HomeMy WebLinkAboutReso 92-265 - Approve & Authorize the mayor to execute the Ground Lease at RMA between COR & Bill R. Woods, upon which to construct an aircraft hangar & operate personal aircraft activity i
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RESOLUTION NO. qLZ 2�0•;.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE THE GROUND
LEASE AT THE REDDING MUNICIPAL AIRPORT BETWEEN THE CITY OF
REDDING AND BILL R. WOODS, UPON WHICH TO CONSTRUCT AN
AIRCRAFT HANGAR AND OPERATE PERSONAL AIRCRAFT ACTIVITY
THEREFROM.
IT IS HEREBY RESOLVED that the City Council of the City of
Redding hereby approves the above-mentioned Lease with Bill R. Woods,
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 Lease 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 introduced
and read at an regular meeting of the City Council of the City of
Redding on the 16th day of June , 1992, and was duly adopted at said
meeting by the following vote:
AYES: COUNCIL MEMBERS: Anderson, Arness, Kehoe & Moss
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: Dahl
ABSTAIN: COUNCIL MEMBERS: None
CHARLIE MOSS, Mayor
City of Redding
A T: Z FORM/)APPROVED: S'
CEGG N
CONNIE STROHMAYER, Ci C1 rk RANDAL A. HAYS, City Attorney In
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L E A S E
THIS LEASE, effective on the date of execution by all
parties, is made and entered into by and between the CITY OF
REDDING, a Municipal Corporation and General Law City,
hereinafter referred to as "LESSOR, " and BILL R. WOODS,
hereinafter referred to as "LESSEE. "
W I T N E S S E T H:
WHEREAS, LESSOR owns and maintains Redding Municipal Airport
(hereinafter called "Airport" ) , an Aircraft Facility located in
the City of Redding, County of Shasta, State of California; and
WHEREAS, LESSEE desires to lease certain ground at said
Airport upon which to construct an aircraft hangar and from which
'j to operate personal aircraft activity, all of which is depicted
in Exhibits A and B attached hereto and incorporated herein by
reference; and
WHEREAS, LESSEE has indicated a willingness to properly
construct an aircraft hangar, and to keep, maintain, and improve
said hangar facility in accordance with the standards established
by LESSOR; and
WHEREAS, LESSEE desires to obtain and avail itself of the
i privileges, rights, uses, and interests therein and herein; and
WHEREAS, LESSOR deems it advantageous to the City and to the
operation of said Airport to grant, demise, and lease unto LESSEE
the ground area (hereinafter called "Premises" ) described
herein, together with said privileges, rights, uses, and
interests therein, as hereinafter set forth;
NOW, THEREFORE, IT IS AGREED by and between the parties
' hereto as follows:
1. TERM.
1 A. For and in consideration of the terms, covenants,
conditions, and agreements herein set forth to be kept and
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performed 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, for a period of thirty ( 30) years commencing on
the date of execution of this Lease by all parties, and
terminating May 31, 2022.
B. At the end of said 30-year term, LESSEE shall have both the
right of first refusal as to any lease of such Premises
negotiated by LESSOR with any other party and the right of
first refusal as to any sale of said Premises in the event
LESSOR elects to sell same. These rights of first refusal
given to LESSEE shall not be construed as a waiver of
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LESSOR' S right to remove LESSEE for breach of any of the
terms, covenants, conditions, and agreements contained in
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this Lease by LESSEE, nor of LESSOR' S right to remove LESSEE
from the subject Premises at the end of the 30-year term of
this Lease 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
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purpose.
'i 2. OPTIONS TO RENEW LEASE.
A. LESSEE shall have two five-year options to extend the term
of this Lease. Such options shall extend the initial 30-
year term of this Lease for two additional five-year
periods, to May 31 , 2027 , and May 31, 2032, respectively.
If LESSEE exercises such option( s) , all of the terms,
covenants, conditions, and agreements of this Lease shall
remain. in full force and effect, with the exception of this
clause covering LESSEE' s options to renew. The options
'i shall be exercised by written notice addressed by LESSEE to
LESSOR no less than one hundred eighty (180) days prior to
the expiration of the then-current Lease term.
