
and all things which the Lessor may deem necessary for the proper general conduct and
operation of the Pueblo Memorial Airport and in the exercise of the Lessor's police power.
11. Taxes, Licenses, and Liens:
A. Lessee covenants and agrees to pay promptly when due all taxes, fees, licenses,and
other governmental charges of whatever nature 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.
B. Lessee also covenants and agrees not to permit any mechanic's or material man's
lien to be filed against the Leased Premises or any part or parcel thereof by reason
of any work or labor performed or materials furnished by any contractor,
subcontractor, mechanic, or material man. Lessee further covenants and agrees to
pay promptly when due all bills, debts and obligations incurred by it in connection
with its operations on the Leased Premises, and not to permit the same to become
delinquent and to suffer no lien, mortgage, judgment, or execution to be filed
against the Leased Premises.
12. Indemnification:
Lessee assumes the risk of loss or damage to the Leased Premises and property thereon and
therein, including but not limited to aircraft and personal property, whether from
windstorm, fire, earthquake, snow, water run-off, or any other causes whatsoever. Lessee
covenants and agrees to indemnify, defend, and save the Lessor, its agents, officer,
representatives, and employees, harmless from and against any and all penalties, liability,
or loss, including costs and attorney fees and all expenses incurred by Lessor in
investigating or resisting the same, 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 representatives; (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
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appurtenances thereto, or any activity conducted therein; or (iv) through any injury or
damage that may be caused or occasioned. 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. The provisions of this Paragraph 11 shall survive the
termination of this Lease Agreement.
13. Insurance and Damage:
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 One Million Dollars ($1,000,000.00) per occurrence and Three Million
Dollars ($3,000,000.00) 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. If the Hangar or other improvements (the "Improvements") are damaged or
destroyed by fire or other casualty, Lessee shall within one hundred twenty (120)
days from the occurrence of such casualty either(1)repair and restore the damaged
or destroyed Improvements,(2)demolish the damaged or destroyed Improvements,
restore the Leased Premises to their original condition, and terminate this Lease, in
which event the net proceeds of the property damage insurance required to be
provided by Lessee pursuant to Section 13.A. shall be retained by Lessee, or (3)
demolish the damaged or destroyed Improvements and commence construction of
replacement Improvements, and thereafter complete such construction within nine
(9) months from the occurrence of such casualty. All repairs to or restoration of
Improvements and/or construction of replacement Improvements shall be in
compliance with applicable laws and codes, and in accordance with plans and
specifications therefor approved by Lessor, which approval will not be
unreasonably withheld. Except in the event of (2) above, the net proceeds of
property damage insurance provided by Lessee pursuant to Section 13.A. shall be
released by City and paid to Lessee for the purpose of Lessee repairing, restoring,
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or replacing improvements damaged or destroyed by such insured fire or other
casualty.
D. Lessee shall obtain statutory workers' compensation insurance which shall contain
an endorsement waiving subrogation against the City of Pueblo. Such insurance
shall cover all employees and agents of Lessee performing work at the Leased
Premises or Airport irrespective of whether such employees may be shareholders,
managers, partners, or owners of Lessee or exempt employees under the Act. Any
independent contractors of Lessee shall be covered under Lessee's workers'
compensation insurance and/or participant accident insurance policy or show
evidence that said independent contractor is covered under its own workers'
compensation insurance policy. Lessee shall have full and sole responsibility for
ensuring compliance with this Section, including without limitation
indemnification required under this Lease. All insurance policies required
hereunder shall provide that such policies not be cancelled or reduced without thirty
(30) days' advance written notice to the Lessor.
E. Lessee shall not violate the terms or prohibitions of any insurance policy herein
required to be furnished by Lessee. Coverage and limits enumerated in this
insurance section represent only the minimum insurance required by the Lessor,
and Lessee should rely on its expertise to obtain any additional insurance coverage
needed for the Lessor and Lessee in its performance under this Lease. Failure of
Lessee to comply with the provisions of this section shall constitute a material
breach of this Lease by Lessee.
14. Waivers:
No provision of this Lease may be waived except by an agreement signed by the waiving
party. A waiver of any term or provision shall not be construed as a waiver of any other
term or provision. Should Lessee holdover the use of or continue to occupy the Leased
Premises after the termination or cancellation of this Lease, such holding over shall be
deemed merely a tenancy for successive monthly terms upon the same conditions as
provided in this Lease subject to termination upon fourteen (14)days prior written notice.
