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HomeMy WebLinkAboutRES.2301.08-20-2007BILL NO. 07-150 RESOLUTION NO. a ,-� p / A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDED AIRPORT GROUND LEASE FOR HANGAR 3, INC., AT THE CAPE GIRARDEAU REGIONAL AIRPORT BE IT RESOLVED BY THE COUNCIL OF THE CITY OF CAPE GIRARDEAU, MISSOURI, AS FOLLOWS: ARTICLE 1. The City Manager, for and on behalf of the City of Cape Girardeau, Missouri, is hereby authorized to execute an Amended Airport Ground Lease Hangar 3, Inc., at the Cape Girardeau Regional Airport. A copy of said Lease is attached to this Resolution and made a part hereof. PASSED AND ADOPTED THIS DAY OF 20 C I 3 OpAt000 Ja Knudtson, Mayor AMENDED AIRPORT GROUND LEASE FOR HANGAR 3, INC. This Agreement made and entered into this day of August, 2007, by and between the City of Cape Girardeau, Missouri, a Municipal Corporation, hereinafter called "Lessor" and Hangar 3, Inc., a Missouri corporation, hereinafter referred to as "Lessee". For and in consideration of the mutual covenants, tem -is and conditions contained herein, the parties agree as follows: SECTION 1 PREMISES Lessor hereby leases to Lessee the following described property: A tract of land situated in the Northeast Quarter of Section 35 and in the Northwest Quarter of Section 36, all in Township 30 North, Range 13 East in Scott County, Missouri described as follows: Commence at the Southwest corner of the Main Terminal Building of the Cape Girardeau Regional Airport; thence South 00*00'00" East, 235.41 feet; thence North 90*00'00" East, 520.26 feet; thence North 00*00'00" East, 42.94 feet, thence North 89*38' 13" East, 0.46 feet, the POINT OF BEGINNING thence with the south line of said tract, North 89*38'13" East, 145.46 feet; thence North 00*21'47" West, 195.00 feet; thence South 89*38'13" West, 145.46 feet; thence South 00*21'47" East, 195.00 feet, to the POINT OF BEGINNING and containing 28,275 square feet, more or less, as shown on the accompanying plot. Subject to any easements of record. Provided, however, that the Lessor reserves from the above described premises easements for ingress/egress and utilities over, across and below the westernmost fifteen feet (15') of the above described tract. A survey of the property being leased is shown on Exhibit A. attached hereto and incorporated herein by reference. SECTION 2 TERM The original term of this agreement shall be thirty (30) years and shall commence on the 1st day of June, 2003, and shall expire on the 31st day of May, 2033. Lessee shall have the option to renew this lease on the same terms and conditions for four (4) additional terms of five (5) years each. This agreement shall automatically renew unless Lessee serves written notice of its election not to renew upon the Lessor at least ninety (90) days prior to the expiration of the original term or any applicable renewal term. This Amended Ground Lease hereby repeals and supersedes an Airport Ground Lease dated May 20, 2003, between the same parties and covering a lesser included tract of land. SECTION 3 RENTAL Lessee shall pay to Lessor monthly the rental amount as hereinafter provided, on or before the 10'h day of each month during the term of this Lease. For the first five (5) years of the term of this lease the monthly rental amount shall be One Hundred Sixty-nine and 00/100 Dollars ($169.00), which is the product of $.08 per square foot times the number of square feet leased herein (exclusive of reserved easements) (25,350 square feet) divided by twelve (12). For each successive five (5) year period during the remainder of this agreement, the rental amount shall equal the rental amount for the preceding twelve (12) month period plus a percentage of said preceding rental amount. The percentage referenced herein shall be the percentage increase in the All Urban Consumer Price Index for the preceding five (5) year period, not to exceed three (3) percent per year. All payments are to be made at the office of the City Collector of the City of Cape Girardeau or at such other place as Lessor may direct. SECTION 4 USE OF PREMISES The premises are to be used for the purpose of constructing and maintaining a hangar for airplanes and other aviation related activities. Lessee shall not use or permit the use of all or any portion of the leased premises in any other manner than herein set forth, without the prior written consent of Lessor. SECTION 5 UTILITIES Lessee shall assume and pay for all costs and charges for utility services furnished to Lessee during the term of this lease, and Lessee shall have the right to connect to any and all storm and sanitary sewers and water and utility outlets at its own cost and expense, and Lessee shall pay for any and all service charges incurred therefor. Lessor represents and warrants to