HomeMy WebLinkAbout2010-047 Lease - Airport Hangar-Valley Investments
LESSOR: LESSEE: Alan DeBoer dba Valley Investments
CITY OF ASHLAND, (CITY) Address: PO Box 249
ADMINISTRATION DEPARTMENT Ashland Oregon 97520
Contact: Public Works Director
20 East Main Street, Ashland, Oregon 97520
Telephone: 541/488-5587 Fax: 541/488-6006 Telephone:541/488/3695 Fax: 541/482/1841
E-mail: awdb@aol.com Reaistration #:
AIRPORT POINT OF CONTACT:
Robert Skinner, Fixed Base Operator
403 Dead Indian Memorial Hinhwav, Ashland OR 97520 Telephone: 541/482-7675
AIRPORT HANGAR LEAliE ABliTRAGT
ASHLAND MUNICIPAL AIRPORT
B
City-owned, privately built
Box Hangar. (month to
month rental)
2. Starting date of lease: Julv 1. 2010
3. Ending date of lease: June 30. 2020
(leave blank if month-to-month lease).
4. Estimated initial base rental rate: $ 7535.58 per month~circle one).
Based on (C o@ $~per square foot. Actual rate will be established by approved Council
Rate Sheet on file.
A Heat Source
B Bathroom
C Office Space
.Ollsq-ft x~ = El
.03/sq-ft x =
.25/sq-ft x =
Totalsl -......... I "" \ l'r /month
(Note: rate adjustment is made July 1 every year according to master rates established by City
and in accordance with Master Hangar Lease Agreement. All rentals and lease's rates will be
updated to reflect new rates.)
5. Security Deposit Received:
Date:
""\1\
Amount:
NJ~
6. Description of Premises Leased/Rented: I \ 1-\",,, 't "'-'i'." cv- ~\ ....f<fl f-
7. Value of Improvements (Lease Option C or D): ~75'. ..si3 0
8. Yes, I have received a copy of the airport rules entitled "Minimum Standards for
Commercial Aeronautical Activities, Ashland, Oregon"
9. Yes, I have read and agree with, and have received a copy of, the City of Ashland
Master Hangar Lease Agreement.
10. Activities may require a separate SASO lease: See section 5.3 of lease.
. t2Pa.v. a {5cJ-e;?
Lessee Signature: VAII"'1IVlU"S~-~{5 Io'f Date: 3-0~-IO
Printed Name: 'Po L..p,.", 'h",- ~ D I'" fZ-
Page 1 of 1 - Airport Hangar Lease AbstrackIPUB-WRKS\ENG\DEPT-ADMINIAIRPIDEBOER LEASE 2010 NEWlDEBDER MASTER HANGAR LEASE WITH
" ApP~bY~~
Title: vu.
Date:
for City of Ashland.
.sf'f/~o,o
,
,
Page 1 of 1 - Airport Hangar Lease AbstractG,'PUB-WRKS'ENGIDEPT-ADMINIAIRPIDEBOER lEASE 2010 NEWlDEBOER MASTER HANGAR lEASE WITH
.
ASHLAND MUNICIPAL AIRPORT
MASTER HANGAR LEASE AGREEMENT
THIS AGREEMENT is entered into between the CITY OF ASHLAND, OREGON, by and through the
City Council, hereinafter referred to as Lessor, and the Lessee.
1. Lease Abstract. City and Lessee have signed a Master Hangar Lease Abstract ("the
abstract") which contains individual terms specific to the particular hangar or ground being
leased. By signing the abstract, City and Lessee have agreed to the terms and conditions of
this Master Hangar Lease Agreement.
2. Description of leased premises. City leases to Lessee a part of the Airport described in the
abstract ("the premises") and identified on Exhibit A.
3. Lease Fees. An initial rental is established as set forth in the abstract and shall be paid in
advance at the office of the fixed base operator (see Airport Contact Person listed in the
abstract)
3.1 Periodic rent increase. For month-to-month rentals, the rental fee is subject to
adjustment on July 1 of each year at the option of the City and is payable, monthly in advance,
on the first day of each month.
3.2 Annual rent increase. For other than month-to-month rentals, the rent shall increase
annually on July 1 of each year, but not decrease, based on the previous calendar year's
Consumer Price Index ("CPI"). The CPI will be calculated on the difference between January
of the prior year and January of the current year. The adjustment will be the increase in the
CPI using the All Urban Consumers (CPI-U), U.S. City Average, CPI--Allltems Index as
published by the Bureau of Labor Statistics of the United States Department of Labor. If the
CPI is no longer being published, then the Index 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 CPl. All sums resulting from the computation of annual lease
fees shall be rounded up to the nearest whole dollar.
3.3 Past due fees. Lease fees will become past due ten days past the due date and the
City will charge interest of 1.5% per month on past due lease fees.
3.4 Security Deposit. For month-to-month rentals, Lessee shall pay a deposit in the amount
of one month's rent to secure Lessee's compliance with all terms of this agreement. The
deposit shall be a debt from City to Lessee, refu'ndable within 30 days after expiration of the
lease term or other termination not caused by Lessee's default. City may commingle the
deposit with its funds. Lessee shall not be entitled to interest on the deposit. City shall have the
right to offset against the deposit any sums owing from Lessee to City and not paid when due,
any damages caused by Lessee's default, the cost of curing any default by Lessee should City
elect to do so, and the cost of performing any repair or cleanup that is Lessee's responsibility
under this agreement. Offset against the deposit shall not be an exclusive remedy in any of the
above cases, but may be invoked by City, at its option, in addition to any other remedy
provided by law or this agreement for Lessee's nonperformance. City shall give notice to
Lessee each time an offset is claimed against the deposit, and, unless the agreement is
terminated, Lessee shall within 10 days after such notice deposit with City a sum equal to the
amount of the offset so that the total deposit amount, net of offset, shall remain constant
throughout the agreement term.
3.5 Improvement Fee. For leases which require Lessee to construct a hangar, Lessee may
be required to pay a non-refundable improvement fee at the time of executing the lease
abstract. The fee shall be used by City to make improvements at the airport.
Page 1 of 10 - AIRPORT MASTER LEASE
4. Term. The term of this lease is month-to-month (unless otherwise specified in the abstract)
commencing on the date specified in the front page abstract. A month-to-month lease may be
terminated by the Lessee at any time upon 30 days prior written notice to the City. The City
may only terminate the lease for cause as specified in Section 16 of this lease. For other than
month-to-month leases, the term commences and ends on the dates specified in the abstract
and a Lessee not in default shall have the first right of refusal to lease the premises from the
City at the rates and terms then in effect as established by the City.
