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.
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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
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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
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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
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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.
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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.
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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.
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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,/ '
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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.
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