HomeMy WebLinkAboutReso 94-341 - Approving the permit for Commercial Activities (Aircraft Maint Associated with Air travel & Air Cargo Serv) at RMA between COR & Phoenix Leasing Corp RESOLUTION NO..
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
APPROVING THE PERMIT FOR COMMERCIAL ACTIVITIES (AIR-
CRAFT MAINTENANCE ASSOCIATED WITH AIR TRAVEL AND AIR
CARGO SERVICE) AT REDDING MUNICIPAL AIRPORT BETWEEN THE
CITY OF REDDING AND PHOENIX LEASING CORPORATION, DBA
RENO AIR EXPRESS, AND AUTHORIZING THE MAYOR TO SIGN.
IT IS HEREBY RESOLVED that the City Council of the City of
Redding hereby approves the Permit for Commercial Activities
between the City of Redding and Phoenix Leasing Corporation, dba
Reno Air Express, a true copy of which is attached hereto and
incorporated herein by reference.
BE IT FURTHER RESOLVED that the Mayor of the City of Redding
is hereby authorized and directed to sign said Permit for Commer-
cial Activities on behalf of the City of Redding; and the City
Clerk is hereby authorized and directed to attest the signature
of the Mayor and to impress the official seal of the City of
Redding thereto.
I HEREBY CERTIFY that the foregoing Resolution was intro-
duced and read at a regular meeting of the City Council of the
City of Redding on the 6th day of December , 1994 , and was
duly adopted at said meeting by the following vote:
AYES : COUNCIL MEMBERS: P. Anderson, McGeorge, Murray and R. Anderson
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: Kehoe
ABSTAIN: COUNCIL MEMBERS : None
BERT C. ANDERSON, Mayor
City of Redding
AT ,EST: FORM APPROVED:
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CONNIE STROHMAYER, i y Clerk ilkALL A. HAYS, ity Attorney
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P ERM=T FO R C OMME RC =AL ACT=V=T=E S
RE DD I MG MUN I C I PAL A I RP ORT
WHEREAS, the CITY OF REDDING, a Municipal Corporation and
General Law City, hereinafter referred to as "CITY, " owns and
maintains Redding Municipal Airport in the City of Redding; and
WHEREAS, PHOENIX LEASING CORPORATION, a Delaware Corporation,
doing business as RENO AIR EXPRESS, hereinafter referred to as
"OPERATOR, " plans to carry on revenue-producing activities at said
Airport under approval from the CITY in accordance with Section
3 . 08 . 030 of the Redding Municipal Code and Resolution No. 2978; and
WHEREAS, said OPERATOR has now applied for a new Permit; and
WHEREAS, the City Council has determined that these commer-
cial activities are compatible with the Airport Master Plan, and
that the best interests of the public and the CITY will be served
by approval of this Permit;
NOW, THEREFORE, CITY hereby grants to OPERATOR a Permit,
license, and privilege to conduct and carry on from the hangar
building at 5900 Old Oregon Trail at the Redding Municipal Airport
the hereinafter described revenue-producing commercial activities
for:
( 1) a period of eight (8) months, commencing December 1,
1994, and terminating July 31, 1995; and
(2 ) thereafter, provided OPERATOR is not in default hereun-
der, from year-to-year on an automatic renewal basis,
unless written notice of any change in the terms hereof
or of termination shall be given by either party sixty
( 60) days prior to said change or termination.
This Permit is subject to the following terms and conditions :
1 . COMMERCIAL ACTIVITIES .
A. OPERATOR' s commercial activities shall consist of and be
limited to aircraft maintenance activities associated
with a passenger air travel and air cargo service.
B. Any other commercial activity that OPERATOR may wish to
carry on at said Airport, in connection with the forego-
ing or independently, shall first require the written
permission of CITY.
2 . FEES; CHARGES ; PERFORMANCE BOND.
A. OPERATOR will pay to CITY for the Permit, license, and
privileges herein granted the following monthly fees and
charges .
i . During the first six ( 6 ) months of this Permit,
the sum of One Thousand Dollars ( $1,000 . 00) per
month.
ii . During the remaining two (2 ) months of this
Permit, the sum of Two Thousand Dollars
( $2 , 000 . 00) per month.