Lessee that sanitary sewer and storm sewer or other drainage facilities, water, gas and electric utility services are available to the property. All such services are located at or adjacent to the boundary lines to the property and are available for connection and use without payment of charges or assessments other than usual and ordinary connection fees or services or use charges. SECTION 6 CUSTODIAL SERVICES Lessee agrees to provide the necessary materials, equipment and labor to provide all necessary janitorial and custodial services, and to maintain the premises in a clean, safe, orderly, and sanitary condition. Lessee shall provide a complete and proper arrangement for the adequate sanitary handling and disposal of all trash and other refuse caused by its operations under this lease. SECTION 7 MAINTENANCE AND REPAIR Lessee shall at its sole cost and expense, keep and maintain the demised premises, all improvements, additions or alterations thereto, equipment and landscaping constructed or installed by Lessee upon the demised premises, in good condition, which condition shall at all times be based on a standard of care reflecting prudent property management, reasonable wear and tear excepted. SECTION 8 INGRESS AND EGRESS Lessor shall provide a continuous and uninterrupted (on daily basis) right of ingress and egress to the demised premises for Lessee, its officers, employees, guests, sub -tenants and agents, including, but not limited to, ingress and egress from and to (i) John E. Godwin, Jr. Drive for pedestrian and vehicular traffic; and (ii) taxiways and runways of Cape Girardeau Regional Airport for aviation traffic. Such access shall be maintained on a daily basis absent force majeure or emergency beyond Lessor's control. Such access shall be maintained and provided during periods of heavy use including air shows, fly -ins and similar events. Such access will be provided within the guidelines of Federal Aviation Regulations and FAA Advisory Circulars and such access may be denied during any period of FAA coordinated, approved, or directed airport closure. SECTION 9 IMROVEMENTS In the event Lessee desires to construct building or facilities on the demised premises, Lessee shall submit to Lessor, final plans, specifications and architectural renderings prepared by registered architects and engineers. Lessee shall hold the Lessor harmless and reimburse it for any and all expenses of any nature whatsoever arising out of any claim from said improvements. Lessee agrees not to construct any buildings on the demised premises without prior written consent of Lessor, however such approval shall not be unreasonably withheld. Lessee shall keep the real estate leased hereunder free and clear of any and all liens and encumbrances of any kind in any way arising out any such construction. In the event any building or facilities are constructed upon the premises, Lessee shall purchase and maintain insurance on said buildings or facilities against damage or loss by fire or risk of a similar nature which are on or shall be customarily covered under standard policies of fire insurance having standard extended coverage endorsements. In the event any buildings or facilities constructed upon the demised premises are totally destroyed by fire or other casualty loss, Lessee shall have the option of either restoring the buildings or facilities and continuing under the terms of this lease, or terminating the lease as hereinafter provided. At the termination of this lease for any reason, except as hereinbefore provided, Lessor may retain as its sole property all real property improvements which have been constructed by Lessee, or may require Lessee to remove said improvements and restore the land substantially to is original condition, all at Lessee's expense. Upon termination of this lease, Lessee shall remove all personal property from the demised premises, within thirty (30) days, and if Lessee fails to remove said personal property within that time, said property shall be forfeited to Lessor and may be removed by Lessor at Lessor's expense. Further, upon termination of this lease for any reason, Lessor shall have a lien upon and against all of Lessee's property, real and personal, and located on the leased premises, for any sums due Lessor from Lessee. SECTION 10 RIGHT OF ENTRY Lessor shall have at all reasonable times during business hours, the full and unrestricted right to enter the leased premises for the purpose of inspection, and for the purpose of doing any and all things which it is obligated or has a right to do under this agreement or by law. SECTON 11 TAXES Lessee shall pay all personal property taxes which may be assessed against the equipment, merchandise or other personal property owned or used by Lessee located on the demised premises. SECTION 