Augusta Municipal Airport

Transcription

1 Augusta Municipal Airport HANGAR LEASE AGREEMENT THIS AGREEMENT made and entered into on this day of, 2009, BY AND BETWEEN AND THE CITY OF AUGUSTA, KANSAS, a municipal corporation, hereinafter referred to as the City,, hereinafter referred to as Lessee. WITNESSETH: WHEREAS the City owns and operates the Augusta Municipal Airport; and WHEREAS the City is willing to lease to the Lessee certain premises and facilities hereinafter more fully described, subject to terms and conditions stated herein; NOW, THEREFORE, in consideration of the rents, covenants and agreements herein contained, the City does hereby lease to Lessee the premises as agreed to and as follows: 1. LEASED PREMISES: The City hereby leases to Lessee the following premises located at the Municipal Airport: Hangar Number Tie Down 2. USE OF PREMISES: It is understood between the parties that the leased premises comprise an aircraft hangar, and that the only standard permitted use for the leased premises by Lessee is for aircraft storage. Storage of boats, vehicles, campers, or any item other than aircraft or aircraft-associated items is prohibited, except as determined on a case-by-case basis by the Airport Manager. Such additional storage will be considered by the Airport Manager only upon receipt of a detailed written request. If permitted, the additional storage will require an addendum to this Agreement (see attached). 1

2 3. TERM: The term of this Agreement shall be indefinite (i.e. month-to-month) and will terminate when either party notifies the other, in writing, of the desire to terminate the Agreement. Termination of the Agreement shall be effective thirty (30) days after written notice is given. 4. RENT: In consideration of the lease of space herein provided, Lessee hereby agrees to pay the City as follows: a) For aircraft storage: $ per month from January 1, 2008, through December 31, 2008 $ per month from January 1, 2009, through December 31, 2009 $ per month from January 1, 2010, through December 31, 2010 b) For aircraft on permanent tie-down $25 per month. c) For heated spaces, an additional $75.00 per month for those months that heat is required (October through March). d) For aircraft that are too large for a t-hangar, and which therefore lease space in a community hangar, the rent shall be increased proportionally (based on type and size of aircraft) as follows: times the standard monthly rate. e) After 2010, rental rates may increase annually by a percentage no more than the previous year s percent change in the Midwest Urban Consumer Price Index for all Urban Consumers (CPI-U) as determined by the Department of Labor. f) Rent shall be paid by the 1st of each month. It shall be considered late on 30th day of the month and a late payment fee of 1.5% times the past amount due shall be assessed. Any payments received after the 30th of the month and not 2

3 accompanied by a late fee of 1.5% times past amount due may be rejected and returned. If rent is not paid for a period of 60 days the City may pursue the rights as set forth in the default section below. 5. MAJOR IMPROVEMENTS OR EXPANSION OF INFRASTRUCTURE: If at anytime during this Agreement the City should undertake a major improvement or expansion of infrastructure to benefit the hangar space covered by this Agreement, the City shall have the authority to revise and adjust the amount of the lease payment in the sum appropriate to defray the cost of such improvement or expansion. This provision shall include, but not be limited to, possible projects such as conversion to bi-fold doors, plumbing for and installation of gas heating units, and paving Indianola Road. Excluded from this provision are the City s standard responsibilities for regular maintenance, repairs, and minor improvements to the leased premises, including, but not limited to, keeping hangar doors in good operating order, installing rubber seals on hangar doors, and maintaining in good order the electrical system. 6. RIGHTS TO ENTRY: The City reserves the right to enter the leased premises at any time for the purpose of making any inspection it deems expedient to proper enforcement of any of the covenants and conditions of this Agreement. The City will make a reasonable effort to contact the Tenant before entering the Tenant s Hangar. When possible the Tenant shall be allowed to accompany a City representative in entering the leased premises for inspection purposes. 3

