HomeMy WebLinkAbout2013-051 Hangar Lease - Brim Equipment Leasing
r AIRPOK F HANGAR LEASE ABSTRACT
ASHLAND MUNICIPAL AIRPORT
LESSOR: LESSEE:&I,-yi Epp 0Yt2yAjR v~ `iy)L VjA 3•,m13lAtbn
CITY OF ASHLAND, (CITY) Address: Qo.~joK~O% k4 DeA&ndtan WL.-rn,~toQ
ADMINISTRATION DEPARTMENT AyVllctndOP 9150 2 1Sw
ltan~ U
Contact: Public Works Director
20 East Main Street, Ashland, Oregon 97520 Telephone: 1 44 ~ \03~Fax: 61~~p.~1~ Gr13~)
Telephone: 541/488-5587 Fax: 541/488-6006 E-mail: 01u m ahm.Registration
AIRPORT POINT OF CONTACT: an
Robert Skinner, Fixed Base Operator
403 Dead Indian Memorial Highway, Ashland OR 97520 Telephone: 541/482-7675
1. Lease type: Circle One
~A B C ' D
City owned,T hangar. City-owned, privately built City-owned, owner-built' Privately-ownedti-
(Month-t6`-'month Box Hangar. (month to prepaid lease for building & hangar ground lease ,
rental) month rental) "ground lease only minimum size 60,
Multi- ,year term X40 han are
Size.; (Multi year term)
(square feet) Size
(square feet),:
2. Starting date of lease: 3. Ending date of lease:
(leave blank if month-to-month lease).
4. Estimated initial base rental rate: $ ~S per 0onth/ ea r (circle one).
Based on (C or D) per square foot. Actual rae established by approved Council
Rate Sheet on file.
.A Heat Source .01/sq-ft x
B Bathroom .03/sq-ft x
C Office Space .25/sq-ft x =
TotalsE 7_1 Imonth
(Note: rate adjustment is made July 1 every year according to master rates established by City
and in accordance with Master Hangar Lease Agreement. All rentals and lease's rates will be
updated to reflect new rates.)
5. Security Deposit Received: Date: Amount:
6. Description of Premises Leased/Rented: hC1ng)c(K
7. Value of Improvements (Lease Option C or D): YA ~GL
8. Yes, I have received a copy of the airport rules entitled "Minimum Standards for
Commercial Aeronautical Activities, Ashland, Oregon"
9. Yes, I have read and agree with, and have received a copy of, the City of Ashland
Master Hangar Lease Agreeme .
10. Activities may requir ate SASO le - See section 5.3 of lease.
Lessee Signature: Date:
Printed Name: 1(~ Q)ZVM
Approved by: 3I c4g / / 3 for City of Ashland.
Page 1 of 1 -Airporat Hangar Lease AbstrackG PUB-wRKSIENG\DEPT-ADMIN IRPIBURL BRIM LEASEMT-HANGAR LEASE AGREEMENT\BRIM T-HANGA
Title: 1° ~`sOQ e~ Ryas L~ W641, Date: FS ( r3
City Us`~e Only: Insurance Certificate Received L1
Business,License Required ❑
Page 1 of 1 - Airport Hangar Lease AbstraCtG\PUB-NRKS\ENG\DEPT-ADMIMAIRP\BURL BRIM LEASES\T-HANGAR LEASE AGREEMENT\BRIM T-NANGA
ASHLAND MUNICIPAL AIRPORT
MASTER HANGAR LEASE AGREEMENT
THIS AGREEMENT is entered into between the CITY OF ASHLAND, OREGON, by and through the
City Council, hereinafter referred to as Lessor, and the Lessee.
1. Lease Abstract. City and Lessee have signed a Master Hangar Lease Abstract ("the
abstract") which contains individual terms specific to the particular hangar or.ground being
leased. By signing the abstract, City and Lessee have agreed to the terms and conditions of
this Master Hangar Lease Agreement.
2. Description of leased premises. City leases to Lessee a part of the Airport described in the
abstract ("the premises") and identified on Exhibit A.
3. Lease Fees. An initial rental is established as set forth in the abstract and shall be paid in
advance at the office of the fixed base operator (see Airport Contact Person listed in the
abstract)
3.1 Periodic rent increase. For month-to-month rentals, the rental fee is subject to
adjustment on July 1 of each year at the option of the City and is payable, monthly in advance,
on the first day of each month.