B. The payments called for above shall be payable monthly,
in advance, and shall be due on or before the first day
of each month. CITY is entitled to collect, and
OPERATOR agrees to pay to CITY, upon invoice, those fees
and charges set forth above. Any fees and charges more
than thirty ( 30) days past due may be subject to a
service charge of one percent ( 1%) per month, based on
an annual rate of twelve percent ( 12%) . Without
prejudice to any other remedy which otherwise might be
used for non-payment of fees and charges, or other
breach of this Permit, if CITY is required or elects to
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pay any sum or sums or incurs any obligations or
expenses by reason of a failure, neglect, or refusal of
OPERATOR to perform any one or more of the terms,
conditions, and covenants of this Permit, or as the
result of any act or omission of OPERATOR contrary to
said terms , conditions or covenants, the sum or sums so
paid, including all interest, costs, damages, or
penalties, may be added, after fifteen ( 15) days '
written notice by CITY to OPERATOR, to any fee
thereafter due hereunder, and shall be and become
additional fees recoverable by CITY in the same manner
and with like remedies as though it were originally a
part of the fees and charges set forth above.
C . During the term of this Permit, OPERATOR will post with
the City Clerk of City a performance bond in the amount
of Five Thousand Dollars ($5, 000 . 00) in favor of CITY.
Failure on the part of OPERATOR to make timely payment
of invoices due CITY will result in a claim being made
against said bond. Cancellation of the performance bond
for whatever reason shall forthwith terminate this
Permit for Commercial Activities .
3 . RIGHT OF ACCESS.
CITY shall permit reasonable access by OPERATOR, its
employees and invitees , without charge, to and from the Airport and
the premises and facilities referred to above, including access
between the terminal building and the hangar described herein, for
all purposes contemplated by this Permit, subject to compliance
with such rules and regulations as may be promulgated by the City
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of Redding or the Federal Aviation Administration.
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4 . USE OF AIRPORT.
CITY licenses OPERATOR to (a) use, in common with others
authorized so to do, all runways, taxiways, and aprons which are or
may hereafter be provided at Redding Municipal Airport; and (b) to
use all other facilities, improvements, equipment, and services
which are or may hereafter be provided at the Airport, except those
under lease, permit, or assignment to another.
These uses shall include and be limited to those reasonably
necessary for the proper operation by OPERATOR of aircraft
maintenance activity associated with its passenger air travel and
air cargo service; and CITY will grant to OPERATOR, without charge,
all rights reasonably necessary for such uses .
5 . SPACE IN HANGAR BUILDING.
CITY hereby assigns to OPERATOR for its exclusive use in
connection with aircraft maintenance activities associated with its
passenger air travel and air cargo service approximately 1,098 .5
square feet of maintenance office/shop space within the hangar
building at 5900 Old Oregon Trail as delineated in the diagram
attached hereto as Exhibit "A. "
CITY licenses OPERATOR, its employees and invitees, to use,
in common with others, and in connection with OPERATOR' s aircraft
maintenance activity associated with its passenger air travel and
air cargo service, all public space and facilities in and adjacent
to the hangar building at 5900 Old Oregon Trail which are not
exclusively assigned to another user. It is *the intent of the
parties hereto that the fees and charges prescribed in Paragraph 2 .
includes the requirement for the CITY to provide "maintenance and
operational costs" defined herein as "electrical, air-conditioning,
heating, water and garbage. "
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6 . AIRPORT FACILITIES .
Nothing herein contained shall be construed as entitling
OPERATOR to the exclusive use of any services, facilities, or
property rights at said Airport, except those facilitates described
in Exhibit "A" attached hereto.
7 . SECURITY RESPONSIBILITIES AND FEES.
OPERATOR agrees to accept its security responsibilities with
regard to access by authorized and unauthorized persons using the
herein described premises . Any civil penalties imposed upon CITY
by the Federal Aviation Administration for violation of security
caused by the actions of OPERATOR' s personnel shall be paid by
OPERATOR.