12 REHABILITATION ACT REQUIREMENTS Lessee shall operate and maintain its facilities in accordance with the requirements of Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and will assure that no qualified handicapped person shall, solely by reason of his or her handicap, be excluded from participation in, be denied the benefits of, or otherwise be subject to discrimination, including discrimination in employment under any program or activity that receives fund or benefits from a Federal Grant. Lessee further assures that it shall comply with the requirements imposed by or pursuant to 49 C.F.R., Part 27. SECTION 13 NON DISCRIIVIINATION Lessee shall not, on the grounds of race, color, creed or national origin, discriminate or permit discrimination against any person or group of persons in any manner prohibited by Title VI of the Civil Rights Act of 1964, and Part 21 of the Regulations of the Office of the Secretary of Transportation in the use of leased premises. Lessor reserves the right to take such action as the United States Government may direct to enforce this covenant. The Lessee assures that it will undertake an affirmative action program as required by 14 CFR Part 152, Subpart E, to insure that no person shall on the grounds of race, creed, color, national origin, or sex be excluded from participating in any employment activities covered by 14 CFR Part 152, Subpart E. The Lessee assures that no person shall be excluded on the grounds from participating in or receiving the services or benefits of any program or activity covered by this subpart. The Lessee assures that it will require that its covered sub -organizations provide assurances to the Lessee 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, Subpart E, to the same effect. It is understood and agreed that nothing herein contained shall be construed to grant or authorize the granting of an exclusive right within the meaning of Section 308 of the Federal Aviation Act of 1958. Lessee agrees to furnish service on a fair, equal and not unjustly discriminatory basis to all users thereof, and to charge fair, reasonable and not unjustly discriminatory prices for each unit or service; PROVIDED, that Lessee may make reasonable nondiscriminatory discounts, rebates, or other similar types of price reductions to volume purchasers. SECTION 14 ASSIGNMENT AND SUBLEASE Lessee shall have the right, with the prior written consent of Lessor, which shall not be unreasonably withheld, to assign this lease, or to sublease any portion of the demised premises, but in such event Lessee shall remain liable to Lessor for the remainder of the term of the lease to pay to Lessor any portion of the rent and fees provided for herein upon failure of the assignee or sub- lessee to pay the same when due. Said assignee or sub -lessee shall not assign or sublease without the prior written consent of Lessor, which shall not be unreasonably withheld, and Lessee. Any such assignment by Lessee shall contain a clause to this effect. Lessee hereby agrees that any such sub- lease or assignment shall be limited to the uses specified herein. Notwithstanding the above, Lessor hereby consents to Lessee subletting such portion of the premises as Lessor shall determine to Cape Avionics, Inc. SECTION 15 NO WAIVER OF FUTURE BREACH The failure of Lessor or Lessee to insist, in any one or more instances, on a strict performance of any of the terms or the conditions of this Lease, or to exercise any right herein contained, shall not be construed as a future waiver or a relinquishment of the provisions or right, but he same shall continue and remain in full force and effect. The receipt by Lessor of rent, with knowledge of the breach of any term or condition herein, shall not be deemed a waiver of the breach and no waiver by Lessor of any provision hereof shall be deemed to have been made unless expressed in writing and signed by Lessor. Should Lessor at some time consent to an assignment of this Lease or to a sublease of the whole or any part of the demised premises, no further assignment and no further sublease shall be made without the express consent in writing by Lessor. None of the terms or conditions of this Lease shall be altered, waived, or modified in any manner except by written instrument executed by both parties. SECTION 16 INDEMNIFICATION Lessee agrees to indemnify, defend and hold harmless the Lessor from all claims, actions, suits, and demands because of any bodily injury, including death, and because of damages to property or losses which may arise out of or result from Lessee's operations or use of the demised premises whether such operations or use are by Lessee, its agents, employee or anyone directly or indirectly employed by Lessee. Lessee shall procure and maintain in effect for the term of this