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HomeMy WebLinkAboutReso 94-207 - Approve the Sub-Sublease agreement dated 06/10/94 entered into between International Air Serv Co, LTD & Enterprise Flying Club at RMA t ' RESOLUTION NO. �/7 ��7 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING THE FOLLOWING DOCUMENTATION PERTAINING TO THE "SHASTA ENTERPRISES FACILITIES" AT THE REDDING MUNICIPAL AIRPORT: SUB-SUBLEASE AGREEMENT [OF A PORTION OF THE FACILITIES] DATED JUNE 10, 1994, ENTERED INTO BETWEEN INTERNATIONAL AIR SERVICE COMPANY, LTD. , A CALIFORNIA CORPORATION, AS SUB-SUBLESSOR, AND ENTERPRISE FLYING CLUB, A CALIFORNIA NON-PROFIT CORPORATION, AS SUB-SUBLESSEE, AND APPROVED BY SHASTA ENTERPRISES. WHEREAS, Shasta Enterprises, a General Partnership, subleased its facilities (Premises) at the Redding Municipal Airport to International Air Service Company, Ltd. (IASCO) ; and WHEREAS, IASCO has entered into a Sub-Sublease Agreement of a portion of the Premises with Enterprise Flying Club, a true copy of which is attached hereto and incorporated herein by reference; and WHEREAS, said Sub-Sublease has been approved by Shasta Enterprises and is presented herewith for City Council approval, as required in the docu- ments and contractual obligations entered into between the City of Redding and Shasta Enterprises; NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Redding as follows: 1. That the City of Redding hereby consents to International Air Service Company, Ltd. (IASCO) subletting a portion of the Premises to Enterprise Flying Club, upon the terms and conditions set forth in the month-to-month Sub- Sublease attached hereto and incorporated herein; PROVIDED, however, that: a. The consent by the City of Redding to said sub-subletting shall in no way release Shasta Enterprises and IASCO from their respective liability under their documentation and contractual obligations with the City of Redding; and i ,(A r� L i 0 b. The City of Redding shall have all rights against Shasta Enterprises, IASCO, and Enterprise Flying Club in the event of a default under said documents and contractual obligations as the City would have had in the event it had not consented to the Sub-Sublease between IASCO and Enterprise Flying Club. 2. That the Mayor of the City of Redding is hereby authorized and direct- ed to sign the Sub-Sublease dated June 10, 1994, between International Air Service Company, Ltd. and Enterprise Flying Club, a copy of which is attached hereto; 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 introduced and read at a regular meeting of the City Council of the City of Redding on the 19th day of July 1994, and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: P. Anderson, Kehoe, McGeorge, fray and R. Anderson NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS: None 'RoBtAT C. ANDERSON, Mayor City of Redding ATTEST: CONNIE S ROHMAYEV City Clerk FORM APPROVED: A�e � '�er. Z/�� RA ALL A. HAYSCity Attorney -2- SUB-SUBLEASE AGREEMENT This Sub-Sublease Agreement is made and entered into this _10th_ day of June, 1994, by and between IASCO, a California corporation, hereinafter referred to as "Sub-Sublessor, " having an address at 3775 Flight Avenue, Redding, CA 96002 and Enterprise Flying Club , a California Non-Profit Corporation hereinafter referred to as "Sub-Sublessee. " RECITALS WHEREAS, Sub-Sublessor entered into a sublease referred to as the Lease Agreement dated October 20, 1990 by and between Shasta Enterprises ("Shasta") , as sublessor and Sub-Sublessor, as sublessee. WHEREAS, Shasta is the lessee of certain real property by assignment of that certain Lease A Agreement dated November 5, 1979, Lease B Agreement dated November 5, 1979 and Modification to Lease Agreement dated March 17, 1986, as further amended by the Second Modification of Lease Agreement dated November 27, 1990 hereinafter collectively referred to as the "Documents, " entered into by the City of Redding for the purposes of authorizing certain fixed base operation activities; WHEREAS, Sub-Sublessor desires to sub-sublease certain of the above-referenced real property, hereinafter referred to as the Premises and further described below to Sub-Sublessee pursuant to the terms and conditions hereinafter set forth; WHEREAS, Sub-Sublessee desires to sub-sublease the Premises from Sub-Sublessor upon the terms and conditions hereinafter set forth; and WHEREAS, Sub-Sublessor and Sub-Sublessee intend to obtain the prior written approval of Shasta and the City of Redding, which is required pursuant to the Documents. AGREEMENT NOW THEREFORE, in consideration of the foregoing premises and the mutual covenants and conditions contained herein, the parties hereto do hereby agree as follows: PREMISES 1 . Sub-Sublessor hereby leases to Sub-Sublessee and Sub- Sublessee hereby agrees to lease from Sub-Sublessor, the following: approximately 560 square feet of commercial space located on the second floor of the main building at 3775 Flight Avenue, Redding, California, and more specifically described on Exhibit A, attached hereto (hereinafter referred to as the "Premises") and four (4) tie-down spaces. TERM OF SUB-SUBLEASE 2. This Sub-Sublease shall be for a term of six (-6—) months, commencing on 15 June , 1994 (the "Commencement Date") and ending on 31 December 1994 RENT 3 . Sub-Sublessee agrees to pay to Sub-Sublessor, on or before the first day of each month during the term of this 2 Sub-Sublease, the amount of Eight Hundred Fifty ($850. 