Loading...
HomeMy WebLinkAbout1993-036 Hangar Lease-BloombaumMILTON BLOOMBAUM Ground the Ci?Y OF ASHL%ND (City) (Commission) and Ci?Y OF ASHL~2~D GROUN2 LEASE AGRSEMENT for HANGAR C£NSTRUCTED 5¥ LESSEE ASHI~ANE MUNICIPAL AIRPORT lease agreement made this ' ~'~ ~ ~ J day of t~ and through 1992, by its Airport Commission (Lessee). Recitals: A. City is the owner and operator of Sumner-Parker Airport situa%ed in the iity of Ashland, Orego3, called "Airport", with power ~o grant right and prlvileges wist respect %o its use. 5. Lessee is the o~ner of an airzraft based at the Airport and wishes to cc~struct a hsngar for stDrage of the aircraft. C. City is willing t2 lease to lessee a portion of Airport premises together w2nh such rigats and privileges as are set fcrth in this lease. Lessor and Lessee agree: 1. EescriDtion ~f leased ~remises. ~ity leases to Lessee a part cf the Airport describe~ in Exhibit "A" ('!the premises" . 2. Lease Fees. An initial monthly ret%al of $20 is established and shall be paid semi-annually in advazce for the succeedin~ six months beginning ~ith the ccmmencement /ate specified in paragraph 3. 2.1. Annual rent incresse. The E~nthly rent shall increase annually, but not decrease, my multiplyzng the rent by one-half times a fraction, the numerator of which is the C~i Index Figure for the month of fanuary of that subjec5 calendar ~ear, and the denominator of which is the Sase CPI I~!ex Figure. To illustrate the preceding sentence, the monthly ren~ for the year beginning one year from the date of this agreement shall be equal to the produc5 determine/ by multiplying $20 (the rent specified in paragraph 2), by Dne-half times a fractlon, the numerator of which is the CPI index Figure for the m~nth of January, 1994, and the denominator cf which is the Base CPi Index Figure. 2.1.1. As used in this paragraph, "Index" shall refer to the following index published by the Bureau of Labor Statistics of the United States Department of Labor: Consumer Price index, All Urban Consumers (CPI-U~, U.S. City Average, CPI- -All Items ("stan!ard reference base period"_ 1982-$4 = 100). "Base CPI Index ~igure" shall refer to the Index number indicated for the month of /anuary, 19~3, and the "CPI Index Figure" fcr any other month stall refer ~o the Index number for that month. ~f the "Index" is no longer teing published as of a particular PAGE /-HANGAR GROUND LEASE dase, then the "CPI Index Figure" for that date shall be fic~re reporte~ in the U.S. Department of Labor's most re~ent comprehensive official in~ex then in use and most nearly answering the ~escription of the Index (or, if the U.S. Department of Labor is net then publlshing any such similar index, shall ke determine~ under ano%her comparable, au%noritative, generally recognized ~ndex to be selected mutual agreement of Lesser and Lessee). If the Index is calculated frcn a base different fro5 the base i982-84 = L00, than the figures to be used in calculating any adjustment maL~ated under this Agreement first shall be converted (if possible, under a formula supplied b'~~ the Bureau of Labor Sta%istics of 5he U.S. Department of Labor) to account for that difference. 2.2. Lea~e fees wii~ become past due the llth day cf the calendar montk and the C~y will charge interest of 1.5% ~er mcLsh on past ~ue lease fees. 2.3. Ail sums resulsing from the computation of monsnly lease fee shall be roundei to the nearest whole dollar in favor of Lessor. 3. Term. The term of tk~s lease is 25 years, commencing ~pon 5he issuance cf a certificate of occupancy by the City of Ashland or 220 days fr~m the date of this lease, whichever occurs first. At 5he end of %his term, Lessee shall have the first righ~ of reflsai to lease the premises from tke City at %he rates and te~s then in effect as established k'; the city. 4. Use of Prezises. Except as prov~ed in this paragrapk, the prenises shall be used only for the storage of aircraft o%~ed by Lessee. Other items of ~ersonal property may be stored temporarily when such storage in no ~ay interferes with tke normal storage area of the aircraft in the hangar, and does not otherwise violste this lease. 4.1. Lessee shall n~t store any flammable or explosave li~lids or sol~ds within the premises. For the purpose of this lease, "flammasle or explosive liquids or solids" shall nc~ apply ~o fuel or other flammable contained within any airplane cr au%Dmobile placed in the kangar. Fueling of the aircraft ~hile in ~he hangar ~s strictly prohibited. 