Loading...
HomeMy WebLinkAbout7528RESOLUTION NO. 7528 A RESOLUTION APPROVING A HANGAR GROUND LEASE AGREEMENT BETWEEN PUEBLO, A MUNICIPAL CORPORATION, AND CLIFFORD HOYLE, AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE SAME Be it resolved by the City Council of Pueblo, Colorado, that: SECTION 1 A certain Lease 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 Clifford Hoyle, covering the lease of land located at Pueblo Memorial Airport General Aviation Hangar Development Area, be and the same is hereby approved; subject to the conditions as set forth in said Lease Agreement. SECTION 2 The President of City Council is hereby authorized to execute said Lease Agreement on behalf of Pueblo, a Municipal Corporation, and the City Clerk shall affix the Seal of the City thereto and attest the same. Introduced December 12, 1994 ATTEST: �vv Ch Clerk B CHRIS WEAVER Councilperson APPROVED: �' a dent of City Council HANGAR GROUND LEASE THIS LEASE, made and entered into this 12th day of Decen-ber , 19 A.D. between the City of Pueblo, a municipal corporation, "Lessor ", and Clifford Hoyle "Lessee." WITNESSETH: WHEREAS, the Lessor is the owner and operator of the Pueblo Memorial Airport together with the land on which said airport is situated, and WHEREAS, Lessee is desirous of leasing a tract of ground on said Airport property for the purpose of constructing and occupying a new Hangar, approximately 70 ft. wide by 60 ft. deep in size, NOW THEREFORE, in consideration of the mutual covenants set forth herein, the parties agree as follows: 1. Land Parcel The Lessor hereby leases unto the Lessee and Lessee hereby leases from Lessor for the term and upon the rental and conditions hereinafter stated, the real property described in Exhibit "A ", attached hereto and made a part hereof, situated in the City of Pueblo, State of Colorado. The attached Exhibit "B" consists of a diagram of the Hangar. 2. Term A. The term on this Lease is for a period of thirty (30) years commencing December 12, 1994 and ending December 12, 2024 unless sooner terminated as herein provided. At the end of the thirty (30) year lease term, all improvements made to the leased premises, including the Hangar, shall become the property of the Lessor. B. Lessor grants unto Lessee the right and option to extend the lease term for two consecutive five (5) year periods immediately following the original thirty (30) year lease term. Such option shall be exercised no later than ninety (90) days before the end of the original term and the first extended term, as the case may be. Exercise of such option to occupy, shall be in writing but in no event shall Lessee be entitled to exercise this option, even though such notice be timely given, unless Lessee shall have timely performed all of its obligations hereunder and not be in default hereunder. The monthly rent for each of the two five (5) year periods shall be one - twelfth (1/12) of an amount equal to ten percent (10 %) of the mutually acceptable appraised fair market value of the leased premises and all improvements, including the Hangar. C. Appraised value shall be determined by a qualified appraiser paid for by the Lessor. If the appraisal is not acceptable to the Lessee, then the Lessee may at their option hire a qualified appraiser. If the Lessor and Lessee are unable to agree on the value of the leased premises and all improvements, a third qualified appraiser shall be hired to compare the first two appraisals and determine the final and binding value to the leased premises and all improvements. The cost of the third and final appraisal shall be shared equally between the Lessor and Lessee. HANGAR GROUND LEASE 3. Rental Rate and Other Fees A. Lessee shall pay to the Lessor for the ground lease herein granted a sum of 5 54.67 per month being one - twelfth (1/12) of the initial annual rental fee during the original term, payable in advance without notice, offset or deduction, and shall be due on the first day of each month at the Director of Aviation's Office. The commencement date of this lease, as set forth in paragraph 2, Term, shall be the date upon which ground rental lease fees begin accruing. The initial annual rental fee is calculated by multiplying the gross leased land area by $.0$ per square foot. The amount of rent the Lessee pays will be adjusted by using the consumer price index for all urban consumers, CPI -U (all items 1982- 1984 =100). The rent shall be adjusted on the 10th and 20th anniversary of the commencement date of this lease. The rent will be increased by a percentage equal to the percentage increase in the CPI -U for the preceding 10- year period over the comparable CPI -U for the first month of said 10 -year period. However, this increase will not exceed 150% of the rent during the preceding 10 -year period. Any rent overdue for more than thirty (30) days will have