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B. In accordance with LESSOR' s Airport Development Policies ,
any extension option would be subject to refurbishment
requirements.
3. RIGHT TO SUBLEASE.
LESSEE may sublease portions of the Premises only for
aircraft storage. The provisions of paragraph 26 herein shall
apply to any such sublease.
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4. USE OF PREMISES.
A. The Premises demised herein and any improvements
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subsequently constructed thereon may be used by LESSEE only
for the conduct of the following activities, and no other:
( 1) Storage and operation of LESSEE' s personal fixed-
wing and/or rotor-wing aircraft;
( 2) Performing any services that LESSEE may choose to
perform on his own aircraft, with his own
'I employees, including, but not limited to,
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maintenance, repairs, and fueling.
B. The Premises demised herein and any improvements
subsequently constructed thereon may also be used for those
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purposes described in paragraph 3 above, as well as for the
!� activities described above.
C. The provisions of the foregoing paragraph shall not be
construed to authorize LESSEE to conduct a business or
li businesses at said Airport, but shall relate only to
LESSEE' s aviation operation, activities, uses, and purposes
in connection therewith, or incidental to or related
thereto, as specified in paragraphs 3 and 4A above.
D. LESSEE shall have the right of access to and the use of the
facilities at the Airport designed for common use, such as
landing areas, aprons, taxiways, landing lights, beacons,
signals, and other common-use facilities available at the
Airport for the convenience, accommodation, operation,
landing, and take-off of aircraft. The rights herein
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extended to LESSEE shall include the right to land, take
off, load, and unload persons and personal property from
aircraft.
E. LESSEE shall have sole and exclusive use of the aircraft
apron and all other areas located within the Premises, and
will maintain their cleanliness and surface painting as may
be reasonably required by LESSEE' s use thereof . LESSOR
maintains no legal responsibility for the exclusive areas.
5. FUELING OPERATIONS.
A. LESSEE may refuel aircraft by way of truck or on-Premises
tanks, or a combination thereof, as LESSEE sees fit and at
LESSEE' s sole option; PROVIDED, however, that all refueling
facilities at all times comply with all applicable safety
standards and regulations.
j B. LESSEE' s refueling personnel shall be fully competent in all
fueling and safety equipment operations and aircraft fueling
procedures. LESSEE and his fueling representatives shall be
familiar with and shall fully comply with all fuel handling
and fire safety requirements, standards, and procedures as
specified by FAR 139. 321.
C. LESSEE shall provide suitable, adequate, and City-approved
junderground or aboveground storage of fuel and petroleum
products that meets all applicable fire codes, federal,
,i state, and local laws, statutes, ordinances, rules and
regulations pertaining to fire safety and environmental
protection.
D. LESSEE shall provide suitable and adequate fuel dispensing
equipment meeting all NFPA criteria for servicing of
aircraft.
Ij E. LESSEE and his fueling representatives must dispense all
fuel from appropriately-marked equipment having separate
meters and filters for each grade of fuel.
F. Each mobile fuel-dispensing vehicle shall be equipped with
one ( 1) dry chemical fire extinguisher with a 4A30BC rating,
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and one ( 1 ) 15-pound CO2 fire extinguisher.
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6. GROUND RENTAL.
LESSEE shall pay to LESSOR base ground rental in accordance
with the following provisions:
A. For the 12, 350 square foot Premises, Two Thousand Three
Hundred Fifty-two Dollars ( $2, 352. 00) per year. Said rental
shall be payable in twelve (12) monthly installments of One
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Hundred Ninety-six Dollars ( $196 . 00) each, payable to LESSOR
j in advance on the first day of each month during the term of
i this Lease, commencing on the first day of the month
following the date of execution of this Lease by all
parties.
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 1/2%) per month, and
cumulatively one and one-half percent ( 1 1/2%) each month
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thereafter, not to exceed State law limit. Service charges
may be changed by City Council Resolution.
C. In addition, the rental payments shall be evaluated every
two and one-half ( 2 1/2) years during the term of this Lease
or the renewal thereof, commencing November 1, 1994, and
adjusted by the average of the United States Bureau of Labor
Statistics National Consumer Price Index (CPI ) , U.S. City
Average, All Items, All Urban Consumers, for the previous
two and one-half period; PROVIDED, however, that in no event
j shall the minimum rental be less than the minimum provided
for in paragraph 6A above.
