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HomeMy WebLinkAbout11263Docusign Envelope ID: AC677961-BEF4-81 C4-8394-DDFB8F1 FC49E ORDINANCE NO. 11263 AN ORDINANCE APPROVING A T -HANGAR LEASE AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION, AND ANWAAR SAEED ALLEN FOR HANGAR UNIT E AT 31501 BRYAN CIRCLE, PUEBLO, COLORADO WHEREAS, the City of Pueblo owns and operates the Pueblo Memorial Airport ("Airport"), the City having authority under C.R.S. §§ 41-4-201 and 41-4-204 to acquire, establish, construct, own, control, lease, equip, improve, maintain, operate, and regulate the Airport, and to exact and require charges, fees, and tolls in connection therewith; and WHEREAS, the City owns and manages the T -Hangar facility identified herein and desires to lease one such T -Hangar unit to Lessee for the storage of an aircraft, and Lessee desires to lease the same upon the terms and conditions set forth herein; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The T -Hangar Lease Agreement ("Agreement") between the City of Pueblo, a Colorado Municipal Corporation, and Anwaar Saeed Allen, dated September 15, 2026, a copy of which is attached hereto, having been approved as to form by the City Attorney, is hereby approved. SECTION 2 The Mayor is authorized to execute the Agreement in the name of the City, and the City Clerk is directed to 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 Agreement to effectuate the policies and procedures 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 August 24, 2026. Final adoption of Ordinance by City Council on September 14, 2026. DocuSigned by: President of0ity ounci� I Docusign Envelope ID: AC677961-BEF4-81 C4-8394-DDFB8F1 FC49E Action by the Mayor: q Approved on ❑ Disapproved on 09/15/2026 based on the following objections: 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 Mayor ❑ Council action on failed to override the Mayor's veto. President of City Council ATTEST r;DOGUSigned by: City Clerk Docusign Envelope ID: AC677961-BEF4-81 C4-8394-DDFB8F1 FC49E City Clerk's Office Item # R8 COUNCIL MEETING DATE: September 14, 2026 TO: President Mark Aliff and Members of City Council CC: Mayor Heather Graham VIA: Clyde Bishop, City Clerk FROM: Greg Pedroza, Director Aviation SUBJECT: AN ORDINANCE APPROVING A T -HANGAR LEASE AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION, AND ANWAAR SAEED ALLEN FOR HANGAR UNIT E AT 31501 BRYAN CIRCLE, PUEBLO, COLORADO SUMMARY: Attached is an Ordinance approving a T -Hangar Lease Agreement between the City of Pueblo and Anwaar Saeed Allen for Hangar Unit E at 31501 Bryan Circle, located at the City's east -side T -hangar complex at Pueblo Memorial Airport. The Lease commences September 15, 2026, has an initial term of one year with up to four one- year renewal options, and provides monthly rent of $265.00 established by Ordinance No. 10811. The rate is subject to adjustment by ordinance of the City Council, including a Consumer Price Index adjustment provided by Ordinance No. 10811 commencing January 1, 2029. PREVIOUS COUNCIL ACTION: City Council established the $265.00 monthly T -Hangar rental rate at 31501 Bryan Circle by Ordinance No. 10811, adopted on final reading October 15, 2024, and approved by the Mayor October 17, 2024, which repealed Resolution No. 9389. Ordinance No. 10811 provides for a Consumer Price Index adjustment to the rate every five years commencing January 1, 2029. BACKGROUND: The City of Pueblo owns and operates Pueblo Memorial Airport, including the T -hangar complex located on the east side of the airfield at 31501 Bryan Circle. Hangar Unit E at that complex is presently vacant. Mr. Allen has applied to lease Hangar Unit E for the storage of an aircraft. The Lease has an initial term of one year commencing September 15, 2026, with four one-year renewal options exercisable by Mr. Allen on at least fifteen days' written Docusign Envelope ID: AC677961-BEF4-81 C4-8394-DDFB8F1 FC49E notice. The aggregate term, including all renewals, is capped at five years. Either party may terminate the Lease on fourteen days' written notice. Mr. Allen is required to maintain aircraft liability insurance with limits of $1,000,000 per occurrence, including a sublimit of not less than One Million Dollars ($1,000,000.00) for premises liability, naming the City as additional insured and loss payee. The Premises are leased AS IS, and Mr. Allen assumes the risk of loss, damage, or injury with respect to the Aircraft and personal property kept at the Premises. The Lease has been approved as to form by the City Attorney FINANCIAL IMPLICATIONS: The City will receive $265.00 per month, or $3,180.00 over the initial one-year term, in rental revenue. The rate is established by Ordinance No. 10811 and is subject to adjustment by ordinance of the City Council. Assuming no adjustment, total rental revenue over the maximum five-year aggregate term would be $15,900.00. That figure does not account for the Consumer Price Index adjustment that Ordinance No. 10811 provides for on January 1, 2029, which falls within the renewal period of this Lease. Section 3 of Ordinance No. 10811 dedicates the net proceeds of these rental rates to the operation, maintenance, and improvement of the Airport. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Ordinance. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: If this Ordinance is not approved, Hangar Unit E will remain vacant and the City will forgo the rental revenue described above. RECOMMENDATION: Approval of the Ordinance. ATTACHMENTS: 1. Allen 2026 09 15 Lease Agreement Docusign Envelope ID: C87A3D1A-AA7A-8682-836D-AD560CDBB282 CITY OF PUEBLO DEPARTMENT OF AVIATION T -HANGAR LEASE AGREEMENT This T -Hangar Lease Agreement ("Lease") is entered into this 15th day of September 2026 ("Effective Date"), between the City of Pueblo, a Colorado home rule Municipal Corporation ("City"), and Anwaar Saeed Allen, whose address is 401 South Falcon Drive, Pueblo West, Colorado 81007 ("Lessee"). RECITALS WHEREAS, the City of Pueblo owns and operates the Pueblo Memorial Airport ("Airport"), the City having authority under C.R.S. §§ 41-4-201 and 41-4-204 to acquire, establish, construct, own, control, lease, equip, improve, maintain, operate, and regulate the Airport, and to exact and require charges, fees, and tolls in connection therewith; and WHEREAS, the City owns and manages the T -Hangar facility identified herein and desires to lease one such T -Hangar unit to Lessee for the storage of an aircraft, and Lessee desires to lease the same upon the terms and conditions set forth herein. NOW, THEREFORE, in consideration of the foregoing recitals and of the mutual promises, covenants, and conditions contained herein, the sufficiency of which is hereby acknowledged, City and Lessee agree as follows: ARTICLE I. LEASED PREMISES PREMISES AND AIRCRAFT. City leases to Lessee the T -Hangar unit located at the Airport and identified as Hangar E at 31501 Bryan Circle, Pueblo, Colorado ("Premises"), for the sole purpose of storing one (1) aircraft bearing FAA registration number ("N -number") N44161 ("Aircraft"). The Aircraft shall be continuously registered with the Federal Aviation Administration ("FAA") throughout the term of this Lease. Lessee shall report any change in the Aircraft N -number to City in writing within fourteen (14) days of the change so that City may comply with applicable FAA reporting requirements. 2. SUBJECT To ENCUMBRANCES. Lessee's tenancy is subject to all easements, rights of way, covenants, conditions, restrictions, reservations, and limitations of record, and to all applicable zoning and land use laws, ordinances, codes, and regulations, including all conditions, regulations, restrictions, and requirements imposed by the FAA governing the Premises and its use. 3. ACCEPTANCE As Is. The Premises are leased "AS IS, WHERE IS, WITH ALL FAULTS." City makes no representation or warranty, express or implied, as to suitability, fitness for a particular purpose, title, zoning, physical or environmental condition, utilities, governmental approvals, or compliance of the Premises with any law or regulation. Lessee's taking of possession is conclusive evidence that Lessee accepts the Premises in their present condition. Page 1 Docusign Envelope ID: C87A3D1A-AA7A-8682-836D-AD560CDBB282 ARTICLE II. TERM AND RENEWAL 4. INITIAL TERM. The initial term of this Lease shall be one (1) year, commencing on the Effective Date and ending at 11:59 p.m. on the day before the first anniversary of the Effective Date, unless earlier terminated as provided herein. 5. RENEWAL OPTIONS. Lessee shall have the option to renew this Lease for up to four (4) successive renewal terms of one (1) year each. To exercise a renewal option, Lessee shall provide written notice to the Director of Aviation no later than fifteen (15) days prior to the expiration of the initial term or renewal term then in effect. If Lessee fails to provide timely renewal notice, this Lease shall terminate at the expiration of the then -current term, and Lessee shall surrender possession in accordance with Section 46. Lessee's renewal option is contingent on Lessee not being in default of this Lease at the time of renewal notice and on Lessee having no uncured material breach during the initial term or any renewal term then in effect; the Director of Aviation shall determine in good faith whether this condition is satisfied. Renewal at the Rent then in effect under Section 8 shall not require further action by City Council, the parties having agreed to the renewal mechanism set forth in this Lease. In no event shall the aggregate term of this Lease, including the initial term and all renewal terms, exceed five (5) years. 6. EARLY TERMINATION. Either party may terminate this Lease, with or without cause, by providing the other party at least fourteen (14) days' prior written notice stating the date on which the Lease shall terminate. ARTICLE III. RENT, TAXES, AND FEES 7. MONTHLY RENT. Lessee shall pay to City monthly rent in the amount established for the T - Hangar unit type comprising the Premises by ordinance of the City Council, as the same may be amended from time to time ("Rent"). The Rent in effect on the Effective Date is two hundred sixty-five Dollars ($265.00) per month. Rent is payable in advance without notice or demand on or before the tenth (10th) day of each calendar month at the address designated by City. Rent includes all utilities furnished by City to the Premises. No utilities other than those furnished by City shall be provided or permitted at the Premises without the prior written approval of the Director of Aviation. 