00) . Sub-Sublessee shall pay rent at the office of Sub-Sublessor at 3775 Flight Avenue, Redding, California, or at any other place or places as Sub-Sublessor may from time to time designate. SECURITY DEPOSIT 4. Sub-Sublessee shall deposit with Sub-Sublessor on or before the Commencement Date, the amount of Five Hundred ($500. 00) , as security for the full and faithful performance by Sub-Sublessee of the terms, conditions and covenants of this Sub-Sublease. If, at any time during the term of this Sub-Sublease, Sub-Sublessee defaults in the payment of rent or any portion of rent, or Sub-Sublessee or its employees damage the Premises through the lack of ordinary care or otherwise, then Sub-Sublessor may appropriate and apply any portion of the security deposit reasonably necessary to remedy any such default hereunder. Sub-Sublessor may commingle the security deposit with other funds of Sub- Sublessor. Sub-Sublessor shall return to Sub-Sublessee, not later than thirty (30) days from the date Sub-Sublessor receives possession of the Premises, the portion of the security deposit remaining after any deductions authorized by this Sub-Sublease or otherwise by applicable law. PERMITTED USE 5. During the term of this Sub-Sublease, the Premises shall be used for the exclusive purpose of operating and conducting recreational flying club operations. Sub-Sublessee shall not use or permit the Premises to be used for any other purposes, without the prior written consent of Sub- Sublessor. 3 INSURANCE HAZARDS 6. Sub-Sublessee shall not commit or permit a commission of any acts on the Premises, nor use or permit the use of the Premises in a manner that will increase the existing rates for and cause the cancellation of any fire, liability, or other insurance policy insuring the Premises or any adjoining improvements. Sub-Sublessee shall, at its sole cost and expense, comply with any and all requirements of Sub-Sublessor's insurance carriers necessary for the continued maintenance at reasonable rates of fire and liability insurance policies on the Premises and the improvement thereon. Sub-Sublessee will maintain, at its sole cost and expense, general liability insurance acceptable to Sub-Sublessor, naming Sub-Sublessor as an additional insured thereon, and furnishing Sub-Sublessor with certificates evidencing such insurance coverage. COMPLIANCE WITH LAWS 7. Sub-Sublessee shall, at Sub-Sublessee 's own cost and expense, comply with all statutes, ordinances, regulations and requirements of governmental entities, including, but not limited to, federal, state, county, and municipal laws relating to Sub-Sublessee 's use and occupancy of the Premises, whether or not those statues, ordinances, regulations and requirements are now in force or are subsequently enacted. Any violation of such statute, ordinance, regulation or requirement shall be conclusive grounds for termination of this Sub-Sublease. UTILITIES AND TAXES 8. Sub-Sublessee shall not be required to pay any public utilities provided to the Premises or real property taxes levied upon the Premises, except that Sub-Sublessee shall be 4 responsible for all taxes, assessments, and other charges levied or imposed by any governmental entity on the furniture, trade fixtures, appliances and other personal property placed by Sub-Sublessee in, on, or about the Premises. ALTERATIONS AND REPAIRS, MAINTENANCE 9. Sub-Sublessee accepts the Premises in their present condition and stipulates with Sub-Sublessor that the Premises are in good, clean, safe condition as of the date of this Sub-Sublease. Sub-Sublessor shall, at its own cost and expense, maintain in good condition and repair the structural elements of the Premises. Sub-Sublessor and its agents shall have the right to enter the Premises at all reasonable times for the purpose of inspecting them or to make any repairs required to be made under this Sub- Sublease. Except as otherwise expressly provided herein, Sub-Sublessee shall, at its cost and expense, keep and maintain all portions of the Premises in good order and repair and in as safe and clean a condition as they were when received by Sub-Sublessee from Sub-Sublessor. ALTERATIONS AND LIENS 10. Sub-Sublessee shall not make or permit any other person to make any alterations of the Premises without the prior written consent of Sub-Sublessor. Sub-Sublessee shall keep the Premises free and clear from any and all liens, claims and demands for work performed, materials furnished or operations conducted on the Premises. SURRENDER OF PREMISES 11 . On the expiration or earlier termination of this Sub- Sublease, Sub-Sublessee shall promptly surrender and deliver 5 0 the Premises to Sub-Sublessor in as good condition as they are now on the date