5. Use of Premises. Except as provided in this paragraph, the premises shall be used only for
the storage of aircraft. No commercial activities. includina but not limited to aircraft mechanical
or maintenance work or repair or service, are to be conducted on the premises unless . .
otherwise permitted under section 5.3. The preceding sentence does not apply, however, to.
work, maintenance, repair or service on aircraft owned by the Lessee. 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.
5.1 Flammables and explosives prohibited. Lessee 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 flammables contained
within any airplane placed in the hangar. Fueling of the aircraft while in the hangar is strictly
prohibited.
5.2 Pets and animals prohibited. Lessee shall not, without the City's written consent keep
any pets or animals on the premises. If allowed, Lessee agrees to be liable for damage to the
premises or other persons caused by the pet or animal.
5.3 When commercial activities permitted. For other than month-to-month rentals, Lessee
may conduct airport related commercial activities upon obtaining a business license, as
specified in the "Minimum Standards for Commercial Aeronautical Activities, Ashland,
Oregon", and entering into a Specialized Aviation Service Operator (SASO) lease agreement,
which allows the Lessee to operate as a Specialized Aviation Service Operator in accordance
with current adopted standards.
5.4 When vacant hanaar not permitted. For month-to-month rentals, any hangar that
remains vacant of any aircraft for more than five months shall be a violation of this lease.
6. Rights Reserved to the City. The City reserves the following rights:
6.1 Improve landina area. The right to develop or improve the landing area of the airport
without interference or hindrance of the Lessee.
6.2 Maintain airport. The right, but not the obligation, to maintain and keep in repair the
landing area of the Airport, together with the right to direct and control all activities of Lessee.
6.3 Protect airport. The right to take any action considered necessary to protect the aerial
approaches of the airport against obstruction, together with the right to prevent Lessee from
erecting, or permitting to be erected, any building or other structure on the Airport which, in the
opinion of the City, would limit the usefulness of the Airport and constitute a hazard to aircraft.
6.4 T emporarv closures. The right to temporarily close or to restrict the use of the Airport or
any of the facilities for maintenance, improvement, or for the safety of the public.
7. Compliance with laws. Lessee shall comply with:
7.1 The current adopted, or any future, "Minimum Standards for Commercial Aeronautical
Activities, Ashland, Oregon" (Minimum Standards) are part of this lease agreement. If this
lease and the Minimum Standards conflict in the requirements for the Lessee, the Minimum
Standards take precedence.
Page 2 of 10 - AIRPORT MASTER LEASE
7.2 All federal, state, county, and city laws, orders and ordinances, and rules and
regulations. Including but not limited to all rules and regulations of the Oregon Department of
Aviation and the Federal Aviation Administration.
8. Lessee compliance with environmental laws. 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 oqransportation Hazardous Materials Table (49 C.F.R. S 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 any federal, state, or local
statutes, regulations, or ordinances or any judicial or other governmental orders pertaining to
the protection of health, safety, or the environment.
8.1 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 envirdnmentallaws.
8.2 Limitation on uses of hazardous materials. Lessee 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 as
reasonably necessary for the operation of Lessee's activities as contemplated under this lease.
8.2.1 Disposal and contamination clean-up. Lessee shall be responsible for disposing
of all hazardous materials in compliance with environmental laws, and Lessee shall be
responsible for any environmental clean-up of the premises that is necessary due to
Lessee's activities.
9. Title to Improvements. For Type C leases, upon completion of construction and issuance of a
certificate of occupancy, improvements included in the Hangar Construction Requirement
including any further improvements to the premises approved by the Airport Commission, shall
become property of City, free .and clear of all claims of Lessee, anyone claiming under Lessee
or caused, permitted or suffered to attach through Lessee. Lessee or anyone claiming under
Lessee, shall indemnify and defend City against all liability and loss arising from such claims.
10. Maintenance. Lessee shall keep and maintain the premises and all improvements in good and
substantial repair and condition, including the exterior condition. The City shall make all
necessary major repairs and alterations not directly attributable to Lessee's negligence, and
shall maintain the premises and all improvements in compliance with all applicable building
and zoning laws and all other laws, ordinances, orders and requirements of all authorities
having or claiming jurisdiction. Lessee shall provide proper containers for trash and garbage
and shall keep the premises free and clear of weeds, rubbish, debris, and litter at all times. 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 with reasonable
advance notice, and Lessee shall cooperate fully with City during such inspections and
investigations.
11. Utilities. Lessee shall promptly pay any charges for electricity, water and sewer, and all other
charges for utilities which may be furnished to the premises at Lessee's order or consent.
12. Liens, Taxes. Lessee 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
Page 3 of 10 - AIRPORT MASTER LEASE
\
ordered by Lessee which may be secured by lien against the premises. Lessee 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.
13. Insurance. Lessee shall obtain and maintain continuously in effect at all times during the term
of this lease, at Lessee's sole expense, the following insurance:
13.1 Comprehensive insurance. Owner's, landlord and tenant or premises 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 $1 ,000,000, combined single limit 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.
13.1.1 All policies shall include the City, its officers, commissions, elected officials,
employees and agents as additional insureds.
13.1.2 A certificate evidencing such insurance coverage shall be filed with the City
prior to the effective date of this lease, 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.
Cancellation or termination of the policy shall terminate the lease.
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.
13.2 Property Insurance. Lessee shall bear the expense of any insurance insuring the
personal property of Lessee on the premises against such risks, but Lessee shall not be
required to insure his personal property.
14. Indemnification. Lessee will defend, indemnify and save City, its officers, employees and
agents harmless from any and all losses, claims, actions, costs, expenses, judgements,
subrogations, or other damages resulting from injury to any person (including injury resulting in
death,) or damage (including loss or destruction) to property, of whatsoever nature arising out
of or incident to this lease. Lessee will not be held responsible for damages caused by
negligence of City.
15. Damage or Destruction of Premises.
15.1 For other than month-to-month rentals, if the premises or any improvements are
damaged or destroyed by fire or other casualty, Lessee shall:
15.1.1 Promptly repair, rebuild or restore the property damaged or destroyed to
substantially the same condition consistent with the applicable building codes; and
15.1.2 Apply for any net proceeds of insurance resulting from claims for such losses,
as well as any additional money of Lessee necessary.
If the damage or destruction which occurs is such that the cost of repair, rebuilding or
restoration of the property damaged or destroyed exceeds 50% of the fair market value of the
improvements, Lessee shall have the option within 60 days from the date of damage or
destruction, to notify City in writing whether or not Lessee elects to repair, rebuild, or restore in
Page 4 of 10 - AIRPORT MASTER LEASE
accordance with paragraph 15.1 or to terminate this lease. Upon giving such notice to
terminate, this lease shall terminate on the date specified in the notice and City shall be
entitled to the net proceeds of insurance.