3.2 Annual rent increase. For other than month-to-month rentals, the rent shall increase
annually on July 1 of each year, but not decrease, based on the previous calendar year's
Consumer Price Index ("CPI"). The CPI will.be calculated on the difference between January
of the prior year and January of the current year. The adjustment will be the increase in the
CPI using the All Urban Consumers (CPI-U), U.S. City Average, CPI--AII Items Index as
published by the Bureau of Labor Statistics of the United States Department of Labor. If the
CPI is no longer being published, then the Index shall be the figure reported in the U.S.
Department of Labor's most recent comprehensive official index then in use and most nearly
answering the description of the CPI. AII. sums resulting from the computation of annual lease
fees shall be rounded up to the nearest whole dollar.
3.3 Past due fees. Lease fees will become past due ten days past the due date and the
City will charge interest of 1.5% per month on past due lease fees.
3.4 Security Deposit. For month-to-month rentals; Lessee shall pay a deposit in the amount
of one month's rent to secure Lessee's compliance with all terms of this agreement. The
deposit shall be a debt from City to Lessee, refundable within 30 days after expiration of the
lease term or other termination not caused by Lessee's default. City may commingle the
deposit with its funds. Lessee shall not be entitled to interest on the deposit. City shall have the
right to offset against the deposit any sums owing from Lessee to City and not paid when due,
any damages caused by Lessee's default, the cost of curing any default by Lessee should City
elect to do so, and the cost of performing any repair or cleanup that is Lessee's responsibility
under this agreement. Offset against the deposit shall not be an exclusive remedy in any of the
above cases, but may be invoked by City, at its option, in addition to any other remedy
provided by law or this agreement for Lessee's nonperformance. City shall give notice to
Lessee each time an offset is claimed against the deposit, and, unless the agreement is
terminated, Lessee shall within 10 days after such notice deposit with City a sum equal to the
amount of the offset so that the total deposit amount, net of offset, shall remain constant
throughout the agreement term.
3.5 Improvement Fee. For leases which require Lessee to construct a hangar, Lessee may
be required to pay a non-refundable improvement fee at the time of executing the lease
abstract. The fee shall be used by City to make improvements at the airport.
Page 1 of 9 -AIRPORT MASTER LEASE
4. Term. The term of this lease is month-to-month (unless otherwise specified in the abstract)
commencing on the date specified in the front page abstract. Either party may terminate this
lease at any time upon 30 days prior written notice to the other party. For other than month-to-
month leases, the term commences and ends on the dates specified in the abstract and a
Lessee not in default shall have the first right of refusal to lease the premises from the City at
the rates and terms then in effect as established by the City.
5. Use of Premises. Except as provided in this paragraph, the premises shall be used only for
the storage of aircraft. No commercial activities including but not limited to aircraft mechanical
or maintenance work or repair or service, are to be conducted on the premises unless
otherwise permitted under section 5.3. The preceding sentence does not apply, however, to
work, maintenance, repair or service on aircraft owned by the Lessee. Other items of personal
property may be stored temporarily when such storage in no way interferes with the normal
storage area of the aircraft in the hangar, and does not otherwise violate this rental agreement.
5.1 Flammables and explosives prohibited. Lessee shall not store any flammable or
explosive liquids or solids within the premises. For the purpose of this rental agreement,
"flammable or explosive liquids or solids" shall not apply to fuel or other flammables contained
within any airplane placed in the hangar. Fueling of the aircraft while in the hangar is strictly
prohibited. ,
5.2 Pets and animals prohibited. Lessee shall not, without the City's written consent keep
any pets or animals on the premises. If allowed, Lessee agrees to be liable for damage to the
premises or other persons caused by the pet or animal.
5.3 When commercial activities permitted. For other than month-to-month rentals, Lessee
may conduct airport related commercial activities upon obtaining a business license, as
specified in the "Minimum Standards for Commercial Aeronautical Activities, Ashland,
Oregon", and entering into a Specialized Aviation Service Operator (SASO) lease agreement,
which allows the Lessee to operate as a Specialized Aviation Service Operator in accordance
with current adopted standards.
6. Rights Reserved to the City. The City reserves the following rights:
6.1 Improve landing area. The right to develop or improve the landing area of the airport
without interference or hindrance of the Lessee.
6.2 Maintain airport. The right, but not the obligation, to maintain and keep in repair the
landing area of the Airport, together with the right to direct and control all activities of Lessee.
6.3 Protect airport. The right to take any action considered 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 and constitute a hazard to aircraft.
