HomeMy WebLinkAbout1993-128 Lease Agrmt - SkinnerFIXED BASE OPERATOR LEASE AGREEMENT
FOR THE ASHLJkND MUNICIPAL AIRPORT
Lease made January 10, 1993, 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 as "the airport".)
B. Lessee desires to lease a portion of the airport for the
purposes described below.
City and Lessee agree:
This lease is made as a result of a Request for Proposals
(RFP) issued by City in 1992 entitled "REQUEST FOR PROPOSALS
For a Fixed Base Operator, Ashland, Oregon Municipal
Airport" and any addenda issued by City. Lessee submitted a
proposal in response to the RFP on November 2, 1992. In
the event of any inconsistencies in the terms of this lease,
the RFP and the proposal, this lease shall take precedence
over the RFP which shall take precedence over the proposal.
1. Description of leased premises, city shall lease to Lessee
as a Fixed Base Operator (FBO) a part of the Ashland Municipal
Airport, consisting of the aircraft fueling system and storage
tanks, the terminal building, the maintenance hangar, eight
tiedown spaces and five parking spaces for rental cars, along
with ingress and egress, as more particularly shown on the map
attached as Exhibit A, known as the Airport Layout Plan. Unless
from the context a different meaning is intended, the term
"property" refers to unimproved real property, and the term
"premises" refers to the real property and any improvements
located or constructed for use during the term of this lease.
2. Term. The term of this lease is five years and 12 days,
commencing at 12:01 A.M. on January 19, 1993.
2.1. Extension of aqreement. This lease may be extended
for additional terms if no material breach is existing or
continuing in the performance of any of the provisions of this
agreement by an exchange of correspondence between lessee and the
person authorized to administer the agreement on behalf of the
city.
2.1.1. The renewal term shall be on the same terms,
covenants and conditions as provided in this lease except
that there shall be no privilege to extend the term of this
lease beyond the expiration of the one renewal term.
2.1.2. Lessee shall exercise the right to a renewal in
the following manner: At least 60 days prior to the
expiration of the initial term, Lessee notifies Lessor in
writing of it's election to exercise the right to renew the
term of this lease.
PAGE 1-FBO LEASE ~:ai~o~mo. LsO
2.1.3. On the giving of such notice of election, this
lease, subject to the terms of this provision, shall be
deemed to be renewed and the term renewed for a period of
five years from the date of expiration of the initial term
without the execution of any further lease or instrument.
3. Rental to City. Lessee agrees to pay to the City during the
term of this agreement, the following sums and amounts:
Rent. The rental of $1,075 per month during the term of
this Lease. Rental shall be paid monthly in advance on the first
day of each month. The first rental payment shall be due February
1, 1993. The monthly rent shall increase annually, but not
decrease, by multiplying the rent by a fraction, the numerator of
which is the CPI Index Figure for the month of January of that
subject calendar year, and the denominator of which is the Base
CPI Index Figure. To illustrate the preceding sentence, the
monthly rent for the year beginning one year from the date of
this agreement shall be equal to the product determined by
multiplying $1,075 (the rent specified in paragraph 3), by a
fraction, the numerator of which is the CPI Index Figure for the
month of September, 1993, and the denominator of which is the
Base CPI Index Figure. As used in this section, "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 ("standard reference base period" 1982-84 = 100).
"Base CPI Index Figure" shall refer to the Index number indicated
for the month of January, 1992, and the "CPI Index Figure" for
any other month shall refer to the Index number for that month.
If the "Index" is no longer being published as of a particular
date, then the "CPI Index Figure" for that date 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 Index (or, if the U.S.
Department of Labor is not then publishing any such similar
index, shall be determined under another comparable,
authoritative, generally recognized index to be selected by
mutual agreement of Lessor and Lessee). If the Inde× is
calculated from a base different from the base 1982-84 = 100,
then the figures to be used in calculating any adjustment
mandated under this Agreement first shall be converted (if
possible, under a formula supplied by the Bureau of Labor
Statistics of the U.S. Department of Labor) to account for that
difference.
Flowaqe fee. A flowage fee of $.05 per gallon on all
aviation fuel products delivered to Lessee at the airport. This
fee is payable on fuel used by Lessee or sold to the public and
shall be paid by the tenth of the month following the month in
which the fuel is used or sold.
