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HomeMy WebLinkAbout7343RESOLUTION NO. 7343 A RESOLUTION APPROVING AN AIRPORT USE AGREEMENT BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND GP EXPRESS AIRLINES, INC., AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, COLORADO, THAT: SECTION 1 A certain Airport Use Agreement, 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, by and between the City of Pueblo, a Municipal Corporation, and GP EXPRESS Airlines, Inc., relating to the use of the Pueblo Memorial Airport; be and the same is hereby approved, subject to the conditions as set forth in said Airport Use Agreement. SECTION 2 The President of the City Council is hereby authorized to execute said Airport Use Agreement on behalf of the City of Pueblo, a Municipal Corporation and the City Clerk shall affix the Seal of the City thereto and attest the same. SECTION 3 All net proceeds derived from said Airport Use Agreement shall be used for the operation, maintenance, and improvement of the Airport. INTRODUCED April 11, 199 BY SAMUEL CORSENTINO Councilperson ATTEST: APPROVED: Pr sid t of ity ouncil PUEBLO MEMORIAL AIRPORT AIRPORT USE AGREEMENT THIS INDENTURE of Lease, made and entered into this 11 day of //, , 1994, by and between THE CITY OF PUEBLO, a municipal corporation, hereinafter called "Lessor ", and GP- EXPRESS AIRLINES, INC., hereinafter called "Lessee," WITNESSETH: WHEREAS, Lessor now owns certain real property in the County of Pueblo, State of Colorado, known as the Pueblo Memorial Airport, hereinafter called "Airport" and Lessee is engaged in the business of transporting the persons, property, cargo, and mail by air; and Lessor desires to lease and grant, and Lessee desires to lease and use, certain premises and facility on the Airport, together with certain rights, licenses, and privileges thereon. NOW, THEREFORE, Lessor does hereby demise and let unto Lessee for the purpose of conducting it's air transportation service business, and Lessee does hereby lease and take from Lessor, for such purpose, certain premises and facilities, rights, licenses, services, and privileges in connection with and on the Airport as follows, to -wit: 1. RIGHTS a. Use of Airport The use in common with others of the Airport and it's appurtenances including, if available and functioning, but not limited to: landing field, runways, aprons, taxiways, roadways, sewer and water facilities, flood lights, landing lights, and all conveniences for flying, landing, and take -offs of aircraft of Lessee, which use shall include the operation of a transportation system by it's aircraft for the carriage of persons, property, cargo and mail, including without limitation: loading and unloading of it's aircraft, the right to load and unload persons, property, cargo and mail at the Airport by such motor cars, buses, trucks or other means of conveyances as Lessee may require in the conduction of it's business, and the right to install, maintain, use and operate such radio, communications, meteorological and aerial navigation equipment and facilities in, on, or about the Airport as may be deemed necessary by Lessee for it's operations provided same shall not interfere with Lessor's existing or expanded equipment and facilities as well as the right, subject to Lessor's approval, to install advertising signs, and any other operation or activity reasonably necessary to the conduct by Lessee of it's air transportation service business or training of it's personnel, provided such other operation or activities will not interfere with the use of the Airport by Lessor or it's employees, agents, or other tenants. 1 b. Terminal Building Lessee shall be entitled to the use of the following space in the Terminal Building. (1) Ticket Counter and Office Space - 588 square feet (2) Outbound Baggage Space - 451 square feet (3) Non - Exclusive Secured Passenger Screening Area - 1,096 square feet The Lessor shall designate the specific areas to be used by Lessee. Lessee's designated space is shown on Exhibit "A" attached hereto. Indoor storage of gasoline - powered equipment and indoor operation of such equipment is prohibited in the Terminal Building, including the baggage and freight handling area. Lessor further grants Lessee the option of taking use for it's operation of an air transportation system of sufficient space in any new passenger terminal building which Lessor may construct during the term hereof, said space and rental therefore to be mutually agreed upon between Lessor and Lessee. Such use shall include, without limitation, the sale of tickets, cargo, and the operation of a traffic operations and communication office. Lessee, it's employees, passengers, guests, patrons and invitees shall also have the use, in common with others, of any public space now available in the Terminal Building, or which may hereafter be made available, including, but not limited to, waiting rooms, restrooms. C. Miscellaneous Rights of Lessee Including, But Not By Way of Limitation Lessee shall have: (1) The right of ingress and egress, without charge, to and from the premises outlined in Paragraphs a and b above, as shall it's employees, passengers, guests, patrons, invitees, suppliers of materials and furnishers of service. (2) The right to purchase or otherwise obtain property, facilities or services deemed by Lessee to be required by, or incident to it's operation from any persons