D. (1) Subject to the CPI adjustment in paragraph 6C, at the
end of the first five-year period of this Lease, and
for each five-year period thereafter during the term of
this Lease or the renewal thereof (each five-year
period being hereinafter individually referred to as a
"Rental Period" ) , the fair market value of the leased
area for the following Rental Period shall be
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determined by written agreement between LESSOR and
! LESSEE executed at least thirty ( 30) days prior to the
expiration of the Rental Period then in effect, and the
monthly rent to be paid by LESSEE to LESSOR under this
Lease shall be adjusted accordingly.
( 2) In the event LESSOR and LESSEE are unable to reach such
agreement thirty ( 30) days prior to the expiration of
the Rental Period then in effect, but no dispute exists
between LESSOR and LESSEE as to the method used to
arrive at the fair market value and the results
thereof, the adjusted rental shall be retroactive to
the starting date of the subsequent Rental Period.
E. In the event of any disagreement between LESSOR and LESSEE
as to the fair market value of the leased area to be valued
under the terms of paragraph 6D, 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. 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
monthly rent to be paid by LESSEE to LESSOR under this Lease
or any renewal thereof be less than the amount paid by
LESSEE in the 4th, 8th, 12th, and any subsequent fourth year
thereafter.
F. Without prejudice to any other remedy which might otherwise
be used for non-payment of rent, fees, and charges, or other
breach of this Lease, if LESSOR is required or elects to pay
any sum or sums, or incurs any obligations or expense by
reason of a failure, neglect, or refusal of LESSEE to
perform any one or more of the terms, covenants, conditions,
or agreements of this Lease, or as a result of any act or
omission of LESSEE contrary to said terms, covenants,
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conditions, or agreements, the sum or sums so paid or the
expense so incurred by LESSOR, including all interest,
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costs, damages, and penalties, may be added, after seven
( 7) days ' written notice by LESSOR to LESSEE, to any
installment of rent thereafter due hereunder, and each and
every part of the same shall be and become additional rent
recoverable by LESSOR in the same manner and with like
remedies as though it were originally a part of the rent as
set forth hereinabove.
7. FUEL FLOWAGE FEE.
In consideration of the privilege to conduct aircraft
refueling on the Premises, LESSEE shall pay to LESSOR a fuel
flowage fee calculated in cents per gallon, at the rate
established for all aircraft refueling operations at the Redding
Municipal Airport by Resolution of the Redding City Council.
Said fee shall be paid on a monthly basis, no later than the 20th
day of the month following the billing period, and shall be based
upon the number of gallons of aviation fuel pumped into aircraft
from the Premises, as indicated by a meter-measuring device
located upon the Premises or one used by fuel suppliers and
confirmed by numbered invoice. LESSEE may refuel aircraft by way
of truck or underground tanks, or a combination thereof , as
LESSEE sees fit and at LESSEE's sole option; PROVIDED that all
refueling facilities comply at all times with all applicable
safety standards and regulations.
8. LANDING FEE.
In consideration for the privileges granted herein, LESSEE
shall pay a landing fee for each landing made with an aircraft
having a Certified Maximum Gross Takeoff Weight CMGTW) of 12 , 500
pounds or greater, at the rate shown in the Schedule of Landing
Fees established by Resolution of the City Council. LESSEE will
report in writing to LESSOR by the 20th day of each and every
i month the total number of aircraft landings and the CMGTW of
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aircraft over 12 , 500 pounds CMGTW which have been landed during
the previous month operating to or from the Premises.
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9. OTHER FEES.
Throughout the Lease term or any extension thereof, LESSEE
shall be subject to other fees which may be enacted by LESSOR and
which would apply to all other similar classes of Airport
tenants.
10. IMPROVEMENT RENTALS.
LESSEE shall pay to LESSOR improvement rentals in accordance
with the following provisions:
A. It is understood and agreed that the cost of improvements to
'i be constructed _by LESSEE, as hereinafter provided for, shall
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be amortized over the initial 30-year term of this Lease.