8. ADJUSTMENT OF RENT. The Rent is established by ordinance of the City Council. The Rent shall remain fixed at the amount in effect on the Effective Date until adjusted by ordinance of the City Council. An adjustment that takes effect during the initial term or any renewal term then in effect shall apply to the Premises on the effective date of the adjustment, prorated for any partial calendar month, and shall continue to apply to each subsequent renewal term elected by Lessee under Section 5 until further adjusted. City shall provide Lessee written notice of any adjustment to the Rent at least thirty (30) days before the adjustment takes effect. Lessee acknowledges that Ordinance No. 10811, as the same may be amended or superseded, provides for adjustment of the Rent by the Consumer Price Index for All Urban Consumers (CPI -U), All Items, as published by the Bureau of Labor Statistics of the United States Department of Labor, every five (5) years commencing January 1, 2029. Page 2 Docusign Envelope ID: C87A3D1A-AA7A-8682-836D-AD560CDBB282 9. LATE CHARGE AND DEFAULT INTEREST. Rent not received by City on or before the fifteenth (15th) day of the month in which it is due shall be subject to a late charge of Twenty -Five Dollars ($25.00). Any Rent or other sum due under this Lease that remains unpaid thirty (30) days after the due date shall accrue interest at the rate of eight percent (8%) per annum, calculated from the original due date until paid in full. Late charges and interest are in addition to, and not in lieu of, any other remedy available to City under this Lease or at law. 10. TAXES AND PossEssoRY INTEREST. Lessee shall promptly pay when due all taxes, fees, licenses, and other governmental charges assessed against or applicable to the Premises or Lessee's use thereof. Lessee acknowledges that Pueblo County assesses a possessory interest tax against lessees of municipal property and that such tax is the responsibility of Lessee. City is a tax-exempt entity and shall not be liable for any tax of Lessee. Lessee acknowledges that multiple taxes and costs are associated with owning and operating an aircraft, including the leasing of hangar space, and that all such taxes and costs shall be paid by Lessee whether or not Lessee was aware of them. ARTICLE IV. USE OF PREMISES 11. PERMITTED USE. The Premises shall be used solely for the storage of the Aircraft and for the following incidental, non-commercial uses associated with such storage: (i) storage of aircraft parts, tools, and supplies belonging to Lessee and directly associated with the Aircraft; (ii) storage of one (1) operable personal vehicle owned by Lessee while Lessee is operating the Aircraft away from the Airport; (iii) preventive maintenance performed on the Aircraft by Lessee personally, to the extent authorized by 14 C.F.R. Part 43, Appendix A, paragraph (c); and (iv) such other incidental uses as the Director of Aviation may approve in writing. All other uses are prohibited. 12. AERONAUTICAL USE REQUIRED. All uses of the Premises shall be substantially aeronautical in nature. The Premises shall not be used for residential purposes, for any commercial operation, or for the storage of non -aeronautical personal property. The Premises shall not be used for the storage of automobiles, except as authorized by Section 11 herein. Failure to comply with this Section is a material breach of this Lease. 13. MAINTENANCE BY OTHERS. No person other than Lessee or a regular employee of Lessee may perform services on the Aircraft on the Premises beyond preventive maintenance as defined in 14 C.F.R. Part 43, Appendix A, paragraph (c). Any maintenance exceeding preventive maintenance shall be performed only by an authorized person at a location approved for such activity by the Director of Aviation. 14. OPERATIONAL RESTRICTIONS. Lessee shall comply with the following operational requirements: (i) hangar doors shall remain closed and locked except when the Premises are attended by Lessee; (ii) drive -through gates entering the Air Operations Area shall be kept closed and locked at all times except for ingress and egress; (iii) only automobiles belonging to owners of aircraft hangared on the Airport shall be permitted in the Air Operations Area; (iv) automobiles shall be parked in designated parking spaces or within the hangar; (v) no person or automobile shall go beyond the immediate vicinity of the Premises without the prior written consent of the Director of Aviation; (vi) Lessee shall provide drip Page 3 Docusign Envelope ID: C87A3D1A-AA7A-8682-836D-AD560CDBB282 pans of non-flammable material under the Aircraft to prevent damage to the floor; and (vii) mounting, hanging, suspending, or otherwise installing any item from the ceiling, support beams, or roofing structure of the hangar is prohibited. 