6.4 Temporary closures. The right to temporarily close or to restrict the use of the Airport or
any of the facilities for maintenance, improvement, or for the safety of the public.
7. Compliance with laws. Lessee shall comply with:
7.1 The current adopted, or any future, "Minimum Standards for Commercial Aeronautical
Activities, Ashland, Oregon" (Minimum Standards) are part of this lease agreement. If this
lease and the Minimum Standards conflict in the requirements for the Lessee, the Minimum
Standards take precedence.
7.2 All federal, state, county, and city laws, orders and ordinances, and rules and
regulations. Including but not limited to all rules and regulations of the Oregon Department of
Aviation and the Federal Aviation Administration.
Page 2 of 9 - AIRPORT MASTER LEASE
8. Lessee compliance with environmental laws. As used in this paragraph, the term
"hazardous material" means any hazardous or toxic substance, material, or waste, including,
but not limited to, those substances, materials, and wastes listed in the United States
Department of Transportation Hazardous Materials Table (49 C.F.R. § 172.101) or by the
United States Environmental Protection Agency as hazardous substances (40 C.F.R. Part 302)
and any amendments, ORS 466.567, 466.205, 466.640 and 468.790 and regulations of the
Oregon State Department of Environmental Quality, petroleum products and their derivatives,
and such other substances, materials and wastes as become regulated or subject to cleanup
authority under any environmental laws. Environmental laws means any federal, state, or local
statutes, regulations, or ordinances or any judicial or other governmental orders pertaining to
the protection of health, safety, or the environment.
8.1 Lessee's compliance with laws and permits. Lessee shall cause the premises and all
operations conducted on the premises (including operations by any subtenants) to comply with
all environmental laws.
8.2 Limitation on uses of hazardous materials. Lessee shall not use or allow any agents,
contractors or subtenants to use the premises to generate, manufacture, refine, transport,
treat, store, handle, recycle, release or dispose of any hazardous materials, other than as
reasonably necessary for the operation of Lessee's activities as contemplated under this lease.
8.2.1 Disposal and contamination clean-up. Lessee shall be responsible for disposing
of all hazardous materials in compliance with environmental laws, and Lessee shall be
responsible for any environmental clean-up of the premises that is necessary due to
Lessee's activities.
9. Title to Improvements. For Type C leases, upon completion of construction and issuance of a
certificate of occupancy, improvements included in the Hangar Construction Requirement
including any further improvements to the premises approved by the Airport Commission, shall
become property of City, free and clear of all claims of Lessee, any one claiming under Lessee
or caused, permitted or suffered to attach through Lessee. Lessee or any one claiming under
Lessee, shall indemnify and defend City against all liability and loss arising from such claims.
10. Maintenance. Lessee shall keep and maintain the premises and all improvements in good and
substantial repair and condition, including the exterior condition. The City shall make all
necessary major repairs and alterations not directly attributable to Lessee's negligence, and
shall maintain the premises and all improvements in compliance with all applicable building
and zoning laws and all other laws, ordinances, orders and requirements of all authorities
having or claiming jurisdiction. Lessee shall provide proper containers for trash and garbage
and shall keep the premises free and clear of weeds, rubbish, debris, and litter at all times. City
shall have the right to conduct reasonable inspections and investigations of the premises and
the operations conducted on the premises at any time, and from time to time with reasonable
advance notice, and Lessee shall cooperate fully with City during such inspections and
investigations.
11. Utilities. Lessee shall promptly pay any charges for electricity, water and sewer, and all other
charges for utilities which may be furnished to the premises at Lessee's order or consent.
12. Liens, Taxes. Lessee shall pay all sums of money that become due for any labor, services,
materials, supplies, utilities, furnishings, machinery or equipment which have been furnished or
ordered by Lessee which may be secured by lien against the premises. Lessee shall pay all
real and personal property taxes assessed against the premises, such payments to be made
no later than November 15 of the year in which the taxes become due and payable, and will
submit a copy of the receipt for the taxes to the City's Director of Finance.
Page 3 of 9 - AIRPORT MASTER LEASE
13. Insurance. Lessee shall obtain and maintain continuously in effect at all times during the term
of this lease, at Lessee's sole expense, the following insurance:
13.1 Comprehensive insurance. Owner's, landlord and tenant or premises insurance
protecting City and its officers, agents and employees against any and all liabilities that may
allegedly in any way relate to the operation by Lessee, this insurance to be in the minimum
amount of $1,000,000, combined single limit coverage. Such limit shall automatically increase
in the event of any change in the provisions of ORS 30.270, or in the event these limits are
found to be not totally applicable to a city.