The intent of this paragraph is that LESSEE shall pay no
rent for the improvements placed on the Premises until
LESSEE has amortized the cost over said 30-year period. If
LESSEE elects to add to said improvements during the initial
30-year term of this Lease, the cost of such additions, as
established by proof presented by LESSEE to LESSOR in a
manner and form acceptable to LESSOR, shall be amortized
within the same period as hereinabove set forth.
B. Upon completion of the improvements as herein agreed to,
LESSEE shall file an accurate statement of his actual costs
of such construction with LESSOR, whose Public Works
Director shall satisfy himself as to the accuracy of same
and so certify. The certified statement shall then be
incorporated herein and made a part hereof.
C. Upon completion of the amortization of improvements by
LESSEE, title to same shall pass to LESSOR, and LESSOR shall
become sole owner of all improvements upon the Premises.
From and after completion of the amortization of the cost of
said improvements, LESSEE shall pay rent to LESSOR for the
improvements. The annual rent for the improvements shall be
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ten percent ( 100) of the fair market value of such
improvements as determined from time-to-time in accordance
with paragraph 10D below. Said annual improvement rental
shall be paid in twelve ( 12) equal installments, in advance,
on or before the first day of each and every month,
commencing with the first day of June, 2022 .
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D. ( 1) At the end of the improvement amortization, and every
two and one-half years thereafter (said periods being
hereinafter individually referred to as a "Rental
Period" ) , the fair market value of the leased
improvements for the Rental Period to follow shall be
determined by written agreement between LESSOR and
LESSEE executed at least thirty ( 30) days prior to the
'I expiration of the Rental Period then in effect.
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( 2) In the event LESSOR and LESSEE are unable to reach such
I agreement thirty ( 30) days prior to the expiration of
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the Rental Period then in effect, but no dispute exists
between LESSOR and LESSEE as to the method used to
arrive at the fair market value and the results
!I thereof, the adjusted rental shall be retroactive to
i the starting date of. the subsequent Rental Period.
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( 3) Further, in the event LESSOR and LESSEE are unable to
reach such agreement thirty ( 30) days prior to the
Ij expiration of the Rental Period then in effect, the
fair market value of the improvements 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 appraisals are
to be borne equally by each of the parties hereto, and
both LESSEE and LESSOR shall be bound by the appraisal
rendered. 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 improvement rental to be paid
by LESSEE to LESSOR under this Lease or any renewal
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thereof be less than that established for the previous
Rental Period.
( 4 ) Pending a decision by said appraisers, LESSEE shall
continue to pay monthly improvement rent at the rate
previously in effect. In the case of the first Rental
Period, if the monthly improvement rent has not been
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agreed upon by the commencement of said Rental Period,
LESSEE shall pay improvement rent in U.S. dollars in a
sum equal, in then-current purchasing power, to the
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purchasing power existing at the time of execution of
this Lease of the sum of Seven Hundred Fifty Dollars
( $750 . 00) not later than the 10th day of each month
until the appraisers have agreed upon the appropriate
rental.
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( 5) Within ten ( 10) days after a decision by the
appraisers, the improvement rent shall be retroactively
adjusted to the beginning of such new Rental Period by
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payment of the accumulated overpayment or underpayment
from LESSOR to LESSEE, or from LESSEE to LESSOR, as the
case may be. LESSOR and LESSEE shall each pay one-half
the cost of the aforesaid appraisals.
11. IMPROVEMMS.
A. LESSEE agrees to construct a hangar structure of a minimum
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size of 6, 400 square feet, at a cost estimated to exceed
$ -Ci CZE, in accordance with the plans and specifications
approved in advance by LESSOR in writing. LESSEE further
agrees to pave any and all areas adjacent to said hangar
necessary to provide safe and convenient aircraft access to
and from existing paved taxiways. This shall be constructed
according to standards under FAA guidelines and as approved
by LESSOR' s Director of Public Works. All of . the aforesaid
improvements shall be completed within 360 days from the
date of execution of this Lease. Said 360-day period may be
extended by LESSOR upon LESSEE furnishing proof to LESSOR
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that the delay in construction and completion has been
:j occasioned or caused by acts of God or other circumstances
beyond the control of LESSEE.
i B. Upon award of the construction contract by LESSEE, LESSEE
agrees to furnish LESSOR with evidence satisfactory to
LESSOR that LESSEE' s general contractor has furnished a
performance bond in the amount of the contract price for the
construction of said building, and a payment bond or labor-
and-materials bond in the amount of fifty percent ( 50%) of
the contract price, with LESSOR named as co-obligee on both
�ibonds.