an additional fee added to cover extra administrative costs. The additional fee will equal ten percent (10 %) of the gross amount of all overdue rents. In the event the Lessor is required to initiate any proceedings to collect any unpaid rent from Lessee or to enforce any other provision of this Lease, Lessee shall pay all of the Lessor's expenses in connection therewith, including reasonable attorney's fees. B. Lessee shall pay combined service fee for services and facilities now furnished by the Lessor at the Pueblo Memorial Airport, namely: public street maintenance, fire protection and street lighting based upon the amount established by Lessor which is currently $297.50 per acre per year. The Lessor may, from time to time, reduce, alter, or eliminate any or all of the services or facilities presently being furnished and may modify, increase, or decrease the annual combined service fee, therefore, and the manner by which it is calculated, including making separate charges, therefore, provided (i) such services and fee shall be non - discriminatory 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 the Lessor's actual cost and expense of furnishing the services and facilities then being furnished. The Lessor's cost may include the cost of capital improvements amortized over the useful life of the improvements. Only domestic waste water shall be discharged from the leased premises to Lessor's sanitary sewer system. Lessee shall be subject to the same restrictions, conditions, fees and charges as other users of Lessor's sanitary sewer system. 4. Improvements and Use A. Lessee shall cause to have erected upon the leased premises the hangar and other improvements in accordance with plans and specifications approved by Lessor. The hangar and other improvements shall be constructed in a good and workmanlike manner and in accordance with the applicable ordinances and building codes of the City of Pueblo. They shall be constructed pursuant to a building permit issued by the Regional Building Department. Lessee agrees, forthwith upon execution of this Lease, to take all steps and acts reasonably 2 HANGAR GROUND LEASE necessary or appropriate to secure such approval. In the event the hangar and other such improvements are not substantially completed within six (6) months after the commencement date of this lease, Lessor may, at its option, terminate this lease by giving not less than one hundred twenty (120) days written notice of its intent to terminate to Lessee. B. In addition to constructing all Hangar improvements, Lessee shall cause all utilities to be used by Lessee to be extended underground to the leased premises within easements and locations to be designated by Lessor and the Lessee shall be responsible for constructing and maintaining a concrete ramp area in front of the Hangar in accordance with plans and specifications approved by Lessor. This concrete ramp area must be designed for a minimum weight bearing capacity of 12,500 pounds for single wheel aircraft and must be built to the width of the Hangar door opening, less the area required for the Hangar. Should development take place adjacent to the leased premises, the Director of Aviation at his sole discretion may require Lessee to pave sections of the leased premises to the full width of the leased premises. This concrete area must be built so as to connect onto any adjacent ramp, taxiway, or other paved areas in order that a continuous and safe pavement section results. It is the responsibility of the Lessee to maintain the entire ramp area in a manner which is safe and clean of debris so as not to cause danger or unsafe conditions for taxiing aircraft and airport users. C. The leased premises and the improvements to be erected and constructed thereon shall be occupied by Lessee or its sublessees as a Hangar facility for the storage of aircraft owned or leased by Lessee or sublessees and for such other purposes directly related to such uses. Lessee and its sublessees shall have no right to utilize said premises, or any improvement thereon, other than as specifically allowed under this paragraph, and it is specifically understood that the leased premises shall not be used for any commercial purpose including, without limitation, an aviation fixed base operation or other commercial aviation operation or the sale of aviation fuel. D. Lessee's regular employees having valid and current A &P ratings, or Lessee employing pilots with such ratings to fly as Pilot in Command on a regular basis, may also perform routine maintenance on Lessee's aircraft. However, Airport Rules and Regulations do not permit a certified aircraft mechanic not employed by Lessee on a regular basis to perform aircraft maintenance services. No aircraft service or maintenance shall be performed on the leased premises or in the Hangar on aircraft not owned or leased by Lessee. Lessee shall secure written prior approval from the Lessor for any variances to this paragraph that may be desired. E. Lessee grants to the Lessor the right to enter the leased premises and Hangar to do what is necessary for the purposes of repairing, replacing and /or maintaining any and all utility lines under the leased premises or Hangar which serve other uses at the Pueblo Memorial Airport, it being understood that the Lessor will repair, in a good and workmanlike fashion, any and all damage done to the leased premises or Hangar as the result of work done hereunder. 