8 . WASTE; QUIET CONDUCT.
OPERATOR shall not commit or suffer to be committed any waste
upon the premises, or any nuisance or any other act or thing which
may disturb the quiet enjoyment of any other occupant or use of
CITY' s adjoining premises .
9 . MECHANICS ' LIENS.
OPERATOR shall keep the demised premises and the property on
which the demised premises are situated free from any liens arising
out of any work performed, material furnished, or obligations
incurred by OPERATOR.
10 . RULES AND REGULATIONS .
OPERATOR covenants and agrees to comply with all statutes,
laws , ordinances , regulations, orders, judgments, decrees, direc-
tions, and requirements of all federal, state, county, and city
authorities now or hereafter applicable to the herein premises and
facilities, or to any adjoining public ways .
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11 . UNITED STATES OF AMERICA RESTRICTIONS.
A. It is understood and agreed that this Permit is subject
to the covenants, restrictions, and reservations con-
tained in the following instruments to which the United
States of America is a party, to wit:
( 1) Quitclaim Deed dated June 6 , 1947, to the City of .
Redding.
(2) Instrument of Transfer dated October 7 , 1947 , to
the City of Redding.
( 3) Grant Agreements of record executed by the City
of Redding in connection with Federal Aid Airport
Projects .
B. To the extent that the United States of America may
release said property or any part thereof from any of
said covenants, restrictions, and reservations, OPERATOR
shall likewise be released by CITY.
12 . FAA REQUIREMENTS.
To comply with Federal Aviation Administration requirements,
permittee (OPERATOR) , for itself, its heirs, executors, adminis-
trators, personal representatives, successors, and assigns, as a
part of the consideration hereof, does hereby covenant and agree,
as a covenant running with this Permit:
( 1) That in the event facilities are constructed, main-
tained, or otherwise operated on the property described
in this Permit for the purpose for which a Department of
Transport program or activity is extended, or for
another purpose involving the provision of similar
services or benefits, permittee (OPERATOR) shall main-
tain and operate such facilities and services in com-
pliance with all other requirements imposed pursuant to
Title 49 , Code of Federal Regulations, DOT, Subtitle A,
Office of the Secretary, Part 21, Nondiscrimination in
Federally-Assisted Programs of the Department of
Transportation--Effectuation of Title VI of the Civil
Rights Act of 1964 , and as said Regulations may be
amended.
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( 2 ) That (a) no person on the grounds of race, color, 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; (b) that
in the construction of any improvements on, over, or
under such lands and the furnishing of services thereon,
no person on the grounds of race, color, or national
origin shall be excluded from participation in, denied
the benefits of, or otherwise be subject to discrimina-
tion; and (c) that permittee (OPERATOR) shall use the
premises in compliance with all other requirements
imposed by or pursuant to Title 49 Code of Federal
Regulations, Department of Transportation, Subtitle A,
Office of the Secretary, Part 21 Non-discrimination in
Federally-Assisted Programs of the Department of
transportation--Effectuation of Title VI of the Civil
Rights Act of 1964, and as said Regulations may be
amended.
( 3) That in the event of breach of any of the above non-
discrimination covenants, CITY shall have the right to
terminate this Permit and to re-enter and repossess said
premises and the facilities thereon, and hold the same
as if said Permit had never been made or issued. This
provision does not become effective until the procedures
of 49 CFR Part 21 are followed and completed, including
expiration of appeal rights .
( 4 ) That permittee (OPERATOR) shall furnish its accommoda-
tions and/or services on a fair, equal, and not unjustly
discriminatory basis to all users thereof, and it shall
charge fair, reasonable, and not unjustly discriminatory
prices for each unit or service; provided that permittee
(OPERATOR) may be allowed to make reasonable and
nondiscriminatory discounts, rebates , or other similar
type of price reductions to volume purchasers .
( 5) That noncompliance with paragraph 14 (4) above shall
constitute a material breach thereof; and in the event
of noncompliance CITY shall have the right to terminate
this Permit and the estate hereby created without
liability therefor, or, at the election of CITY or the
United States, either or both Governments shall have the
right to judicially enforce provisions .
(6 ) That permittee (OPERATOR) agrees that it shall insert
the above five provisions 14 ( 1) through 14 (5) in any
agreement, contract, etc. , by which said permittee
(OPERATOR) grants a right or privilege to any per-
son, firm, or corporation to render accommodations and/or
services to the public on the premises herein.
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(7 ) That permittee (OPERATOR) assures that it will undertake
an of f irmative action program as required by 14 CFR Part
152 , Subpart E, to ensure that no person shall, on the
grounds of race, creed, color, national origin, or sex,
be excluded from participating in any employment
activities covered in 14 CFR Part 152, Subpart E.
Permittee (OPERATOR) 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 this subpart. Permittee (OPERATOR)
assures that it will require that its covered subor-
ganizations provide assurances to permittee (OPERATOR)
that they similarly will undertake affirmative action
programs, and that they will require assurances from
their suborganizations, as required by 14 CFR 152,
Subpart E, to the same effort.
( 8) The CITY reserves the right to further develop or
improve the landing area of Redding Municipal Airport as
it sees fit, regardless of the desires or view of
permittee (OPERATOR) and without interference or hin-
drance.
( 9 ) The CITY reserves the right, but shall not be obligated
to permittee (OPERATOR) , to maintain and keep in repair
the landing area of Redding Municipal Airport and all
publicly-owned facilities of said Airport, together with
the right to direct and control all activities of per-
mittee (OPERATOR) in this regard.
( 10) That this Permit shall be subordinate to the provisions
and requirements of any existing or future agreement
between CITY and the United States relative to the
development, operation, or maintenance of the Redding
Municipal Airport.
( 11) That there is hereby reserved to CITY, its successors
and assigns, for the use and benefit of the public, a
right of flight for the passage of aircraft in the
airspace above the surface of the premises herein. This
public right of flight shall include the right to cause
in said airspace any noise inherent in the operation of
any aircraft used for navigation or flight through said
airspace, or landing at, taking off from, or operation
on the Redding Municipal Airport.
( 12) That permittee (OPERATOR) agrees to comply with the
notification and review requirements covered in Part 77
of the Federal Aviation Regulations in the event future
construction of a building is planned for the herein
premises, or in the event of any planned modification
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or alteration of any present or future building or
structure situated on the herein premises .
( 13) That permittee (OPERATOR) , by accepting this Permit,
expressly agrees for itself, its successors and assigns,
that it will not erect nor permit the erection of any
structure or object nor permit the growth of any tree,
on the land subject to the Permit to be above any mean
sea level elevation that would be in noncompliance with
Part 77 . In the event the aforesaid covenants are
breached, City reserves the right to enter upon the
land/premises hereunder and to remove the offending
structure or object and cut the offending tree, all of
which shall be at the expense of permittee (OPERATOR) .
( 14 ) That permittee (OPERATOR) , by accepting this Permit,
agrees for itself, its successors and assigns, that it
will not make use of the premises herein in any manner
which might interfere with the landing and taking off of
aircraft from the Redding Municipal Airport, or other-
wise constitute a hazard. In the event the aforesaid
covenant is breached, CITY reserves the right to enter
upon the herein premises and cause the abatement of such
interference at the expense of permittee (OPERATOR) .
( 15) That 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 308a of the Federal Aviation Act of 1958 (49
U.S.C. 1349a) .
( 16) This Permit and all provisions hereof shall be subject
to whatever right the United States Government now has
or in the future may have or acquire, affecting the
control, operation, regulation and taking over of said
airport or the exclusive or non-exclusive use of the
airport by the United States during the time of war or
national emergency.
13 . RESTRICTION OF OPERATIONS.
If CITY' s operation of the Airport or OPERATOR's operations
at the Airport are substantially restricted by any competent
governmental or judicial action, either party hereto will have the
right, upon notice, to an equitable reduction in the services and
facilities to be afforded hereunder, or the rental to become due
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hereunder, from the time of such notice until such restriction has
been remedied and normal operations restored.
14 . IMPROVEMENTS.
