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HomeMy WebLinkAbout1994-118 T-Hangar Lease - Alsing iem ranaum January 24, 1995 Barbara Christenson, City Recorder ~ Caralyn Dusenberry, Administrative Secreta ALSING ASHLAND MUNICIPAL AIRPORT T-HANGAR LEASE Attached is the original agreement between the City of Ashland and Allen A. Alsing and Katherine M. Alsing. This is a T-Hangar rental agreement for the Ashland Municipal Airport. Thank you for filing the above referenced agreement. (c:\airp\cityrec.lt r) CITY OF ASHLAND RENTAL AGREEMENT FIRST ADDENDUM for "T" HANGAR ASHLAND MUNICIPAL AIRPORT ,,..j~ First Addendum to "T" Hangar Rental Agreement made this ~ ~ day of December, 1994, between the CITY OF ASHLAND ("City") and Allen A. Alsing and Katherine M. Alsing ("Renters"). Recitals: A. City and Renters entered into a rental agreement entitled "City of Ashland Rental Agreement "T" Hangar(s) Ashland Municipal Airport" dated December 5, 1990 ("the agreement") for the rental of %" Hangar Number 2 ("hangar") at the Ashland Municipal Airport ("airport"). B. Renters desire to improve this hangar with walls and a door and apply a portion of the value of the improvement to remaining rent. C. Paragraph 5 of the agreement requires consent of the City prior to making any alterations. City and Renters agree: 1. Consent. City consents to the alterations described below. 2. Alterations. Renters may enclose the hangar with walls and at least one aircraft accessible hangar door for aircraft ingress and egress. The enclosure shall be designed and constructed so as to not adversely affect the use of the "T" hangar for sheltering aircraft, and not adversely affect the use of abutting "T" hangars. 2.1. Renters shall submit plans and specifications for the alteration to the public works director and the city building official, for review and approval of the director and the building official, within 30 days after the date of execution of this addendum. Following approval of Renters' plans and specifications by the public works director and building official, Renters shall expeditiously apply for all necessary permits and make continued and substantial progress towards permit issuance. Renters shall commence construction in accordance with the approved plans and specifications within 60 days following approval. 2.2. Prior to commencement of the construction of the hangar and before any building materials have been delivered to the premises, Renters shall comply with each of the following conditions: 2.2.1. Deliver to City such other proofs and copies as City shall reasonably request, including, without limitation, proof that workers' PAGE 1-FIRST ADDENDUM (p:alrport\alsing.Add) compensation insurance has been procured to cover all persons employed by Renters in connection with the construction, proof of issuance of all building and other permits required for the construction and proof that all systems development charges of the City, if any, have been paid. 2.2.2. Once construction has begun Renters shall prosecute it to completion with diligence. All work shall be performed in a good and workmanlike manner and shall comply with all applicable governmental permits, laws, ordinances, regulations, and approved plans and specifications. Renters shall pay or cause to be paid the total cost of the construction. Construction work shall conform in all significant respects with the approved preliminary plans and specifications. 2.2.3. This paragraph shall not be construed to authorize Renters to do any act or make any contract so as to encumber in any manner the title of City to the property or to create any claim or lien on or against the interest of City in construction of the improvements. It is expressly agreed that all the expenses of the construction of the improvements shall be promptly paid by Renters as required by the terms of any contract therefor. 3. Title to Improvements. Upon completion of construction and issuance of a certificate of occupancy, the improvements described in paragraph 2, shall become property of City, free and clear of all claims of Renters, any one claiming under Renters or caused, permitted or suffered to attach through Renters. Renters or any one claiming under Renters, shall indemnify and defend City against all liability and loss arising from such claims. 4. Rent Offset. The rent for the hangar, while Renters remain in possession, shall continue at the rate for T-hangars without doors, as that rate may be specified from time-to-time by the city council. The rent shall remain at the T-hangars without doors rate for ten years or until the Renters assign or surrender the lease, whichever occurs sooner. Any assignee or successor of Renters shall pay the T-hangar with doors rate. The Renters may offset their rent by a sum equalling one-half of the value of the improvements in the following manner: 4.1. The parties agree that the value of the improvements to be made by the Renters is approximately $6,000. City agrees to allow an offset to the rent due City in the amount of one-half of the actual value or $3,000, whichever is less, unless City and Renters agree in writing that the actual value exceeds $6,000 and such agreement is incorporated into the terms of this agreement by an addendum. 4.2. Payment by the City will be in the form of an off-set to Renters' monthly rent under the agreement spread over 60 months. The monthly offset shall therefor be $50.00 per month which shall be deducted from the monthly rent due for an open "T" hangar from Renters under the agreement. If the actual value of the improvements exceeds $6,000 and such value has been incorporated into this agreement as provided in paragraph 4.1, the offset may continue after 60 months until one-half of the PAGE 2-FIRST ADDENDUM {.:airpor~\alsing.Add) actual value of the offset has been paid, provided the Alsings are the Renters during such period and that this agreement has not been assigned by them. 4.3. The offset shall begin at the first of the month following the issuance of a certificate of occupancy. 5. Assignment or Early Termination. If the agreement is assigned by Renters or terminated prior to its stated term, City shall pay Renters the balance of the $3,000 that has not been otherwise offset as provided above. Such payment shall be made only if the agreement is terminated prior to its stated term for any reason other that default of the Renters or if the agreement is assigned by Renters, and such assignment is consented to by City. Any assignee of the Renters shall pay the then current rate for an enclosed hangar. 6. Except as modified above, the terms of the agreement shall remain in full force and effect. Renters Allen A. Alsing Katherine M. City of Ashland PAGE 3-FIRST ADDENDUM (p:airport\alsing.Add)