4.2. Lessee shall be required ~0 construc5 a ramp in accordance wi~ specifications to be approved in writing ky the Cis}' to provide ingress and egress tc the hangar. Grant of K~qht. Lessee is granted the right to operate its airrraft and to use the A~rport, together wi~h all facilities, equipment, improvements, and services which have been or nay be provided at the Airport including the landing field and any extensions or additions, roadways, runways, aprons, taxiw~ys, PA~--_- 2-HANGAR SROUND LEA£5 ~:~d.~)~. floodlights, landing lights, beacons, signals, radio aldes, and all other conveniencas for flying, landings, and take-effs. 6. Riqht of Inqress and Eqress. Lessee and escorted visitors or customers shall have ~he right of ingress and egress tc and from the premises describsd in Exhibit "A". Lessee shall take reasonable care to a~sure that Lessee does not interfere with City's operation of 5he Airport for the benefit of the public and of all aircraft us~n~ the Airport. 7. Riqhts and PriviLeqes Reserved to the City Include: 7.1. The right ~o develop or improve the landing area of the airport without ~nterference or hindrance of the Lessee. 7.2. The right, but not the obligation, to maintain and keep in repair the landing area cf the Airport, together with the right to direct and control all activities of Lessee. 7.3. The rigk~ zo take any action considered necessary to protect the aerial a~proaches of ~he airport against okstruction, together with the right to preven5 Lessee from erectin~ or permitting to be ereczed, any building or ozher structure on the Airport which, in the opinion of %he City, ~ould limit the ~sefulness of the Airport and constitute a kazard to aircraft. 7.4. The rigk5 %o temporarily close or to restrict the use ~f the Airport or any of the facilities for maintenance. improvement, or for %ne safety of the public. Compliance witk Lsws. Lessee shall com~ly with 8.1. The "Mini~Ym Standards at Ashland Municipal Airport, Ashland, Oregon" ado~zed by the City Council on January 4, 1990 and as may be amended from time to time. 8.2. Ail federaL, state, county, and city laws, crders and ordinances, the rules and regulations of the Lessor, and all rules and regulaticns of the State Department of Transportation Aeronautics Divisicn 5nd the Federal Aviaticn Administration. Lessee compliance with environmental la~s. 9.1. Definition of "hazardous material". As used is this paragraph, the term "hazardous material" means any hazardous or zoxic substance, material, or waste, including, but not limited ~o, those substances, materials, and wastes listed in tke United States Department of /ransportation Hazardous Materials Table (49 3.F.R. § 172.101) or by the United States Environmental Protection Agency as kazardous substances (~0 C.F.R. Part 302) and any amendments, CRS 466.567, 466.205, ~66.640 and 4~8.790 and regulations of the Oregon State Department of Envircnmental Quality, petroleum products and their derivatives, and such other substances, materials and wastes as become regulated or subject ?AGE 3-HANGAR GROUND LEASE tc cleanup authority under any environmental laws. laws means those laws cited in this subparagraFh. Environmental 9.2. Lessee's compliance with laws and permits. Lessee skall cause the leased property and all operations conducted on the leased property (including operation~ by az? subtenants) to ccmply with ail environmental laws. 9.3. Linitation on uses of hazardous materials. Lessee shall not use or allow any agents, contractors or subtenants to use the leased property to generate, manufacture, refine, transport, treat, store, handle, recycle, release or dispose of any hazardous materials, other than at reasonakiy necessar_.' for tke operation of Lessee's activities as contemplated under this lease. 9.4. CitY'S Rights. City shall have the right to conduct reasonable inspections and investigations of the leased prcperty an~ the operations conducted on the leased pro~.erty at any time an~ from time ~o time, and Lessee shall cooperase fully wish City du~ing such inspections and investigations. 