3 HANGAR GROUND LEASE F. Lessee shall maintain the Hangar in accordance with the requirements and regulations of the Lessor and Lessor's fire code. The Lessee shall be responsible for all costs, fees, charges and penalties associated with the discharge or release of any hazardous material (including petroleum products) or mitigating the containment or removal of any contamination or hazardous material (including petroleum products) on the leased premises or improvements thereon which is caused by the Lessee, its officers, agents, or employees. It is understood that the Lessee is not responsible for any conditions which may be determined to have existed prior to the commencement date of this lease. The storage and accumulation of flammables, explosive liquids, or solids, waste, debris or other hazardous materials within the Hangar or adjacent to the Hangar must be in an environmentally sound manner and comply with all Federal, State and Local laws and regulations. G. Lessee will not modify, alter, paint or improve the completed Hangar except to the extent required to maintain its original state. Any additional modification, painting or improvements must receive prior written approval from the Lessor. H. Lessee shall not park or leave aircraft on the taxiways or on pavement adjacent to the Hangar in a manner which interferes with or obstructs access to adjacent hangars. Parking of automobiles will be permitted only in designated parking areas or within the Hangar. 5. Maintenance Obligations Lessee, at its expense, shall keep the improvements on the leased premises, including the Hangar and utilities extended to the leased premises, in good repair and maintenance, and in a safe, sanitary, orderly, and sightly condition. 6. Title to Improvements It is hereby stipulated and agreed that the hangar and all improvements erected and constructed on the leased premises are and shall be permanently and inseparably attached to the leased premises and title to same shall be vested in the Lessee while this lease is in effect but shall vest in the Lessor when this lease terminates for whatever cause, provided, however, that Lessee may remove from the hangar constructed on the leased premises tools and equipment used in conjunction with maintenance of Lessee's aircraft, including, but not limited to, such items as compressors, cranes, and lift, so long as Lessee repairs any damage to the hangar occasioned by such removal and does not cause any structural damage or remove items permanently attached to the hangar. 7. Right of First Refusal If Lessee desires to sell the hangar and improvements during the term of the lease, the Lessee will offer to the Lessor the right of first refusal to purchase the hangar and improvements. If the Lessor elects not to purchase the hangar and improvements, the Lessor shall not unreasonably withhold the transfer of the lease to an acceptable third party. 4 HANGAR GROUND LEASE 8. Si ns: Lessee shall not erect, paint or maintain any signs whatsoever upon the leased premises without first securing the written consent of the Lessor. Any such signs shall comply with all ordinances and regulations of the Lessor or standards which might be developed by the Department of Aviation. Only one identification sign, logo, or name may be permitted on the exterior of the Hangar. 9. Right of Inspection The Lessor reserves and retains for its officers, employees and authorized representatives the right to enter the leased premises during reasonable business hours, and after prior notice, for the purpose of inspecting and protecting the leased premises and Hangar, and of doing any and all things which the Lessor may deem necessary for the proper general conduct and operation of the Pueblo Memorial Airport, and in the exercise of the Lessor's police power. 