15. PROHIBITED MATERIALS. No flammable liquids or hazardous materials shall be used or stored on the Premises, except for fuel contained in the Aircraft fuel tanks or in the tank of a properly parked stored automobile. 16. LESSEE MAINTENANCE. 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 for the sanitary handling and disposal of all trash, garbage, and refuse resulting from Lessee's activities at the Airport. No outside storage of parts, materials, equipment, inventory, or other property is permitted. Lessee is responsible for snow removal within five (5) feet of the hangar door. ARTICLE V. INSURANCE; INDEMNIFICATION; RISK OF LOSS 17. REQUIRED INSURANCE. Lessee, at its sole cost and expense, shall procure and maintain in full force during the term of this Lease a policy of aircraft liability insurance covering the Aircraft and Lessee's use of the Premises, with a combined single limit of not less than One Million Dollars ($1,000,000.00) per occurrence, including a sublimit of not less than One Million Dollars ($1,000,000.00) for premises liability. Coverage shall include, without limitation, legal liability for property damage, bodily injuries, and deaths of persons in connection with the operation, maintenance, or use of the Premises, including acts or omissions of Lessee. The policy shall name the City of Pueblo, its officers, employees, and agents, as additional insured and shall include a waiver of subrogation in favor of City. The policy shall provide that it cannot be canceled or materially altered by the insured or the insurance company unless thirty (30) days' prior written notice is given to City. Lessee shall furnish a certificate of insurance evidencing such coverage upon execution of this Lease and upon issuance or renewal of any such policy thereafter. Lessee shall notify the Director of Aviation in writing of any change, expiration, or non -renewal within two (2) weeks of such event. 18. INDEMNIFICATION. Lessee shall indemnify, defend, and hold harmless City and its officers, agents, representatives, and employees from and against any and all penalties, liability, or loss, including costs and reasonable attorney fees, resulting from claims or court action, whether civil, criminal, or in equity, arising directly or indirectly from: (i) the acts or omissions of Lessee, its agents, employees, contractors, or guests; (ii) any occurrence in, on, or about the Premises; (iii) any condition of the Premises or any equipment, appurtenance, or activity thereon; or (iv) any injury or damage caused or occasioned in connection with Lessee's use or occupancy of the Premises. Nothing in this Lease is intended to waive, limit, or otherwise affect any immunity or limitation of liability conferred upon City under federal or state law, including the Colorado Governmental Immunity Act, C.R.S. § 24-10-101 et seq., as amended. 19. RISK OF Loss. Lessee assumes all risk of loss, damage, injury, and liability with respect to Lessee, Lessee's guests, the Aircraft, Lessee's improvements, and Lessee's personal Page 4 Docusign Envelope ID: C87A3D1A-AA7A-8682-836D-AD560CDBB282 property in or upon the Premises. City shall not be liable or responsible for any such loss, damage, or injury, regardless of cause, including the negligence of City, its officers, agents, or employees. Lessee shall not hold or attempt to hold City liable for any injury, including loss of life, to any person or for damage to any property while on the Premises or the Airport, irrespective of how such injury or damage may be caused or occasioned. ARTICLE VI. RIGHTS AND PRIVILEGES OF LESSEE 20. EXCLUSIVE USE. Subject to the rights reserved to City herein, Lessee shall have the exclusive use of the Premises for the purpose of storing the Aircraft and for the incidental uses set forth in Section 11. Lessee shall not assign this Lease or sublet the Premises or any part thereof. 21. IMPROVEMENTS AND ALTERATIONS. Except as specifically authorized herein, Lessee shall not, without the prior written approval of the Director of Aviation, make improvements, modifications, revisions, signs, or other alterations to the Premises. All improvements, modifications, revisions, signs, and alterations shall be at Lessee's sole expense and shall be performed by trade professionals licensed, insured, and permitted to conduct business within the City of Pueblo. Upon expiration or termination of this Lease, Lessee shall remove all such improvements at no cost to City; provided, however, that City may, on a case -by - case basis, allow improvements to remain, in which case City shall not be liable to Lessee for the cost thereof. 