9.5. Indemnificaticn. Lessee agrees to defend (with counsel approwed by Cityl, fully indemnify, and hold entirely free and harmless City from and against all clalms, judgments, d~nages, penaicies, fines, costs, liabilities, ~r losses (including, without limitation, diminution in value of the leased prDperty, damages for the loss or restriction cn the use of rentable or usable space or of any amenity of the leased property, damages arising from any adverse i~part on markezing of s~ace, sums paid in settlement of claims, attorneys' fees, ccnsultant fees, and expert fees) which arise during or afzer the lease term and which are imposed on, or paid by or asserted against City by reason or on account of, or in connection ¥ith, or arising out of Lessee's generation, manufacture, use, transportation, refinement, treatment, storage, or disposal of hazardous materials, or any release of hazardous materials as a result of Lessee's use or activities, or of Lessee's agents, ccntractors, or subtenants. lO. Construction of Improvements. Lessee shall erect a hangar on the premises in accordance with %his paragraph. 10.1. The hangar shall be erected wholly ¥ithin the boundary lines of the premises. Lessee shall submit plans and specifications for the hangar to the Commission and the city building official, for review and approval of the Commissicn and the building official, within 30 days after the date of execution of this lease. Following approval cf Lessee's plgns and specifications by the Commission and the building official, Lessee shall expeditiously apply for all necessary permits and m~<e continued and substantial progress towards permit issuance. Lessee shall commence construction in accordance with plans and specifications approved by the Commission within 60 days PAGE 4-HANGAR GROUND LEASE fo21owing approval by City of Lessee's plans and specifications. If required permits are not issued by the appropriate authority wishin 90 days of approval of plans and specifications by the Co~mission, C~sy may, upon 30 days written notice to Lessee, terminate this Lease and Lessee shsll have no further liability to City under ~his lease. 10.2. Prior to commencemen~ cf the cons%ruction of the hangar and before any building materials have Deen delivered to the premises, Lessee shall compl? ~ith each of the following conditions: 10.~.1. Submi5 to the Commission oLe set of preliminary construction plans and specifications prepared by an architect or engineer l~censed in ~ne State of Oregon which are sufficien~ to enaDle CommissioK to make an informed judgment about the design and quality of the construc%~on. Lessee shall nc~ commence ronstruction until all required permits have been ob%ained and the Commission has apprc';ed of the preliminary construction plans and specificasions, including the color of tke hangar. Commissicn shall not unreasonably disapprove such plans and specificasions. Approval or disapproval shall be communicased to Lessee within 30 days after receipt of complete plans and specifice~ons by Com~ssion~ Any disapprors1 shall be accompen2ed by a stasement of the reasons ~Dr such disapprova2. Following any disapproval, Lessee ma}' elect either to feY±se the plans and specifica%ions and resubmit ~kem to the C~mmission pursuant to this ~ragraph or terminate this Lease upon 30 days written L~%ice to City. 10.2.2. Deliver to City ~uch other ~roofs and copies as City saall reasonably req/oest, including, without limitation, proof that workers' compensation insurance has been procured to cover all persons employed in connection with the ronstruction, proof cf issuance cf all building and other per?~its required for ~he constructicn and proof that all systens development charges of the Cisy have been paid. 10.2.3. Once construction has begun Lessee shall prosecute it to completion wi%h diligence. All work shall be perforned in a good and workmanlike manner and shall comply wi~h all applicable qovernmental permits, laws, ordinances and regulations. Lessee shall pay or cause to be paid the ~otal cost of the construction. Construction work shall conform in all significant respects with the approved preliminary plans and specifications and ~he working drawings spproved by the Co~ssion excep~ as otherwise authorize! by the Commission. 