10. Taxes and Licenses Lessee covenants and agrees to pay promptly all valid taxes and other government charges of whatever nature assessed against or applicable to Lessee or Lessee's operation on the leased premises. Lessee also covenants and agrees not to permit any mechanic's or materialman's lien to be foreclosed upon the leased premises or improvements thereto and thereupon, or any part or parcel thereof by reason of any work or labor performed or materials furnished by a mechanic or materialman. Lessee further covenants and agrees to pay promptly when due all bills, debts and obligations incurred by it in connection with its operations on the leased premises, and not to permit the same to become delinquent and to suffer no lien, mortgage, judgment or execution to be filed against the leased premises or improvements thereon which will be in any way an impairment of the rights of the Lessor under this Lease Agreement. If Lessee be adjudged bankrupt in any District Court of the United States having jurisdiction, Lessor may, at its option, terminate this Lease Agreement. 11. Indemnification Lessee assumes the risk of loss or damage to the Hangar and its contents, whether from windstorm, fire, earthquake, snow, water run -off, or any other causes whatsoever. Lessee covenants and agrees that it will indemnify and save harmless Lessor, its officers, agents and employees from all demands, claims, costs, causes of action or judgments, and from all expenses that be incurred, in investigating or resisting the same, including reasonable attorney fees, arising from or growing out of the negligent acts or omissions of Lessee, its contractors, agents, members, stockholders, employees, invitees, servants, subtenants, successors or assigns in connection with its use or occupancy or their use or occupancy of any portion of the Pueblo Memorial Airport, including the leased premises. 12. Insurance A. At all times during the term of this Lease Agreement, and of any renewal or extension hereof, Lessee agrees that it will, at its own cost and expense, provide and keep in force a comprehensive public liability insurance policy which HANGAR GROUND LEASE includes personal injury and property damage with a combined single limit of no less than $ 1,000,000. Lessee shall insure the Hangar in an amount equal to its full insurable value naming the Lessor as an additional insured. Lessee shall provide Lessor with copies showing proof of such insurance and subsequent renewals or changes as might occur during the term of this lease. With respect to any insured loss to the hangar or it's contents, including aircraft, Lessee releases Lessor, it's officers, agents, and employees from any claim or liability Lessee may have on account of such loss and waives any right of subrogation which might otherwise exist in or occur to any person on account thereof. B. Such policies shall provide that they may not be materially changed, altered, or canceled by the insurer during its terms without first giving ten (10) days written notice by certified or registered United States mail to the Lessor. C. Lessee shall not violate the terms or prohibitions of any insurance policy herein required to be furnished by Lessee. D. In the event of partial or total destruction of the Hangar located upon the leased premises by any casualty insured against, the proceeds of the aforementioned insurance policy or policies shall be devoted exclusively first to the repair or replacement of said Hangar with the excess, if any, remaining the property of Lessee. Lessee shall not in any event be required to devote or expend in the repair or replacement of the Hangar any sum or amounts apart from the proceeds collected on the aforementioned insurance policy or policies. 13. Waivers No provision of this lease may be waived except by an agreement signed by the waiving party. A waiver of any term or provision shall not be construed as a waiver of any other term or provision. 14. Removal of Equipment Subject to the provisions of Section 6, hereof, all equipment and personal property placed by Lessee at its expense in, on, or about the leased premises (other than fixtures) shall remain the property of Lessee and Lessee shall have the right at any time during the term hereof, when not in default hereunder, to remove all such equipment and property; provided, however, that all property placed by Lessee at its expense, in, on or about the leased premises and affixed to the realty so that same may not be removed without material damage to the improvements thereto, shall not be removed by Lessee at any time, but shall become the property of the Lessor upon the cancellation or termination of this Lease Agreement as herein provided. 15. Surrender and Holding Over Lessee covenants that at the termination or cancellation of this lease, Lessee will quit and surrender the leased premises and improvements including the Hangar in good state and condition, reasonable wear and tear expected. Lessee further covenants and agrees that the leased premises and all fixtures, improvements, equipment and other property brought, installed, erected, attached, or placed by Lessee in, on or about the leased premises and which by and under the terms of this Lease Agreement are to M. HANGAR GROUND LEASE remain on the leased premises as the property of the Lessor shall be in good usable condition, reasonable wear and tear expected, and the Lessor shall have the right on such termination to enter upon and take possession of the leased premises, with or without process of law, without liability for trespass. Should Lessee hold over the use of or continue to occupy the leased premises after the termination or cancellation of this Lease Agreement, such holding over shall be deemed merely a tenancy for successive monthly terms upon the same conditions as provided in this Lease Agreement subject to termination upon thirty (30) days prior written notice. 