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HomeMy WebLinkAboutReso 93-019 - Approve 1st amendment to lease & 1st amendment to permit for Commercial Activities between COR & Hillside Aviation, Inc at Benton Airpark RESOLUTION NO. 93- 17 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING THE FIRST AMENDMENT TO LEASE AND FIRST AMENDMENT TO PERMIT FOR COMMERCIAL ACTIVITIES BETWEEN THE CITY OF REDDING AND HILLSIDE AVIATION, INC . AT BENTON AIRPARK, AND AUTHORIZING THE MAYOR TO SIGN SAME . IT IS HEREBY RESOLVED by the City Council of the City of Redding as follows : 1 . That the City Council of the City of Redding hereby approves the First Amendment to Lease and First Amendment to Permit for Commercial Activities between the City of Redding and Hillside Aviation, Inc . at Benton Airpark, effective February 1, 1993 . A true copy is attached hereto and incorporated by reference. 2 . That the Mayor of the City of Redding is hereby autho- rized and directed to sign said First Amendment to Lease and First Amendment to Permit for Commercial 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. 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 19th day of January 1993, and was duly adopted at said meeting by the following vote: AYES : COUNCIL MEMBERS : Anderson, Arness, Dahl, Kehoe & Moss NOES : COUNCIL MEMBERS : None ABSENT: COUNCIL MEMBERS : None ABSTAIN: COUNCIL MEMBERS : None LIE MOSS, Mayor City of Redding ' AT ST: FORM APPROVED: L"u "1 CON IE ST O MAYER, t Clerk RA DALL A. HA ity Attorney FIRST AMENDMENT TO LEASE WHEREAS, effective on July 1 , 1990, the CITY OF REDDING entered into a Lease with HILLSIDE AVIATION, INC . , a California Corporation, covering certain ground area and hangar facilities at Benton Airpark; and WHEREAS, Steve Miller, President of HILLSIDE AVIATION, INC. , has now requested that the City consent to and approve a Lease amendment; NOW, THEREFORE, it is agreed by and between the parties hereto as follows : 1 . The CITY OF REDDING, as Lessor, does hereby consent to the extension of the Lease term for an additional period of nine ( 9 ) years and seven ( 7 ) months, ending on the 31st day of January, 2005 . 2 . The CITY OF REDDING, as Lessor, does hereby consent to the inclusion of a Lessee' s rights of option clause, as shown in Exhibit "A" attached hereto. 3 . The Lease "Ground Rental" clause shall be modified as shown in Exhibit "B" attached hereto. 4 . The "Alterations and Additions" clause shall be modified as shown in Exhibit "C" attached hereto. 5 . STEVE MILLER, President of HILLSIDE AVIATION, INC. , consents to the above amendments of the Premises Lease, and does hereby covenant and agree that he will perform all the terms and conditions contained in the aforesaid Lease to be performed by the Lessee, and does understand and agree that all other terms and conditions contained in the aforesaid Lease remain in full force and effect throughout the term thereof . IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to Lease on the day of January, 1993 . CITY OF REDDING By: CHARLIE MOSS, Mayor HILLSIDE AVIATION, INC. By: TVf MILL R esi ATTEST: CONNIE STROHMAYER, City Clerk FORM APPROVED: RANDALL A. HAYS, City Attorney -2- EXHIBIT "A" Paragraph 1 . TERM. of the Lease is modified as follows : 1 . TERM. A. For and in consideration of the terms, covenants, condi- tions, and agreements herein set forth to be kept and per- formed by LESSEE, LESSOR does hereby grant, demise, and lease unto LESSEE, subject to all the terms, covenants, conditions, and agreements hereinafter set forth, those certain Premises described in Exhibit "A" and depicted in Exhibit "B" attached hereto and incorporated herein by reference, an extension, to the original Term, of a period of nine (9 ) years and seven ( 7 ) months , ending on January 31, 2005 . B. Provided LESSEE is not in default hereunder, and provided LESSOR has not determined to leave the premises vacant, operate the premises itself, or devote the premises to a different type of municipal or governmental purpose, LESSEE shall have the right of option to lease said premises for an additional period of ten ( 10 ) years, namely February 1, 2005, to and including January 31, 2015 . The right to renew for said 10-year option period shall be exercised by written notice addressed by LESSEE to LESSOR no less than ninety (90) days prior to the expiration of the initial 15-year term of this Lease. If LESSEE exercises this right of option for said additional period of 10 years, all of the terms, covenants , condi- tions , and agreements contained in this Lease Agreement shall remain in full force and effect, with the exception of this paragraph 1 .B. giving LESSEE a right of option to renew the leasehold term. -1- C. LESSEE shall also have the right of first refusal during the term of this Lease, or the renewal thereof if exer- cised, as to any sale/purchase of said premises in the event LESSOR elects to sell