Freiqht handlers fee. A monthly freight handlers fee
administered by Lessee of 75% of the gross collected. This fee
PAGE 2-FBO LEASE (p:airport\fbo. Lse)
shall be paid by the tenth of the month following the month in
which the fee is collected. The freight handlers fee shall be
collected by Lessee from all freight handlers at the time freight
is handled at the airport.
Tiedown fees. A monthly tiedown fee administered by Lessee
of 75% of the gross income from any City-owned tiedown space,
excluding those spaces designated for use by Lessee for aircraft
owned or leased to Lessee. This charge shall be paid by the
tenth of the month following the month in which the tiedown fee
is collected. Tiedown fees shall be collected at least monthly
or more often as necessary. Lessee shall not rent its tiedown
spaces unless all of the City's tiedown spaces have been rented.
Hanqar rentals. 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 tenth of the month in which the
rental is due. Lessee may assess such charges as may be
permitted under the leases for late rental payments.
Fuel and inventory. Ail fuel existing in the fueling system
on the first day of this lease shall be purchased by Lessee from
City at a price equal to City's cost. Other inventory such as
maps existing on the first day of this lease shall also be
purchased by Lessee from City at a price equal to City's cost.
Payment for fuel and inventory shall be made within 30 days of
the date this lease begins.
3.1. Mode of payment. Lessee agrees to pay all sums due
without notice by check payable to the City of Ashland, delivered
or mailed to the Finance Department, City Hall, 20 East Main
Street, Ashland, Oregon 97520.
3.2. Delinquency charqe. A delinquency charge of 1.5% per
month shall be added to payments required by this Lease Agreement
which are more than ten days delinquent.
3.3. Records. Lessee shall keep records in its usual and
customary manner of all sales and volumes that serve as the basis
for any additional rent that may be due the city under this
lease. Such records shall be open for inspection by City, but
not more frequently than once in any six month period, and only
upon ten days' prior written notice to Lessee. Such inspection
shall be performed at a reasonable time at Lessee's office. In
no event shall Lessee be required to keep such records for more
than two years.
4. Purpose. Lessee shall provide a service at the airport
solely for the uses and purposes relating to conducting the
business of a Fixed Base Operator as described in the "Minimum
Standards at Ashland Municipal Airport, Ashland, Oregon" adopted
by the City Council on January 4, 1990 (further referred to in
this agreement as "the minimum standards") as they now exist or
PAGE 3-FBO LEASE
as they may be required to be changed in the future by the Oregon
Aeronautical Division or the FAA. Any other changes to these
standards shall not apply to Lessee unless mutually agreed upon.
4.1. The maintenance hangar shall be used to provide
maintenance of aircraft and other airport related uses. Portions
of the maintenance hangar may be sublet on a month to month basis
for other uses provided that the primary use of the hangar is
airport related and provided that the need for aircraft
maintenance does not require the use of the sublet portions.
4.2. The five parking spaces shall be used by Lessee for
the parking of rental automobiles to be rented by Lessee to the
public. Installation of signs identifying the spaces shall be at
nessee's cost.
5. Public Benefit. Lessee agrees to operate the premises for
the use and benefit of the public and to make available to the
public on fair and reasonable terms all leased airport facilities
and services at reasonable prices so as to result in a reasonable
profit to Lessee.
6. FAA Exclusive Riqhts Prohibition. Nothing contained in this
agreement shall be construed to grant or authorize the granting
of exclusive rights within the meaning of Section 308(a) of the
Federal Aviation Act of 1958 as amended.
6.1. City shall require of other lessees or permittees at
the airport to comply with substantially the same requirements of
Lessee, if applicable, as set forth in this lease, city shall
enter into such leases or grant such permits in a manner so as to
not favor any lessee or permittee over Lessee under this lease.
It is the intent of the parties that Lessee be treated by City on
an equitable basis with other lessees and permittees of City so
that Lessee is not put in an unfair advantage.
6.2. City recognizes Lessee as the general manager of the
airport under the direct supervision of the City's public works
director or designee. As such, City grants Lessee the authority,
at Lessee's sole discretion, to monitor other lessees and
permittees at the airport and the public who use the airport
facilities. Control and enforcement of the leases and permits
shall be the responsibility of the City through the public works
director or designee.