16. Inconvenience During Construction Lessee recognizes that from time to time during the term of this Lease Agreement it will be necessary for the Lessor to initiate and carry forward extensive programs of construction, reconstruction, expansion, relocation, maintenance and repair in order that the Pueblo Memorial Airport and its facilities may be suitable for the volume and character of air traffic and flight activity which will require accommodation, and that such construction, reconstruction, expansion, relocation, maintenance, and repair may inconvenience or temporarily interrupt its operations at the Pueblo Memorial Airport. Lessee agrees that no liability shall attach to Lessor, its officers, agents, employees, contractors, subcontractors and representatives by reason of such inconvenience or interruption, and for and in further consideration of the premises, Lessee waives any right to claim damages or other consideration thereof, provided, however, that this waiver shall not extend to, or be construed to be a waiver of, any claim for physical damage to property resulting from negligence or willful misconduct of the Lessor, its officers, agents, employees, contractors, subcontractors and representatives. 17. Place and Manner of Payments In all cases where Lessee is required by this Lease Agreement to pay any rentals, rates, fees or other charges or to make other payments to Lessor, such payments shall be made at the office of the Director of Aviation at the Pueblo Memorial Airport, or at such other place as Lessor may hereafter designate by notice in writing to Lessee and shall be made in legal tender of the United States and any check shall be received by Lessor subject to collection. Lessee agrees to pay any bank charges made for the collection of any such checks. 18. Assignments and Subletting Lessee shall not assign, transfer, sublet or grant any concession to the leased premises or to any space within the Hangar located on the leased premises or any of his rights in this Lease Agreement, in whole or in part, without the prior written consent of the Lessor, which consent shall not be unreasonably withheld. The foregoing notwithstanding, Lessee may sublet space in the Hangar subject to the provisions of this Lease. 19. Agreements with United States This Lease Agreement is subject and subordinate to the terms, reservations, restrictions, provisions, and conditions of the deed of conveyance from the United States Government to the Lessor and of any other existing or future agreement between the Lessor and the United States, relative to the use, operation or 7 HANGAR GROUND LEASE maintenance of the Pueblo Memorial Airport and its appurtenant facilities, the execution of which has been or may be required as a condition precedent to the participation by any Federal Agency in the extension, expansions, or development of said Airport and facilities. 20. Cancellation or Termination A. Lessor may cancel and terminate this Lease Agreement, and may repossess the leased premises and the hangar and all improvements, with or without liability in the event any installment of rent, or other payment provided for herein, is in arrears, and remains unpaid for a period of thirty (30) days after the same is due, upon given ten (10) days written notice to Lessee of its intention to so terminate, at the end of which time all the rights of Lessee hereunder shall terminate unless such payment, which shall have been stated in such notice, shall have been paid within such ten (10) days; provided, however, Lessee will be allowed only two (2) such notices which it may cure within any one (1) calendar year. The third such notice in any one (1) calendar year shall be final and shall cancel and terminate all of the rights hereunder of Lessee without any right on the part of Lessee to cure such default after receiving such notice. In like manner, upon thirty (30) days written notice, Lessor may cancel and terminate this Lease Agreement and may repossess the premises in the event of any other default of Lessee as to the terms of this Lease Agreement, unless the default specified in such notice shall have been cured within the said thirty (30) days, or, if impossible to be cured within such time, that good faith effort has been commenced within such time to have the same cured and diligently pursued to completion. B. Further, if Lessee abandons the leased premises, Lessor may, at its option, cancel and terminate this Lease Agreement, or may, without terminating the Lease Agreement, enter upon and take possession of said parcel and all improvements with or without process of law and without liability for trespass. C. In the event that the Lessor defaults, other than for failure to pay rent, the Lessee shall have 120 days from the date of such default to sell the Hangar and all improvements to a third party under the conditions outlined in Section 7. 