same. D. Said rights of option given to LESSEE shall not be construed as a waiver of LESSOR' S right to remove LESSEE for breach of any of the terms , covenants, conditions , and agreements contained in this Lease by LESSEE, nor of LESSOR' s right to remove LESSEE from the subject premises at the end of the initial term of this Lease terminating January 31, 2005 in the event LESSOR determines to leave the premises vacant, operate the premises itself, or devote the premises to a different type of municipal or governmental purpose. -2- EXHIBIT "B" Paragraph 4 . "GROUND RENTAL" of the Lease is modified as follows : 4 . GROUND RENTAL. LESSEE shall pay to LESSOR hangar facility rental in accor- dance with the following provisions : A. For the 6 , 930 square foot Premises, Eleven Thousand Seven Hundred Dollars ( $11, 700 . 00) per year. Said annual rental shall be payable in twelve ( 12 ) monthly installments of Nine Hundred Seventy-five Dollars ( $975 . 00) each, payable to LESSOR in advance on the 10th day of each month during the term of this Lease, commencing on the 10th day of July, 1990 . B. Any rentals, fees, and charges not delivered to LESSOR by the 10th day of the month may be subject to a service charge of one and one-half percent ( 1?% ) per month, and cumulatively one and one-half percent ( 12%) each month thereafter, not to exceed State law limit . Service charges may be changed by City Council Resolution. C. At the end of the two-year and seven month period from the beginning date of this Lease, and at the end of each three-year period thereafter ( individually referred to as a "rental period" ) , a fair market total rental value of the Premises shall be determined and become effective for the following rental period by written agreement between LESSOR and LESSEE to be executed at least thirty ( 30) days prior to the expiration of the rental period then in effect, and the base ground rental shall be adjusted accordingly. Provided, however, that in no event shall the minimum Premises rental be less than the minimum provided for in paragraph 4 .A. above. -1- D. In the event of any disagreement between LESSOR and LESSEE as to the fair market value of the leasehold interest represented by this Lease to be valued under the terms of this paragraph, determination of such fair market value shall be made by three ( 3 ) appraisers , one to be selected by each party and the third to be selected by the two appraisers appointed by the parties . The costs of appraisal are to be borne equally by each of the parties hereto, and both LESSEE and LESSOR shall be bound by the appraisal rendered. E. In the event of disagreement among the appraisers, the decision of any two of the three appraisers shall govern; provided, however, that in no event shall the minimum ground rental be less than the minimum provided for in paragraph 4 .A. above -2- EXHIBIT "C" Paragraph 6 . "ALTERATIONS AND ADDITIONS" of the Lease is modified as follows : 6 . ALTERATIONS AND ADDITIONS . LESSEE shall not make any alterations to or erect any additional structures or improvements on the leased Premises without prior written consent of LESSOR. Any alterations or additions approved by LESSOR shall be constructed at the sole expense of LESSEE, and shall remain the property of LESSOR at the end of the leasehold term. -1- FIRST AMENDMENT TO PERMIT FOR COMMERCIAL ACTIVITIES HILLSIDE AVIATION, INC. WHEREAS, effective on July 1, 1990, the CITY OF REDDING entered into a Permit for Commercial Activities (hereinafter called "Permit" ) with HILLSIDE AVIATION, INC. , a California Corporation, covering certain ground area and hangar facilities at Benton Airpark; and WHEREAS, Steve Miller, President of HILLSIDE AVIATION, INC. , has now requested that the City consent to and approve a Permit amendment; NOW, THEREFORE, it is agreed by and between the parties hereto as follows : 1 . The CITY OF REDDING, as Lessor, does hereby consent to the extension of the Permit term for an additional period of nine ( 9 ) years and seven ( 7 ) months, ending on the 31st day of January, 2005, and the right of option to continue the revenue-producing activities discussed in the Permit for an additional period of ten ( 10) years . 2 . STEVE MILLER, President of HILLSIDE AVIATION, INC. , consents to the above amendments of the Permit, and does hereby covenant and agree that he will perform all the terms and condi- tions contained in the aforesaid Lease to be performed by the Lessee, and does understand and agree that all other terms and conditions contained in the aforesaid Permit remain in full force and effect throughout the term thereof . a 4 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to Permit for Commercial Activities on the day of January, 1993 . CITY OF REDDING By: CHARLIE MOSS, Mayor HILLSIDE AVIATION, INC. By: STEVE CMI-L—L—E-A-/---- eside t ATTEST: CONNIE STROHMAYER, City Clerk FORM APPROVED: RANDALL A. HAYS, City Attorney -2-