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HomeMy WebLinkAbout6247RESOLUTION NO. 6247 A RESOLUTION APPROVING THE PUEBLO MEMORIAL AIR- PORT LAND LEASE DATED JULY 25, 1988 BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION AND CF &I STEEL CORPORATION BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, COLORADO, that: SECTION 1 The Pueblo Memorial Airport Land Lease dated July 25, 1988 between the City of Pueblo, a Municipal Corporation and CF &I Steel Corporation, a copy of which is attached hereto and incorporated herein, having been approved by the City Attorney, is hereby approved. The President of the City Council is authorized and directed to execute the Pueblo Memorial Airport Land Lease for and on behalf of the City amd the City Clerk is directed to affix the seal of the City thereto and attest same. INTRODUCED: July 25, 1988 By DOUGLAS RING Councilman ATTEST: APPROVED: C y Clerk r ident o e City Council PUEBLO MEMORIAL AIRPORT LAND LEASE This Lease made this 25th day of July, 1988 between the City of Pueblo, a Municipal Corporation (herein "City ") and CF &I Steel Corporation, Pueblo, Colorado (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 fifteen (15 ) years from April 1, 1986 to March 31, 2001. For and in consideration of the leasing of the Property, Lessee does hereby covenant and agree as follows: 1. Lessee shall use the Property only for the storage of aircraft and, notwithstanding the provisions of paragraph 15 of the General Provisions, Lessee may sublease the hangar on the Property to a third party provided such party shall first obtain from the City an operating agreement for the use of the hangar. 2. Lessee shall pay to City at the office of the City's Director of Finance as rent for the Property, in advance on or before April 1 of each year without notice, and without offset or reduction: (a) an annual fee of $264.00 per acre; and, (b) a combined service fee for services and facilities now furnished by City at the Pueblo Memorial Airport, namely: sewage treatment, public street maintenance, fire protection and street lighting based upon $297.50 per acre per year. City may, from time to time, reduce or eliminate any or all of the services or facilities presently being furnished and may modify, increase, or decrease the annual combined service fee provided (i) such services and fee shall be non- discrimi- natory among other tenants and owners of land at Pueblo Memorial Airport receiving such services and facilities then being furnished and (ii) such fee shall be reasonable in relation to City's actual cost and expense of furnishing the services and facilities then being furnished. City's cost may include the cost of capital improvements amortized over the useful life of the improvements. 3. Lessee understands and agrees that waste water dis- charged from the Property into City's sanitary sewer system and Lessee's use thereof are limited by and subject to available treatment capacity of City's wastewater treatment facilities and City's sewer user, industrial cost recovery, high strength surcharge, and pretreatment ordinances, rules and regulations applicable to City's sanitary sewer system at Pueblo Memorial Airport, now in effect or hereafter adopted or amended. Only domestic waste water will be discharged from the Property into City's sanitary sewer system. 4. 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 City and unless such person, firm or corpora- tion pays a landing fee to the City for the use of the Airport as established by Resolution of the City Council of City. 5. 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. 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. 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, the 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 thereon, whether now located or subsequently constructed, 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. City reserves the right to specify colors to be used in painting the exterior of buildings and improvements on the Property. All buildings on the Property and other improve- ments or additions to the Property of a permanent nature shall be and become the property of City upon termination of this Lease free of all liens, taxes and encumbrances. 9. 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 its enjoyment and use of the Property. 10. 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 -2- results from hidden, latent, or other dangerous conditions of the Airport. 11. 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. 12. City shall have full and unrestricted right to enter upon and inspect the Property at all times. 13. Lessee shall make no alterations in or additions to the Property including the installation of signs without first obtain- ing the written consent of City which consent shall not be unreasonably withheld. 14. 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 thirty (30) days after written notice thereof has been given to Lessee by first class mail addressed to Lessee at its last known address according to the records of the City's Department of Aviation, then, in that event, it shall be lawful for City, at its election, with or without notice, to terminate this Lease and to re -enter and repossess 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 forcible entry or detainer. 15. If the Property is left vacant and any part of the rent remains due and unpaid, 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 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 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. 16. No waiver of any breach of any one or more of the conditions or covenants of this Lease by 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 City shall not constitute a waiver of any breach then existing. 17. If Lessee remains in possession of the Property after termination of the Lease without written agreement, such -3- 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 rent equal to one- twelfth (1 /12th) of the annual payments payable hereunder for the prior year. 18. City reserves for itself, its agents, officers and employees the right of ingress and egress for the purpose of repair, maintenance and replacement of any utility liens or facilities located over, upon or through the Property. 19. The General Provisions consisting of paragraphs 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. 20. Lessee shall maintain the ramp area of the Property, if any, 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 1508 of City's cost therefor including a reasonable charge for City's equipment. 21. In the event of a conflict between any provision of the Lease or the General Provisions, the General Provisions shall control. 22. The Lease Agreement dated March 8, 1971 between the City and Lessee's assignor HLH Corporation relating to the Property is hereby cancelled and terminated and each party is released from all obligations thereunder. IN WITNESS WHEREOF, the parties hereto have hereunto set their hands and seals the day and year first above written. ATTEST: PUEBLO, A MUNICIPAL CORPORATION CfO Clerk Pr sident of the City Council ATTEST: LESSEE: CF &I STEEL CORPORATION By APPROVED AS TO FORM: City Atto y TEJ 29.15 -4- EXHIBIT "A" A parcel of ground in the NE 1/4 of Section 25, Township 20 South, Range 64 West, described as follows: Commencing at the West 1/4 corner of Section 30, Township 20 South, Range 63 West; thence North 0° 08' 40" West a distance of 381.54 feet; thence South 88° 18' 05" West a distance of 225.00 feet; thence North 1° 41' 55" West a distance of 372.66 feet to a point of beginning; thence North 1° 41' 55" West a distance of 207.00 feet; thence South 88° 18' 05" West a distance of 211.00 feet; thence South 1° 41' 55" East a distance of 207.00 feet; thence North 88° 18' 05" East a distance of 211.00 feet to the point of beginning. Said parcel contains 1.0027 acres. 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 City or 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 operation on or over the Pueblo Memorial Airport. 4. Lessee shall restrict the height of structures, buildings, objects of natural growth and �o . other obstructions on the Property � to a height of not more than �J-_ feet above sea level. Lessee shall not erect or permit the erection of any structure, or allow trees to grow, 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 discharges 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 �1:5lNllkie VOW- 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 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 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 construction 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 non- discrimination 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. 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 improvements 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 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, including, 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 -2- or under any waterline, sewerline 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 pur- suant 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 occurrance, 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. 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, renewal, addition, deletion, or other amendment to the Lease or hereto shall have any force or effect unless embodied in a written agreement and approved by resolution or ordinance of the City Council of 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 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 transferred without the prior written consent of City. Any such assignment, transfer or sublease made without prior written consent of the City shall be void and ineffective as to 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 unenforce- able 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. -3- 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 Endorsement" in 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 improvements 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. (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 under such policies. Such clauses shall be obtained by the parties whenever possible. The release in favor of City contained herein, is in addition to, and not in substitution for, or in diminution of the hold harmless and indemnification provisions hereof. t business on the Property as permitted and authori der the Lease for a period of 120 consecutive days_9po415nger, City may terminate and cancel the Lease upon (20) days prior written notice to Lessee, prow' , hat if the Property becomes untenable becaus ire or other casualty not caused by the faul negligence of Lessee, the 120 day period shal tended by such reasonable time as may be requir Lessee to make necessary repairs or replacements 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. -4-