15. Inconvenience During Construction:
Lessee recognizes that from time to time it will be necessary for the Lessor to initiate and
carry forward programs of construction, reconstruction, expansion, relocation,
maintenance, and repair at and to the Pueblo Memorial Airport in order that the Pueblo
Memorial Airport and its facilities may be suitable for the volume and character of air
traffic and flight activity which will require accommodation, and that such construction,
reconstruction, expansion, relocation, maintenance, and repair may inconvenience or
interrupt Lessee's operations at the Pueblo Memorial Airport. Lessee agrees that no
liability shall attach to Lessor, its officers, agents, employees, contractors, subcontractors
and representatives by reason of such inconvenience or interruption, and for and in further
consideration of the premises, Lessee waives any right to claim damages or other
consideration therefore, provided, however, that this waiver shall not extend to, or be
construed to be a waiver of, any claim for physical damage to property resulting from
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negligence or willful misconduct of the Lessor, its officers,agents,employees,contractors,
subcontractors, and representatives. The Lessee shall be obligated to be 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.
16. Place and Manner of Payments:
In all cases where Lessee is required by this Lease to pay any rentals, rates, fees or other
charges or to make other payments to Lessor, such payments shall be made at the office of
the Director of Aviation at the Pueblo Memorial Airport, or at such other place as Lessor
may hereafter designate by notice in writing to Lessee and shall be made in legal tender of
the United States and any check shall be received by Lessor subject to collection. Lessee
agrees to pay any bank charges made for the collection of any such checks. All payments
of rent shall be made on the first of each month.
17. Assignments and Subletting:
Lessee shall not assign this Lease or any interest therein nor sublet the Leased Premises or
any portion thereof. Any assignment may be conditioned upon the payment of an
assignment fee and/or an increase in rent to be determined by the Lessor in its sole and
absolute discretion. Any assignment or subletting without the prior written consent of
Lessor shall be void. No subletting of this Lease or the Leased Premises shall release or
discharge Lessee from its obligations under this Lease.
18. Agreements with United States:
This Lease is subject and subordinate to the terms, reservations, restrictions, provisions,
and conditions of the deed of conveyance from the United States Government to the Lessor
and of any other existing or future agreement between the Lessor and the United States,
relative to the use, operation, or maintenance of the Pueblo Memorial Airport and its
appurtenant facilities, the execution of which has been or may be required as a condition
precedent to the participation by any Federal Agency in the extension, expansions, or
development of said Airport and its facilities.
19. Lessee's Default:
A. Any one of the following shall constitute an event of default by Lessee hereunder:
(1) Failure of Lessee to pay in full all installments of rent due by the first day
of each month or immediately after written notice and demand therefor are
given by Lessor to Lessee.
(2) Failure of Lessee to perform or comply with any obligation, covenant, or
agreement of Lessee hereunder other than payment of money for a period
of fourteen(14)days after written notice specifying such failure is given by
Lessor to Lessee, except that if such obligation, covenant, or agreement is
not capable of being performed within said fourteen (14)day period, Lessee
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shall not be in default if Lessee shall commence such performance within
said fourteen (14) day period and thereafter prosecute the same with
diligence and continuity to completion.
B. In the case of a continuing event of default by Lessee, Lessor shall have the
following remedy in addition to all other rights and remedies provided by law or in
equity, including without limitation, damages and specific performance:
(I) Terminate this Lease by fourteen (14) days prior written notice given to
Lessee specifying the date of termination, and Lessee shall within said
fourteen (14) day period vacate the Leased Premises and surrender
possession thereof to Lessor.
C. 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 the Leased Premises without the same
working any forfeiture of any accrued obligations of the Lessee hereunder.
D. 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, assistance and force in so doing as may be
needful and proper, without prejudice to any remedy allowed by law, available in
such cases.
E. That in case the Leased 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.
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 of this Lease.
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20. Notices:
All notices, required to be given to Lessor hereunder, shall be in writing and be sent by
certified mail to Pueblo Memorial Airport, Administration Office, 31201 Bryan Circle,
Pueblo, Colorado 81001. All notices required to be given to Lessee hereunder shall be in
writing and sent by certified mail, addressed to James Spitzer,311 Lamkin St., Pueblo,
Colorado 81003,provided that the parties,or either of them,may designate in writing from
time to time subsequent or supplementary persons or address in connection with said
notices. The effective date or service of any such notice shall be the date such notice is
mailed by Lessee or Lessor.
21. 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.
22. Law, Rules and Regulations:
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A. Lessee, its officers,agents,and employees shall faithfully observe and comply with
all applicable federal, state, and local laws, regulations, and ordinances now
existing or hereafter adopted relating to the use and occupancy of the Airport or
Leased Premises including without limitation Chapter 1 of Title III of the Pueblo
Municipal Code and rules affecting the operation of motor vehicles upon, to, and
from the Airport. 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.
B. Lessee, its officers,agents,and employees shall faithfully observe and comply with
all minimum standards and rules regulating operations and activities from and upon
the Airport adopted from time to time by Lessor. Such minimum standards and
rules shall not be applied arbitrarily,discriminatorily,or unreasonably. Except with
respect to matters of public health and safety, if any provision of this Lease shall
conflict with any provision of the minimum standards and rules adopted or
amended by Lessor after commencement date, the conflicting provision of this
Lease shall control.
C. 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
belonging to Lessee and its employees will be permitted on the air operations area.
Any automobile brought by Lessee shall be the sole responsibility of the Lessee.
Violation of airport security rules as now, or in the future may, exist shall be
grounds for immediate termination of this Lease.
23. F.A.A. Lease Requirements:
A. The Lessor reserves the right,without any obligation on its part to do so,to develop,
modify, change, improve, or abandon the Pueblo Memorial Airport or any part
thereof, as it may determine in its sole discretion, at any time, regardless of the
desires or view of Lessee, and without interference or hindrance from Lessee or
liability to Lessee.
B. The Lessor reserves the right,without any obligation on its part to do so,to maintain
and keep in repair the landing area of the Airport and all publicly owned facilities
of the Airport, together with the right to direct and control all activities of Lessee
in this regard.
C. 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, or
representatives shall be permitted to inspect same during any regular business hours
or upon twenty-four(24) hours' notice to Lessee.
D. This Lease shall be subordinate to the provisions and requirements of any existing
or future agreement between the Lessor and the United States, relative to the use,
development, operation, and maintenance of the Airport.
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E. Lessee shall comply with the notification and review requirements covered in Part
77 of the Federal Aviation Regulations with respect to the construction of any
structure or building on the Leased Premises, or in the event of any planned
modification or alteration of any present or future building or structure on the
Leased Premises.
F. 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.
G. Lessor reserves for the use and benefit of the public, a right of flight for the passage
of aircraft in the airspace above the surface of the Leased Premises, together with
the right to cause in said airspace such noise as may be inherent in the operation of
aircraft now known or hereafter used for navigation or flight in said airspace, and
for use of said airspace for landing on,taking off from,or operations on or over the
Pueblo Memorial Airport.
H. By accepting this Lease, Lessee expressly agrees for itself, its successors, and
assigns that it will not erect nor permit the erection of any structure, building, or
object nor permit the growth of any tree on the Leased Premises to a height not to
exceed twenty-five (25) feet above ground level. In the event the aforesaid
covenant is breached, the Lessor reserves the right to enter upon the Leased
Premises and to remove the offending structure or object and cut the offending tree,
all of which shall be at the expense of the Lessee.
I. Lessee shall not make use of the Leased Premises in any manner which might
interfere with the landing and taking off of aircraft at Pueblo Memorial Airport or
otherwise constitute a hazard to aviation. In the event the aforesaid covenant is
breached,the Lessor reserves the right to enter upon the Leased Premises and cause
the abatement of such interference at the expense of the Lessee.
J. If during the term of this Lease, all or part of the Leased Premises should be taken
or threatened to be taken for any public or quasi-public use under any governmental
law or by right of eminent domain or sold to the condemning authority under threat
of condemnation, this Lease shall terminate and the proceeds, if any, from such
taking or sale shall be allocated between Lessor and Lessee in accordance with
applicable condemnation law.
K. Lessor reserves the right to grant and to take easements or rights of way in, under,
over, and across the Leased Premises, in which event, Lessor shall only be entitled
to compensation for damages to improvements of the Lessee destroyed or damaged
thereby, but not to damages for loss of use of the Leased Premises.
24. Nondiscrimination Assurances
A. 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 in
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the event facilities are constructed,maintained,or otherwise operated on the Leased
Premises or ramp, for a purpose for which Department of Transportation program
or activity is extended or for another purpose involving the provision of similar
services or benefits,the Lease shall maintain and operate such facilities and services
in compliance with all requirements imposed pursuant to 49 CFR Part 21,
Nondiscrimination in Federally Assisted Programs of the Department of
Transportation, and as the regulations may be amended.
B. 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,
disability, 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, sexual orientation, 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.
C. Lessee assures that it will undertake an affirmative action program as required by
14 CFR Part 152, Subpart E, to ensure that no person shall on the grounds of race,
creed, color, religion, disability, national origin, sex, or sexual orientation be
excluded from participating in any contracting, leasing, or employment activities
covered in 14 CFR Part 152, Subpart E. 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 this subpart. Lessee assures that it
will require that its covered suborganizations provide assurances to the Lessee that
they similarly will undertake affirmative action programs and that they will require
assurances from their suborganizations, as required by 14 CFR Part 152, Subpart
E, to the same effect.
D. Lessee agrees to operate the Leased Premises for the use and benefit of the public
and to furnish good,prompt and efficient services adequate to meet all the demands
for its services at the Airport, to furnish service on a fair, equal, and not unjustly
discriminatory basis to all users thereof, and to charge fair, reasonable, and not
unjustly discriminatory prices for each unit of service, provided that Lessee may be
allowed to make reasonable and nondiscriminatory discounts, rebates, or other
similar types of price reductions to volume purchasers.