or organizations it may choose, provided that such suppliers of materials and furnishers of service have complied with the requirements of Section 3- 1 -2(c) of the 1971 Code of Ordinances, as amended, of the City of Pueblo to the extent applicable; and further provided, that in consideration of Lessee's agreement to pay landing fees for it's flights that land at the Airport, persons or organizations furnishing K or it's facilities caused by it or it's agents, employees, or invitees other than due to normal wear and tear or fire. If Lessor fails to make such repairs or if Lessor shall be in default in the performance of any provision of this Airport Lease in it's part to be performed, such failures or default shall not give rise to any action or claim by Lessee or it's agents, employees or invitees against Lessor; Lessee's only remedy for such failure or breach is to terminate this Airport Lease. 5. BUILDING BY LESSEE Lessee, at it's own expense, may construct, install, alter, modify, repair, and maintain in or on any space which is or may be leased by Lessee hereunder and described in Paragraph 1b, any improvements that it shall determine to be necessary for use in connection with it's business. No restrictions shall be placed upon Lessee as to the architects, contractors or materialmen who may be employed by it in connection therewith, who shall have free ingress and egress from said premises. Notwithstanding the foregoing, no improvement to or modification of the leased premises shall be made by Lessee until plans and specifications therefore have been first approved by Lessor, which approval shall not be unreasonably withheld, and provided the construction and installation of such improvement to or modifications of the leased premises shall be in compliance with all applicable laws and codes and shall not unreasonably interfere with Lessor's operation of the Pueblo Memorial Airport or Terminal Building. 6. LIABILITY Lessor agrees to defend, save and keep Lessor harmless from any and all loss, expense or liability, resulting from negligence of Lessee or any of it's employees, agents, or invitees in their use and occupancy of the leased premises, Terminal Building and Airport, except that Lessee shall not be liable for loss or damage to Lessor's property caused by fire or other hazards insurable under an extended coverage endorsement, including vandalism or malicious mischief. Lessee agrees to obtain and keep in force throughout the term of the Lease, Comprehensive Public Liability Insurance with limits not less than $ 1,000,000.00 bodily injury and $ 500,000.00 property damage per occurrence. Lessor and Lessee and all parties claiming under them hereby mutually release and discharge each other from any claims, liability or damage caused by or arising from any hazard covered by insurance on the leased premises, Airport and improvements thereon or covered by insurance in connection with any property on the leased premises, Terminal Building and Airport regardless of the cause of the damage of loss. In the event the premises covered by this Lease are wholly or partially destroyed or damaged so as to render the whole or a substantial part thereof unfit for occupancy, and the same cannot be repaired with reasonable diligence within one hundred twenty (120) days after the happening of such destruction or damage, or if Lessor, in it's sole judgment determines that it is not economically feasible to repair same, then this Lease, at the option of the Lessee or Lessor, shall cease and terminate as of the date of such 4 damage or destruction. Upon such termination, Lessor shall repay to Lessee any rents theretofore paid by Lessee with respect to any period subsequent to the date of such termination. Lessee shall surrender possession of the premises to the Lessor upon such termination. If, in the sole opinion of Lessor, such destruction or damage can be repaired within one hundred twenty (120) days, Lessor shall forthwith repair the same with all reasonable diligence, and at it's own expense, and this Lease shall continue in force and effect. During the period of such repair, the rent shall be abated in the same ratio as that portion of the premises which is rendered unfit for occupancy bears to the whole. 7. CANCELLATION BY LESSOR Lessor may cancel this Lease by giving Lessee thirty (30) days advance notice, upon or after the happening of any one of the following events: a. The filing of Lessee of a voluntary petition in bankruptcy. b. The adjudication of Lessee as a bankrupt pursuant to such proceeding. C. The appointment of a receiver of Lessee's assets; the divestiture of Lessee's estate herein by operation of Law. d. The abandonment by Lessee of it's conduct of air transportation service at the Airport. e. The default by Lessee in the performance of any covenant or agreement herein required to be performed by Lessee and the failure by Lessee to remedy such default for a period of thirty (30) days after receipt from Lessor of written notice to remedy the same; provided, however, that no notice of cancellation, as above provided, shall be of any force or effect of Lessee shall have remedied the default prior to receipt of Lessor's notice of cancellation. f. Recapture of the Airport by the Federal Government and assumption of full control over aviation activities at the Airport by the Federal Government for a period of more than thirty (30) days. g. Issuance