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HomeMy WebLinkAbout2011-324 Hangar Lease Addendum - CAP ADDENDUM TO HANGAR LEASE AGREEMENT BETWEEN CITY OF ASHLAND AND CIVIL AIR PATROL THIS HANGAR LEASE ADDENDUM ("Addendum") is entered into effective as of April 1, 2011 ("Effective Date") by and between tenant, Oregon Wing of the Civil Air Patrol, Inc, an auxiliary of the United States Air Force (hereinafter referred to as "CAP"), and landlord, the City of Ashland, Oregon(hereinafter referred to as "City"), by and through the Ashland City Council. RECITALS A. City and CAP (the "Parties") entered into an April 1, 2006 agreement(the "Lease") under which CAP leased a portion of the Ashland Municipal Airport for $1.00 per year for a term of five years. B. The leased premises ("Premises"), described in Exhibit "A"attached hereto, included both the subject real property and a hangar located on it and owned by CAP ("Hangar"). C. Paragraph 3.2 of the Lease required that CAP remove the Hangar at the termination of the Lease. Paragraph 15.2 required that CAP remove all improvements upon expiration or termination of the Lease. D. The term of the Lease expired April 1, 2011, and by mutual oral agreement, CAP continued, and still continues, to occupy the premises as a month-to-month tenant, still subject to all the provisions of the Lease except for Paragraph 2, which set forth the term of the Lease. E. The Parties now desire to modify and supplement the Lease to (1) document that CAP may continue as a month-to-month tenant; (2) provide to the City a right of first refusal to purchase the Hanger from CAP; and (3) clarify the Lease requirement to remove the Hangar at the termination or expiration of the Lease and waive this requirement in the event City exercises the right of first refusal as provided herein. NOW, THEREFORE, in consideration of the foregoing Recitals and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged by the parties, the parties hereby agree to amend their original April 1, 2006 Lease as follows: AGREEMENTS 1. The foregoing Recitals are incorporated by reference herein. Page 1 of 3 —ADDENDUM TO HANGAR LEASE 2. Paragraph 2 of the April 1, 2006 Lease is amended to include the following two additional provisions: "2.1 Upon CAP's continuation of possession of the Premises following expiration of the Lease, CAP shall be deemed to be occupying the Premises as a tenant from month-to-month, subject to all of the conditions, provisions and obligations of the Lease insofar as they are applicable to a month-to-month tenancy and at the same rental rate as provided in Paragraph 3.1 of the Lease." "2.2 CAP's month-to-month tenancy shall be terminable at any time by City or CAP upon written notice given to the other party not less than 30 days prior to the termination date, which shall be specified in the notice. CAP and City waive any notice that would otherwise be provided by law with respect to a month-to-month tenancy." 3. Paragraph 3.2 of the Lease is deleted in its entirety and replaced with the following provisions" "3.2 City shall have and CAP hereby grants to City a right of first refusal to purchase CAP's interest in the Hangar whenever CAP receives and desires to accept a bone fide offer("Offer") from an unrelated third party to purchase CAP's interest in the Hangar ("CAP's Interest"). Prior to accepting any such Offer, CAP shall have the duty to present that Offer to City, and City shall have 30 days from the date CAP delivers notice and a copy of the Offer to City to notify CAP whether City elects to purchase OAP's Interest pursuant to the terms of the Offer. If City elects to purchase CAP's Interest, City shall provide written notice to CAP within the aforesaid 30 days ("Acceptance Notice'!). Upon The City's delivery to CAP of an Acceptance Notice, City and CAP shall, within thirty (30) days after such delivery, cooperate to enter into a mutually acceptable purchase and sale agreement pertaining to CAP's Interest, which shall contain the terms of the Offer as well as customary provisions contained in similar agreements entered into between other Oregon airport owners and owners of hangers thereon." "3.3 If City does not exercise its right of first refusal within 30 days from the date CAP delivers notice and a copy of the Offer to City, then the City's right of first refusal lapses, and CAP may proceed to transfer CAP's Interest to a third-party upon the same terms and conditions set forth in the Offer; rop vided such transfer of Cap's Interest occurs within 60 days following the date CAP delivers notice and a copy of the Offer to City. City's failure to exercise or waive its right of first refusal in any instance shall not be deemed a waiver of City's right of first refusal for subsequent Offers. Page 2 of 3 —ADDENDUM TO HANGAR LEASE "3.4 In the event CAP's Interest is not transferred to a third party or to the City as provided herein, CAP shall remove the Hangar from the leased premises within 90 days after termination of the Lease, notwithstanding Paragraphs 3.2 and 15.2 of the Lease". 4. Except as expressly set forth in this Addendum to the Lease, the original April 1, 2006 Lease is otherwise is unmodified and remains in full force and effect. 5. This Addendum may be executed in multiple counterparts. IN WITNESS WHEREOF, the parties have caused their properly authorized representatives to execute and deliver this Addendum effective as of the date set forth above. LESSEE: Civil Air Patrol, Oregon Wing CITY OF ASHLAND By: By- Its: Oregon Wing Commander Ma r By: By: Its: City Recorder Approved as to Form Approved as to Form Oregon Wing Legal Officer Attorney for the City of Ashland Page 3 of 3 —ADDENDUM TO HANGAR LEASE "14 In the event CAP's Interest is not transferred to a third party or to the'City as provided herein, CAP shali.remove the Hangar from ncc leased premises within 90 days after termination of the Lease, notwithstanding Paragraphs 32 and 15.2 of the I-ease". 4. Except as expressly set forth in this Addendum to the Lease, the original-April 1, 2006 Lease is otherwise is unmodified and remains in full force and effect. 5. This Addendum may be executed in multiple counterparts. IN WITNESS WHEREOF,the parties have caused their properly authorized representatives to execute and deliver this Addendum effective as of the date set forth above- LESSEE: Civii Air Fatf oi, Oregon Wing ::CT Y OF ASHLAND Byy r -e /1 Bv: Its: Oregon Wing Commander yor By: --- —. _ By:----- -- - Its City Recorder Apprr vcd as to Form Approved as to Form Oregon Wing Legal Officer Attorney for the City of Ashland Page 3 of 3 -ADDEND'INI TO HANGAR[,,EASE