Agreement, liability insurance in an amount not less than $300,000.00 for one person and $2,000,000.00 for any one occurrence involving injury, including death, to more that one person, with property damage insurance of not less than $100,000.00 for any one occurrence. In addition, Lessee shall procure hangar keepers insurance covering non -owned aircraft in custody of Lessee or any sub -tenant of Lessee on the demised premises, if applicable under Lessee's or Lessee's sub- tenant's current use. If, however, the State of Missouri raises the liability limits for municipalities contained in Section 537.600 et seq., revised statutes of Missouri, or elsewhere, Lessee shall increase its liability insurance to an amount equal to those increased liability limits. SECTION 17 LESSEE'S RIGHT OF TERMINATION Lessee shall have the right to terminate this lease upon the happening of one or more of the following events: A. The permanent abandonment of the Airport. B. The lawful assumption by the United States Government, or any authorized agency thereof, of the operation, control or use of the Airport, or any substantial part thereof, in such a manner as to substantially restrict Lessee's use of the premises for a period of forty-five (45) days. C. The issuance by any Court of competent jurisdiction of any injunction in any way preventing or restricting the use of the Airport, and the remaining in force of such injunction for a period of least forty-five (45) days. D. The default by Lessor in the performance of any covenant or agreement herein required to be performed by Lessor, and the failure of Lessor to remedy such default for a period of thirty (30) days after receipt from Lessee of written notice to remedy said default. Lessee may exercise the right of termination by written notice to Lessor at any time within thirty (30) days after any of the events mentioned in the preceding subparagraphs (A) through (D) above. In the event of a termination as a result of events described in subparagraphs (A) and (D) above, Lessor and Lessee may negotiate for the purchase of all real property improvements. If no agreement for purchase has been reached, Lessee may remove all such improvements within one hundred twenty (120) days thereafter. Any improvements not removed within that time shall become the property of Lessor. SECTION 18 LESSOR'S RIGHT OF TERNIINATION This lease shall be subject to termination by Lessor upon the happening of any one or more of the following events: A. Lessee shall be in arrears in the payment of rent for a period often (10) days after the time such payment shall be due, following written notice of said arrearage from Lessor to Lessee. B. Lessee shall make a general assignment for the benefit of creditors. C. Lessee shall file a voluntary, or have filed against it an involuntary petition in bankruptcy, provided such petition whether voluntary or involuntary shall not be dismissed within thirty (30) days after it is filed. D. Lessee shall abandon the demised premises. E. Lessee shall default in the performance of any of the other covenants, agreements and conditions required to be kept and performed by Lessee, a and such default continues for a period of thirty (30) days after receipt of written notice from Lessor of said default. Lessor may exercise the right of termination provided for herein by written notice to Lessee of its intention to terminate, and this lease shall terminate ten (10) days after the date of such notice. In the event of termination Lessor may take possession of the demised premises upon the effective date of said termination. In the event Lessor shall take possession of the demised premises, it may relet the same upon such terms and conditions as it shall deem appropriate, and any deficiency in the rental payments shall be and remain the obligation of the Lessee. SECTION 19 NOTICES Any notice or other communication to Lessor or Lessee referred to in this lease agreement shall be deemed validly given, served and delivered upon deposit in the United States Mail, registered and with proper postage and registration fee prepaid, addressed as follows: LESSOR: City Clerk City Hall 401 Independence P.O. Box 617 Cape Girardeau, MO 63702-0617 LESSEE: Hangar 3, Inc. C/O Paul Fisher, III 479 Quail Creek Drive Jackson, MO 63755 SECTION 20 PARTIES BOUND All of the terms, covenants and conditions herein contained shall be binding upon and shall inure to the benefit of the parties, their successors, heirs, executors, administrators and assigns. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed as of the day and year first above written in Cape Girardeau, Missouri. LESSOR: CITY OF CAPE GIRARDEAU, MISSOURI Douglas K. Leslie Interim City Manager ATTEST: Gayle L. Conrad, City Clerk LESSEE: HANGAR 3, INC. Paul Fisher, III President ATTEST: