HomeMy WebLinkAboutRES.2597.03-21-2011BILL NO. 11-36 RESOLUTION NO. �-'-5 9"7
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
EXECUTE A LEASE WITH SKYBOUND AVIATION,
L.L.C., FOR OFFICE SPACE AND HANGAR SPACE 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 a
Lease with Skybound Aviation, L.L.C, for office space and hangar
space 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 cz:�?YS2" DAY OF 20
ATTEST:
yle')L. Conrad, Cit"�le
Ha - y E. edi er, Mayor
�N
P. O. Box 617
e /J Cape Girardeau, MO 63702-0617
(573) 334-6230 FAX: (573) 334-0499
e-mail: blot'@cityofcapegirardeau.orgrg
REGIONAL AIRPORT kamos@cityofcapegirardeau.org
SKYBOUND AVIATION, LLC OFFICE AND HANGAR LEASE
This Agreement, made and entered into this i'kl day of A/ Y'Cl( , 2011, by and
between the City of Cape Girardeau, Missouri, a Municipal Corporation, hereinafter called "Lessor" and
Skybound Aviation, LLC, a corporation organized and existing under and by virtue of the laws of the
State of Missouri, and authorized to do business in the State of Missouri hereinafter referred to as
"Lessee",
In consideration of the mutual promises and covenants hereinafter set forth and other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged by both parties
hereto agree as follows:
SECTION 1. LEASED PREMISES.
Lessor hereby leases to Lessee and Lessee hereby leases from Lessor, the property shown on
diagram in Exhibit A attached hereto and by this reference made a part hereof, the middle of three
hangar spaces, referred to as the Corporate Hangars, and also including the right to use the common
areas and parking facilities not specifically designated for another use, which said property is located
within the Cape Aviation hangar/office building at the Cape Girardeau Regional Airport in Cape
Girardeau, Missouri.
SECTION 2. USE OF PREMISES.
Lessee shall occupy and use the leased premises to operate a flight training program and for the
purpose of maintaining a hangar for Lessee's airplanes. 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. Lessee shall at all times maintain a respectable, clean, and professional operation and
appearance.
SECTION 3. TERM.
The original term of this agreement shall be for twelve (12) months, commencing on the 15` day
of April, 2011 and shall expire on the 31st day of March, 2012. This lease shall automatically renew, on
the same terms and conditions, for four (4) additional one (1) year terms unless Lessee notifies Lessor in
writing of intent to terminate the lease at least sixty (60) days prior to the end of the current leased term.
At the conclusion of these four renewal terms, all rental amounts and other conditions of the lease shall
be subject to renegotiation at the option of the Lessor, otherwise, this agreement shall continue in force
from year to year unless one of the parties to the agreement notifies the other party in writing, at least
sixty (60) days prior to March 315, that they intend to terminate the agreement or that they desire to
negotiate the contract.
SECTION 4. RENT.
Lessee promises and agrees to pay rent to Lessor for the leased premises at a rate of $376.75
monthly, which is the sum of 169 square feet multiplied by $0.75 per square foot per month, or $126.75,
plus $250 per month for hangar space. This rent payment includes expenses for all water, gas,
electricity, sewer and other utility charges, except for telephone, associated with the leased premises
during the term of this lease. Any additional space used by Lessee shall be subject to additional rental
payments as a part of monthly rent, upon agreement and approval by the Airport Manager or his
assigned designee.
The rent is payable monthly and Lessee shall account for and pay to Lessor before the 101h day of
each month the rent herein before provided for the previous month. Said payments and documentation
shall be delivered to the Office of Accounting and Purchasing, City of Cape Girardeau, City Hall, P.O.
Box 617, Cape Girardeau, MO 63702-0617.
The minimum monthly rent shall be reviewed each fifth anniversary date of the inception of this
lease and adjusted, it being understood that the rent must be established at Fair market rental value.
Should the Cape Aviation FBO building be damaged in such a way as to cause reduction or
cessation of Lessee's business, the base minimum rent shall be reduced by the same percentage as the
gross receipts of Lessee are reduced during the months of such damage, compared to the corresponding
calendar months of the immediately preceding year, provided that such damage is in no way proximately
caused by Lessee, its agents or employees.
SECTION 5. ASSIGNMENT AND SUBLETTING.
Lessee shall not assign this lease, nor shall the leased premises or any part thereof, be assigned,
let or sublet without the prior written consent of Lessor, which consent shall not be unreasonably
withheld. It is understood and agreed by both parties that the contiguous office space immediately north
of the subject leasehold office space is made available to the Cape Girardeau Career and Technology
Center's (CGCTC) flight program and that either party may from time to time need or require access to
each other's space for access. It is also agreed that any such access will be negotiated between the
Lessee and CGCTC.
SECTION 6. TERMINATION OF LEASE.
Following the initial twelve (12) month term of this lease, Lessee shall be required to give at
least sixty (60) days notice of intent to terminate any or all conditions of this lease. Failure of the lessee
to conduct business in excess of seven consecutive days without written notice giving reasonable cause
of such to Lessor may be abandonment of the leased premises. Failure by Lessee to give such notice
shall be considered as abandonment of the leased premises and shall result in termination of the terms of
this lease — AND — Lessee shall pay to Lessor, one month's rent at the highest rate applicable in
paragraph 4 of this lease.
SECTION 7. REPAIRS.
Lessee shall be responsible for damage to the demised premises resulting from Lessee's use of
the premises, ordinary wear and tear excepted and Lessee shall keep the demised premises in good and
safe repair and condition at all times during the term hereof.
SECTION 8. ALTERATIONS AND IMPROVEMENTS.
Lessee shall make no alterations, additions, repairs, replacements or improvements upon the
leased premises without the prior written consent of Lessor. Such consent shall not be withheld without
reasonable cause. All alterations, additions, repairs, replacements and improvements shall be and
remain the property of Lessor and be surrendered with the leased premises as part thereof upon
termination of this lease.
SECTION 9. SIGNS.
Lessee shall not construct, attach, affix or paint any sign, advertisement or notice on the exterior
of the leased premises, including screens, awnings and shades without the prior written consent of
Lessor. Lessor agrees to work with the Lessee in facilitating a location upon which Lessee can erect and
maintain a sign or signs, which will, at a minimum, advertise the business of the Lessee.
SECTION 10. COMPLIANCE WITH LAWS.
Lessee covenants and agrees that it will comply with all the requirements of all laws regulating
the use and occupancy of buildings in Cape Girardeau, Missouri and that it will not create or permit any
nuisance in or upon the leased premises to the annoyance of neighboring properties, or permit waste of
the leased premises to occur, or allow the leased premises to be used for any illegal, immoral or
illegitimate purposes.
SECTION 11. UTILITIES.
Lessee shall be responsible to pay all local and long distance telephone expenses associated with
Lessee's business. Additionally, computer or internet service charges will be the responsibility of
Lessee.
SECTION 12. PUBLIC LIABILITY INSURANCE.
Lessee shall procure and maintain in effect for the term of this lease 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 than one person, with property damage insurance
of not less than $300,000.00 for any one occurrence. The Lessor shall be named as an additional insured
and the policy shall provide that in the event of cancellation, written notice of such cancellation shall be
given to the Lessor at least thirty days prior to the effective date of such cancellation. If, however, the
State of Missouri raises the liability limits for municipalities contained in Section 537.600 et seq.,
revised State of Missouri, or elsewhere, Lessee shall increase its liability insurance to an amount equal
to the increased liability limits.
SECTION 13. INDEMNIFICATION.
Lessee shall indemnify and hold harmless and defend the Lessor, its officers, agents and
employees from and against any and all claims, demands, damage, loss or liability of any kind or nature,
costs or expenses, including attorney's fees and witness costs which may be asserted by any person or
persons for or on account of any injuries or death or damages to property sustained because of or arising
out of activities of Lessee, its officers, agents or employees provided for herein, whether or not there is
concurrent active or passive negligence on the part of the Lessor, but excluding liabilities due to the sole
negligence or willful misconduct of Lessor. Lessor shall not be liable for its failure to perform the
Agreement or for any loss, injury, damage or delay of any nature whatsoever resulting there from caused
by any Act of God, fire, flood, accident, strike, labor dispute, riot, insurrection, war or any other cause
beyond Lessor's control.
SECTION 14. TAXES.
Lessor shall pay any real estate taxes on the leased premises. Lessee will be responsible only for
such taxes as are assessed against Lessee's activity and on the equipment Lessee owns, and/or uses in
the conduct of its activity.
SECTION 15. DAMAGE OR DESTRUCTION OF PREMISES.
If the leased premises or any improvements thereon become damaged in whole or in part by fire
or other casualty through no fault of Lessee to such extent as Lessee determines said damage will
interfere with or inconvenience it in its operations, Lessee shall have the following options:
1) Lessee may request the Lessor to repair the damaged premises at Lessors expense if such
damage is not the result of Lessors use or occupancy. Lessor, however, shall have sole
discretion in deciding whether to rebuild the premises.
2) If said premises are not rebuilt; Lessor may, upon 30 written notice, forthwith terminate this
lease, in which event Lessee shall have no further liability or obligation to Lessor.
If the leased premises or any improvements thereon become damaged in whole or in part as a
result of Lessee's use or occupancy, Lessor shall repair such damage but at Lessee's expense, and if
such damage is covered by Lessee's insurance, then the proceeds of such insurance shall be paid to
Lessor to be applied to such restoration or repair, with any excess paid to, or deficiency paid by, Lessee
as the case may be.
SECTION 16. DEFAULT.
