HomeMy WebLinkAbout1997-103 Hangar Lease-AirPatrol
HANGAR LEASE AGREEMENT
FOR THE ASHLAND MUNICIPAL AIRPORT
Lease made this 20th day of June, 1997, between the City of Ashland ("City") and the
Oregon Wing of the Civil Air Patrol, Inc., an auxiliary of the United States Air Force
("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:
1. Description of leased premises. City shall lease to Lessee that portion of the airport
described in the attached Exhibit "A". 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, commencing at 12:01 A.M. on the 1st day
of July, 1997.
3. Rental to City. Lessee agrees to pay to the City during the term of this agreement,
the following sums and amounts:
3.1. The sum of $1.00 per year payable in advance.
3.2. In addition, it is understood and agreed that at the termination of this lease,
or any subsequent lease, the hangar presently owned by the Lessee and on the
property will be removed by Lessee.
4. Purpose. The Lessee shall use the premises solely for purposes related to or arising
out of Civil Air Patrol's three missions: Emergency services, aerospace education, the
cadet program, and any activity in support of federal, state and local agencies.
4.1. Use of hangar. The hangar on the property shall house only items licensed
to, leased by or owned by the Civil Air Patrol, such as aircraft equipment and supplies
related to the above purposes.
4.2. Radio. Lessee may maintain and operate such radio equipment as it deems
necessary to function as a search and rescue and training facility, provided that all
radio equipment is operated under the rules of the FCC, FAA, and the rules of the City
of Ashland as they may now exist or hereinafter be adopted.
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4.3. Commercial activities prohibited. Lessee shall not engage in any
commercial activities, but may perform maintenance on its own planes and equipment.
4.4. Competition with FaD prohibited. Lessee shall not engage in any activities
that are in competition with activities permitted any fixed base operator by its lease
with the City of Ashland, unless otherwise permitted by this lease.
4.5. Fund-raising prohibited. Lessee shall not engage in fund-raising activities of
any kind whatsoever on the property or at the airport without the written consent of
the City first being given in advance.
Violation of any of the provisions of this paragraph will result in the Lessee being
subject to forfeiture of the lease.
4.6. Storage of fuel prohibited. Lessee shall not store aviation fuel or other
flammables on the premises.
5. 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:
5.1. 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 coverage.
5.2. Additional insureds. All policies shall include the City, its officers,
commissions, elected officials, employees and agents as additional insureds.
5.3. 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.
6. Indemnification. Lessee 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
persons, including agents or employees of the City or Lessee, by reason of death or
injury to persons or loss or damage to property that allegedly results from Lessee's
PAGE 2-HANGAR LEASE (p:airport\cap-92.Lse)
operations, or anything done or permitted by Lessee under this agreement, except for
the extent attributed to acts or omissions of City of its officers, agents or employees.
7. Compliance with laws. The Lessee shall comply with all State and Federal rules,
including but not limited to, the effluent standards or prohibitions established under
Section 307(a) of the Clean Water Act for Toxic Pollutants.
7.1. Compliance with minimum standards. Lessee shall comply with 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 as they may be changed in the future.
7.2. Noise Impact. Due consideration for the noise impact on the community
surrounding the airport will be given by the Lessee in the selection of aircraft and
related activities, all in accord with the laws, rules and regulations and ordinances of
the City of Ashland as they now exist or as they may be changed in the future.
7.3. Conflicting Standards. In the event the above standards conflict with the
provisions of the City or other applicable local, state or Federal regulatory agency, the
most restrictive standard shall be applied.
8. Lessee compliance with environmental laws.
8.1. Definition of "hazardous material". As used in 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
subparagraph.
8.2. Lessee's compliance with laws and permits. Lessee shall cause the leased
property and all operations conducted on the leased property (including operations by
any subtenants) to comply with all environmental laws.
8.3. Limitation 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 reasonably necessary for the operation of Lessee's
activities as contemplated under this agreement.
8.4. City's Rights. City shall have the right to conduct reasonable inspections
and investigations of the leased property and the operations conducted on the leased
PAGE 3-HANGAR LEASE (p:airport\cap-92.Lse)
property at any time and from time to time, and Lessee shall cooperate fully with City
during such inspections and investigations.
8.5. 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 the leased property, damages for the loss or
restriction on the use of rentable or usable space or of any amenity of the leased
property, 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 subtenants.
9. Federal preeminence. All 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.
10. Minority Business Plan. The 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 as required by the FAA.
11. Termination. This agreement shall be terminated upon the following conditions:
11.1. Termination by Lessee. This agreement shall be subject to termination by
Lessee in the event of anyone or more of the following events:
11.1.1. The abandonment of the airport as an airport or airfield by the
City.
11.1.2. 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.
11.1.3. 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.
PAGE 4-HANGAR LEASE (p:airportlcap-92.Lse)
11.1.4. 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.
11.1.5. Any modification of the terms of this lease required as a result of
paragraph 9.
11.2. Termination by City. This agreement shall be subject to termination by City
in the event of anyone or more of the following events:
11.2.1. Failure to pay the basic or percentage fee or failure to pay any
money due to the City as set forth in this agreement.
11.2.2. The default by Lessee in the performance of any of the terms,
covenants or conditions of this agreement, provided that City gives Lessee
written notice of the default, with reasonable particularity, and Lessee fails to
cure such default within 30 days. However, if the default is of such a nature that
it cannot be cured within 30 days, Lessee shall be deemed to have remedied
the default if Lessee commences action to remedy the default in 30 days and
thereafter proceeds with reasonable diligence and in good faith to effect the
remedy as soon as practicable.