22. No ENCUMBRANCE. Lessee shall not, directly or indirectly, voluntarily or involuntarily, mortgage, pledge, hypothecate, or otherwise encumber, or permit to be encumbered, the Premises, the leasehold interest created by this Lease, or any portion thereof or interest therein, by deed of trust, mortgage, lien, security interest, or other encumbrance of any kind. Any encumbrance recorded or asserted in violation of this Section shall be void as against City and shall constitute a material default of this Lease. Lessee shall, at Lessee's sole cost and expense, take all action necessary to remove and release any such encumbrance within ten (10) days of written notice from City. City shall have no obligation to subordinate its fee interest in the Airport to any encumbrance asserted against the leasehold. City's mechanic's lien rights under the laws of the State of Colorado are unaffected by this Section. 23. INGRESS AND EGRESS. Lessee, its employees, and invitees shall have the right of ingress and egress between designated airport access points and the Premises over, upon, and through such streets and not others as may be designated by the Director of Aviation from time to time. Driveways from existing streets into the Premises shall be located as designated by the Director of Aviation. ARTICLE VII. RIGHTS AND PRIVILEGES OF CITY 24. RESERVED RIGHTS. All rights not herein granted to Lessee are reserved to City. 25. RIGHT OF ENTRY AND INSPECTION. City shall have the full and unrestricted right to enter upon those portions of the Airport occupied by Lessee, and City, its agents, or representatives shall be permitted to inspect the Premises during regular business hours or upon twenty - Page 5 Docusign Envelope ID: C87A3D1A-AA7A-8682-836D-AD560CDBB282 four (24) hours' notice to Lessee. In the event of an emergency, City may enter the Premises without prior notice. Lessee shall not inhibit, obstruct, delay, or refuse to allow City's entry or inspection authorized under this Section, and any such inhibition, obstruction, delay, or refusal shall constitute a material default of this Lease and grounds for immediate termination under Article X. 26. MAINTENANCE OF AIRPORT FACILITIES. City reserves the right, but not the obligation, to maintain and keep in repair the landing areas of the Airport and all publicly owned facilities of the Airport. City shall not be obligated to Lessee for any failure to maintain or repair such areas or facilities. 27. Construction and Operational Restrictions. Lessee acknowledges that the Airport is a public -use facility, the operation of which may from time to time require the temporary restriction of Lessee's access to the Premises or otherwise inconvenience or interrupt Lessee's operations at the Airport. Such circumstances include, without limitation: (i) programs of construction, reconstruction, expansion, relocation, maintenance, and repair at and to the Airport undertaken by City to ensure that the Airport and its facilities are suitable for the volume and character of air traffic and flight activity; (ii) airshows and other aerial demonstrations conducted at or in the vicinity of the Airport; (iii) flight restrictions imposed by the Federal Aviation Administration in the proximity of the President, Vice President, or other federally protected parties; (iv) temporary flight restrictions over disaster or hazard areas; (v) military operations conducted at or in the vicinity of the Airport; and (vi) emergency response, public safety, or security operations. City shall provide Lessee with reasonable advance notice of any such restriction or activity when feasible, except where notice is impracticable, prohibited by federal authority, or would compromise the operation. Lessee waives any claim against City or its officers, agents, employees, contractors, subcontractors, and representatives for damages, rent abatement, or other consideration arising from any such restriction, inconvenience, or interruption, and Lessee's obligations under this Lease, including the obligation to pay Rent, shall continue without interruption. 28. RESERVATION OF AIRSPACE. There is hereby reserved to City, its 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, together with the right to cause in such 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 the Airport. 29. RIGHT To DEVELOP. City reserves the right, without any obligation to do so, to develop, modify, change, improve, or abandon the Airport or any part thereof as City may determine in its sole discretion, at any time, regardless of the desires or views of Lessee, and without interference or hindrance from Lessee or liability to Lessee. 30. CITY MAINTENANCE OBLIGATION. City shall maintain the floor, walls, roof, and doors of the Premises, except that the cost of repair for any damage to the same caused by Lessee, its employees, agents, or invitees shall be borne solely by Lessee. 31. No LIABILITY FOR LESSEE PROPERTY. All risk of loss or damage to the Aircraft and to other personal property of Lessee in or upon the Premises is assumed by Lessee. City shall not Page 6 Docusign Envelope ID: C87A3D1A-AA7A-8682-836D-AD560CDBB282 be liable or responsible for any loss or damage to such property regardless of cause, including the negligence of City, its officers, agents, or employees. ARTICLE VIII. FAA AND FEDERAL COMPLIANCE 32. SUBORDINATION To FEDERAL AGREEMENTS. This Lease and all the provisions hereof are subject to all rights the United States Government now has or may in the future have or acquire affecting the control, operation, regulation, re-entry upon, and taking over of the Airport, including the Premises. 