HomeMy WebLinkAbout1997-102 T-Hangar Rental-Fitch
CITY OF ASHLAND
T-HANGAR RENTAL AGREEMENT
ASHLAND MUNICIPAL AIRPORT
CITY OF ASHLAND, (CITY) RENTER: Donald Fitch
20 E. Main St. Address: 117 6th St.
Ashland, Oregon 97520 Ashland, OR 97520
(503) 482-3211 FAX: (503) 488-5311 Telephone: 541-482-5117 (hm./wk.)
Date of this agreement: 111. T-Hangar Number: #3 Open
September 26, 1997 Aircraft Tail No: Ultralight
Reg.#10-DCF
112. Monthly Rental Fee: $121 113. Commencement date: 9/26/97
T-Hangar Rental Agreement made on the date specified above by the City of Ashland and
the person named above as Renter.
City and Renter agree:
1. Description of premises. City rents to Renter the T-Hangar described above ("the
premises") located at the Ashland Municipal Airport ("airport").
2. Rental Fees. Renter shall pay a monthly rental fee in the amount set forth above. The
rental fee is subject to periodic adjustment at the option of the City and is payable at the
office of the fixed based operator, monthly in advance, on the first day of each month. Any
fee required of Renter by this agreement shall, if not paid within 10 days after it is due, bear
interest at the rate of 18% per annum from the due date until paid.
3. Term. The term of this rental agreement is month-to-month beginning on the date set
forth above.
4. Use of Premises. Except as provided in this paragraph, the premises shall be used only
for the storage of aircraft owned by Renter. 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.
4.1. Renter 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 flammable contained within any airplane or automobile placed
in the hangar. Fueling of the aircraft while in the hangar is strictly prohibited.
4.2. Renter shall not, without the City's written consent keep any pets or animals on
the premises. If allowed, Renter agrees to be liable for damage to the premises or other
persons caused by the pet or animal.
5. Compliance with laws. Renter shall comply with
5.1. The "Minimum Standards at Ashland Municipal Airport, Ashland, Oregon" adopted
by the City Council on January 4, 1990 and as may be amended from time to time and the
Hangar Lease Policy attached as Exhibit A and as may be amended from time to time.
PAGE 1-T-HANGAR RENTAL AGREEMENT (pairport\t-hangar.lse)
5.2. All federal, state, county, and city laws, orders and ordinances, the rules and
regulations of the City, and all rules and regulations of the State Department of
Transportation Aeronautics Division and the Federal Aviation Administration.
5.3. Environmental laws. As used is 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. 9 172.101) 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
paragraph.
5.3.1. Renter shall cause the premises and all operations conducted on the
premises (including operations by any subtenants) to comply with all environmental
laws.
5.3.2. Renter 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 at reasonably
necessary for the operation of Renter's activities as contemplated under this rental
agreement.
5.3.3. 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, and Renter shall cooperate fully with City during such
inspections and investigations.
5.3.4. Renter 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 the premises, damages for the loss or restriction on the use of
rentable or usable space or of any amenity of the 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 rental agreement
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 Renter's generation, manufacture,
use, transportation, refinement, treatment, storage, or disposal of hazardous materials,
or any release of hazardous materials as a result of Renter's use or activities, or of
Renter's agents, contractors, or subtenants.
6. Utilities. Renter shall promptly pay any charges for electricity and all other charges for
utilities which may be furnished to the premises at Renter's order or consent.
7. Liens. Taxes. Renter 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 Renter which may be secured by lien against the premises. Renter
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.
8. Indemnification. Renter shall keep, indemnify and defend and hold harmless City, its
officers, agents and employees, from and against any and all claims, demands, suits,
judgments, costs, and expenses, including attorney's fees asserted by any person or
PAGE 2-T-HANGAR RENTAL AGREEMENT (p:airport\t-hangar.lse)
persons, including agents or employees of the City or Renter, by reason of death or injury to
persons or loss or damage to property that allegedly results from Renter's operations, or
anything done or permitted by Renter under this rental agreement, except for the extent
attributed to acts or omissions of City or its officers, agents or employees.
9. Alterations or Improvements. Renter 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 Renter and at the expense of Renter. All work shall be done in a good and
workerlike manner in compliance with all applicable building and zoning laws and ordinances.
10. Ground Maintenance. Renter shall maintain the premises and the grounds in and
around the premises in a reasonably neat, clean and orderly condition.
11. Events of Default. The following shall be events of default:
11.1. Default in Rent: Failure of Renter to pay any rent or other charge within ten days
after it is due.
11.2. Default in Other Covenants: Failure of Renter to comply with any term or
condition or fulfill any obligation of the rental agreement (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 thirty (30) day period,
this provision shall be complied with if Renter begins correction of the default within the 30
day period and proceeds in good faith to effect the remedy as soon as practicable.
11.3. Insolvency: Insolvency of Renter and assignment by Renter for the benefit of
creditors; the filing by Renter of a voluntary petition in bankruptcy; an adjudication that Renter
is bankrupt or the appointment of a receiver of the properties of Renter; the filing of an
involuntary petition of bankruptcy and failure of the Renter to secure a dismissal of the
petition within 30 days after filing; attachment of or the levying of execution on the rental
interest and failure of the Renter to secure discharge of the attachment or release of the levy
of execution within ten days.