15.2 For month-to-month rentals, Lessee shall be responsible for damage or destruction to
the premises or any improvements resulting from Lessee's operations, or anything done or
permitted by Lessee under this lease.
16. Events of Default. The following shall be events of default:
16.1 Default in Rent: Failure of Lessee to pay any rent or other charge within ten days after it
is due.
16.2 Default in Other Covenants: Failure of Lessee to comply with any term or condition or
fulfill any obligation of the lease (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 3D-day period, this provision shall be complied with
if Lessee begins correction of the default within the 3D-day period and proceeds in good faith
to effect the remedy as soon as practicable.
16.3 Insolvencv: Insolvency of Lessee and assignment by Lessee for the benefit of creditors;
the filing by Lessee of a voluntary petition in bankruptcy; an adjudication that Lessee is
bankrupt or the appointment of a receiver of the properties of Lessee; the filing of an
involuntary petition of bankruptcy and failure of the Lessee to secure a dismissal of the petition
within 30 days after filing; attachment of or the levying of execution on the leasehold interest
and failure of the Lessee to secure discharge of the attachment or release of the levy of
execution within ten days.
17. Remedies on Default. In the event of a default, the City at its option may terminate the lease
by notice in writing by certified or registered mail to Lessee. 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 Lessee in connection with a
default, termination shall be automatic and without notice.
17.1 Damaoes. In the event of termination of default, City shall be entitled to recover
immediately the following amounts as damages:
17.1.1 The reasonable cost of re-entry and reletting including the cost of any clean
up, refurbishing, removal of Lessee's property and fixtures, or any other expense
occasioned by Lessee'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.
17.1.2 The loss of reasonable lease fee value from the date of default until a new tenant
has been or, with the exercise of reasonable efforts could have been secured.
17.2 Re-entrv 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 obligations of the parties
shall be as follows:
17.2.1 Lessee shall vacate the premises immediately, and within 60 days remove
any property of Lessee including any fixtures which Lessee is required to remove at the
. end of the lease term, perform any cleanup, alterations or other work required to leave
the property in the condition required at the end of the term. 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.
17.3 Relettino. Following re-entry or abandonment, City may relet the premises and in that
connection may:
Page 5 of 10 - AIRPORT MASTER LEASE
. .
17.3.1 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 lease) which City may reasonably consider
injurious to the premises, or to any tenant which City may reasonably consider
objectionable.
17.3.2 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 lease, upon any reasonable terms and
conditions, including the granting of some lease fee-free occupancy or other lease fee
concession.
18. Assignment of Interest or Rights. Neither Lessee or any assignee or other successor of
Lessee shall sublease, assign, transfer or encumber any of Lessee's rights in and to this lease
or any interest, nor license or permit the use of the rights 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 through 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
unreasonably withheld.
18.1 Riqht of first refusal. For other than month-to-month rentals, City shall have the following
described right of first refusal with respect to the interest of Lessee under this lease after the
expiration of the lease term and all extensions authorized under this lease:
18.1.1 Lessee shall not sell, sublease, assign or transfer to anyone other than City,
. unless Lessee shall have first communicated to City, by written notice, a written offer to
sell, sublease, assign or transfer this lease or any interest, which offer shall specify, in
commercially reasonable detail, the price, terms and conditions upon which Lessee is
willing to sell, sublease, assign or transfer this lease or any interest.
18.1.2 City shall have a period of 30 days, following the notice, within which to
accept the offer by giving Lessee written notice of 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 may be specified in the offer.
18.1.3 If City does not accept the offer, Lessee may sell, sublease, assign or transfer
the lease or any interest to any other party, provided that such a sale must be
. consummated within 60 days following the earlier of the expiration of the 30 day
acceptance period specified in paragraph 18.1.2 for the offer or the date of any written
rejection of the offer by City, and for and upon the same price, terms and conditions as
those specified in the offer.
18.1.4 City's rights under this paragraph shall apply to any subsequent or
contemporaneous offer made to Lessee or Lessee's successor or successors in
interest.
18.1.5 For the purposes of this subparagraph, a devise under a will by the Lessee
shall not be considered a sale, sublease, assignment or transfer.
18.2 Option to Purchase Lessee's Interest. For Type C leases, in addition to the
right of first refusal described above, City shall have the exclusive right and option to purchase
all of Lessee's right under this lease upon the fOllowing terms and conditions:
18.2.1 If City exercises this option, the purchase price during the initial year of this
lease for Lessee's rights under this lease will be the actual reasonable construction cost
of the hangar plus 10%. The purchase price during each subsequent year shall be the
purchase price determined in the immediately preceding sentence less 1/25th of such
purchase price for each full year the lease has been in effect.
18.2.2 This option shall be exercised by written notice given by City to Lessee at any
time, which notice shall specify that City has elected to exercise this option.
Page 6 of 10 - AIRPORT MASTER LEASE
~
18.2.3 Closing shall occur as soon as possible following exercise of this option by
City and, in any event, not later than the 35th day following the date of exercise of this
option.
18.2.4 At closing, Lessee shall deliver to City a duly executed and acknowledged
statutory quitclaim deed quitclaiming all of Lessee's rights and interest in the premises
free and clear of all liens and encumbrances of Lessee, anyone claiming under Lessee
or caused, permitted or suffered to attach through Lessee.
18.2.5 At closing, City shall pay to Lessee in cash the entire amount of the purchase
price.
18.2.6 City's rights under this paragraph shall apply to any successor of Lessee and
shall apply whether or not City exercises its rights under the right of first refusal
para'graph. City may not exercise its rights under this paragraph while the Lessee who
signed this lease is in possession and has not sold, subleased, assigned or transferred
its interest in the lease. For the purposes of this subparagraph, a devise under a will by
the Lessee shall not be considered as sale, sublease, assignment or transfer.
18.3 Subleases without consent. Lessee may sublease portions of the premises for the
purpose of placing other aircraft within the hangar without consent of City.
19. Nonwaiver. Waiver by either party of strict performance of any provision of this lease 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.
20. Consent of City. Whenever consent, approval or direction by the City is required, all such
consent, approval or direction shall be received in writing from the City Administrator.
21. Hangar Construction Requirements. The Hangar Construction Requirements are
incorporated into this Agreement and shall apply to any construction that takes place on the
leased property.
22. Notices. All notices required under this lease 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:
CITY: LESSEE:
City of Ashland At address shown on abstract.
Attn: City Administrator
20 E. Main Street
Ashland, OR 97520
ORDER
Pursuant to ORS 271.360 the governing body hereby approves and authorizes the terms of this lease
as set forth above.
LESSOR:
Mayor/Mayor's Designee, City of Ashland
Date
Page 7 of 10 - AIRPORT MASTER LEASE
"' . .'