13.1.1 All policies shall include the City, its officers, commissions, elected officials,
employees and agents as additional insureds.
13.1.2 A certificate evidencing such insurance coverage shall be filed with the City
prior to the effective date of this lease, and such certificate shall provide that such .
insurance coverage may not be canceled or reduced or changed in any way adverse to
the City without at least 30 days prior written notice to the City. The policy shall be
continuous until canceled as stated above. If such insurance coverage is canceled or
changed, Lessee shall, not later than 15 days prior to the termination or change in the
insurance coverage, file with the City a certificate showing that the required insurance
has been reinstated or provided through another insurance company or companies.
Cancellation or termination of the policy shall terminate the lease.
In the event Lessee shall fail to furnish the City with the certificate of
insurance required, City may secure the required insurance or self-insure at the sole
cost and expense of Lessee, and Lessee agrees to reimburse City promptly for the cost,
plus ten percent of the cost for City administration.
13.2 Property Insurance. Lessee shall bear the expense of any insurance insuring the
personal property of Lessee on the premises against such risks, but Lessee shall not be
required to insure his personal property.
14. Indemnification. Lessee will defend, indemnify and save City, its officers, employees and
agents harmless from any and all losses, claims, actions, costs, expenses, judgements,
subrogations, or other damages resulting from injury to any person (including injury resulting in
death,) or damage (including loss or destruction) to property, of whatsoever nature arising out
of or incident to this lease. Lessee will not be held responsible for damages caused by
negligence of City..
15. Damage or Destruction of Premises.
15.1 For other than month-to-month rentals, if the premises or any improvements are
damaged or destroyed by fire or other casualty, Lessee shall:
15.1.1 Promptly repair, rebuild or restore the property damaged or destroyed to
substantially the same condition consistent with the applicable building codes; and
15.1.2 Apply for any net proceeds of insurance resulting from claims for such losses,
as well as any additional money of Lessee necessary.
If the damage or destruction which occurs is such that the cost of repair, rebuilding or
restoration of the property damaged or destroyed exceeds 50% of the fair market value of the
improvements, Lessee shall have the option within 60 days from the date of damage or
destruction, to notify City in writing whether or not Lessee elects to repair, rebuild, or restore in
accordance with paragraph 15.1 or to terminate this lease. Upon giving such notice to
terminate, this lease shall terminate on the date specified in the notice and City shall be
entitled to the net proceeds of insurance.
Page 4 of 9 - AIRPORT MASTER LEASE
15.2 For month-to-month rentals, Lessee shall be responsible for damage or destruction to
the premises or any improvements resulting from Lessee's operations, or anything done or
permitted by Lessee under this lease.
16. Events of Default. The following shall be events of default:
16.1 Default in Rent: Failure of Lessee to pay any rent or other charge within ten days after it
is due.
16.2 Default in Other Covenants: Failure of Lessee to comply with any term or condition or
fulfill any obligation of the lease (other than the payment of rent or other charges) within 30
days after written notice by City specifying the nature of the default. If the default is such that it
cannot be completely remedied within the 30-day period, this provision shall be complied with
if Lessee begins correction of the default within the 30-day period and proceeds in good faith
to effect the remedy as soon as practicable.
16.3 Insolvency: Insolvency of Lessee and assignment by Lessee for the benefit of creditors;
the filing by Lessee of a voluntary petition in bankruptcy; an adjudication that Lessee is
bankrupt or the appointment of a receiver of the properties of Lessee; the filing of an
involuntary petition of bankruptcy and failure of the Lessee to secure a dismissal of the petition
within 30 days after filing; attachment of or the levying of execution on the leasehold interest
and failure of the Lessee to secure discharge of the attachment or release of the levy of
execution within ten days.
17. Remedies on Default. In the event of a default, the City at its option may terminate the lease
by notice in writing by certified or registered mail to Lessee. The notice may be given before or.
within thirty days after the running of the grace period for default and may be included in a
notice of failure of compliance. If the property is abandoned by Lessee in connection with a
default, termination shall be automatic and without notice.
17.1 Damages. In the event of termination of default, City shall be entitled to recover
immediately the following amounts as damages:
17.1.1 The reasonable cost of re-entry and reletting including the cost of any clean
up, refurbishing, removal of Lessee's property and fixtures, or any other expense
occasioned by Lessee's failure to quit the premises upon termination and to leave the
premises in the required condition, any remodeling costs, attorney fees, court costs,
broker commissions and advertising cost.