A. OPERATOR accepts the premises in their present con-
dition. Any alterations, construction, or improvements
desired by OPERATOR on the premises must be performed at
no cost to CITY and shall be subject to the prior
written approval of the CITY. When required by the CITY
to do so, OPERATOR will submit plans and specifications
prior to any alterations , construction or improvements .
B. The display by OPERATOR of any signs, advertising or
similar matter on the premises without the prior written
approval of CITY is prohibited. Any advertisement not
directly related to OPERATOR' s business is prohibited.
C. OPERATOR is required to provide business "logo" type
signage. Such signage and its size and placement, must
be approved by the CITY.
D. Unless otherwise agreed by the parties , all partitions,
wiring and piping, or other improvements installed on
the premises by the OPERATOR must be removed by the
OPERATOR, at the termination or expiration of this
Permit, and thereby leaving the premises in good con-
dition. CITY may grant additional time for the removal
of improvements if hardship is established by OPERATOR.
If, in CITY' s opinion, removal will damage the premises,
CITY may either prohibit removal or require OPERATOR to
repair all damage connected with removal .
E. Title to any improvements not removed from the premises
as provided herein passes to CITY.
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F. Upon request by CITY, OPERATOR shall deliver to CITY
three ( 3) copies of as-built drawings showing the
location and dimensions of improvements placed or
constructed on the premises by OPERATOR.
15 . MAINTENANCE.
A. OPERATOR shall maintain the premises which it leases in
good repair and appearance and in a safe condition at
all times . OPERATOR shall do, or cause to be done
without delay, all those things which, in the opinion of
CITY, are necessary or desirable in the interest of
safety or to maintain the premises which it leases in
good repair and appearance.
B. CITY will maintain the structure of the premises, the
roofs and exterior walls. CITY will provide reasonable
maintenance of the grounds in the immediate vicinity of
the premises .
C. CITY will maintain the electrical, plumbing, and heating
and cooling systems on the premises in good condition
and repair. CITY may refuse to maintain any systems
installed on the premises by OPERATOR and may charge
OPERATOR for any repair resulting from OPERATOR' s
negligence.
D. CITY reserves the right to require that any improvements
or any portion thereof placed through, on or above the
premises be relocated at the expense of OPERATOR when
such relocation is determined to be necessary by CITY.
The determination shall be made on a reasonable basis
and only for the purpose of expansion, relocation, or
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E. OPERATOR hereby expressly waives any and all claims and
holds CITY harmless for damages arising or resulting
from failures or interruption of utility services
furnished by CITY herein including but not limited to
stoppages in electrical energy, the quantity or temper-
ature of water, space heating or cooling.
16 . CITY ADMINISTRATION.
Whenever OPERATOR is required to secure the approval or
consent from CITY herein, CITY shall mean the Director of Airports
of CITY. However, at the option of the Director of Airports or the
OPERATOR, and according to proper procedure, any such questions may
be referred to the City Council of CITY, whose decision thereon
shall be final .
17 . PREMISES AS-IS.
OPERATOR hereby certifies and agrees that it has inspected
the above-described premises and accepts the same in its existing
condition. OPERATOR expressly covenants and agrees that any
expenses incurred in the maintenance, repair, and modification or
improvements of said premises shall be the sole obligation of
OPERATOR; OPERATOR further covenants and agrees,to hold CITY harm-
less therefrom.
18. TAXES .
OPERATOR agrees to pay promptly when due any and all taxes
assessed against its personal property and any possessory interest
tax levied by reason of its occupancy of the demised premises .
19 . INSURANCE.
A. This Permit is granted upon the express condition that
CITY, its officers, agents, and employees, shall be free
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from any and all liability and claims for damages for
personal injury, death, or property damage in any way
connected with OPERATOR' s activities at said Airport,
including claims of OPERATOR, its officers, agents,
employees, and invitees, unless such damages arise from
the sole negligence or misconduct of CITY, its officers,
agents or employees . CITY, its officers, agents, and
employees, shall be held harmless from and indemnified
for any and all liability, loss, cost or obligation on
account of or arising out of any such injury, death, or
loss however occurring, unless arising out of their sole
negligence or misconduct. The above hold harmless and
indemnification shall apply to actions brought by others
as well as by the CITY relative to contamination to the
premises associated with hazardous or toxic materials
utilized by OPERATOR.