33. No EXCLUSIVE RIGHTS. Nothing herein shall be construed to grant or authorize the granting of an exclusive right within the meaning of 49 U.S.C. § 40103(e). 34. TITLE VI COVENANT. Lessee, for itself, its heirs, personal representatives, successors in interest, 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, or national origin shall be excluded from participation in, denied the benefits of, or otherwise subjected to discrimination in the use of the Premises; (ii) in the construction of any improvements on, over, or under the Premises and the furnishing of services thereon, no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or otherwise subjected to discrimination; and (iii) Lessee shall use the Premises in compliance with all other requirements imposed by or pursuant to 49 C.F.R. Part 21, Nondiscrimination in Federally -Assisted Programs of the Department of Transportation —Effectuation of Title VI of the Civil Rights Act of 1964, as said Regulations may be amended. 35. CONSTRUCTION AND USE OF FACILITIES. 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 operated on the Premises for a purpose for which a United States Department of Transportation program or activity is extended or for another purpose involving the provision of similar services or benefits, Lessee shall maintain and operate such facilities and services in compliance with all requirements imposed pursuant to 49 C.F.R. Part 21, as said Regulations may be amended. 36. GENERAL CIVIL RIGHTS COMPLIANCE. In all activities within the scope of the airport program, Lessee agrees to comply with pertinent statutes, Executive Orders, and rules identified in the Title VI List of Pertinent Nondiscrimination Acts and Authorities, as referenced in Section 37, to ensure that no person shall, on the grounds of race, color, national origin (including limited English proficiency), creed, sex (including sexual orientation and gender identity), age, or disability, be excluded from participating in any activity conducted with or benefiting from federal assistance. This Section is in addition to, and not in lieu of, the covenants set forth in Sections 34 and 35. 37. PERTINENT NONDISCRIMINATION AUTHORITIES. During the performance of this Lease, Lessee, for itself, its assignees, and successors in interest, agrees to comply with the following nondiscrimination statutes and authorities, including but not limited to: Page 7 Docusign Envelope ID: C87A3D1A-AA7A-8682-836D-AD560CDBB282 • Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq.) (prohibits discrimination on the basis of race, color, or national origin); • 49 C.F.R. Part 21 (Nondiscrimination in Federally -Assisted Programs of the Department of Transportation —Effectuation of Title VI of the Civil Rights Act of 1964); • Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. § 794 et seq.), as amended (prohibits discrimination on the basis of disability), and 49 C.F.R. Part 27; • The Age Discrimination Act of 1975, as amended (42 U.S.C. § 6101 et seq.) (prohibits discrimination on the basis of age); • Titles II and III of the Americans with Disabilities Act of 1990 (42 U.S.C. §§ 12131- 12189), as implemented by 49 C.F.R. Parts 37 and 38; • 49 U.S.C. § 47123 (FAA nondiscrimination provision); and • Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency. ARTICLE IX. ENVIRONMENTAL PROVISIONS 38. HAZARDOUS MATERIALS DEFINED. For purposes of this Lease, "Hazardous Materials" means any hazardous or toxic substance, material, or waste regulated by any local government authority, the State of Colorado, or the United States government, including without limitation: (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. 39. ENVIRONMENTAL COMPLIANCE. Lessee shall comply with all Environmental Regulations applicable to Lessee and its use of the Premises. No activity shall be undertaken by Lessee, its guests, employees, agents, contractors, or subcontractors on, or any portion of, the Premises that 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 Premises in violation of any Environmental Regulation; (ii) any portion of the Premises to become a hazardous waste treatment, storage, or disposal facility without proper governmental authorization and 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 proper governmental authorization and compliance with all Environmental Regulations, including the Federal Water Pollution Control Act, 33 U.S.C. § 1251 et seq., and the Clean Air Act, 42 U.S.C. § 7401 et seq. 40. ENVIRONMENTAL INDEMNITY. Lessee shall defend, indemnify, and forever hold harmless City and its officers, employees, agents, successors, and assigns from all claims, losses, damages, penalties, expenses, and costs, including reasonable attorney 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 Premises by Lessee, its employees, agents, guests, contractors, or subcontractors. Page 8 Docusign Envelope ID: C87A3D1A-AA7A-8682-836D-AD560CDBB282 ARTICLE X. DEFAULT, REMEDIES, AND TERMINATION 41. EVENTS OF DEFAULT. Each of the following constitutes an event of default under this Lease: (i) failure of Lessee to pay any Rent, fee, or other sum due under this Lease when due; (ii) failure of Lessee to perform any other obligation under this Lease; (iii) violation by Lessee of any airport security rule, now or hereafter in effect; (iv) the declaration of insolvency or bankruptcy of Lessee, the assignment of Lessee's property for the benefit of creditors, the levy upon or seizure of Lessee's leasehold interest by writ of any court of law, or the appointment of a Trustee in Bankruptcy or Receiver for the property of Lessee; (v) abandonment of the Premises; (vi) inhibition, obstruction, delay, or refusal by Lessee of City's entry or inspection authorized under Section 25; (vii) assignment of this Lease in violation of Section 20; (viii) subletting of the Premises in violation of Section 20; or (ix) any encumbrance of the Premises or the leasehold interest in violation of Section 22. 42. TERMINATION ON DEFAULT. Upon the occurrence of an event of default in payment, or any breach of the covenants or agreements herein, City may declare this Lease terminated, and after the expiration of fourteen (14) days from the date of service of a written notice of termination, City shall be entitled to possession of the Premises. Upon the occurrence of an event of default related to insolvency or bankruptcy under Section 41(iv), City may, at its option, immediately terminate this Lease and retake possession of the Premises with or without notice, notice being expressly waived, without working any forfeiture of any accrued obligations of Lessee. Violation of airport security rules, interference with City's right of entry or inspection under Section 25, or any breach of Section 20 (assignment or subletting) or Section 22 (encumbrance), shall be grounds for immediate termination of this Lease. 43. REMEDIES ON DEFAULT. If, after notice of termination as provided herein, Lessee shall refuse to surrender and deliver possession of the Premises, City may, without further notice or demand, enter upon and take possession of the Premises, expel and remove Lessee, using such help, assistance, and force as may be needful and proper, without prejudice to any remedy allowed by law. If the Premises are left vacant and any Rent reserved remains unpaid, City may, without obligation to do so and without terminating this Lease, retake possession of the Premises and re -let the same for such rent and upon such conditions as City deems 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 Lessee shall be liable for the balance of the Rent reserved until the expiration of this Lease. 44. CITY'S LIEN. In the event this Lease is terminated as herein provided, City shall have, and Lessee hereby grants, a lien upon Lessee's equipment, fixtures, furniture, and inventory in or upon the Premises for all Rent, expenses, attorney fees, and costs then due or to become payable by Lessee. Such lien may be enforced by the taking and sale of such property in the manner provided for the disposition of collateral under the Colorado Uniform Commercial Code. 45. HOLDOVER. If, after the expiration of the term of this Lease, Lessee remains in possession of the Premises and continues to pay Rent without any express written agreement as to such holding over, Lessee shall be a month -to -month tenant subject to all terms and covenants of Page 9 Docusign Envelope ID: C87A3D1A-AA7A-8682-836D-AD560CDBB282 this Lease, except that during the term of any month -to -month tenancy, City or Lessee may terminate this Lease upon fourteen (14) days' prior written notice. 46. SURRENDER OF PREMISES. Without affecting any other right granted to City under this Lease, Lessee shall remove the Aircraft and any personal property from the Premises within seven (7) days after termination of this Lease. Should Lessee fail to remove such property within that seven-day period, City shall have the right to enter and remove the property, and Lessee shall be liable for all costs of removal. Unclaimed property shall be deemed abandoned and may be disposed of in any manner City deems appropriate. Should City sell the abandoned property, the proceeds shall first be applied to costs due to City, and any remaining amount shall be forwarded to Lessee. 