7. Insurance. Lessee shall obtain and maintain continuously in
effect at all times during the term of this agreement, at
Lessee's sole expense, the following insurance:
7.1. Comprehensive insurance. Comprehensive general
liability 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 $500,000, combined single limit
PAGE 4-FBO LEASE (p:airpo~',\lbo. Ls~)
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.
7.2. Additional insureds.
City, its officers, commissions,
agents as additional insureds.
Ail policies shall include the
elected officials, employees and
7.3. Primary insurance. The insurance shall be considered
primary to any other insurance or self-insurance of the City.
7.4. Insurance certificate. A certificate evidencing such
insurance coverage shall be filed with the City prior to the
effective date of this agreement, 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. 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.
8. Indemnification. Each party (the indemnifying party) shall
defend and indemnify the other party, their officers, agents, and
employees (the indemnified parties), from any and all claims,
actions, costs, judgments, damages or other expenses resulting
from injury to any person (including injury resulting in death,)
or damage to real or tangible personal property (including loss
or destruction), caused by the negligence or other tortious acts
of the indemnifying party (including, but not limited to, acts
and omissions of the indemnifying party's officers, employees,
agents, contractors, and subcontractors). The obligations stated
in this section shall be subject to the following conditions:
8.1. The indemnifying party shall be notified in writing of
any claim promptly after the indemnified party becomes aware
of it;
8.2. The indemnifying party has sole control of the defense
of such claim and of all negotiations for its settlement or
compromise; and
8.3. The indemnified party gives the indemnifying party
information reasonably available and assistance necessary to
facilitate the settlement or defense of such claim and, to
the extent permitted by law, the indemnified party makes any
PAGE 5-FBO LEASE
defenses available to it available to the indemnifying
party.
The indemnifying party's indemnity obligation under this section
shall be reduced to the extent by which the liability, damage, or
expense results from the negligence or other tortious acts of the
indemnified party, the indemnifying party's officers, employees,
or agents, or a third party.
City's duty to indemnify Lessee shall be subject to the
limitations imposed by the Oregon Constitution, applicable
statutes, and by the Oregon Tort Claims Act.
9. Additional responsibilities of Lessee. Lessee further agrees
to:
9.1. Utilities. Initiate, contract for, and obtain, in its
name, all utility services required on the premises, including
gas, electricity, telephone (including at least one separate
telephone line for the sole use of communicating with the FAA and
for local calls), water, and solid waste collection and services,
and pay all charges for those services as they become due. If
Lessee fails to pay the charges, City may elect to pay them and
the charge will then be added to the rental installment next due.
9.2. Irrevocable election. Make an irrevocable election
(binding on Lessee and all successors in interest under this
agreement) not to claim depreciation or investment credit with
respect to any property financed with tax-exempt obligations of
the City (including all property used by Lessee under this
Agreement); (2) Lessee certifies to the City that the term (as
defined in 168(i) (3) of the IRS Code) is not more than 80 percent
of the expected economic life of the property used by Lessee
under this Agreement (as determined in Section 147(b) of the IRS
Code); and (3) Lessee acknowledges that it has no option to
purchase any such property.
9.3. Limited office space. Certify that it will not use
any part of the hangars financed with proceeds of any tax-exempt
obligations issued by the City for office space, except for
office space that is de minimis in size and cost and that is
directly related to its day-to-day operations at the airport as
required by Section 142(b) (2) of the IRS Code.
9.4. Prohibited uses. Not use or permit the use of the
premises as any lodging facility, any retail facility (including
food and beverage facilities) in excess of a size necessary to
serve passengers and employees at the airport, as any retail
facility (other than parking) for passengers or the general
public located outside the terminal, as an office building for
individuals who are not employees of the City, or as any
industrial park or manufacturing facility. No part of the
premises financed with any portion of the proceeds of any
tax-exempt obligations issued by the city shall be used to
PAGE 6-FBO LEASE
provide any airplane, skybox or other private luxury box, health
club facility, a facility primarily used for gambling, or store
the principal business of which is the sale of alcoholic
beverages for consumption off-premises as prescribed by Section
147(e) of the IRS Code.
9.5. Inspections. Lessee shall inspect at least once
weekly all lighting at the airport, including, but not limited
to, runway, VASI, REIL, taxiway and beacon lights. Any
malfunction shall be immediately reported to City.