B. OPERATOR shall procure and maintain from a company
satisfactory to CITY, at its sole cost and expense and
at all times during the term of this Permit, comprehen-
sive general liability insurance policy for aircraft
liability and airport premises liability in an amount of
not less than Ten Million Dollars ( $10,000,000. 00)
combined single limits . Said policy shall name CITY,
its officers, agents and employees, harmless as addi-
tional insureds, and shall further contain a provision
obligating the insurance carrier to notify CITY in
writing at least ten ( 10) days prior to any cancellation
or reduction of such insurance. A Certificate of
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Insurance evidencing such coverage and notice require-
ment shall be approved by and filed with the Risk
Manager of CITY, prior to the commencement of this
Permit.
C. It is further understood and agreed as a condition of
this Permit that OPERATOR will provide workers ' compen-
sation insurance on its employees . A Certificate evi-
dencing such insurance shall be approved by and filed
with the Risk Manager of CITY. Said Certificate shall
contain a provision obligating the insurance carrier to
notify CITY in writing at least ten ( 10) days prior to
any cancellation or reduction of such insurance. To
obtain an exemption from this requirement should OPERA-
TOR have no employees, OPERATOR shall provide the Risk
Manager of CITY with a letter stating that it is not
employing any person or persons in any manner so as to
become subject to the workers ' compensation laws of
California; provided, however, that should OPERATOR
later become subject to the workers ' compensation
provisions of the Labor Code, it will forthwith comply
with the insurance requirements set forth above.
Nothing herein is intended to exculpate CITY from its own
negligence.
20 . TRADE FIXTURES .
Any trade fixtures, equipment, and other property brought,
installed, or placed by OPERATOR in or about the herein premises
shall be and remain the property of OPERATOR except as otherwise
provided herein. OPERATOR shall have the right at any time during
the term hereof to remove any or all of its property, subject to
OPERATOR' s obligation to repair all damage, if any, resulting from
such removal . Such trade fixtures, equipment, and other property
of OPERATOR shall be removed by OPERATOR from the herein premises
by the expiration or earlier termination of this Permit.
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21 . RIGHT TO ENTER AND MAKE REPAIRS.
CITY and its authorized officers, agents, employees , contrac-
tors, subcontractors, and other representatives shall have the
right to enter into OPERATOR' s premises and facilities (as set
forth in attached Exhibit "A" ) for the following purposes :
A. To inspect said premises and facilities at reasonable
intervals during the regular business hours (or at any
time in case of emergency) to determine whether OPERA-
TOR has complied with and is complying with the terms
and conditions of this Permit with respect to such
premises and facilities;
B. In the exercise of CITY police power;
C. To inspect the herein premises and facilities, and
perform any and all things with reference thereto which
CITY is obligated or authorized to do as set forth
herein.
No such entry by or on behalf of CITY within or upon said
premises and facilities shall cause or constitute a termination of
this Permit, or be deemed to constitute an interference with the
possession thereof by OPERATOR. As a result of any entry pursuant
to this Permit, CITY will only be liable for its own negligence and
for returning the premises to their former condition using standard
materials . CITY will use its best efforts to minimize disruption
of OPERATOR' s operation.
22 . DAMAGE OR DESTRUCTION OF PREMISES .
A. In the event the premises in which OPERATOR occupies
space hereunder shall be partially damaged by fire or
other casualty, but not rendered untenantable, the same
shall be repaired with due diligence by CITY at its own
cost and expense.
B. If the damage shall be so extensive as to render the
premises untenantable but capable of being repaired
within 45 days, the same shall be repaired with due
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diligence by CITY at its own cost and expense, and the
rent payable hereunder with respect to OPERATOR' s space
shall be proportionately paid up to the time of such
damage, and shall thenceforth cease until such time as
the premises shall be fully restored.