25. Miscellaneous:
A. This Lease and all of its covenants and provisions shall be binding upon and inure
to the benefit of the parties hereto and their respective heirs, personal
representatives, successors, subtenants, and approved assigns.
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B. This Lease and any amendments hereto are subject to prior approval of the Federal
Aviation Administration.
C. Lessee is leasing the Leased Premises"AS IS, WHERE IS, WITH ALL FAULTS"
in its present condition. Lessor makes no representation or warranties 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 environment 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.. Lessor shall be under
no obligation to maintain the Leased Premises or the Pueblo Memorial Airport or
any part thereof in a particular location or condition. If the Pueblo Memorial
Airport shall permanently close or relocate, the use restrictions stated in section 5
shall not apply, and the Lessee may use the Leased Premises for any lawful use or
purpose allowed by the then existing Pueblo Municipal Code, or in the alternative,
Lessee may terminate this Lease upon thirty (30)days prior written notice given to
Lessor.
D. 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.
E. The acts and omissions of Lessee's employees, agents,contractors, and guests shall
be imputed to Lessee for purposes of this Lease.
F. This Lease is expressly made subject to the limitations of the Colorado
Constitution. Nothing herein shall constitute, nor be deemed to constitute, the
creation of a debt or multi-year fiscal obligation or an obligation of future
appropriations by the City Council of Pueblo, contrary to Article X, §20 of the
Colorado Constitution or any other constitutional, statutory, or charter debt
limitation. Notwithstanding any other provision of this Lease, with respect to any
financial obligation of Lessor which may arise under this Lease in any fiscal year,
in the event the budget or other means of appropriations for any such year fails to
provide funds in sufficient amounts to discharge such obligation, such failure shall
not constitute a default by or breach of this Lease, including any sub-agreement,
attachment, schedule or exhibit thereto, by the Lessor.
G. Nothing in this Lease is intended, nor should it be construed, to create or extend
any rights, claims or benefits or assume any liability for or on behalf of any third
party, or to waive any immunities or limitations otherwise conferred upon the
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Lessor under or by virtue of federal or state law, including but not limited to the
Colorado Governmental Immunity Act, C.R.S. §24-10-101, et seq.
H. This Lease contains the entire and exclusive agreement between the parties relating
to the Leased Premises and may not be amended except by written instrument
signed by the parties.Neither party shall be, or hold itself out as, agent of the other
or as joint venturers or partners under this Lease.
I. 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.
J. Each person signing this Lease on behalf of a party represents and warrants that he
or she has the requisite power and authority to enter into, execute, and deliver this
Lease on behalf of such party and that this Lease is a valid and legally binding
obligation of such party enforceable against it in accordance with its terms.
IN WITNESS WHEREOF,the parties hereto have caused this instrument to be executed as of the
day and year first above written.
LESSOR: LESSEE:
CITY OF PUEBLO, James Spitzer, dba Spitzer Aviation
Management
A Municipal Corporation
By "2440edie 04.Asy B i _
Nicholas A. Gradisar dippv James Spitzer
Title: Mayor Title: Owner
Attest:
GcStal
City C
Approved as to form:
e,"0 )(42—t
City Attorney
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I
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Legend
Q Set PK Nail with Shiner P.L.S. 31925
o Set Rebar and Yellow Cap P.L.S. 31925
Description
A parcel of land located within a portion of Parcel H of Pueblo Memorial Airport
Industrial Park Subdivision, located in the SE 1/4 of the NE 1/4 of Section 25,
Township 20 South, Range 64 West, and in a portion of the SW 1/4 of the NW
1/4 of Section 30, Township 20 South, Range 63 West of the Sixth Principal
Meridian, being more particularly described as follows:
Parcel A
BEGINNING at a point from which the monument found at the intersection of
Skyway Street and Atlas Avenue bears S 9° 19' 57" W a distance of 851.25 feet
(bearings based on the monument found at the intersection of Skyway Street and
Atlas Avenue to the monument found at the intersection of Skyway Street and
Magnuson Avenue to bear N 1' 31' 26" E, with all bearings contained herein being
relative thereto) thence S 88' 23' 56" W a distance of 76.00 feet; thence N 1'
36' 04" W a distance of 72.00 feet; thence N 88° 23' 56';\c‘vil 'stance of 76.00
feet; thence N 1° 36' 04" E a distance of 72.00 feet t� 1/,QF BEGINNING.
`
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Area = 0.13 Acres (5,472 s.f.) more or less. _ .` ' 11••a�
31925 or,
/// : • J
Ril Monroe Bryan Date(41se �f ' 2.22_ r l/'tl'IANV�`
P.L.S. 31925 SHEET 1 OF 1
i