If any default shall be made in Lessee's compliance with any term or provision of this lease
agreement, then Lessor may at its sole option, upon 30 days written notice, forthwith terminate this
lease. Lessee, however, shall have the right to cure any such default, other than non-payment of rent,
within that thirty (30) day period. Upon such termination of this lease, Lessee shall peacefully surrender
possession of the leased premises to Lessor, and all rights of Lessee to the leased premises shall cease
and desist.
SECTION 17. SURRENDER AT END OF TERM.
On the last day of the lease term, whether or not accelerated, Lessee shall peaceably and quietly
leave and surrender the leased premises to Lessor, including all improvements added by Lessee, if any,
in as good condition as reasonable use and wear thereof will permit.
SECTION 18. NOTICES.
Any notice or demand provided for herein may be given to Lessor and Lessee to be served by
personal service or by ordinary mail, postage prepaid, addressed to Lessor at: Office of the Airport
Manager, Cape Girardeau Regional Airport, P.O. Box 617, Cape Girardeau, MO 63702 and to Lessee at
Beverly J. Cleair and/or Glenn McCallister, Skybound Aviation, LLC, P.O. Box 132, Gordonville, MO
63752. Either party may designate in Writing, a new address to which any such notice, demand, or
communication shall thereafter be given.
SECTION 19. WAIVERS.
No waiver of any right to re-enter or terminate, by acceptance of rent or otherwises, shall waive
any subsequent right to re-enter or terminate for subsequent breaches of any covenant, term or condition
of this lease, nor shall any consent by Lessor to any assignment or subletting of the leased premises, or
any part thereof, waive any of the covenants, terms or conditions of this lease relating to assignment or
subletting.
SECTION 20. CONDITIONS OF PREMISES.
Lessee acknowledges that it has examined the leased premises prior to the execution of this lease
agreement and knows of the condition thereof; that no representations as to the condition or state of
repair thereof have been made by Lessor other than those expressed herein; and that Lessee accepts the
leased premises in their condition at the beginning of the lease term.
SECTION 21. DEFINITIONS.
Whenever the words "Lessor" or "Lessee" are used herein, they shall be construed to include the
successoers and assigns of the parties, who shall also be bound by the terms of this lease agreement.
SECTION 22. GOVERNING LAW.
This agreement shall be governed by the laws of the State of Missouri.
SECTION 23. INCLUDED SERVICES.
Lessor shall provide parking facilities for use by Lessee's employees and visitors/customers as
an integral part of this lease.
SECTION 24. FEDERAL ASSURANCES.
Lessee will 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 Part 21 or the
Regulations of the Office of the Secretary of Transportation. Lessor reserves the right to take such action
as the United States Government may direct to enforce this covenant.
This lease shall be subordinate to the provisions of any existing or future agreement between
Lessor and the United States, relative to the operation or maintenance of the airport, the execution of
which has been or may be required as a condition precedent to the expenditure of federal funds for the
development of the airport.
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.
In the event facilities are constructed, maintained, or otherwise operated on the property described in
this lease, for a purpose for which a Department of Transportation program or activity is extended or for
another purpose involving the provision of similar services or benefits, the Lessee shall maintain and
operate its facilities and services in compliance with all requirements imposed pursuant to 49 CFR Part
21, Nondiscrimination in Federally Assisted Programs of the Department of Transportation, and as said
Regulations now exist or as they may from time to time be amended.
Lessee, for himself, his personal representatives, successors in interest, and assigns, as a part of
the consideration hereof, does hereby covenant and agree as a covenant running with the land that:
(1)No person on the grounds of race, color, creed or national origin shall be excluded from participation
in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities, (2) In
the construction of any improvements on, over, or under such land and the furnishing of services
thereon, no person on the grounds of race, color, creed or national origin shall be excluded from
participation in, denied the benefits of, or otherwise subjected to discrimination; (3) The "Lessee" shall
use the premises in compliance with all other requirements imposed by or pursuant to 49 CFR Part 21,
Nondiscrimination in Federally Assisted Programs of the Department of Transportation, and as said
Regulations may be amended.
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 nondiscriminatory prices for each unit or service;
PROVIDED, that Lessee may make reasonable and nondiscriminatory discounts, rebates, or other
similar types of price reductions to volume purchases or as is from time to time allowed through various
marketing devices.
SECTION 26. PARTIES BOUND.
All of the terms, covenants and conditions herein contained shall be binding upon and shall
insure to the benefit of the parties, their successors, heirs, executors, administrators and assigns.
IN WITNESS WHEREOF, the parties here to have caused this agreement to be executed as of
the day and year first above written at Cape Girardeau, Missouri.
ATTEST:
t
Gayle ` . Conrad
City Clerk
CITY OFC�PE GIRARDEAU, MISSOURI
Scott A.
City Ma
LESSEE
geve y J Cieair
Member, Skybound Aviation, LLC
i
Glenn McCallister
Member, Skybound Aviation, LLC