10.2.4. This paragrapk shall not be construed to authorize Lessee to do any ac~ or make an~- contract so as to encumber ~n any manner the t~tLe of city 5o the property or PAG-_- 5-HANGAR SROUND LEASE ~i~,~c, i~. 1~) to create any claim or lien on or against the interest of City 2n construction of the improvemenss. It is expressly agreed that all the expenses of the construction of the impro~.ements shall be prom~%ly paid by Lessee as required by the terms of any contract Therefor. · . 10.3. Lessee shall also ccnstruct to standards established by the Commission adecuate draiKage on the ~remises an~ an asphalt taxiway to the hangar. 10.4. Lessee ma?, but is L~t required to, provide electricity to the premises and ¥ithin the hangar and ~ay rough- in plumbinG. No septic or hold22g tanks shall be permitted on ~he premise£. ~1. Title ~0 Improvements. Upcn completio~ of construction and issuance of a certificate of occ2pancy, the improvemencs described in paragraph 10 includ2ng any further improvements to The premise~ approved by the Commission, shall become property of City, free and clear cf all claizs of Lessee, any one claiming under Lessee or caused, permitte! or suffere~ to attack through Lessee. Lessee or any one clais2ng under Lessee, shal~ indemnify and defend 3ity against all liak21ity and less arising from such claims. 22. Maintenance. Lessee shall ~eep and maintain the Leased premises aKi all imprcvements in good and substantial repair and ~ondition, 2ncluding %he extericr condition. Lessee s~all make all necessary repairs and alterations and shall maintain the 2eased pre~Lses and ail improvements in compliance with all applicable 2uilding and zoninq is~s and all other laws, crdinances, orders and requirements of all authorities having or claiming jurisdiction. Lessee saall provide proper containers for trash and garbage and shall keep the leased premises free and clear of weeds, rubbish, debris, and litter at all times. City shall at al2 times during ordinary business hours have 5he right To enter uprn and inspect such premises. 53. Utilities. Lessee shall prcmpt!y pay any charges for electricity' and all other charge~ for utilifles which 5ay be furnished t~ the leased premises at Lessee's order or consent. 14. Liens, Taxes. Lessee shall pay all su~s of money that become due for any labor, services, materials, supplies, utilities, furnishings, machinery or equipment which have been furnished cr ordered by Lessee w~ich may be secured by lien against the premises. Lessee shall pay all real and personal property taxes assessed against 5he premises, such payments to be nade no later than November 15 of the year in which the taxes kecome due and payable, and will submit a ccpy of the receipt for The taxes t~ the City's Director of Finance. ~AGE 6-HANC-~_R GROUND LEASE 15. Insurance. Lessee shall obtain and maintain continuously in effect at al2 times during the term of this lease, at Lessee's s~le expense, the following insurance: 15.1. Comprehensive insurance. Owner's, landlord and tenant or premises insurance protecLing city and its officers, a~ents and employees against any and all liabi2ities that may a21egedly in any way relate to the operation bY Lessee, tkis i~surance to De in the ~nimum amount of $500,C00, combine~ s2ngle limit coverage. Such limit shall automaLically increase i~ the event of any chan~e in the provisions of ORS 30.27C, or in tke event these limits are found to be not totally applicable to a city. 15.i.1. Addit2onal insureds. Ail p¢!icies shaL~ iL31ude the C~ty, its officers, commissions, e2ected officials, eEployees and agents as additional insureds. 15.2.2. Primary insurance. The insurance shall be considered primary to an~' other insurance or se~f-insurance of tke City. 15.2.3. Insurance certificate. A certificate evidencing surh insurance coverage shall be fi2ed with the City prior to the effective dale of this lease, and such certiflcate sk~!l provide that such ~nsurance coverage may not be canceled or reluced or ckLnged in an? way adverse to the City without at least 30 days prior writ%en notice to the CiLy. The polic>- shall be continuous until canceked as stated above, if such insurance ccverage is canceled or changed, Lessee shall, not later tkan 15 da}-s prior ~c 5he termina%ion or change in the ~nsurance cc'.'erage, file with the City a certificate sho~ng that the required insurance has been reinstated or provided through another insurance company- or companies. In the event Lessee shall fail to furnish the City with ~he certificate of insurance required, Cit? may secure the required insurance or self-insure at the sole ccst and expense of Lessee, and Lessee agrees ~o reimburse City promptly for the cost, plus ten. percent of 5he cost for City administration. 