9.6. Graphics and Signs. Ail graphics and signs on the
premises shall be consistent with the objectives and conform to
the regulations for graphics and signs as contained in the rules,
regulations, and ordinances of the City of Ashland as they now
exist or may be amended in the future, and as accepted by FAA
requirements.
9.7. Proposals made in response to RFP. The following
proposals made in the Lessee's response to the RFP and
specifically incorporated into this lease: (e.g. staffing
levels, operating hours, parts to be stocked, etc.)
10. Improvements, alterations, maintenance:
10.1. Alterations or Improvements. Lessee may not make
alterations or improvements without the prior written consent of
City, which consent shall not be unreasonably withheld. Prior to
any construction, construction plans must be approved by the City
in writing as to the physical and aesthetic design, site
location, color, landscape design, parking, and land use. All
alterations or improvements that Lessee may desire to make to the
premises shall be done by Lessee and at the expense of Lessee.
The term "improvements" means any buildings, structures, or
facilities placed or erected on the property. All such work
shall be done in a good and workerlike manner in compliance with
all applicable building and zoning laws and ordinances.
10.2. Ownership of Improvements. Title to all improvements
made by Lessee of a permanent nature shall be the property of
Lessee. Provided, however, that at the expiration of this lease,
or sooner termination thereof, all right, title and ownership of
the improvements, including the existing hangar, shall pass to
the City who may dispose of such improvements or use such
improvements as it sees fit for its own benefit, city reserves
the option of moving the hangar and any other improvements,
during the term of this lease, to any other location on the
airport that it deems in its best interest with reasonable
notification given in advance to Lessee.
10.3. Maintenance and Repair. City shall be responsible
for the maintenance of the roof, structural items, plumbing,
electrical, heating, ventilation and air conditioning and
exterior painting of the buildings being leased and for the radio
PAGE 7-FBO LEASE
and weather systems. Ail other repairs and maintenance of any
kind or nature, including but not limited to maintenance of
operating condition of doors and windows or replacement of glass,
repair and maintenance of interior walls, ceilings, doors,
windows, floors and floor coverings, shall be the responsibility
of Lessee. Lessee shall be responsible for Lessee's use and its
employees', agents', or invitees' use of the premises. Lessee
shall, at the expiration of termination of this agreement,
surrender the premises in as good order and condition as when
received, reasonable wear and tear, damage from the elements,
fire, acts of God or other casualty excepted. Lessee shall be
responsible and shall pay for all damage or injury done to the
premises by Lessee or any person who may be in or on the premises
with the consent of Lessee.
10.4. Upkeep. Lessee shall keep the premises and buildings
under its control clean and in a neat condition and provide for
janitorial services, including such services for all public
restrooms. Lessee acknowledges that City will keep one restroom
open to the public at all times and that Lessee shall be
responsible for its maintenance and upkeep. The premises shall
be kept in good repair, free of waste material and debris.
Landscaping shall be maintained and properly watered in a
reasonable fashion.
City reserves the right to conduct periodic on-site inspections
to insure compliance with this section.
11. ComDliance with laws. Lessee shall promptly observe and
comply with all laws specified below and all reasonable laws,
orders, regulations, rules, ordinances and requirements of
Federal, State, County and City governments with respect to the
use, care and control of the leased premises, except in the event
where Lessee reasonably objects to the application of any such
law, order, regulation, rule, ordinance or requirement, and
proceeds in good faith with all reasonable and necessary
diligence to protest the same and provided Lessor's interest in
the premises is not jeopardized.
11.1. The effluent standards or prohibitions established
under Section 307(a) of the Clean Water Act for Toxic Pollutants.
Lessee shall install all facilities necessary for the operation
and shall properly operate and maintain all facilities and
systems and related appurtenances of treatment that are required
to keep compliance with the Clean Water Act for Toxic Pollutants.
11.2. Except for structural alterations, Lessee shall be
solely responsible for any improvements, alterations or repairs
to the premises required pursuant to the Americans with
Disabilities Act.
11.3. Lessee compliance with environmental laws.
Definition of "hazardous material". As used is this paragraph,
the term "hazardous material" means any hazardous or toxic
PAGE 8-FBO LEASE
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 those laws cited in this subparagraph.