END OF AIRPORT MASTER HANGAR LEASE AGREEMENT
Page 8 of 10 - AIRPORT MASTER LEASE
V
/
),.
:0
1)
o
:::0
--I
fT"J
-2:
;;j
),.
-2:
()
fT"J
DEAD INDIAN MEMORIAL RD.
:r:<
o 0
::J =
<0(1)
0'<
..., -
(/J ::J
<
(1)
(/J
~
3
(1)
::J
~
'<.
--::"1
__I
L
CITY OF
ASHLAND
SPECIALIZED AVIATION SERVICE OPERATIONS LEASE AGREEMENT
FOR THE ASHLAND MUNICIPAL AIRPORT
This Lease is between the City of Ashland ("City") and Alan DeBoer dba Valley Investments
("Lessee"), and it is effective on July 1, 2010 for the Original Property.
RECITALS:
A. . City is the owner of the Ashland Municipal Airport (further referred to in this lease as
"the airport".)
B. On the date of the aforementioned Building Permit, the City and Lessee entered into
a Lease of real property described in the attached Exhibit A (further referred to as "Original
ProperfY"). The "Original Property" lease is not affected by this lease agreement.
C. The City of Ashland, through its Airport Commission, has adopted the Oregon
Department of Aviation Minimum Standards for Commercial Aeronautical Activities as shown
in their Oregon State-Owned Category IV Airports (dated April 17, 2002) adopted by the City
Council on June 21, 2002 as they now exist or as they may be changed in the future.
D. Lessee desires to now be authorized as a Specialized Aviation Service Operations
(SASO) as defined in the Oregon Department of Aviation Minimum Standards, (further
referred to as "Minimum Standards").
E. The City is willing to authorize Lessee as a SASO and to lease additional property to
Lessee for this purpose.
City and Lessee agree:
1. Description of leased premises. In addition to the Original Property, City leases to
Lessee space for increased use at the airport, supplementary parking and landscaping in
the amount of 1.0 times the Original Property Hangar footprint, or 16,573 SF X 1.0 =
16,573 SF as shown on the attached drawing (to be defined as the "Leased Property" for
this SASO Agreement); located as a part of 391 E12 Tax Lot 301.
2. Term. The term of this lease shall commence at 12:01 AM on July 1,2010, and the
lease shall continue for a period of 10 years or as long a commercial operation exists.
2.1 Extension of Agreement. The term of this lease shall be the same as the
term of the associated ground lease for the Original Property, otherwise known as the
Airport Master Lease, or until a commercial operation no longer exists, whichever comes
first, if no material breach exists or continues in the performance of any of the provisions
of this agreement. Any extension of this lease shall be as provided in this section.
2.1.1 The renewal terms shall be on the terms, covenants and conditions as
the parties may mutually agree.
2.1.2. Lessee shall exercise the process for a renewal in the following
manner: At least 60 days prior to the expiration of the term, Lessee notifies Lessor in
writing of its election to exercise the process to renew the term of this lease.
G:l/tegal/MEGAN/Airport Leases/Burl Brim Leases/New properties SASO Lease
Page10fg
rtl'
2.1.3. Upon the giving of such notice, this lease; subject to the parties
agreement on the terms, covenants and conditions shall be deemed to be renewed
and the term renewed for a period of ten years from the date of expiration of the
preceding term.
3. Lease Fee to Citv. -
3.1 Base Lease Fee. During the original term, Lessee shall pay to City as base
lease fee the sum of $0.193 (based on the January 2010 All Urban Consumers Consumer
Price Index for the fiscal year starting July 1, 2010 through June 30, 2011) per square foot of
the Leased Property, rounded up to the nearest dollar, per year in advance. Lease fee shall
be payable on the date this lease is exe.cuted to the City of Ashland, attention Public Works
Director. Subsequent annual payments shall be made on this date each year during the term
of this lease. First year's base lease fee is $0.193 x 16,573 SF = $3,198.59 rounded up to
$3,199.00
3.1.1 Periodic lease fee increase. The base lease fee is subject to
adjustment on July 1 of each year at the option of the City and is payable, monthly in
advance, on the first day of each month.
3.1.2 Annual lease fee increase. The lease rate shall increase annually on
July 1 of each year, but not decrease, based on the previous calendar year's
Consumer Price Index ("CPI"). The CPI will be calculated on the difference between
January of the prior year and January of the current year. The adjustment will be one
increase in the CPI using the All Urban Consumers (CPI-U), U.S. City Average, CPI--
All Items Index as published by the Bureau of Labor Statistics of the United States
Department of Labor. If the CPI is no longer being published, then the Index 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 CPI. All
sums resulting from the computation of annual lease fees shall be rounded up to the
nearest whole dollar.
3.1.3 Past due fees. Lease fees will become past due ten days past the due
date and the City will charge interest of 1.5% per month on past due lease fees.
3.2. Proration of Lease Fee. If the Lessee terminates the single commercial
activity or limited aeronautical commercial services that made this lease necessary, the
Lessor shall prorate the lease fee using the first date for which the Lessee no longer carried
on the activity as the end date of the lease. The Lessee must submit proof acceptable to the
Lessor that the activity was discontinued on a date certain to establish the end date for the
lease.
3.3. Records. Lessee shall keep proper books of account and other records
pertaining to gross receipts and render monthly statements of gross receipts at the time
monthly payments of percentage fee are due. The books and records shall be kept or made
available at a location reasonably accessible to City, who may inspect all such books and
records, and copies of Lessee's federal and state income tax returns for relevant years, at all
reasonable times to verify Lessee's gross receipts. Lessee shall submit to City a copy of any
sales report filed by Lessee with any local, state or federal taxing authority promptly after
filing.
3.4. Continuous Operation. Lessee shall occupy the Original and Leased
Property continuously for the purpose stated in this lease and carry on business during the
hours customary in comparable businesses similarly situated with adequate inventory and
G:lllegal/MEGANfAirport Leases/Burl Brim Leases/New Properties SASO Lease
Page 2 019
rj.1
personnel. This shall not prevent Lessee from closing for brief periods when reasonably
necessary for inventory, repairs, remodeling (when permitted), or other legitimate purpose
related to the business carried on, or when closure is the result of a labor dispute, however
caused, or other factors not within Lessee's control.
3.5. No Partnership. City is not by virtue of this section a partner or joint venturer
with Lessee in connection with the business carried on under this lease, and shall have no
obligation with respect to Lessee's debts or other liabilities, and no interest in Lessee's
profits.
4. Purpose. Lessee shall provide a service at the airport solely for the uses and purposes
relating to conducting the business of a Specialized Aviation Service Operations (SASO)
as described in the Minimum Standards as they now exist or 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. As a
SASO, lessee shall provide:
4.1 Aircraft Storaae and Hanaars. An aircraft storage and hangar service
operator leases and rents hangars, multiple T-hangars, and/or shade hangars
to aircraft owners or operators solely for aircraft storage purposes. The aircraft
storage and hangar service operator shall comply with all of the requirements
in the minimum standards. (see also 14 CFR 43)
5. FAA Exclusive Riahts 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.
5.1 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 City treat Lessee
on an equitable basis with other lessees and permittees of City so that Lessee is not put in
an unfair advantage.
6. 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:
6.1 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 incurrence to be in the minimum
amount of $1,000,000 combined single limit coverage. Such limit shall automatically
increase in the event of any change in the provision of ORS 30.270, or changes to the
Oregon Department of Aviation requirements as adopted by the City, or in the event these
limits are found to be not totally applicable to a city.
6.2 Additional insured. All policies shall include the City, its officers,
commissions, elected officials, employees and agents as additional insured.
6.3 Primary Insurance. The insurance shall be considered primary to any other
insurance of self-insurance of the City.
G:/IIegal/MEGAN/Airport Leases/Burl Brim Leases/New Properties SASO Lease
Page 3 019
r.l1
6.4 Insurance Certificate. A certificate evidencing such insurance coverage
shall be filed with the City, 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 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.
Lessee and Lessee agrees to reimburse City promptly for the cost, plus ten percent
of the cost for City administration.
7. Indemnification. Lessee will defend, indemnify and save City, its officers, employees and
agents harmless from any and all losses, claims, actions, costs, expenses, judgements,
subrogations, or other damages resulting from injury to any person (including injury
resulting in death,) or damage (including loss or destruction) to property, of whatsoever
nature arising out of or incident to this lease. Lessee will not be held responsible for
damages caused by negligence of City.
8. Additional Responsibilities of Lessee. Lessee further agrees to:
8.1 Utilities. Initiate, contract for, and obtain, in its name, all utility services
required on the premises, including gas, electricity, telephone, water, and solid waste
collections and services, and pay all charges for those services as they become due. If
Lessee fails to pay the charges, City may elect to apply them and the charge will then be
added to the fee installment next due.
8.2 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 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 acknowledged that it has no option to purchase any such
property.
8.3 Limited Office Space. Certify it will not use any part of the hangars, except
for office space that is de minima 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.
8.4 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 passenger 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 provide any airplane, skybox or other private
luxury box, health club facility, a facility primarily used for gambling, or store the principal
G:/IIegalfMEGAN/Airport Leases/Burl Brim Leases/New Properties SASO Lease
Page 4 019
...
r~'
business of which is the sale of alcoholic beverages for consumption off-premises as
prescribed by Section 147 (e) of the IRS Code.
8.5 Graphics and Signs. All 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. 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 worker like manner in compliance
with all applicable building and zoning laws and ordinances.
9.1 Ownership of Improvements. Title to all improvements made by Lessee of
a permanent nature shall be the property of Lessee.
9.1.1 Lessee, however, shall be required to enter into a ground lease with
the City prior to any improvement being made that increases the footprint of existing
structures or that utilizes additional land at the airport. Ground lease fee shall be at
fair market rental value.
9.1.2 Prior to construction of any improvements, the parties agree to
negotiate in good faith as to ownership of the improvements to be constructed.
Unless previously agreed in writing between the parties, the improvements shall
become property of City, free and clear of all claims of Lessee, anyone claiming
under Lessee or caused, permitted or suffered to attach through Lessee upon
completion of construction and issuance of a certificate of occupancy. Lessee, or any
one claiming under Lessee, shall indemnify and defend City against all liability and'
loss arising from such claims.
9.1.3 Upkeep. The premises shall be kept in good repair, free of waste
material and debris.
10. Comoliance 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 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.
10.1 Lessee Compliance with Clean Water Act for Toxic Pollutants. 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.
G:lllegal/MEGAN/Airport Leases/Burl Brim Leases/New Properties SASO Lease
Page 5 of g
~.l'
10.2 Lessee Compliance with Americans with Disabilities Act. Lessee shall be
solely responsible for any improvements, alterations or repairs to the premises required
pursuant to the Americans with Disabilities Act.
10.3 Lessee Compliance with Environmental Laws. Definition of "hazardous
material". 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, material,
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, material and
wastes as become regulated or subject to cleanup authority under any environmental laws.
Environmental laws means those laws sited in this subparagraph.
10.3.1 Lessee's compliances 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.
10.3.2 Limitation on uses of hazardous materials. Lessee shall not use or
allow any agents, contractors or subtenant to use premises to generate, manufacture,
refine, transport, treat, store, handle, recycle, release or dispose of any hazardous
material, other than at reasonably necessary for the operations of Lessee's activities
as contemplated under this agreement.
10.3.3 Citv's Riahts. City shall have the right to conduct reasonable
inspections and investigations of premises and the operations conducted on premises
at any time with appropriate notification and from time to time, and Lessee shall
cooperate fully with City during such inspections and investigations.
10.3.4 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, damage 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 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. Lessee shall not
be held responsible for damages caused by the negligence of City.
10.3.5 To the extent permitted by law, City agrees to indemnify Lessee from
and again!>t 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 release 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 solid 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.
G:/IJegaIlMEGANfAirport Leases/Burl Brim LeasesfNew Properties SASO Lease
Page 6 019
r~'
11. Assianment.
11.1 Lessee shall have the right to assign or sublease 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.
11.2 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 coctenant, if Lessee is a
partnership or joint venture or syndicate or co-tenancy, 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 ?f the corporation.
12. 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.
13. Minoritv 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.
14. Termination. This lease may be terminated upon proper notice 90 days in advance of
such termination date, and upon the following conditions:
14.1 Termination bv Lessee. This agreement shall be subject to termination by
Lessee in the event of any one or more of the following events:
14.1.1 The abandonment of the Airport as an airport or airfield by the City.
14.1.2 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.
14.1.3 Damage to or destruction of all or 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.
14.1.4 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 of in excess of 90 days.
14.2 Termination bv Citv. This agreement shall be subject to termination by City in
the event of anyone or more of the following events:
14.2.1 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.
G:/Ilegal/MEGAN/Airport Leases/Burl Brim leases/New Properties SASO Lease
Page 7 019
r~'
14.2.2 The default by Lessee in the performance of any of the terms,
covenant 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. '
14.2.3 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.
14.2.4 The failure to conduct the business or to perform any duty as required
in section 5.
15. Affirmative Action Proaram. 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.
16. Taxes. Lessee covenants and agrees to pay all real and personal property taxes
assessed against the Leased Property during the term of this Lease, such payments to
be made no later than November 15th 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.
16.1 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 fee payment to reflect the change.
17. 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 landing, taxiing, parking areas, and other facilities.