4 a) Tenants shall not place any additional locking devices on the service door to the Tenant s Hangar without also giving the City a copy of the key or combination. 7. RULES AND REGULATIONS: In addition to the specific provisions of this Agreement, Lessee agrees to strictly comply with the minimum standards and rules and regulations of the Augusta Municipal Airport, as may be revised, amended, or adopted from time to time. It is understood and agreed that the rights granted by this Agreement will not be exercised in such a way as to interfere with or adversely affect the use, operation, maintenance or development of the airport. a) Lessee agrees that the usage of the Hangar plus any associated apron shall be limited to the parking/hangaring of a personal/company owned aircraft. No automobile, bus, truck, or other transportation mode may be permanently or habitually parked or stored in the Hangar except as agreed upon by the Airport Manager. b) Lessee agrees not to fuel or defuel any aircraft parked inside the Hangar. c) Lessee agrees to have a sufficient number of fire extinguishers of acceptable size as determined by the local fire marshal inside the Hangar. Such fire extinguisher(s) shall be readily accessible in the event of a fire. d) Lessee agrees not to make any additions or modifications to the Hangar unless agreed upon by both parties in writing. In event of such consent, all improvements or modifications shall be made at the expense of Lessee and, at the expiration of this Lease and any extensions to this lease, shall become the 4

5 property of the City. Lessee further agrees that no signs or advertising material shall be placed or erected upon the leased premises without prior written consent from the Airport Manager. e) Lessee agrees to not operate any nonaviation related business or activity in the Hangar without the expressed written consent of the Airport Manager. Any such nonaviation related business or activity must be so established by a separate contract. f) Lessee agrees that Hangar doors shall be kept closed and locked and all lights shall be turned off except when the facilities are being used. Vehicles must be parked so as not to interfere with aircraft or snow removal operations. 8. SNOW REMOVAL AND MAINTENACE: Snow removal and maintenance of ground surrounding the Hangars will be the responsibility of the City. Snow will be removed at a distance from the hangar door which can be safely accomplished without incurring damage to the hangar or the snow removal equipment. Snow removal operations will be accomplished in accordance with priorities set forth by the Augusta Municipal Airport snow plan. 9. REGISTRATION AND AIRWORTHY CONDITION: Aircraft stored at the Augusta Municipal Airport must either have a registration number or the owner must be able to demonstrate to the airport management the intent to obtain a registration number. In addition, aircraft must be maintained in a condition acceptable by the FAA Administrator, or other applicable regulatory organizations, as in airworthy 5

6 condition. In the event the Airport Management finds an aircraft in a condition other than airworthy, the owner or operator of the aircraft will be notified by certified mail of the failure to maintain an airworthy aircraft. The owner/operator of the aircraft will be responsible for bringing the aircraft back into airworthy condition, and will be required to provide documentation evidencing the aircraft s return to airworthy condition, within six (6) months of receipt of notice. If, after six (6) months, the aircraft has not been brought to airworthy condition, the Airport may remove the hangar contents at the Lessee s expense. In the event of extenuating circumstances or that the work will require more than a six-month period, the Airport Manager may provide reasonable extensions, in writing, when requested in writing by the Lessee. 10. AIRCRAFT MAINTENANCE, ALTERATIONS, AND REPAIRS: Aircraft maintenance outlined in 14 CFR Part 43 is permitted as long as it is performed in a safe and reasonable manner. Painting of aircraft or aircraft parts is prohibited. Major alterations and repairs performed on the leased premises by appropriate certified personnel require written permission from the Airport Manager. The person(s) performing the work will be required to provide proof of liability insurance as described in Section 15 of this Agreement. 11. CONDITION OF PREMISES: Lessee agrees to keep and maintain the premises and facilities in a clean and sightly fashion, free of trash, debris and other obstructions. Lessee shall abide by all airport rules established by the City in this regard. Upon termination of this Agreement, Lessee agrees that it will give peaceful 6

7 possession of the leased premises in as good condition as they are now, ordinary wear and tear excepted. 12. HAZARDOUS AND TOXIC MATERIALS: Lessee shall strictly comply with all federal and state statutes, regulations and rules regarding storage, use, handling, disposal and remediation of spills of hazardous and toxic material as defined by existing federal and state laws and regulations. a) Amounts of such hazardous or toxic materials as are normally needed for aircraft operation and maintenance are allowed (e.g. engine oil). Storage of hazardous or toxic materials that are not related to aircraft operation or maintenance is strictly prohibited. b) The City reserves the right to inspect the leased premises annually or upon cause for reasonable suspicion to determine if Lessee is in compliance with all appropriate and applicable laws and regulations concerning these materials. c) In the event of a spill or release caused by the Lessee, Lessee is wholly responsible for remediation and any penalties and/or fines as may be assessed by the Kansas Department of Health and Environment, the Environmental Protection Agency, or any other regulatory agency. Lessee shall notify the City immediately when a spill of hazardous or toxic material occurs and give full disclosure of the nature of the spilled material and what measures are being taken to contain and remediate the spill. 7