by any Court of Competent Jurisdiction of any injunction in any way preventing or restraining the use of the Airport or any part thereof for airport purposes, and the remaining in force of such injunction for a period of at least thirty (30) days. h. No waiver of default by Lessor of any of the terms or conditions hereof to be performed, kept and observed by Lessee, shall be construed to be an act as a waiver of any subsequent default of any of the terms and conditions herein contained to be performed, kept and observed by Lessee and acceptance of rent 5 h. Upon termination by Lessee of all regularly scheduled flight service. No waiver of default by Lessee of any of the terms, covenants or conditions hereof to be performed, kept and observed by Lessor shall be construed to be or act as a waiver by Lessee of any subsequent default of any of the terms, covenants and conditions therein contained to be performed, kept and observed by Lessor. 9. CONFORMITY OF AGREEMENT In the event Lessor shall hereafter enter into any Lease or Agreement with any other scheduled certificated air transport operator with respect to the Airport, containing more favorable terms than this Agreement, or shall grant to any other scheduled certificated transport operator rights or privileges with respect thereto which are not accorded to Lessee hereunder, then the same rights, privileges and more favorable terms shall be concurrently made available to Lessee. 10. ASSIGNMENT Lessee may not assign or sublease the premises leased hereunder without the consent of Lessor which shall not be unreasonably withheld, except an assignment to a successor corporation which as merged with, or acquired substantially all the assets of the Lessee, if such successor corporation should specifically agree in writing to perform this Airport Agreement. 11. APPLICATION OF PUEBLO CITY CODE All terms and conditions of this Lease are hereby made subject to the provisions of Title III, Chapter 1 of the 1971 Code of Ordinances of the City of Pueblo, and as same may be subsequently amended, and in event of conflict between said Code of Ordinances and any provision herein, said Code shall control. 12. QUIET ENJOYMENT Lessor represents that it has the right to lease the Airport, together with the facilities, rights, licenses, and privileges herein granted, and has full power and authority to enter into this Lease in respect thereof, subject to the right of Recapture reserved by the United States of America. Except otherwise provided herein, Lessor agrees that, on payment of the rent and performance of the covenants and agreements hereunder by Lessee, Lessee shall peaceably have and enjoy the leased premises and all rights and privileges of the Airport, it's appurtenances and facilities. 13. REGULATION Lessee agrees to observe and obey all reasonable regulations imposed by Lessor during the term hereof, provided the same are consistent with safety and do not conflict with the regulations and procedures prescribed by the Federal Aviation Administration for operation of Lessee's aircraft at the Airport. 14. NOTICES Notices to Lessor provided for herein shall be sufficient if sent by certified mail addressed to: Director of Aviation 31201 Bryan Circle Pueblo Memorial Airport Pueblo, Colorado 81001 and notices to Lessee, if sent by certified mail, addressed to: Jim Bogan Director of Customer Service GP EXPRESS Airlines, Inc. P.O. Box 218 Grand Island, Nebraska 68802 or to such other respective addresses as the parties may designate to each other in writing from time to time. 15. INVALID PROVISION It is further expressly understood and agreed by and between the parties hereto that in the event that any covenant, condition or provision herein contained is heard to be invalid by any Court of Competent Jurisdiction, the invalidity of any such covenant, condition or provision shall in no way affect any other covenant, condition or provision herein contained, provided, however, that the invalidity of any such covenant, condition or provision does not materially prejudice either the Lessee in their respective rights and obligations contained in the valid covenants, conditions or provisions in this Lease. 16. SECURITY Lessee shall comply with and be responsible for all applicable Federal Aviation Regulations and Airport Regulations, involving all of their leased area, including FAR Part 108, Lessor's FAA approved Comprehensive Airport Security Plan (CASP) and all other Department of Transportation and FAA directives pertaining to airport security. s 17. CONDUCT OF BUSINESS Lessee agrees to operate the premises leased for the use and benefit of the public and that in the operation of it's business upon the leased premises, the Lessee agrees: a. To furnish good, prompt and efficient services adequate to meet all the demands for it's services at the Airport. b. To charge fair, reasonable and non - discriminatory prices for each unit of sale or service, provided that the Lessee may be allowed to make reasonable and non- discriminatory discounts, rebates or other similar types of price reductions to volume purchases. 18. NON - DISCRIMINATION The Lessee, in the operations to be conducted pursuant to the provisions of this Lease and otherwise in the use of the Airport, will not discriminate or permit discrimination against any persons or class of persons by reason of race, color, religion, sex, handicap, or national origin in any manner prohibited by Part 21 of the Regulations of the Office of the Secretary of Transportation, or any amendments thereto. The Lessor reserves the right to take such action as the United States Government may direct to enforce this covenant. 