INTENDING TO BE BOUND, the parties have executed this Agreement as of the date
written below. .
LESSEE
By: City of Ashland
~A,;~.~
Alan DeBoer
G:/JIegaIlMEGAN/Airport Leases/Burl Brim Leases/New Properties SASO Lease
Page 8 of 9
rA'
.
.
ORDER
Pursuant to ORS 271.360 the governing body hereby approves and authorizes the
terms of this lease as set forth herein.
.5{tt/ ~IO
Date
Approved as to for
G:lIlegallMEGAN/Airport Leases/Bun Brim Leases/New Properties SASO Lease
Page9of9
r.l'
CITY OF ASHLAND TAX REGISTRATION
(FOR REVENUE PURPOSES ONLY)
BUSINESS LOCATION INFORMATION
PO BOX 249
STREET ADDRESS:
NAME:
ALAN DE BOER
PHONE, (541) 482-2411
OWNER INFORMATION "".: ",."," .
'<:'. ... ,:A:SJ.r:'W;,~)Jf.;,?,." "". ',.
~Sl;-ILA.N[) .
".;:;::'l
VALLEY INVESTMENTS
PO BOX 249
ASHLAND, OR 97520
REGISTRATION NO.
BL-D02062
Barbara Christensen
CIlY RECORDERfTREASURER
REGISTRATION EXPIRES JUNE 30.
2010
TO BE POSTED IN A CONSPICUOUS PLACE.
~
Policy Number
0-2322332
'\
I
RENEWAL OF:
COMMON POLICY DEClARATIONS 9 -2322332
Account' Number A6502838l2
AMERICAN HARDWARE MUTUAL INSURANCE COMPANY
l1em 1. Named Insured arid Mailing Address
TOWN & COUNTRY CHEVROLET INC
(SEE NAMED INSURED ENDORSEMENT)
POBOX 249
ASHLAND OR 97520
Sales Represen tative
SOLTIS, KEVIN
OR
Sales Rep. No. 0937
l1em2. Policy Period From: 03-01-2010 To: 03-01-2011
at 12:01 A.M., Standard Time at your mailing address shown above.
l1em 3. Business Description: AUTO DEALER
Form of Business: CORPORATION
l1em 4. In return for the paYin. ~r.t9f\he'premiu~:.~b,9'~9~j~9t.tO. .a...![..t~~ ~~r[TI~.O\th.i.S policy, we agree with you to provide
the Insurance as stated,m thiS poliCY. " . ",".!<>.::"':'''''.. ',,". .'''''' '>'. " .
This policy consists of the fcillowiri~r(;overage parts; The policy prerniummaybesubject to adjustment.
Coverage part(s)~t~~~tf~?,:,r; ".,:?J(:i::'\.;'> .:.:. .". Premium
COMMERCIAL PROPERTYsCOYERAGE PART' ~i~':\J~':,' '.'
COMMERCIAL GENERAL:t,I;J:ABILITY COVERAGE PART'.>":'"
COMMERCIAL CRIME COY.E:RAGE PART ,;.,".:,../','
COMMERCIAL INLANDjMARINE COVERAGE PART';":;.
COMMERCIAL GARAGE~.COVERAGE Pp..RT .... . .
'"". ,.,.... .. .-;-... ". . .
Terrorism Risk insurance is included at no additional charge.
Total Policy Premium SEE INSTALLMENT NOTICE
l1em 5. Forms and Endorsements
Form(s) and Endorsement(s) made a part of this policy at time of issue:
See Schedule of Fonns and Endorsements
Countersigned:
Date:
8y:
Authorized Representative
THIS COMMON POLICY DEClARATION AND THE SUPPLEMENTAL DEClARATION(S). TOGETHER WITH THE COMMON POLICY CONDITIONS
COVERAGE PART(S) , COVERAGE FORM(S) AND FORMS AND ENDORSEMENTS, IF ANY. COMPLETE THE ABOVE NUMBERED POLICY.
11-7255 (01104)
Insured
~
Policy Number
0-2322332
SCHEDULE OF NAMED INSURED(S)
,
~
AMERICAN HARDWARE MUTUAL INSURANCE COMPANY
SOLTIS, KEVIN
Account Number A650283812
Effective Date: 03 - 01-10
12:01 A.M., Standard Time
Sales Rep. No. 0937
Named Insured TOWN & COUNTRY CHEVROLET INC
THE NAMED INSURED ON FORM 11-7255 IS AMENDED TO READ:
TOWN & COUNTRY CHEVROLET INC
COURTESY INC
DBA COURTESY LEASING AND
RENT-A-CAR
DBA SOUTHERN OREGON
SUBARU-VOLVO-MITSUBISHI
AIRPORT CHEVROLET INC
DBA DOLLAR GMC
DBA AIRPORT CHEVROLET VALLEY
INVESTMENTS .
PROMOTIONS COURTESY
cCOMMERCIAL PROPERTY.AND.
..:e'Y':DEVEtOPMENTINC)'."', ':';.:' i,,;, .'.
;J,:;:.)ALAN AND REBECCA riEBOERASf.
."';"FARTNERS ." .."'......-.. -..; .'-,:...
.::f:~tA.tA.N'DEBOER-'AS INDIVIDUAL'.:~~:..
}:c'j7''"JAMES:DAVID MILLS AS' -. ;:'".. ."i,.:.
::::~"INDIVIDUAL ..':'
;.:y"DUANE WALLACE AS INDIVIDlJAL> . .
',:'-;'t-'DBA DENTS PLUS . ~ ,. .'. .
~,,~ ,r. . -..'_
<:/SOUTHERN OREGON'GMC '. '.' ....
;".:'0S0UTHERN OREGON CHEVY DEALER"
.',,',-",'::.,", ':'
;,'-.}i::f:
A:'.,~,;-" :..
.~~~S
',,_,'- ,',_' ," -C,',
11.9246 (01/04)
Insured
Policy Number
0-2322332
AMERICAN HARDWARE MUTUAL INSURANCE COMPANY
Account Number A650283812
Effective Date: 03 - 0 1 - 1 0 .
12:01 A.M., Standard Time
Sales Rep. No. 0937
\
i
~
SCHEDULE OF LOCATIONS
Named Insured TOWN & COUNTRY CHEVROLET INC
Sales Represen tative
Loc. 8ldg.
No. No.