C. In the event the premises are completely destroyed by
fire or other casualty, or so damaged that it will
remain untenantable for more than 45 days, OPERATOR
shall pay said proportionate rent up to the time of such
damage, and shall have the following options :
i . to cancel this Permit forthwith in writing;
or
ii . if said building shall be repaired or recon-
structed by CITY at its own cost and ex-
pense, OPERATOR may temporarily suspend its
operations, or a part thereof. If OPERATOR
temporarily suspends its entire operation,
rent shall thenceforth cease until the pre-
mises shall be fully restored. If OPERATOR
continues to operate a portion of its ser-
vices, OPERATOR shall pay a proportionate
rent until such time as the premises shall
be fully restored.
D. In the event that the Redding Municipal Airport or the
premises herein occupied by OPERATOR are rendered
untenantable or unusable because of the condition
thereof other than due to fire or casualty as set forth
above, and except by reason of fog, snow, flood, earth-
quake, or other uncontrollable conditions, there shall
be a reasonable and proportionate abatement of the
charges provided for herein during the period that the
same are so untenantable or unusable.
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23 . ASSIGNMENT OR SUBLETTING.
OPERATOR shall not assign this Permit or any interest therein,
and shall not sublet the demised premises or any part thereof, or
any right or privilege appurtenant thereto, nor suffer any other
person (agents and employees of OPERATOR excepted) to occupy or use
the demised premises or any portion thereof without the written
consent of CITY first had and obtained. A consent by CITY to one
assignment, subletting, occupancy, or use by another party shall
not be deemed to be a consent to any subsequent assignment,
subletting, occupancy, or use by another person or entity. Any
such assignment, subletting, occupancy, or use by another person or
entity without such consent by CITY shall be void and shall, at the
option of CITY, terminate this Permit. This Permit shall not, nor
shall any interest therein, be assigned as to the interest of
OPERATOR, by operation of law, without the written consent of CITY.
CITY agrees that it will not arbitrarily or capriciously withhold
its consent required hereunder.
24 . BANKRUPTCY AND INSOLVENCY.
If OPERATOR shall be adjudged bankrupt, either by voluntary or
involuntary proceedings, or if OPERATOR shall be the subject of any
proceeding to stay the enforcement of obligations against it in the
form of reorganization or otherwise under and pursuant to any
existing or future laws of the Congress of the United States, or if
OPERATOR shall discontinue business or fail in business, or abandon
or vacate said premises, or make an assignment for the benefit of
creditors, or if said premises should come into possession and
control of any trustee in bankruptcy, or if any receiver should be
appointed in any action or proceedings with power to take charge,
possession, control or care of said premises, CITY shall have the
option to forthwith terminate this Permit and re-enter the premises
and take possession thereof . In no event shall this Permit be
deemed an asset of OPERATOR after adjudication in bankruptcy.
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25 . REVOCATION OF LEASE, PERMIT, LICENSE, OR AGREEMENT.
CITY shall have the right to terminate any lease, permit,
license, or agreement ( including that of OPERATOR herein) covering
a commercial or noncommercial operation, and to revoke a lease,
permit, license, or agreement on any land or facility at the
Airport ( including that of OPERATOR herein) for any cause or
reason provided by these standards, or by law, or upon the happen-
ing of one or more of the following:
a. Filing a petition of voluntary or involuntary bankruptcy
with respect to the operator or licensee.
b. The making by the operator or licensee of any general
assignment for the benefit of creditors .
C. The abandonment or discontinuance of any operation at
the Airport by the commercial operator, or the failure
to conduct any service, operation, or activity which the
operator, permittee, or licensee has agreed to provide
under the terms of his contract. If this condition
exists for a period of ten ( 10) days without prior
written consent of CITY, it will constitute an abandon-
ment of the land or facilities and the lease, permit
and/or license shall become null and void.
d. The failure of an operator, permittee or licensee to pay
promptly when due all rents, charges, fees, or other
payments in accordance with applicable leases, permits,
or licenses .
e. The failure of the operator, permittee or licensee to
remedy any default, breach or violation of the Airport
Rules and Regulations by him or his employees within
thirty ( 30) days after notice from the CITY.
f . Violation of any of these standards and rules and
i regulations or failure to maintain current licenses
required for the permitted operation.
g. Intentionally supplying CITY with false or misleading
information or misrepresenting any material fact on the
application or documents, or in statement to or before
the CITY, or intentional failure to make full disclosure
on a financial statement or other required documents .