21. Notices All notices required to be given to Lessor hereunder shall be in writing and be sent by certified mail to Pueblo Memorial Airport, Administration Office 31201 Bryan Circle Pueblo, Colorado 81001 All notices required to be given to Lessee hereunder shall be in writing and sent by certified mail, addressed to: Clifford Hoyle, 44 Robertson Rd. Pueblo, CO 81001 provided, that the parties, or either of them, may designate in writing from time to time subsequent or supplementary persons or address in connection with said notices. The effective date or service of any such notice shall be the date such notice is mailed by Lessee or Lessor. E] HANGAR GROUND LEASE 22. Rules and Regulations A. In addition to all other provisions of this Lease Agreement, Lessee agrees to comply with all Federal, State, and Lessor's Rules and Regulations, and all amendments, thereto, including Chapter 1 of Title III of the 1971 Code of Ordinances. B. 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 leased premises, whether established by the Director of Aviation, the City of Pueblo, the State of Colorado, or the United States or agencies thereof and Lessee's use and occupancy of the leased premises and improvements thereon are subject to all ordinances of the City of Pueblo the same as though the Property and Pueblo Memorial Airport was located within the jurisdictional limits of the City of Pueblo. 23. F.A.A. Lease Requirements A. The Lessor reserves the right to develop, modify, change, improve or abandon the Pueblo Memorial Airport or any part thereof, as it may determine in its sole discretion, at any time, regardless of the desires or view of Lessee, and without interference or hindrance from Lessee. B. The Lessor reserves the right, but shall not be obligated to Lessee to maintain and keep in repair the landing area of the Airport and all publicly owned facilities of the Airport, together with the right to direct and control all activities of Lessee in this regard. C. This Lease Agreement shall be subordinate to the provisions and requirements of any existing or future agreement between the City of Pueblo and the United States, relative to the use, development, operation, or maintenance of the Airport. D. Lessee agrees to comply with the notification and review requirements covered in Part 77 of the Federal Aviation Regulations in the event any future structure or building is placed for the leased premises, or in the event of any planned modification or alteration of any present or future building or structure on the leased premises. E. It is understood and agreed that nothing contained in this Lease Agreement shall be construed to grant or authorize the granting of an exclusive right within the meaning of Section 308 of the Federal Aviation Act. F. There is hereby reserved to the Lessor, 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 leased premises, together with the right to cause in said airspace such noise as may be inherent in the operation of aircraft, now known or hereafter used for navigation or flight in the air, and for use of said airspace for landing on, taking off from, or operating on or over the Pueblo Memorial Airport. N HANGAR GROUND LEASE G. Lessee by accepting this Lease Agreement expressly agrees for itself, its successors and assigns that it will not erect nor permit the erection of any structure, building or object nor permit the growth of any tree on the leased premises to a height not to exceed 22 feet above ground level. In the event the aforesaid covenant is breached, the Lessor reserves the right to enter upon the leased premises and to remove the offending structure or object and cut the offending tree, all of which shall be at the expense of the Lessee. H. Lessee by accepting this Lease Agreement expressly agrees for itself, its successors and assigns, that it will not make use of the leased premises in any manner which might interfere with the landing and taking off of aircraft from the Pueblo Memorial Airport or otherwise constitute a hazard to aviation. In the event the aforesaid covenant is breached, the Lessor reserves the right to enter upon the premises hereby leased and cause the abatement of such interference at the expense of the Lessee. 