11.3.1. 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, provided, however, that
for the existing fuel system facility, the City shall be
responsible for any required annual fuel tank testing, any
required annual reports. Liability and responsibility for
ensuring compliance with environmental laws for the existing
fuel system facility shall also be the city's.
11.3.2. Limitation on uses of hazardous materials.
Lessee shall not use or allow any agents, contractors or
subtenants to use premises to generate, manufacture, refine,
transport, treat, store, handle, recycle, release or dispose
of any hazardous materials, other than at reasonably
necessary for the operation of Lessee's activities as
contemplated under this agreement.
11.3.3. City's Riqhts. City shall have the right to
conduct reasonable inspections and investigations of
premises and the operations conducted on premises at any
time and from time to time, and Lessee shall cooperate fully
with City during such inspections and investigations.
11.3.4. Indemnification. Lessee agrees to defend
(with counsel approved by City), fully indemnify, and hold
entirely free and harmless City from and against all claims,
judgments, damages, penalties, fines, costs, liabilities, or
losses (including, without limitation, diminution in value
of premises, damages for the loss or restriction on the use
of rentable or usable space or of any amenity of premises,
damages arising from any adverse impact on marketing of
space, sums paid in settlement of claims, attorneys' fees,
consultant fees, and expert fees) which arise during or
after the lease term and which are imposed on, or paid by or
asserted against City by reason or on account of, or in
connection with, 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, contractors, or
PAGE 9-FBO LEASE
subtenants. Lessee shall not be held responsible for
damages caused by the negligence of City.
11.3.5. DEQ records. Lessee shall keep such records
as may be required by DEQ for monitoring of the underground
fuel tanks.
11.4. To the extent permitted by law, city agrees to
indemnify Lessee from and against all claims, judgments, damages,
penalties, fines, costs, liabilities, or losses (including,
without limitation, sums paid in settlement of claims, attorneys'
fees, consultant fees, and expert fees) which arise during the
lease term and which are imposed on, paid by, or asserted against
Lessee by reason of the presence of hazardous materials in the
soil, groundwater, or soil vapor on or under the premises, except
to the extent that the hazardous materials are present as a
result of Lessee's activities on the premises, or the activities
of Lessee's agents, contractors, or subtenants.
12. Assiqnment.
12.1. Lessee shall have the right to assign the whole or
any part of Lessee's rights and duties under this Lease, subject
to the written approval of the City, which such approval shall
not be unreasonably withheld. The City, in considering approval,
may take into consideration the experience, qualifications and
financial ability of the proposed assignee to do the obligations
required of Lessee, and to operate the airport for the benefit of
the public.
12.2. For the purposes of this paragraph, the sale,
assignment, transfer, or other disposition of any of the issued
and outstanding capital stock of Lessee, or a change in principal
officers or directors of the corporation, if Lessee is a
corporation, or of the interest of any general partner or joint
venturer or syndicate member or cotenant, if Lessee is a
partnership or joint venture or syndicate or cotenancy, which
shall result in changing the control of Lessee, shall be
construed as an assignment of this lease. Control, as used in
this paragraph, means 50 percent or more of the voting power of
the corporation.
13. Federal preeminence. Ail rights, privileges and liabilities
imposed by this agreement are subject and subordinate to any
conditions, restrictions, limitations, rules, regulations or
future requirements for modification of this agreement, by any
agreement or contract pertaining to the Airport between the
United States Government or any other department or agency of
either the United States Government or the State of Oregon.
14. Minority Business Plan. As required by the FAA, Lessee
agrees to the terms and conditions of the City's adopted Minority
Business Plan currently in effect with the FAA and to be amended
from time to time.
PAGE 10-FBO LEASE ~:ai~omfbo. Ls¢)
15. Termination. This lease may be terminated upon proper
notice 90 days in advance of such termination date, and upon the
following conditions:
15.1. Termination by Lessee. This agreement shall be
subject to termination by Lessee in the event of any one or more
of the following events:
15.1.1. The abandonment of the Airport as an airport
or airfield by the City.
15.1.2. The default by the City in the performance of
any of the terms, covenants or conditions of this agreement,
and for the failure to continue for a period of 30 days
after receipt of notice from Lessee concerning the default,
provided that if the remedy takes longer than 30 days, then
the term of notice shall be so extended.