15.2. Property Insurance. Lessee shall keep the prenises insured at Lessee's expense against fire and otker risks ccvered by a standard fire insurance policy with an endcrsement for ex~ended coverage. Lessee shall bear the expense of any insurance insuring the property of Lessee on the premises against such risks bu~ shall not se required to insure. 15.2.1. Additional insureds. Ail po2icies shal2 include the Clty as an additional insured. 15.2.2. Waiver of Subroqa~ion. Neitker party skall be liable to the other (or to the other's successors or assigns) for an}' loss or damage caused by fire or any of the risks enumerated ~n a standard fire insura2ce policy with an extended coverage PAC-E 7-HANGAR ~ROUND LEAS-_- endorsement, and an the event 3f insured loss, neither party's insurance company shall have a subrogated claim against the other. This waiver shall be valid only if the insurance polic? in question expressly permits waiver of subrogation or if the insurance company agrees in writing that such a %fairer will non affect coverage under the polities. Each party agrees to use best efforts to oknain such an agreement from its insurer if the policy does not e>~ressly per, it a waiver of subrogs%ion. 16. Indemnification. Lessee shall keep, indemnify and defend and hold harmless City, its officers, agents and employees, frcm and against any ax~ all claims, demands, suits, jud~nents, costs, and expenses, including attorney's fees asserted by any person 3r persons, includin9 agents or enployees of the City cr Lessee, ?; reason of death or injury to ~ersons or loss or damsge to property that allegedly results from Lessee's operations, or anything done or ~ermitted by Lessee under this lease, excep~ for the exzent attributed to acts pr omissions of City 2f its officers, agents cr employees. 17. Damaqe or Deszruction of Premises. if the or any improvements are damage~ or destr~)'ed by casualty, Lessee stall: leased premises fire or other 17.1. Promptly repair, rebuilt or restore the property damaged or destro':'ed to substantially the same condlzion consis5ent with the applicable building codes; and 17.2. Apply for any net proceeds cf insurance resulting from claims for such losses, as well as any additional money of Lessee necessarv. If the damage or destruction Ynich occurs is such that Khe cost of repair, rebuilding or restoration of %he property damaged or destroyed exceeds 50% of the fair market value of the improvements, Lessee shall have the opticn within 6[ days from the date of damage or destruction, to no%ify City in writing whether or not Lessee elects zs repair, rebuild, or restore in accordance with paragraph 17.' or to ~erzinate this lease. Upon giving such notice to terminate, this lease shall terminate on the date specified in the notlse and Cit)' shall be entitled %0 the nez proceeds cf insurance. 18. Events of Default. The following shall be evenKs of' defaul%: l&.l. Default in Rent: ?ailure of Lessee to pay any rent or other charge within ten days after it is due. 1~.2. Defaul5 in Other Covenants: Failure of Lessee to comply with any term or condition or fulfill any obligation of the lease (other :han the pa!/n~ent of renz or other :harges) within 30 days af:er %~itten notice by City specifying the nature of the default, if the defaui: is such that it cannot be PAGE 8-HANGAR GROiJD LEASE ~v:~i.~:,~.gro~l.ise)(~a.~t~l~ 993) completely remedied within the thirty (30) day peri~d, this provision shall be complied wi%h if Lessee begins c~rrection of the default within ~he 30 day period and proceeds in good faith to effec5 the remedy as soon as practicable. 