8 13. ENVIRONMENT: It is understood between the parties that the leased facilities will be used without damage or injury to the surrounding environment and Lessee will not contaminate, injure or destroy any of the vegetation or foliage at the airport. Lessee will not allow, condone or participate in any way in dumping or allowing the escape of any hazardous material or any description. Washing of aircraft is prohibited in hangar facilities or on airport grounds. Dry washing and wiping down aircraft is permitted as long as all waste created is disposed of properly. 14. INDEMNITY: Lessee agrees to indemnify and hold harmless the City from and against any and all claims of every kind or character for injuries and/or damages to persons and property arising out of the use of the facilities leased by Lessee at Augusta Municipal Airport, provided that such injury or damages are not caused by the negligence, conduct or intentional act of the City. Each of the parties agree to give the other notice of any claim or litigation which is made or instituted in any way, and each shall have the right to compromise and participate in the defense of such claim or litigation to the extent that it is necessary to protect the interest of each or either of them. 15. INSURANCE: Lessee shall maintain in force during the term of this Agreement public liability insurance in the sum of no less than One Million Dollars ($1,000,000.00) for each aggregate and current limits. As evidence of insurance coverage, Lessee shall annually provide to the City a copy of certificate of insurance, which shall provide that the insurance coverage shall not be canceled, changed in 8

9 coverage, or reduced in limits without at least thirty (30) days prior written notice to the City. Failure to maintain insurance in force shall constitute a default in this Lease Agreement. 16. DISCRIMINATION: Lessee shall not, on the grounds of race, color, sex, religion, national origin, age or disability, discriminate or permit discrimination against any person or group of persons in violation of any federal, state or local laws or of Part 21 of the regulations of the Office of the United States Department of Transportation (49 CFR 21). The City reserves the right to take such action as the United States Government or any state or local government may direct to enforce this covenant. 17. FAA REQUIREMENTS: The City and Lessee further agree that the requirements of the Federal Aviation Administration set out below are approved by both parties, and Lessee agrees to comply with all FAA requirements with respect to its operations, the use of the airport and this Agreement. a) Lessee agrees to strictly comply with all Federal Aviation Regulations pertaining to the safe operation of aircraft on ground and in flight. b) Lessee agrees to furnish good, prompt and efficient services at the airport; to furnish said services on a fair, equal and nondiscriminatory basis to all users thereof; and to charge fair, reasonable and nondiscriminatory prices for services; provided, that Lessee may make reasonable and nondiscriminatory discounts, rebates or other similar types of price reductions to volume purchasers. 9

10 c) It is understood and agreed that nothing herein contained shall be construed to grant or authorize the granting of an exclusive right within the meaning of Section 308 of the Federal Aviation Act of 1958, as revised. 18. RESERVATION OF RIGHTS: The City reserves the following rights, which shall in no way be construed as an obligation to the Lessee: a) 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. b) To develop or improve the landing area and all publicly owned air navigation facilities of the airport as it sees fit, regardless of the desires or views of Lessee and without interference or hindrance. c) 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 other structure on the airport which, in the opinion of the City, would limit the usefulness of the airport or constitute a hazard to aircraft. d) During the time of war or national emergency, to enter into an agreement with the United States Government for military or naval use of part or all of the landing area, the publicly owned air navigation facilities and/or other areas or facilities of the airport. If any such agreement is executed, the provisions of this instrument, insofar as they are inconsistent with the provisions of the agreement with the Government, shall be suspended. 10

11 19. SUBORDINATE TO FEDERAL OBLIGATIONS: This Agreement shall be subordinate to the provisions of any existing or future agreement between the City 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 federal funds for the development of the airport. 20. AIRSPACE: There is hereby reserved to the City, its successors and assigns, for the use and benefit of the public, a free and unrestricted right of flight for the passage of aircraft in the airspace above the top surface of the buildings on the premises together with the right to cause in aid airspace such noise as may be inherent in the operation of aircraft now or hereafter using said airspace for landing at, taking off from or operating on or about the airport. 21. SEVERABILITY: It is further expressly understood and agreed by and between the parties hereto that in the event any covenant, condition or provision herein contained is held 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 such covenant, condition or provision herein contained; provided, however, that the validity of any such covenant, condition, or provision does not materially prejudice either the City or Lessee in their respective rights and obligations contained in the valid covenants, conditions or provisions in this Agreement. 11