C. In constructing said hangar and improvements, including any
fueling facilities and equipment, all plans and specifi-
cations for fill, grading, paving, interior utility lines ,
exterior utility lines and hookups required by LESSOR,
buildings, or other improvements shall be submitted to
LESSOR' s Director of Planning and approved by him, in
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writing, before any work in relation thereto is commenced.
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12. UTILITIES.
A. Utilities shall be installed to serve LESSEE' s Premises
only. Any installation of water, sewer, electric, or other
utilities on the Premises, either at the desire of LESSOR or
as a requirement of any provision of law enacted by the
State of California, County of Shasta, or City of Redding,
shall be at the sole cost and expense of LESSEE.
B. LESSEE shall provide his own separate sewer system,
comprised of a septic tank and pumping system tied into the
existing force main.
C. LESSEE shall be responsible for the prompt payment of any
utility service charges applicable to the area leased to him
'I by the provisions of this Lease, and the failure to pay
these charges promptly shall expressly constitute a material
breach of this Lease.
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13. UTILITY EASEMENT.
A. Any taxiway, aircraft parking apron, or other improvements
( such as base and paving) constructed by LESSEE over
existing utilities will be replaced at LESSEE' s sole cost
should it be necessary for LESSOR to repair any of said
utilities at any time during the term of this Lease.
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14. MAINTENANCE AND REPAIRS.
LESSEE shall, at its sole cost and expense, keep and
maintain said hangar, area, improvements, appurtenances , and
every part thereof in good and sanitary order, condition, and
repair, hereby waiving all right to make repairs at the expense
of LESSOR as provided in Section 1942 of the Civil Code of the
State of California, and all rights provided for by Section 1941
of said Civil Code. Such maintenance shall expressly include a
regular and consistent program of repainting the hangar,
improvements , and appurtenances, and the prompt repair of any
portion thereof that becomes damaged.
15. ALTERATIONS AND ADDITIONS.
LESSEE shall not make any alterations to or erect any
additional structures or improvements on the 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
term of this Lease, or the renewal thereof .
16. MECHANICS' LIENS.
LESSEE shall keep the Premises and the hangar and
j improvements to be constructed thereon free from liens arising
out of any work performed, materials furnished, or obligations
incurred by LESSEE.
17. SIGNS.
LESSEE shall be privileged to erect such signs as may be
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desired and to place the same upon the property, subject to first
securing the written approval of LESSOR' s Director of Airports
who shall determine whether such signage is aesthetically
harmonious with said improvements and facilities at the Airport.
The Director of Airports shall also determine if the proposed
signs meet the standards of the Airport Development Policies.
18. TRADE FIXTURES.
Any trade fixtures, equipment, or other property brought,
installed, or placed by LESSEE in or about the Premises shall be
and remain the property of LESSEE, except as otherwise provided
herein. LESSEE shall have the right at any time during the term
hereof to remove any or all of his property, subject to LESSEE' S
obligation to repair all damage, if any, resulting from such
removal. Such trade fixtures, equipment, and other property of
LESSEE shall be removed by LESSEE from the Premises upon the
expiration or earlier termination of this Lease.
19. UNLAWFUL USE.
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'f No building, structure, or improvement of any kind shall be
erected, placed upon, operated, or maintained on the Premises,
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nor shall any business or operation be conducted or carried on
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therein or thereon, in violation of any policy, ordinance, law,
statute, bylaw, order, or rule of the governmental agency having
jurisdiction thereover.
20. WASTE; QUIET CONDUCT.
LESSEE shall not commit nor suffer to be committed any waste
upon said area or improvements, nor any nuisance or other act or
thing which may disturb the quiet enjoyment of the use of said
Airport or surrounding property.