11.2.3. 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.
11.2.4. The failure to conduct the business or to perform any duty
required in section 4.
11.2.5. If at any time during the term of this lease, the Lessee ceases to
be active and to carry on the functions described in this lease at the airport,
and specifically on the premises and to the full extent as is presently being
done then the City shall have the right to immediately terminate this lease.
12. Affirmative Action Program. The 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. The 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. The 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.
PAGE 5-HANGAR LEASE (p:airportlcap-92.Lse)
13. Public Facilities. The 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 may in the future be connected with, appurtenant to, landing,
taxiing, parking areas, and other public use facilities.
14. Airport Closure. The City may choose to do construction work or maintenance
work on portions of the airport and accordingly the City may, when reasonably
necessary, close the airport so that the Lessee will be required to temporarily suspend
activities, and will not have ingress and egress to its operation. Except in cases of
emergency, City shall give Lessee 30 days notice of such closure.
15. Improvements. alterations. maintenance:
15.1. 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 workmanlike
manner in compliance with all applicable building and zoning laws and ordinances.
15.2. Ownership of Improvements. Title to all improvements of a permanent
nature shall be the property of the Lessee. Lessee shall remove all improvements
upon expiration or termination of the lease.
15.3. Maintenance and Repair. Lessee shall be responsible for maintaining and
repairing the premises and every part thereof, including but not limited to the
foundations, exterior roofs, and structural aspects of the premises. 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.
15.4. Upkeep. Lessee shall keep the leased premises and buildings under its
control clean and in a neat condition. 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 paragraph.
PAGE 6-HANGAR LEASE (p:airport\cap-92.Lse)
16. Damage or destruction:
16.1. Proceeds and Repairs. If the improvements are damaged or destroyed by
fire or other casualty, Lessee shall be required to repair and reconstruct the property
and improvements or remove remaining improvements and debris and restore the site
to its original condition. If Lessee elects the latter, this lease shall terminate 30 days
after Lessee makes such election.
Repairs, reconstruction, removal or restoration shall be accomplished by Lessee with
all reasonable dispatch subject to interruptions and delays from labor disputes and
matters beyond the control of Lessee. Nothing contained in this provision is intended
to excuse Lessee's duty to repair pursuant to paragraph 15.3.
17. Utilities. Lessee shall make provision for and pay service and connection charges
on all utilities. All utilities shall be underground and the location of any utilities off the
leased premises shall be only as approved by the City in writing. Nothing contained
herein shall be construed as a representation by the City that a septic tank permit can
be acquired from the County Health Office, nor does the City bind itself to make
available sufficient land to the Lessee for septic tank and drain field purposes.
18. Assignment. Lessee shall not assign, partially assign, or sublet the premises and,
in the event any such assignment, partial assignment, or sublease is made, this lease
may be immediately terminated by the City.
19. Default. The following shall be events of default:
19.1. Rent Delinquency. Delinquency in the payment of rent in excess of ten
days beyond the rental due date unless specifically extended in writing by City.
19.2. Noncompliance. Failure of Lessee to substantially comply with any term or
condition or fulfill any obligation of this agreement (other than the payment of rent or
other charges within ten days) after written notice by City specifying the nature of the
default with reasonable particularity. If the default is of such a nature that it cannot be
completely remedied within the thirty day period, this provision shall be complied with
if Lessee begins correction of the default within the thirty day period and thereafter
proceeds with reasonable diligence and in good faith to effect the remedy as soon as
practicable.
19.3. Liens. Failure to remove any lien or encumbrance placed upon the
premises, except that Lessee may in good faith object, on behalf of the City or itself, to
the validity or amount of any lien and may contest the validity or amount of the lien,
provided City's interest in the premises is not jeopardized.
19.4. Other events of default: The occurrence of any of the following events:
19.4.1. The making by Lessee of any general arrangement or
assignment for the benefit of creditors;
PAGE 7-HANGAR LEASE (p:airportlcap-92.Lse)
19.4.2. Lessee's becoming a "debtor" as defined in 11 U.S.C.9101
or any successor statute thereto (unless, in the case of a petition filed
against Lessee, the same is dismissed within sixty days);
19.4.3. The appointment of a trustee or receiver to take
possession of substantially all of Lessee's assets located at the premises
or of Lessee's interest in this agreement, where possession is not
restored to Lessee within thirty days; or
19.4.4. The attachment, execution of other judicial seizure of
substantially all of Lessee's assets located at the premises or of Lessee's
interest in this agreement, where such seizure is not discharged within
thirty days; provided, however, in the event that any provision of this
subparagraph is contrary to any applicable law, such provision shall be
of no force or effect, and not affect the validity of the remaining
provisions.
LESSEE: Civil Air Patrol
Oregon Wing
CITY OF ASHLAND:
By:
Its:
B~~)vtd~~
ByM~~
City Recorder
By: '!~(., 0... ,\.-t.'4'':\A..\-
~s: Oregon Wing ~omm~nrlpr
APprove~ as~o F?-?
/~~/~~
Richard H. Mills, Lt Col,
Oregon Wing Legal Officer
CAP
PAGE 8-HANGAR LEASE (p:airport\cap-92.Lse)
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