HomeMy WebLinkAbout1998-011 Operator Lease - SkinnerFIXED BASE OPERATOR LEASE EXTENSION AGREEMENT
FOR THE ASHLAND MUNICIPAL AIRPORT
Extension Lease made February ~-~, 1998, between the City of Ashland ("City") and
Robert A. Skinner ("Lessee").
RECITALS:
A. City is the owner of the Ashland Municipal Airport (further referred to in this lease
extension as "the airport".)
B. Lessee now leases from the City a portion of the Ashland Municipal Airport as a
Fixed Base Operator under a lease entitled "FIXED BASE OPERATOR LEASE
AGREEMENT FOR THE ASHLAND MUNICIPAL AIRPORT" (further referred to in this
lease extension as "the initial lease").
C. The initial lease expires on January 31, 1998, and Lessee desires to extend the
initial lease as permitted in paragraph 2.1 of the initial lease except for such changes in
the terms, covenants and conditions reflected in this document (further referred to as
the "lease extension").
City and Lessee agree:
1. Extended term. The term of the initial lease is extended for an additional five years
commencing at 12:01 am on February 1, 1998. Notwithstanding anything to the
contrary in the initial lease, Lessee may extend the lease for three additional terms of
five years each after the expiration of this extension lease.
2. Rental to City. The date of the annual increase for rent as specified in paragraph 3 of
the initial lease is changed to July 1 of each year with the first increase to be made July
1, 1998. No increase shall occur on February 1, 1998.
The payment date for fuel flowage, hangar rentals, tiedown fees described in
paragraph 3 of the initial lease is changed from the tenth of the month to the twentieth
of the month. The payment date for ground lease payments collected by Lessee shall
also be the twentieth of the month.
The City reserves the right to review and adjust the fuel flowage fee at the
beginning of each new extension term with consideration given to comparable fuel
flowage fees at similar airports in the Northwest provided Lessee is first given 30 days
notice.
The subparagraph entitled "hangar rentals" is changed to read:
"A monthly fee equivalent to the rent for all hangars rented by the City,
whether collected by the Lessee or not, including prepaid rent, less 25%
of the gross rental due. This fee shall be paid by the twentieth of the
month in which the rental is due. Lessee may assess such charges as
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may be permitted under the leases for late rental payments. Lessee shall
not be required to pay a fee for those hangars that are not rented due to
lack of demand or circumstances beyond control of Lessee."
3. Utilities. Lessee's responsibilities for utilities shall remain as provided in paragraph 9
of the initial lease, except that City shall pay for water and one-half of the solid waste
collection charges. Provided, however, City shall not pay for more than the charges for
the two can commercial rate for solid waste collection.
4. Ownership of Improvements. Paragraph 10.2 of the initial lease is amended to reflect
that for any improvements of a permanent nature made by Lessee after February 1,
1998:
4.1. Lessee shall have title;
4.2. Lessee, however, shall be required to enter into a ground lease with the City
prior to any improvement being made that increases the footprint of existing structures
or that utilizes additional land at the airport. Ground lease rent shall be at fair market
rental value;
4.3. Lessee shall not rent space to others for the purpose of housing or storing
aircraft; provided, however, that if space comparable to what Lessee may have
available is not otherwise available at the airport, Lessee may rent space until other
space becomes available.
4.4. Prior to construction of any improvements, the parties agree to negotiate in
good faith as to ownership of the improvements to be constructed. Unless previously
agreed in writing between the parties, the improvements 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 upon completion of construction and
issuance of a certificate of occupancy. Lessee, or any one claiming under Lessee, shall
indemnify and defend City against all liability and loss arising from such claims.
5. Upkeep. Lessee's responsibilities for upkeep shall remain as provided in
paragraph 10.4 of the initial lease, except that City shall contract and pay for cleaning
the carpet twice a year.
6. Except as modified in this extension lease, the terms, covenants and conditions of
the initial lease remain in full force and effect.
LESSEE
Robert A. Skinner
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