18.3. Insolvency: Insol~-ency of Lessee and assignment by Lessee for the benefit of creditors; the filing by Lessee of a voluntary petition ~n bankruptcy; an adjudication that Lessee is bankrupt or the appointment of a receiver of the prcperties of Lessee; the filing Df an involuntary petition of bari<ruptcy and failure cf the Lessee to secure a dismissal of the ~etition within 30 days after filing; attachment of er the levying of execution on the lessehold interest and faiiure cf 5ne Lessee t~ secure discharge of the attachment or release of ~he levy of executio~ within ten days. 19. Remedies on Default. In ~he event of a default, the City its option may terr~nate the le~se by notice in w~it~ng by certified or registered mail tc Lessee. The notice nay be giveL before or within tklrty days afser the running of tAe grace period for default 5nd may be included in a notice cf failure cf compliance. If 5he property is abandoned bY Lessee 2n connecsi~n with a default, termination shall be automasic and %'!thout notice. 19.1. Damaqes: In the event of terminasion of iefault, City shall be entitled t~ recover i~ediately the foil©wing amounts as ~amages: 19.1.1. ~ne reasonak!e cost of re-entr%- and relettin~ including the ~ost of any clean up, refurbis~i~.~, removal cf Lessee's propersy and fixtures, or any other e>~ense occasioned by Lessee's failure to quit the premises upon termination an! to leave the premises in the required condition, any remodeling costs, attorney fees, court costs, broker commissions and advertising cost. 19.1.2. ine loss of reasonable lease fee ',-alue from the date of default until ~ new tenant has beeK or, with tka exercise of reasonable efforts could have been secured. 19.2. Re-en~r? 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 czligations cf the parties shall be as follows: 19.2.1. Lessee shall vacate the proper~zy immediately, and within 60 days remove any property ~f Lessee including any fixtures which Lessee is required tc remove at the end of the lease term, perform any cleanup,, alterations or other work required ~o leave the property in the ccndi~ion required at the end of the term. PAGE 9-HA~GAR GROUq~E LEASE ~:~i~a.~)(~c~ i~. 1993) 19.2.2. City may re-enter, take possession of t/qe premises and remove any persons or property by legal action or by self-help with tke use of reasonable force and without liability for damages. 19.3. Reletting: Following re-entry or abandonment, City may relet the premises and in that connection may: 19.3.1. Make any suitable alterations or refurbisk the premises, or both, or change the character or use of ~he premises, but City shal! not be re~aired 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 Ci%y may reasonably consider objectionable. 19.3.2. Relet all or part of ~he premises, alone cr in conjunction with other ~roperties, 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 osher lease fee concession. 20. Termination. Upon termination of the lease by the passage of time or otherwise, Lessee shall surrender the leased pre~mises in good condition. The Lessee's obligations under this paragr_aph shall be subordinate to the ~rovisions of paragraph 11 relatei to improvenents as required and the City shall have the remedies described in paragraph 19. 21. Assiqnment of Interest er Riqhts. ~either Lessee or any assignee or other successor cf Lessee shall sublease, assig~n, transfer or encumber any of Lessee's rights in and to this lease or any interest, nor license or permit the use of the righ~ 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 throucn 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 unreascnably withheld. 21.1. Riqht of first rafusal. Cit~' shall have the following described right of first refusal with respect to the interest of Lessee under this lease: 21.1.1. Les'see shall not sell, sublease, assign or transfer to anyone other than City, unless Lessee shall kave first communicated to Cisy, by written notice, a writ~n offer to sell, sublease, assign or transfer this lease or any interest, which offer shall specify, in commercially reasonable detail, the price, terms an~ conditions upon which Lessee is willing 5o sell, sublease, assign or transfer this lease or any interest. PAGE 10-HANGAR GROUND LEASE ~r~l~)~:~ ~3) 21.1.2 City shall have a period of 30 deys, following the notice, within which to accept the offer uy giving Lessee writ%en notice cf 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 ray be specified in the offer. 