of this Sub-Sublease, excluding reasonable wear and tear from normal use. INDEMNITY AND INSURANCE 12. Sub-Sublessee agrees to protect, indemnify and hold Sub- Sublessor harmless from and against any and all claims, demands or liability resulting from Sub-Sublessee 's occupation and use. Sub-Sublessee shall, at its own cost and expense, procure and maintain during the term of this Sub-Sublease an insurance policy issued by a reputable company authorized to conduct insurance business in California, insuring for their full, insurable value, all fixtures and equipment and, to the extent possible, all merchandize in or on the Premises against damage or destruction by fire, theft or the elements. SIGNS AND TRADE FIXTURES 13. Sub-Sublessee may place a sign on the Premises, subject in every respect to the prior approval of the Sub-Sublessor and in compliance with all requirements of the Director of Airports and any other governmental authority with jurisdiction over the Premises. Any trade fixtures not removed by Sub-Sublessee within ten (10) days after the expiration or earlier termination of this Sub-Sublease, shall be deemed abandoned by Sub-Sublessee and shall automatically become the property of Sub-Sublessor. EARLY TERMINATION OF SUB-SUBLEASE 14. Sub-Sublessor and Sub-Sublessee shall each have the right to terminate this Sub-Sublease on thirty (30) days prior written notice. 6 REMEDIES FOR DEFAULT 15. in the event of any default by Sub-Sublessee, in addition to any other remedies available to Sub-Sublessor at law or in equity, Sub-Sublessor shall have the right to immediately terminate this Sub-Sublease and all rights of Sub-Sublessee hereunder, by giving written notice of the termination. Sub-Sublessor's rights and remedies in the event of a default shall be cumulative and in addition to all remedies or hereafter allowed by law. ATTORNEYS' FEES 16. If any litigation is commenced between the parties to this Sub-Sublease concerning the Premises, the party prevailing in that litigation shall be entitled to, in addition to any other relief that may be granted in the litigation, a reasonable amount as and for its attorneys ' fees and costs in that litigation. NOTICES 17. Except as otherwise expressly provided by law, any and all notices or other communications required or permitted by this Sub-Sublease to be served on either party to the other party, shall be in writing and shall be deemed duly served and given when personally delivered, or in lieu of personal service, when deposited in the United State Mail, first- class postage, certified or registered, addressed to Sub- Sublessor or Sub-Sublessee at the address first indicated above. 7 BINDING ON HEIRS AND SUCCESSORS 18. This Sub-Sublease shall be binding on an enure to the benefit of the heirs, executors, administrators, successors and assigns of Sub-Sublessor and Sub-Sublessee. PARTIAL INVALIDITY 19. if any provision of this Sub-Sublease is held by a court of competent jurisdiction to be either invalid, void, or unenforceable, the remaining provisions of this Sub-Sublease shall remain in full force and effect, unimpaired by such holding. SOLE AGREEMENT 20. This instrument constitutes the sole agreement between Sub- Sublessee and Sub-Sublessor with respect to the Premises and correctly sets forth the obligations of the parties to each other as of the Commencement Date. Any prior agreements or representations with respect to the Premises are hereafter null and void. Any amendment or modification of this Sub- Sublease shall only be effective if in writing, signed by the parties hereto. OTHER DOCUMENTS 21 . Sub-Sublessee agrees to abide by the terms and conditions of the Documents to the extent applicable to this Sub-Sublease. 8 IN WITNESS WHEREOF, this Sub-Sublease Agreement was signed by the parties hereto on the date first above written. IASCO By: By: Title. 9 The undersigned hereby consents to the terms and conditions of the foregoing Sub-Sublease. SHASTA ENTERPRISES By: Title: 2y- Date: "2 �- 10 xr A APPROXIMATELY 100 SQUARE FEET Present Layout of Second Floor Main Building SUB-SUBLEASE OF APPROXIMATELY 460 SQUARE FEET 11 0 LESSOR'S APPROVAL OF SUB-SUBLEASE The CITY OF REDDING, hereinafter designated LESSOR, is the LESSOR of the real property located at 3775 Flight Avenue, Redding, California 96002 (the "Premises") . LESSOR hereby consents to the sub-subletting of a certain portion of the Premises to upon the stated terms and conditions in the Sub-Sublease Agreement attached hereto for a period of time not to exceed the term specified in the lease documents ("Lease Documents") entered into by the CITY OF REDDING to which the Premises are subject. LESSOR 's consent to this sub-sublease shall in no way release Shasta Enterprises from liability under the Lease Documents and the LESSOR shall have all rights against Shasta Enterprises in the event of a default under the Lease Documents as LESSOR would have had in the event the LESSOR had not consented to this Sub-Sublease. IN WITNESS WHEREOF, LESSOR has executed this Approval of Sub-Sublease this day of 1994 . LESSOR - CITY OF REDDING By: 12