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21. RULES AND REGULATIONS.
LESSEE agrees to observe and obey all rules and regulations
promulgated and enforced by LESSOR and any other appropriate
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authority having jurisdiction over said Airport during the term
of this Lease. LESSOR covenants that the rules and regulations
so promulgated will apply to and will be enforced uniformly by
LESSOR as to all lessees of the Airport as their interests and
activities are related thereto.
22. DISCRIMINATION.
LESSEE, in the operation and use of the Redding Municipal
Airport, or of any of its facilities thereon, will not, on the
grounds of race, color, sex, or national origin, discriminate nor
permit discrimination against any person or group of persons in
any manner prohibited by the State of California or the United
States of America.
23. HOLD HARMLESS; INSURANCE.
A. This Lease is granted upon the express condition that
LESSOR, its officers, officials, agents, employees, and
'I volunteers, shall be free from any and all liability and
claims for damages for personal injury, death, or property
damage in any way connected with LESSEE' s use of the
Premises hereunder leased, including claims of LESSEE, his
heirs, executors, administrators, personal representatives,
successors, assigns, agents, employees, and customers.
LESSEE shall indemnify and save harmless LESSOR, its
officers, officials, agents, employees, and volunteers, from
any and all liability, loss, cost, or obligation on account
of or arising out of any such injury, death, or loss caused
by the negligence or other legal fault of LESSEE or his
;i heirs, executors, administrators, personal representatives,
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successors, assigns, agents, employees, and customers.
B. It is specifically understood and agreed as a condition of
'I this Lease that LESSEE shall procure and maintain from a
company authorized to do business in the State of
California, at his sole cost and expense and at all times
during the term of this Lease, comprehensive general
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liability insurance policy for aircraft liability and
airport premises liability in an amount of not less than
$1 million combined single limits. Said insurance shall be
in form and content sufficient and adequate to save LESSOR,
its officers, officials, agents, employees, and volunteers ,
harmless from any and all claims arising out of the use and
occupancy of said Premises. A Certificate and endorsements
evidencing such insurance shall be approved by the Risk
Manager of LESSOR.
C. LESSEE shall also secure and maintain property insurance
against all risks of loss on the hangar and improvements to
be constructed by LESSEE as a part of the aviation operation
created by this Lease, and insurance coverage shall be to
athe full replacement value of the hangar, the improvements,
and the contents as erected and placed upon the Premises.
j LESSEE further agrees that in the event of any loss or
partial or complete destruction of the hangar and/or
improvements erected by LESSEE, any proceeds of insurance
received by LESSEE shall be utilized in the replacement,
reconstruction, or repair of the damaged or destroyed hangar
and/or improvements.
D. It is further understood and agreed as a condition of this
Lease that LESSEE will provide and maintain statutory
1 workers ' compensation insurance on its employees, and
employer' s liability with limits of not less than $1 million
per occurrence. The Risk Manager of LESSOR shall be
furnished with a Certificate and endorsements evidencing
such insurance. To obtain an exemption from this
requirement should LESSEE have no employees, LESSEE shall
provide the Risk Manager of LESSOR with a letter stating
that LESSEE 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 LESSEE
later become subject to the workers' compensation provisions
of the Labor Code, it will forthwith comply with the
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i insurance requirements set forth above. Both the workers '
compensation and employers ' liability shall contain the
insurer ' s waiver of subrogation in favor LESSOR, its
officers, officials, agents, employees, and volunteers.
E. Automobile liability shall be maintained for bodily injury
I ( including death) and property damage, with limits of not
less than $500 , 000 combined single limits per occurrence,
applicable to all owned, non-owned, and hired vehicles.
F. Any deductibles or self-insured retentions must be declared
to and approved by LESSOR. At the option of LESSOR, either
the insurer shall reduce or eliminate such deductibles or
self-insured retentions as respects LESSOR, its officers,
'i officials, agents, employees, and volunteers; or LESSEE
shall procure a bond guaranteeing payment of losses and
related investigations, claim administration, and defense
expenses.