21.1.3 If city does not acceut the offer, Lessee may sell, sublease, assign sr transfer the lease cr any interest tD any other party, provided that such a sale must be consummated within 60 days following the earlier of the expiration cf the 30 day acceptance period specified in 2!.1.2 for the offer or the date cf any written rejection of the offer b>- City, and for and upon the same ~rice, terms and conditions as those specified in the offer. 21.1.4. City's rights under this paragraph shall apply any subsequent or concemporanecus offer made to Lessee or Lessee's sucressor or successors in interest. 21.2 Option to Purchase Lessee's interest, in addition the right of firs% refusal described in paragraph 2~.1, City shall nave the exclusive righ5 and option to purchase all of Lessee's rights under this le~se upon the following terms and conditions: 21.2.1 If city exercises this option, the purchase price during the initial year of this lease fcr Lessee's rights under this lease shall be $£~,000 or the actual reasonable construction cost of the hangar, whichever is greater. The purchase Frice during each subsequent year shall be the purchase price determined in the immediately preceding sentence less !/25th of such purchase price for each full yesr the lease has been in effect. 21.2.2 This option shall be exercised by written nctice given by city to Lessee at any time, which notice shall specif}' that City nas elected to exercise this optiDn. 21.2.3 Closing shall occur as soon as possible following exercise of this option ky City and, in any event, ncc later than the 35th ~ay following the date of exercise of this option. 21.2.4 At closing, Lessee shall deliver to City a duly executed and acknowledgei statutory quitclaim deed quitclaiming all of Lessee's rights and interest in the premises free and clear Df all liens and encumbrances of Lessee, anyone claiming under Lessee or caused, permitted or suffered to attach through Lessee. PAGE Ii-HANGAR GRCUND LEASE 2i.2.5 At 2losing, City shall pay to Lessee in cash the entire amoun5 of the purchase price. 2i.2.6. Ci57's rights under this paragraph shall apply to an? successor of Lessee and shall apply whether or not City exercises its rights ulcer paragraph 21.1. City may not exercise its rights under this paragraph while the Lessee who signel this lease is in possession and has not sold, subleased, 5ssigned cr transferrefi its interest in the lease. For the ~lrposes of 5his subparagraph, a devise under a will to a son or daughter of the Lessee shall not be considered a sale, sublease, assignmen% or transfer. 21.3. Subleases ~ithout coxsent. Lessee may subiease a portion of nhe premise~ for the purpose of ~%acing a second ~ircraft within the hangar without consent cf City provided that: 21.3.1. Lessee gives placiL~ of the a2rcraft in occurred, and nmtice to City prior tc the zee hangar znat such sublease has 11.3.2. Lessee pays tc City 20% cf all sums received by Lessee for the sublease. Such payment shall be made to City within 30 da;s of Lessea's receip% of the sum by Lessee. 22. Nonwalver. Waiver by either party of strict performance of shy proviszln of this lease shall noL be a w5iver of or prejudice the party's right to require sLriz% performance of the same ~rovision iz the future or of any other provision. 13. Consent of City. Whenever zonsent, approval or direction zv the City is requirez, all such consent, aDproval or direction shall be received in writing fror the City Aiministratcr. 24. Notices. All notices required under thls lease shall be deemed to be properly served if sent by certified or registered ~ail to the last address previously furnished by the parties. Until changed by the p~rties by nstice in writing, notices shall he sent to: CITY: City of Ashland £D E. Main S5reet ~shland, OR 97520 Attn: City Afiministrat~r LESSEE: LESSEE Yitle CITY ~ASHLANE Maycr Yitle ATTEST: City Rerorder PAGE 12-HANSAR GROUND LEASE to:airl:.:wxT~r~nnd.lseh'~Marchl8, 1993, State of Oregon County of Jackson This in.strument was acknowledged before me cn L6C .L ~-7 , 1993, NOTARY ~"~ ~'~ ~U~ - O~N ~y Corem%ss%on Exp'es~-~' f ~ Nd~ary ~Public for Oregon My commission expires: ~/-~-g~/' State of Oregon County of Jackson This instrument was a~knowledged before me cn , 1993, by as of the City of Ashland, Dregon. Notary Public for Cregon My Ccmmission expires: PAGE 13-HANGAR GROUND LEASE EXHIBIT A from ~1:. Description of leased premises. PAGE 14-F~ANGAR GROL~D LEASE