19. AFFIRMATIVE ACTION The 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, sex, or national origin, be excluded from participating in any employment activities covered in 14 CFR Part 152, Subpart E. The 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. The Lessee assures that it will require that it's covered suborganizations provide assurances to the Lessor that they similarly will undertake Affirmative Action Programs and that they will require assurances from the suborganizations as required by 14 CFR Part 152, Subpart E to the same effect. 20. OTHER AIRCRAFT It is clearly understood by the Lessee that no right or privilege has been granted which would prevent any person, firm or corporation operating aircraft on the Airport from performing any services on it's own aircraft with it's own regular employees (including, but not limited to, maintenance and repair) that it may choose to perform. 9 21. NON - EXCLUSIVE RIGHT It is understood and agreed nothing herein contained shall be construed to grant or authorize the granting of an exclusive right. 22. DEVELOPMENT OF AIRPORT Lessor reserves the right to further develop or improve the landing area of the Airport as it sees fit, regardless of the desires or views of the Lessee, and without interference or hindrance. 23. MAINTENANCE Lessor reserves the right, but shall not be obligated to Lessee, except as provided in Paragraph 4 herein, 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. 24. NATIONAL EMERGENCIES During the time of war or national emergency, Lessor shall have the right to lease the landing area or any part thereof to the United States Government for military or naval use, and if such lease is executed, the provisions of this lease insofar as they are inconsistent with the provisions of the lease to the Government, shall be suspended. 25. AERIAL APPROACHES Lessor reserves the right to take any action it considers necessary to protect the aerial approaches of the Airport against obstruction, together with the right to prevent Lessee from erecting, or permitting to be erected, any building or any other structure on or adjacent to the Airport which, in the opinion of the Lessor, would limit the usefulness of the Airport or constitute a hazard to aircraft. 26. UNITED STATES This Lease shall be subordinate to the provisions of any existing or future Agreement between Lessor and the United States, relative to the operation or maintenance of the Airport, the execution of which has been, or may be, required as a condition precedent to the expenditure of the federal funds for the development of the Airport. 10 27. EFFECTIVE DATE Regardless of the date of execution, the effective date of this Agreement is March 9, 1994. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of this day and year. DATED THIS day of 1994. NZ ATTEST: %- Clerk GP EXPRESS AIRLINES, INC. BY i Bogan Director of Ltomer Service ATTEST: APPROVED AS TO FORM: City At rney,/ ­' 11 THE CITY OF PUEBLO, a municipal corporation B - 1.ISIFIX3 J_ V i s3�� 3x�n�s sBs iaaa allvnus 6ZZ = , III X 191 33I330 3-TBAIUd .L3?d auvri 7s 9ZZ = ,1616 X „E 1 ZZ 3OI330 iaaj amos II£I = a n X, Z/ i i I = 2 aisn0O L3:I u el - OKI `SdKIgr4jv SSd'tId U d9 E- 1 ..c,h ri form SSd2 M MIKII EqP S"I'I?IId VSHR L 17 7 1•'1�:'i �J�Jl3�n0� -' j —. i i HaLL 10 A11 ORS ZLIOd3Ild EXHIBIT "B" RENTALS AND FEES AIRPORT USE AGREEMENT BETWEEN THE CITY OF PUEBLO, COLORADO AND GP EXPRESS AIRLINES, INC. RENTALS For the period March 9, 1994, through November 30, 1994, the following rental rates should apply: (1) 588 square feet of Ticket Counter Space and Office Space Payable monthly in the amount of: $ 542.43 (2) 451 square feet of Outbound Baggage Space Payable monthly in the amount of: $ 340.88 (3) 1,096 square feet of Non - Exclusive Secured Passenger Screening Area Space Payable monthly in the amount of: $ 529.73 (4) 3 Employee Parking Spaces Payable monthly in the amount of: $ 30.00 Total Monthly Rent: $1,443.04 ACTIVITIES FEES Lessee agrees to pay landing fees at the Pueblo Memorial Airport for all revenue - producing flights of the Lessee that land at the Airport at the rate of thirty -five (35) cents per thousand pounds of maximum allowable gross landing weight of such aircraft, to include any flight that is diverted to the Airport by the Lessee. The Lessee also agrees to pay landing fees for all non - revenue (training) flights at the rate of twenty -three (23) cents per thousand pounds of maximum allowable gross landing weight of such aircraft per actual landing, provided, however, that no landing fees shall be due and payable in the event an aircraft departs from the Airport to return and land at the Airport because of meteorological conditions, mechanical or operating causes or for any similar emergency or precautionary reason. Within five (5) days following the end of each calendar month, the Lessee shall transmit to the Director of Aviation a true and accurate report, giving data necessary to calculate the amount of landing fees. Data for training flights at Pueblo is to be included. Lessee agrees to pay landing fees monthly within thirty (30) days of receipt of statements from Lessor. 1