12. Remedies on Default. In the event of a default, the City at its option may terminate the
rental agreement by notice in writing by certified or registered mail to Renter. 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 Renter in
connection with a default, termination shall be automatic and without notice.
12.1. Damages: In the event of termination of default, City shall be entitled to recover
immediately the following amounts as damages:
12.1.1. The reasonable cost of re-entry and reletting including the cost of any
clean up, refurbishing, removal of Renter's property and fixtures, or any other expense
occasioned by Renter'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.
12.1.2. The loss of reasonable rental fee value from the date of default until a
new tenant has been or, with the exercise of reasonable efforts could have been
secured.
12.2. Re-entry After Termination: If the rental agreement is terminated for any reason,
Renter's liability to City for damages shall survive such termination, and the rights and
obligations of the parties shall be as follows:
PAGE 3-T-HANGAR RENTAL AGREEMENT (p:airport\t-hangar.lse)
12.2.1. Renter shall vacate the property immediately, and within 60 days
remove any property of Renter including any fixtures which Renter is required to
remove at the end of the rental agreement term, perform any cleanup, alterations or
other work required to leave the property in the condition required at the end of the
term.
12.2.2. 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.
12.3. Reletting: Following re-entry or abandonment, City may relet the premises and
in that connection may:
12.3.1. 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 rental agreement) which City may
reasonably consider injurious to the premises, or to any tenant which City may
reasonably consider objectionable.
12.3.2. 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 rental agreement, upon
any reasonable terms and conditions, including the granting of some rental agreement
fee-free occupancy or other rental agreement fee concession.
13. Termination. Upon termination of the rental agreement by the passage of time or
otherwise, Renter shall surrender the premises in good condition. Renter shall provide 30
days notice when vacating the hangar and otherwise will be responsible for paying the
month's rent in full.
14. Assignment of Interest or Rights. Neither Renter or any assignee or other successor of
Renter shall sublease, assign, transfer or encumber any of Renter's rights in and to this rental
agreement or any interest in the premises, nor license or permit the use of the rights granted
except as provided in this paragraph. Renter shall not permit the use or occupancy by
others without written consent of City. If City does consent to such use or occupancy:
14.1. Renter shall still be responsible to City in accordance with this agreement;
14.2. Any sub-rent charged by Renter shall not exceed the rent charged by City;
14.3. The term of the sub-let shall not exceed six months.
14.4. The City may charge additional rent for such use or occupancy.
15. Nonwaiver. Waiver by either party of strict performance of any provision of this rental
agreement shall not be a waiver of or prejudice the party's right to require strict performance
of the same provision in the future or of any other provision.
16. Notices. All notices required under this rental agreement shall be deemed to be properly
served if sent by certified or registered mail to the last address previously furnished by the
parties. Until changed by the parties by notice in writing, notices shall be sent to the
addresses listed on the first page of this agreement.
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PAGE 4-T-HANGAR RENTAL AGREEMENT (p:airport\t-hangar.lse)
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EXHIBIT "A"
HANGAR LEASE POLICY
FOR CITY-OWNED HANGARS AT THE ASHLAND MUNICIPAL AIRPORT
1. It is the intent of the City to promote the fair, safe and
efficient use of the City-owned hangars at the Ashland Municipal
Airport. The hangar spaces are to be used primarily to house
aircraft, hangared in a safe manner, and all hangar spaces shall
be used to the maximum.
2. For new applicant's who desire to lease city-owned hangar
spaces, the following procedure will be used:
Applicantls name is to be added to the bottom of the list of
all previous applicants and the list will be a public record.
When hangar space becomes available, applicant's name
appearing on the top of the list will be notified and have ten
(10) days to enter into a lease with Lessor, if the applicant
is qualified. The prospective Lessee shall have a controlling
interest, by purchase or lease, of the aircraft to be
hangared, and shall furnish proof of said interest. In the
event the applicant does not qualify, does not reply, fails
to sign the lease within the ten (10) days, or declines to
enter into a lease, the applicant's name will be taken off the
list, or placed at the bottom of the list, if requested by the
applicant, and the next person in line will have the option
for avai~able hangar space.
3. When an aircraft is sold and leaves the hangar, Lessee must
notify the Lessor within ten (10) days and shall vacate the hangar
space within ten (10) days. If Lessee certifies to the city, in
writing, that Lessee will be obtaining another aircraft within the
ensuing six (6) ~onths, Lessee may maintain the lease, if
approved by the City in writing. Lessee shall keep hangar lease
payments current while'waiting for the new aircraft.
4. No Lessee may control more than one (1) hangar without the
specific permission of the City, which shall be based upon good
cause. An exception is an F.B.O. recognized as such by a lease
with the City.
5. Lessee's use of the hangar space shall be subject to the
following prohibitions, violations of anyone or more of which
shall be considered a material breach'of this policy and the Lease
Agreement. Lessee will:
a. not operate aircraft engines inside the hangar space,
T-Hangar Rental Agreement - 4