47. ATTORNEY FEES. Lessee shall pay City all costs, including reasonable attorney fees, incurred by City in recovering any Rent or other money due and unpaid or in recovering possession of the Premises after termination of this Lease. ARTICLE XI. NOTICES 48. NOTICE REQUIREMENTS. Any notice, demand, or request provided in this Lease shall be in writing and given by either: (i) certified mail, return receipt requested, to the address of the receiving party as follows: To City: Director of Aviation 31201 Bryan Circle Pueblo, CO 81001 airportlnfo@pueblo.us To Lessee: Anwaar Saeed Allen 401 South Falcon Drive Pueblo West, CO 81007 anwaarallen@gmail.com or, (ii) electronic mail, transmitted to the email address designated by the receiving party with a copy concurrently sent by certified mail, return receipt requested. Notice shall be deemed given on the date of mailing for certified mail, or, if delivered by electronic mail, on the date of confirmed transmission, provided that the required certified mail copy is also sent on or before the next business day. ARTICLE XII. GENERAL CONDITIONS 49. SUBORDINATION TO CODE, RULES, AND REGULATIONS. The terms and conditions of this Lease and Lessee's rights hereunder are subject to the provisions of the Pueblo Municipal Code ("PMC"), as the same may be subsequently amended, including without limitation Title III thereof relating to the Department of Aviation, and to the Airport Rules and Regulations adopted by the Director of Aviation, as amended from time to time. In the event of conflict between the PMC and this Lease, the PMC shall control. 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 rules affecting the operation of motor vehicles upon, to, and from the Airport. Lessee, and all officers, agents, and employees of Page 10 Docusign Envelope ID: C87A3D1A-AA7A-8682-836D-AD560CDBB282 Lessee, agree to be bound by and subject to all police ordinances of the City of Pueblo at all times while on the Airport. 50. NON-INTERFERENCE WITH AIRCRAFT OPERATIONS. Lessee, by accepting this Lease, expressly agrees for itself, its successors, and assigns that it shall not make use of the Premises in any manner that might interfere with the landing and taking off of aircraft from the Airport or otherwise constitute a hazard. In the event the foregoing covenant is breached, City reserves the right to enter upon the Premises and cause the abatement of such interference at the expense of Lessee. 51. GOVERNING LAW AND VENUE. This Lease shall be governed by and construed in accordance with the laws of the State of Colorado. Venue for any action arising under or for the enforcement of this Lease shall lie exclusively in a state court of competent jurisdiction located in Pueblo County, Colorado. 52. No THIRD -PARTY BENEFICIARIES. Nothing in this Lease is intended, nor shall it be construed, to create any rights, claims, or benefits in any third party, or to assume any liability for or on behalf of any third party, or to waive any immunities or limitations conferred upon City under federal or state law, including the Colorado Governmental Immunity Act, C.R.S. § 24-10-101 et seq. 53. No PARTNERSHIP OR JOINT VENTURE. Nothing in this Lease iS intended to, nor shall be deemed to, constitute a partnership 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 venturer, agent, or representative of the other under this Lease. 54. SUCCESSORS AND ASSIGNS. 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 City and Lessee, subject to the restrictions on assignment and subletting set forth herein. 55. SEVERABILITY. If any provision of this Lease is held by a court of competent jurisdiction to be invalid, illegal, or unenforceable, the remainder of this Lease shall remain in full force and effect, and the invalid, illegal, or unenforceable provision shall be deemed modified to the minimum extent necessary to render it enforceable while preserving the intent of the parties to the maximum extent possible. 56. INTEGRATION. This Lease constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior negotiations, representations, and agreements, whether written or oral. This Lease may be amended only by a written instrument signed by both parties and approved by City Council where such approval is required by law. An adjustment of the Rent under Section 8, and the operation of Sections 32 and 49, shall not require an amendment to this Lease. 57. No WAIVER. No assent, express or implied, to any breach of any covenant or agreement of this Lease shall be deemed or taken to be a waiver of any succeeding or other breach. No failure or delay by City in exercising any right under this Lease shall operate as a waiver of such right. Page 11 Docusign Envelope ID: C87A3D1A-AA7A-8682-836D-AD560CDBB282 58. CAPTIONS. The captions and headings used in this Lease are for convenience of reference only and shall not be used to construe or interpret any provision of this Lease. 59. COUNTERPARTS AND ELECTRONIC EXECUTION. This Lease may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. The parties may execute this Lease by electronic signature, and any such electronic signature shall be deemed an original signature for all purposes. 60. SURVIVAL. All obligations of Lessee that by their nature are intended to survive termination of this Lease, including without limitation the indemnity obligations under Sections 18 and 40, the environmental obligations under Article IX, the surrender obligations under Section 46, and the attorney fee obligation under Section 47, shall survive termination of this Lease. Executed at Pueblo, Colorado, the day and year first above written. LESSEE: signed by: �ZAF6�l('7 Anwaar Saeed Allen CITY: City of Pueblo, A Municipal Corporation Signed by: By: Mayor ATTEST: ^-Docusigned by: By: F1C1AF8727B1d9A.. City Clerk Page 12