001 001 2045
SOLTIS KEVIN
Designated Locations
(Address, City, Slate, Zip Code)
HIGHWAY 99 NORTH, ASHLAND, OR
Occupancy
97520 CHEV-OLDS-GEO
SALES - SERVICE
001 002 REAR 2045 HIGHWAY 99 NO, (200 FT REAR OF 1-1), STORAGE
~SHLAND, OR 97520
001 003 STD OL 2045 HIGHWAY 99, NORTH HWY, ASHLAND, OR STANDARD OPEN
97520 LOT
001 004 ADJ 2045 HIGHWAY 99 NORTH, ASHLAND, OR 97520 ~INI UNIT STOR
RENTED TO OTHER
001
005 ADJ 2045 HIGHWAY 99 NORTH,. A?HLAND, OR,97520
:J;{;t;t~,~~~:~~~:,'>:"~" ,'.> ';'<::~,~~;':>~:?;~~:~:.,:< ;,::{-./:',;;,,:' ~.~,\~',_~',~'.."/ ,<,,,~,:,,:,::;::-:._-, ," ',' .
001 3001 BIDDLE:0ROAD, [RISK ID #3'6~OR17::'b18550];'
MEDFORD, ~~~~t;~;~?1~. .... '::';.,~"~.:,,5' .....
002 STD OL 30bi"fBIDDLE ROAD, MEDFORD, OR9}?04:
:1~t::i~~~~~f: " '~.~\'-',:,' - ,'.
001 403 DEAD;iNi5iAN MEMORIAL, ROAD, ASHLAN~:~'<2.R,
97502::/',11' ....
:;';;:{;3> ;":--'"
..
002
002
003
:-:;;:,'/i
004
005 001 3103 BIDDLE ROAD, [RISK ID# 36-0R99-000358],
MEDFORD, OR 97504
005 002 1-ADJ 3103 BIDDLE ROAD, [RISK ID#
36-0R99-000359J, MEDFORD, OR 97504
005 003 2-ADJ 3103 BIDDLE ROAD, [RISK ID#
36-0R99-000359] , MEDFORD, OR 97504
005 004 NSOL - 3103 BIDDLE ROAD, MEDFORD, OR 97504
005 005 NSOL - 3103 BIDDLE ROAD, MEDFORD, OR 97504
006 001 943 AUTOMATION WAY, [RISK ID 36 OR99 001988],
~EDFORD, OR 97504
007 001 2.22 ACRES AT LOTS 3-4, OF CELEBRITY CT SOUTH
OF, 3001 BIDDLE ROAD, MEDFORD, OR 97501
11-9190 (01104)
Insured
STORAGE
CHEV-GEO SALES
~D SERVICE
STANDARD OPEN
LOT
A.IRPLANE HANGAR
'"-',
VACANT LAND
AUTO DLR OFFICE
-MITSUBISHI
~~OWROOM AND
"WNING COVER
~YTO REPAIR -
~'JITSUBISHI
!NON STANDARD
OPEN LOT
!NON-STD OPEN
LOT-SERVICE CTR
LESSORS RISK -
BUILDING
"ACANT LAND
Policy Number
0-2322332
AMERICAN HARDWARE MUTUAL INSURANCE COMPANY
Account Number A650283812
Effective Date: 0 3 - Ole 1 0
12:01 A.M., Standard Time
Sales Rep. No. 0937
)
~
SCHEDULE OF LOCATIONS
Named Insured TOWN & COUNTRY CHEVROLET INC
Sales Representative
Loc. Bldg.
No. No.
007 002
SOLTIS KEVIN
Designated Locations
(Address, City, State, Zip Code)
CELEBRITY COURT, TAX LOT 372W13AA202,
LOC 8-1, MEDFORD, OR 97504
ADJ TO
Occupancy
ACANT LAND
UTO SERVICE -
DOLLAR GMC
008 002 DJ 225 S RIVERSIDE, AVENUE, MEDFORD, OR 97501 STORAGE
008 001 225 S RIVERSIDE AVENUE, MEDFORD, OR 97501
008 003 ON STD OL 225 S, RIVERSIDE AVENUE, MEDFORD,
OR 97501
009
001 325 S RIVER'SIDE);i\5iENUE, MEDFOR:b'; ;OR'9is01 .'
;\'".." ~!,' _' ,'"..,",:-,,' ..'L;_-::::~'.._.._\'.'.~';' ':'. ':,~""'i:'-'
~:i~~~[~i~~'-;~~1'~ - \ ~.' ~. \.'
002 R 325 S RiYEij.si"bE: AVENUE, MEDFORD;'ORo'9750'1.
~~1~~~~;~:~r;:~~~:: :~i. '., _ '.-- \:2~<,1:-,:~~.;);t ;~.' :-.,
001 3650 BIDDtE<'ROAD, ,:.HANGAR '#L2, MEDFORD, OR'."
97504 ~}~r~~~~. '.' - ".:.."
009
010
011
001 2410
FOO'r'!:!tpLS RD, ;MEDFORD ,OR
~r/;~~:):' -,
97501
012
001 924 LAWNSD1I.LE, MED.F()RD, OR 975b4
11-9190 (01/04)
Insured
ON STANDARD
OPEN LOT
OFFICE/SALES -
DOLLAR GMC
SERVICE
IRPLANE HANGAR
LIABILITY ONLY
ACANT LAND
DWELLING
Policy Number
0-2322332
COMMERCIAL GENERAL LIABILITY COVERAGE PART
SUPPLEMENTAL DECLARATIONS
AMERICAN HARDWARE MUTUAL INSURANCE COMPANY
m
J
Named Insured TOWN & COUNTRY CHEVROLET INC
Account Number A650283812
Effective Date: 03-01-2010
12:01 A.M., Standard Time
Sales Rep. No. 0937
Sales Representative SOLTIS KEVIN
Item 1. Business Description: AUTO DEALER
Item 2. Limits of Insurance
Coverage
Aggregate Limits of Liability
$
1,000,000
Limit of Liability
Products/Completed
Operations Aggregate
General Aggregate (other than
Products/Completed Operations)
anyone occurrence subject to
the Products/Completed
Operations and General
Aggregate Limits of Liability
NOT COVERED
Coverage A - Bodily Injury and
Property Damage Liability
,.'.,'.'
$.
..
:,50~ ;000'
",
'Y,-"
......'...:
"::,>:.~'_.;' '."
;-",:'~'>~;'.:.')',:,<~~,;,., "
$
500,000
:any one premises subject to the
-'<Coverage A occurrence and the
';"General Aggregate Limits of
'....' . .: . Liability
.. . .... anyone person or organization
_ . / subject to the General Aggregate
. . .::.> Li;;'its of Liabil itv
. 'any one person subject to the
. 'Coverage A occurrence and the
General Aggregate Limits of
Liability
Damage Toprem'ises" .'
Rented T 0 y,,~~~y'::j;r;.
Coverage B - Personal and;':'<\::
Advertising I~jury;-
Liability '::::' ",,'
Coverage C - Medical Payments
$
.'
100,000..
\:t";
.:):,:;~ '.