17.1.2 The loss of reasonable lease fee value from the date of default until a new tenant
has been or, with the exercise of reasonable efforts could have been secured.
17.2 Re-entry After Termination. If the lease is terminated for any reason, Lessee's liability to
City for damages shall survive such termination, and the rights and obligations of the parties
shall be as follows:
17.2.1 Lessee shall vacate the premises immediately, and within 60 days remove
any property of Lessee including any fixtures which Lessee is required to remove at the
end of the lease term, perform any cleanup, alterations or other work required to leave
the property in the condition required at the end of the term. City may re-enter, take
possession of the premises and remove any persons or property by legal action or by
self-help with the use of reasonable force and without liability for damages.
17.3 Reletting. Following re-entry or abandonment, City may relet the premises and in that
connection may:
17.3.1 Make any suitable alterations or refurbish the premises, or both, or change
the character or use of the premises, but City shall not be required to relet for any use
or purpose (other than that specified in the lease) which City may reasonably consider
injurious to the premises, or to any tenant which City may reasonably consider
objectionable.
Page 5 of 9 -AIRPORT MASTER LEASE
17.3.2 Relet all or part of the premises, alone or in conjunction with other properties,
for a term longer or shorter than the term of this lease, upon any reasonable terms and
conditions, including the granting of some lease fee-free occupancy or other lease fee
concession.
18. Assignment of Interest or Rights. Neither Lessee or any assignee or other successor of
Lessee shall sublease, assign, transfer or encumber any of Lessee's rights in and to this lease
or any interest, nor license or permit the use of the rights granted except as provided in this
paragraph. Lessee shall not assign all or any part of its rights and interests under this lease to
any successor through merger, consolidation, or voluntary sale or transfer of substantially all of
its assets, without prior written approval of the City. Written approval of the City shall not be
unreasonably withheld.
18.1 Right of first refusal. For other than month-to-month rentals, City shall have the following
described right of first refusal with respect to the interest of Lessee under this lease after the
expiration of the lease term and all extensions authorized under this lease:
18.1.1 Lessee shall not sell, sublease, assign or transfer to anyone other than City,
unless Lessee shall have first communicated to City, by written notice, a written offer to
sell, sublease, assign or transfer this lease or any interest, which offer shall specify, in
commercially reasonable detail, the price, terms and conditions upon which Lessee is
willing to sell, sublease, assign or transfer this lease or any interest.
18.1.2 City shall have a period of 30 days, following the notice, within which to
accept the offer by giving Lessee written notice of acceptance. If the offer is accepted,
the parties shall be obligated to close the sale, sublease, assignment or transfer in
accordance with the terms of Lessee's offer. Closing shall occur within 60 days following
acceptance or within such longer closing period as may be specified in the offer.
18.1.3 If City does not accept the offer, Lessee may sell, sublease, assign or transfer
the lease or any interest to any other party, provided that such a sale must be
consummated within 60 days following the earlier of the expiration of the 30 day
acceptance period specified in paragraph 18.1.2 for the offer or the date of any written
rejection of the offer by City, and for and upon the same price, terms and conditions as
those specified in the offer.
18.1.4 City's rights under this paragraph shall apply to any subsequent or
contemporaneous offer made to Lessee or Lessee's successor or successors in
interest.
18.1.5 For the purposes of this subparagraph, a devise under a will by the Lessee
shall not be considered a sale, sublease, assignment or transfer.
18.2 Option to Purchase Lessee's Interest. For Type C leases, in addition to the
right of first refusal described above, City shall have the exclusive right and option to purchase
all of Lessee's right under this lease upon the following terms and conditions:
18.2.1 If City exercises this option, the purchase price during the initial year of this
lease for Lessee's rights under this lease will be the actual reasonable construction cost
of the hangar plus 10%. The purchase price during each subsequent year shall be the
purchase price determined in the immediately preceding sentence less 1/25th of such
purchase price for each full year the lease has been in effect.
18.2.2 This option shall be exercised by written notice given by City to Lessee at any
time, which notice shall specify that City has elected to exercise this option.
18.2.3 Closing shall occur as soon as possible following exercise of this option by
City and, in any event, not later than the 35th day following the date of exercise of this
option.
18.2.4 At closing, Lessee shall deliver to City a duly executed and acknowledged
statutory quitclaim deed quitclaiming all of Lessee's rights and interest in the premises
Page 6 of 9 - AIRPORT MASTER LEASE