1
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26 . TERMINATION.
A. This Permit is subject to cancellation by either party
upon giving sixty ( 60) days ' written notice in advance
of such cancellation date.
B. Breach by OPERATOR of any of the terms, conditions, and
agreements contained herein, if not corrected by OPERA-
TOR within sixty (60) days ' written notice by CITY to do
so, shall be a basis for cancellation of this Permit.
27 . VACATION OF PREMISES BY OPERATOR.
OPERATOR covenants and agrees to yield and deliver possession
of the premises to CITY on the date of the termination, cancella-
tion or expiration of this Permit promptly, peaceable, quietly and
in as good order and condition as the same now or may be hereafter
improved by OPERATOR or CITY, reasonable use and wear and tear
excepted.
OPERATOR shall be allowed a maximum of five (5) days follow-
ing the effective date of the cancellation of this Permit within
which to remove all of OPERATOR' s personal property, equipment,
furniture and fixtures from the premises . OPERATOR and CITY agree,
as part of the consideration for this Permit, that all property
remaining on the premises after the expiration of said five (5)
days will become the sole property of CITY, with full title vested
in CITY, and CITY may remove, modify, sell, or destroy the property
as it sees fit.
28 . ATTORNEYS ' FEES .
If either party becomes a party to any litigation concerning
this Permit, the premises, or the building or other improvements on
which the premises are located by reason of any act or omission of
the other party or its authorized representative, and not by any
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act or omission of the parties that becomes a party to that
litigation or an act or omission of its authorized representative,
the party that causes the other party to become involved in the
litigation shall be liable to that party for reasonable attorneys '
fees and court costs incurred by it in the litigation. If either
party commences an action against the other party arising out of or
in connection with this Permit, the prevailing party shall be
entitled to have and recover from the losing party reasonable
attorneys ' fees and costs of suit.
29 . JURISDICTION.
The parties agree that jurisdiction over disputes relative to
this Permit shall be in the Superior Court of Shasta County. The
laws of the State of California shall be the basis for
interpretation of this Permit.
30. NOTICE.
Any notices or demands that may be given by either party
hereunder, including notice of default and notice of termination,
shall be deemed to have been fully and properly given when made in
writing, enclosed in a sealed envelope and deposited in the United
States Post Office, certified mail, postage prepaid, addressed as
follows :
To CITY: City of Redding
P. 0. Box 496071
Redding, CA 96049-6071
Attn: Director of Airports
To OPERATOR: Phoenix Leasing Corporation
600 Fifth Avenue, 8th Floor
New York, NY 10020
Attn: President
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31 . CE A.
It has been determined that this matter is categorically
exempt from the provisions of the California Environmental Quality
Act.
IN WITNESS WHEREOF, the CITY OF REDDING and PHOENIX LEASING
CORPORATION, doing business as RENO AIR EXPRESS, have executed this
Permit for Commercial Activities on the day and year set forth
below.
CITY OF REDDING
DATED: , 1994 By:
ROBERT C. ANDERSON, Mayor
ATTEST:
CONNIE STROHMAYER, City Clerk
PHOENIX LEASING CORPORATION,
DOING BUSINESS AS RENO AIR EXPRESS
DATED: , 1994 By:
ARMANDO CARDENAS
Vice President/General Manager
CONTENT APPROVED:
GEORGE E. PERRY, JR.
Director of Airports
FORM APPROVED:
RANDALL A. HAYS, City Attorney
r
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i20'-3 1/2"
A
n
13
5'-11 1/2' .o
C
10•-�' I
Note: Areas A and B consists of approx. 1,098.5 s.f.
and denotes the Exclusive Use Space
EXHIBIT "A"
CITY OF REDDING
OFFICE/SHOP SPACE
5900 OLD OREGON TRAIL