15.1.3. Damage to or destruction of all or a material
portions of the Airport, and which are necessary for the
operation of Lessee's business, and election by City not to
replace such improvements within six months after
destruction.
15.1.4. The lawful assumption by the United States, or
any authorized agent of the operation, control, or use of
the Airport, or any substantial part or parts, in such a
manner as to substantially restrict Lessee from conducting
business operations for a period in excess of 90 days.
15.2. Termination by City. This agreement shall be subject
to termination by City in the event of any one or more of the
following events:
15.2.1. Failure to pay the basic or percentage fee or
failure to pay any money due to the city as set forth in
this agreement on the due date after ten days written notice
by City to Lessee.
15.2.2. The default by Lessee in the performance of
any of the terms, covenants or conditions of this agreement
(other than payment of the basic or percentage fees or any
other money due), and the failure of Lessee to remedy or
undertake to remedy, to city's satisfaction, such default
for a period of 30 days after receipt of notice from city to
remedy the same.
15.2.3. The filing of a voluntary petition in
bankruptcy, including a reorganization plan, or filing in
Chapter 11 of the Bankruptcy Act, and general or other
assignment for the benefit of creditors, or as adjudicated
as bankrupt or if a receiver is appointed for the property
or affairs of Lessee.
PAGE ll-FBO LEASE ~;~iwo~%~o. LsO
15.2.4. The failure to conduct the business or to
perform any duty as required in section 5.
16. Removal of Property. Upon termination of this agreement,
Lessee, at its sole expense, shall remove from the premises
temporary structures, signs, trade fixtures, furnishings,
personal property, equipment and materials owned by Lessee and
which Lessee was permitted to install or maintain under the
rights granted under this agreement. If Lessee shall fail to do
so within ten days, City may, at its option, effect such removal
or restoration at Lessee's expense, and Lessee agrees to pay City
such expense promptly upon receipt of a proper invoice. Any
improvements not removed by Lessee pursuant to this paragraph
shall become the property of city without any right of Lessee to
compensation or reimbursement.
17. Affirmative Action Proqram. Lessee assures that it will
undertake an affirmative action program as required by 14 CFR
Part 152, sub-part E, to insure that no person shall, on the
grounds of race, creed, color, age, national origin or sex, be
excluded from participating in any employment activities covered
in 14 CFR, Part 152, sub-part E. Lessee assures that no person
shall be excluded on these grounds from participating in or
receiving the services or benefits of any program or activity
covered by the sub-part. Lessee assures that it will require
that its covered sub-organizations will provide assurances to the
City that they similarly will undertake affirmative action
programs and that they will require assurances from their
sub-organizations as required by 14 CFR, Part 152, sub-part E to
the same effect.
18. Taxes. Lessee covenants and agrees to pay all real and
personal property taxes assessed against the lease property, and
the Ashland Airport during the term of this Lease, 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.
18.1. In the event that there is a change in the method
upon which property taxes are imposed upon the Lessee and such
change increases the property tax liability of the Lessee, city
and Lessee agree to renegotiate rental payments to reflect the
change.
19. Public Use. Lessee shall also have a non-exclusive right to
use, in common with others, all public airport facilities and
improvements of a public nature which are now, or which in the
future may be, connected with, appurtenant to, landing, taxiing,
parking areas, and other facilities.
20. Construction by Lessor. It is further understood and agreed
that the Lessor may choose to do construction work or maintenance
work on portions of the airport, and accordingly, the Lessor may,
when reasonably necessary, close the airport so that Lessee will
PAGE 12-FBO LEASE ~:ai~o~\~o. Ls¢)
be required to temporarily suspend activities, and will not have
ingress and egress to its premises.
~bert A. Skinner
CITY
/ city Administra~/
PAGE 13-FBO LEASE ~:ai~om\~o. Ls¢)
EXHIBIT "A"
FIXED BASE OPERATOR LEASE
BETWEEN
CITY OF ASHLAND
AND
ROBERT A. SKINNER
JANUARY 12, 1993
LEASE INCLUDES F.B.O OFFICE, MAINTENANCE HANGAR, FUELING
FACILITIES AND FIVE (5) PARKING STALLS AND
EIGHT (8) AIRCRAFT TIEDOWNS AS NOTED
FUEL
MAINTENANCE
HANGAR