24. Miscellaneous A. This Lease shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors and approved assigns. B. No waiver by the Lessor of any failure by Lessee to comply with any term or condition of this Lease shall be or shall be construed to be a waiver by the Lessor of any other failure by Lessee to comply with any term or condition of this Lease Agreement. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed as of the day and year first above written. ATTEST: LESSOR: CITY OF PUEBLO, A MUNICIPAL CORPORATION ` By i Clerk P esident of the City Council APPROVED AS TO FORM: City Attor LESSEE: rd Hoyle 10 EXHIBIT "A" LEGAL DESCRIPTION FOR LEASE PARCEL FOR HOYLE HANGAR PUEBLO MEMORIAL AIRPORT PUEBLO, COLORADO A tract of land located in Section 25 of Township 20 S, Range 64 W of the Sixth Principle Meridian, more specifically described as follows: Beginning at the northwest corner of Section 25, thence S 75 °49' 09" E, 1666.99 feet to the centerline at the west end of Runway 8L/26R, more specifically known as Station 0 +00; Thence N 88 16' 36" E, 2,735.00 feet along the Runway centerline to a point; Thence S V 43' 24" E, 1,730.00 feet, to a point 1,730 feet right of Runway 8L/26R Station 27 + 35.00, to the True Point of Beginning; Thence N 88 16' 36" E, 80.00 feet; Thence S 1' 43' 24" E, 102.50 feet; Thence 88 16' 36" W, 80.00 feet; Thence N 1 43' 24" W, 102.50 feet, to the True Point of Beginning. Said lease parcel contains 8,200.00 square feet (0.1882 acres) more or less. AMENDMENT TO LEASE This Amendment is entered into as of the 11th day of May, 2017 ("Effective Date"), by and between the City of Pueblo, Colorado, a Municipal Corporation ("Lessor"), and Clifford Hoyle, and individual (Lessee). WHEREAS, Lessor entered into a certain lease with Lessee dated December 12, 1994 ("Lease"); and WHEREAS,the Lease was amended by the parties on June 9, 1997 ("Amendment"), as evidenced by Resolution No. 8149; and WHEREAS,Lessee failed to extend the term of the Lease for two consecutive ten(10)year periods per Section 2(B) of the amended Lease, and is currently in a month-to-month tenancy under Section 14 of the amended Lease; and WHEREAS, in consideration for the terms of this amendment, Lessor waives Lessee's failed extension and allows Lessee to extend the term per amended Lease Section 2(B); NOW THEREFORE, in consideration of the foregoing recitals, and the promises and conditions set forth below, the parties agree to amend the Lease as follows: 1. Lessor hereby extends the amended Lease for two consecutive terms of ten(10) years each as if Lessee had met the time limits contained within Section 2(B) of the amended Lease. 2. A new Section 3(C) of the lease is hereby added to read: Lessee shall pay rent to the Lessor for the ground lease herein granted a sum per month equal to one-twelfth (1/12) of the renewed annual rent beginning on the first date of the renewed term, payable in advance without notice, offset or deduction, and shall be due quarterly on the first day of each quarter at the Director of Aviation's Office. The renewal date of this lease shall be June 1, 2017. The renewed annual rent is $1,312.00 calculated by multiplying the gross leased land area by $0.16 per square foot. The amount of rent the Lessee pays will be adjusted based upon the consumer price index for all urban consumers, CPI-U (all items 1982-1984=100). The renewed rent shall be adjusted on the 5th, 10th, 15th, and 20th anniversaries of December 13, 2014. The rent will be increased by a percentage equal to the percentage increase in the CPI-U for the preceding five-year period over the comparable CPI-U for the first month of said five-year period. The renewed rent shall also be adjusted each year past the 20th anniversary, where any month-to-month tenancy is held pursuant to Section 14 of this Lease. The rent will be increased by a percentage equal to the percentage increase in the CPI-U for the preceding year over the comparable CPI-U for the first month of said year. Any rent overdue for more than thirty (30) days will have an additional fee added to cover extra administrative costs. The additional fee will equal ten percent(10%)of the gross amount of all overdue rents. In the event the Lessor initiates any proceedings to collect any unpaid rent from Lessee or to enforce any other provision of this Lease, Lessee shall pay all of the Lessor's expenses in connection therewith, including reasonable attorney's fees. 3. The parties hereto further agree that nothing contained within this amendment alters or modifies any other paragraphs or provisions of the Lease. IN WITNESS WHEREOF the parties have executed this amendment as of the Effective Date. ATTEST: CITY OF PUEBLO, A MUNICIPAL CORPORATION By By Clerk City Manager Printed Name Sam Azad CLIFFORD HOYLE By •&.ViettiPel A474 Printed Name G'GIFf'oPI) i,(01/4/L-6— Title 9(0`IL-6Title