5,000
Item 3. Type of Policy Occurrence
Item 4. Form of Business and Location of Premises
Forms of Business: CORPORATION
Location of All Premises You Own, Rent or Occupy:
See Schedule of Locations
Item 5. Forms and Endorsements
Form(s) and Endorsement(s) made a part of this policy at time of issue:
See Schedule of Fonns and Endorsements
Item 6. Premiums
Coveraae Part Premium:
Other Premium:
Total Premium:
Your General Liability coverage is subject to an aggregate limit.
THESE DECLARATIONS ARE PART OF THE POLICY DECLARATIONS CONTAINING THE NAME OF THE INSURED AND THE POLICY PERIOD.
511-7256 (01104)
Insured
~
Policy Number: 0-2322333
Acct. No:A650283812
COMMERCIAL LIABILITY UMBRELLA DECLARATIONS
AMERICAN HARDWARE MUTUAL INSURANCE COMPANY
Named Insured and Mailin Address
TOWN & COUNTRY CHEVROLET INC
(SEE NAMED INSURED ENDT)
POBOX 249
ASHLAND OR 97520
Sales Representative
SOLTIS, KEVIN
OR
SalesRe No. 0937
Policy Period
From: 03-01-2010 To: 03-01-2011
At 12:01 A.M., Standard time at your mailing address shown abow
IN RETURN FOR THE PAYMENT OF THE PREMIUM, AND SUBJECT TO ALL THE TERMS OF THIS POLICY, WE
AGREE WITH YOU TO PROVIDE THE INSURANCE AS STATED IN THIS POLICY.
DESCRIPTION OF BUSINESS
:':>"\' /~~ .".,- f'~-::I,
BUSINESS DESCRIPTION: AUTO' 'DEALER
",' :~~{:~1:~~~':~'",.::-,.
FORM OF BUSINESS: COR poRil.rI ON :
~~~;r'::'~J; '~;-.-c~:::::~\,; ..
,
LIMITS OF INSURANCE -..
-. >' '.'-;..:"':;-~'f
EACH OCCURRENCE L1MIT:;(:':'i~:
.~-,: ;;;~:: ,>:~,:'
PERSONAL INJURY L1MIT':';";:~: ,"
GENERAL AGGREGATE LIMIT OTHER THAN PRODUCTS COMPLETED OPERATioNS
Aut~,:~i,ability is Not ~~bject to an Aggregate Limit
'.~' .,~"
PRODUCTS COMPLETED OPERATIONS AGGREGATE LIMIT
-,,-,,"., "
$12,000,000
$12,000,000
$12,000,000
RETAINED LIMIT -All states except NY
- New York
Sub-total Premium
TAX OR SURCHARGE
TOTAL PREMIUM
$12,000,000
$ 0
$ 10,000
INSTALLMENT NOTICE
SEE
SEE INSTALLMENT NOTICE
ENDORSEMENTS
ENDORSEMENTS ATTACHED TO THIS POLICY: SEE SCHEDULE OF FORMS AND ENDORSMENTS
THESE DECLARATIONS, TOGETHER WITH THE COMMON POLICY CONDITIONS AND COVERAGE FORM(S) AND
ANY ENDORSEMENT(S), COMPLETE THE ABOVE NUMBERED POLICY.
Countersigned:
Date:
By:
Resident Licensed Agent
511-9499 (6-08)
Copyright, Insurance Services Office, Inc., 2000
Page 1 of 1
Insured
.., Ztrl .., "'~I:"''''< ra"~(");g
"0< 0 ~H~ 0 o ",..trl.. ..,(")..00
:<t:: .., ~ "'e~"1:"' e1:l"Ct:I
.. ..,~ ..(") I:"'fii en utrl"C
~lii I:"' ~~ I:"' 1:"'.., ~en .. ~ u trl
;g .. '"
'" e .. >"00 ::!
~i en ~1:l '" "'Om
0 =0 en ;~~ .f::o.owO
I:"'Z trl <en ~ O' \OVt t:I
;g ....0__
~en en tjO trl"'trl
~::l en .., ~m
'" . ~ ~ - en
trl trl t-.l
...,0 .., t:I ~ ~ 8 (")
_z >< 0"" ~
0'" < i"
Z .., E: .::;; "" ~ 0
~ '"
'" -.J 0
fii '" - 0
::; ~ > Z
'"
. ~
I:"' ~
..
UlUi en >
..,
.... ... ... - t-.l t-.l '"
p~ ~ l: t-.l '" '" >< ,~
.. "" "" trl 1:l
-.J-.J '" ... w '" '" ~
-.J-.J eo,
t"f' <:> 0 -..l -..l ....~..
"'''' t-.l <:> 0 0 00
"'''' .. I:"'
..'" (") "C
-'<> ~ ~><",
g trl ~.l'"'0
,--.., ~:'dZg;g
... ... - (~ t-.l en oo(")'<>~
..., "" ~ t-.l -..l ..: ~;"g6":
00 00 '" trl
0 ... ""0 b V. - ~ Z ..,
..., :.., ~ t-.l 00 ' .. ~ ~.::!~ ~
> <:> 0 0 00 '"
t"' \
0 :S'<>Otrl~
lii t-.l th !:i"'>
g S ~1-3
~ 'P . ~ ,;'" '< " lii '< "'''' i'l OJ c;'l~trl
... f HO '" H ~ "'''' 0 o...~'
~ - (, :c :!,@ " H " Sl :I: :xl " C
<:> "'~ i;i "' H '" 3 ~ ~ tii \) Z<:>trl
~ .., OJ 0 '"
fw- .- 0 0 '" 0 H Z:,
~ "'0 'J " z z " H .'"
~ 0 () 0 0
'" ~~ " g " "'''' ~ z
~~ "'" 0, 0 ""
= :c :c!@ !@ H ~ :c:c !@ '"
0 '" 08 g OJ
~ " \)J 0 ~~ :!, 0 H ~
!_ J~ SO .J t< t< t<t< H
..c "' H
~ f 0 '" 00 "
" ~ H "'" 0 HH " OJ
~""~ t:I ~ E;~ 00 1l "'''' 0
~, .5 1lf: HH t< 0
.~" ~. '" t< H
,,; d' '" ,,,OJ "'''' OJ '"
" <> " " H
S 5 '" OJ t< OJ' '"
q ~ 0 H
~ '" ~ ()
" ~ 0 H
= '" 1l
~g ~ '" 0 ...
'" ;::s '"
H "
C :::=...;> :P H "
W 0
~ ~ :;~
V, --
...::j
V_ '" '" :::z
"'H .. W '" '" .. thO
"'.. '" "'" '" " '" '" "'00
... :.. :. ;" e:
"" .." w.. W H
1,:; 'O'" " "0 'O H '" H
W' 00
W ...
N :..,
'" '"
Exhibit "B"
, Valley Investments Hangar Map