12 22. ASSIGNMENT: Lessee or its successors may not assign this Agreement or any portion thereof, or sublet the premises or any portion thereof, without the written consent of the City, which consent shall not be unreasonably withheld or unduly delayed. Any such assignment or subletting or attempt thereat without such consent shall be void and shall, at the option of the City, terminate this Agreement. 23. BINDING EFFECT: This Agreement shall extend to and be binding upon heirs, executors, administrators, trustees, successors, receivers, and assigns of the parties hereto. 24. ENCUMBRANCES: It is expressly understood between the parties that the City does not authorize Lessee to, in any way, encumber the property leased herein. Said property shall not be pledged as security on any indebtedness incurred by Lessee. Lessee understands that it does not become the owner of the property for same and that it does not have the authority to make repairs or improvements to the property that it does not pay for at the time said repairs and improvements are made. 25. ATTORNEY FEES: In the event the City is required to bring any legal action as a result of the breach of Lessee of any of the duties imposed herein or in the event the City is sued as a result of the negligence of Lessee or any other act by Lessee or its employees, agents or legal representatives then in that event the City shall be entitled to recover reasonable attorney fees from Lessee for the prosecution, defense or participation in any litigation caused by the above acts or failure to act by Lessee. 12

13 26. DEFAULT: This lease agreement may be prematurely terminated by Lessor or Lessee if either fails to abide by the terms and conditions expressed herein. Should Lessee be declared bankrupt, incompetent, or become deceased, this contract agreement shall immediately terminate and shall not be considered as part of Lessee s estate and shall not become an asset of any appointed or assigned guardian, trustee, or receiver. In the event Lessee shall be in default of any rental payments under this Agreement for a period of thirty (30) days, the City shall have the option of declaring a default of Lessee and terminating the Lease Agreement. In such case, the Lessee shall still be liable to the City for payment of all amounts due. In the event Lessee shall be in default of any other terms in this Agreement, a default may be declared by the City by giving thirty (30) days notice. It shall be sufficient for the purposes of this Agreement that notice of such default shall be made in writing and sent by certified mail to the last known address of Lessee. Should Lessee continue to fail to repay any monies owed to Lessor after a period of (30) days (as described above) Lessor may take possession of any personal property owned by Lessee and located at the Airport and hold until the monetary default is settled. In such case that Lessee cannot or will not settle any claims against him owed to Lessor, Lessor may liquidate any personal property seized, subject to the disposition of a court of competent jurisdiction. Lessee shall be liable for any and all expenses incurred by Lessor in such action. 13

14 THIS AGREEMENT is made and entered into the day and year first above written and is intended to be binding upon all parties hereto, their heirs, assigns, advisees, legatees and lawful representatives. THE CITY OF AUGUSTA LESSEE By: By: J. Tyler Setchell, Airport Manager 14

15 ADDENDUM THIS ADDENDUM made and entered into on this day of, 2008, BY AND BETWEEN THE CITY OF AUGUSTA, KANSAS, a municipal corporation, hereinafter referred to as the City, AND, hereinafter referred to as Lessee. WITNESSETH: WHEREAS the City and Lessee have entered into a Lease Agreement dated for hangar number ; and WHEREAS Lessee wishes to store, in addition to an aircraft and aircraft-related items, other non-aircraft related items in the leased premises; and WHEREAS such additional storage may be permitted under Section 2 of the Agreement; NOW, THEREFORE, The City does hereby permit Lessee to store the following items in the leased premises: Item Square Footage Total Square Footage: Special Conditions: Hangar Lease Addendum 1

16 THIS ADDENDUM is made and entered into the day and year first above written and is intended to be binding upon all parties hereto, their heirs, assigns, advisees, legatees and lawful representatives. THE CITY OF AUGUSTA LESSEE By: J. Tyler Setchell, Airport Manager By: Hangar Lease Addendum 2