G. The general liability and automobile liability policies are
to contain, or be endorsed to contain, at least the
following provisions:
( 1) LESSOR, its officers, officials, agents, employees, and
volunteers, are to be covered as insured as respects:
,I liability arising out of premises or vehicles owned,
occupied, or used by LESSEE. The coverage shall
contain no special limitations on the scope of
protection afforded to LESSOR, its officers, officials,
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agents, employees, or volunteers.
( 2) LESSEE' s insurance coverage shall be primary insurance
as respects LESSOR, its officers, officials, agents,
employees, and volunteers. Any insurance or self-
insurance maintained by LESSOR, its officers,
officials, agents, employees, or volunteers, shall be
j excess of LESSEE' s insurance and shall not contribute
with it.
I
( 3 ) Any failure to comply with reporting or other
provisions of the policies, including breaches of
I
16 i v/
1
warranties, shall not affect coverage provided to
j LESSOR, its officers, officials , agents , employees , or
I
volunteers.
( 4) Coverage shall state that LESSEE' s insurance shall
apply separately to each insured against whom claim is
made or suit is brought, except with respect to the
limits of the insurer ' s liability.
( 5) Each insurance policy required by this clause shall be
endorsed to state that coverage shall not be suspended,
jvoided, cancelled, reduced in coverage or in limits
except after 30 days' prior written notice by certified
mail, return receipt requested, has been given to
LESSOR.
( 6) All required insurance policies shall be issued by
companies which hold a current policy holder' s
alphabetic and financial size category rating of not
;j less than A: VII according to the most recent issue of
Best' s Insurance Reports.
24. TAXES.
LESSEE agrees to pay promptly all taxes and assessments
which shall be assessed upon any real or personal property,
i
including possessory interest taxes, owned by LESSEE or in which
LESSEE has a leasehold interest, to the extent of LESSEE' s
interest therein as such interest may appear at the time when
said taxes or assessments become due or payable under any levy or
assessment by any legally authorized governmental agency.
25. INSPECTION AND NOTICE.
Insofar as the same may be necessary for the protection of
j LESSOR' s rights , LESSOR or its agents shall, at any and all
times, have the right to go upon and inspect the ground area and
improvements hereby leased, and any and every structure or
improvement erected or constructed, or in the course of being
erected or constructed, repaired, added to, rebuilt, or restored
17
thereon, and also to serve or to post and to keep posted thereon,
or on any part thereof , any notices provided in Section 1183 . 1 of
the Code of Civil Procedure of the State of California or any
other section of the Code of Civil Procedure of the State of
California, or any other notice or notices that may be at any
time required or permitted by law.
26. ASSIGNMENT OR SUBLETTING.
Other than the express permission to sublet as set forth in
paragraph 3 of this Lease, LESSEE shall not assign this Lease or
any interest therein, and shall not sublet the Premises or any
part thereof or any right or privilege appurtenant thereto, nor
I
suffer any other person ( the agents and employees of LESSEE
excepted) or entity to occupy or use said Premises or any part
thereof, without the written consent of LESSOR first had and
d
obtained. A consent by LESSOR to one assignment, subletting
other than as set forth in paragraph 3 of this Lease, occupancy,
'j 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
j written consent shall be void and shall, at the option of LESSOR,
terminate this Lease. LESSOR shall not unreasonably withhold its
consent to a sublease or assignment by LESSEE.
j This Lease or any interest therein shall not be assigned as
i
to the interest of LESSEE by operation of law without the written
consent of LESSOR; provided, however, that if LESSEE' s financial
arrangements require that this Lease be made assignable to
LESSEE' s lender, said lender being a recognized lending
institution, said consent to assign, including the lender' s right
I
to reassign, shall not be necessary.
I
27. REVOCATION OF LEASE, PERMIT, LICENSE, OR AGREEMENT.
LESSOR shall have the right to terminate any lease, permit,
license, or agreement ( including that of LESSEE herein) covering
18
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a commercial or noncommercial operation, and to revoke a lease,
' permit, license, or agreement on any land or facility at the
i
Airport ( including that of LESSEE herein) for any cause or reason
provided by these standards, by the lease, permit, license, or
I
i agreement itself, or by law, or upon the happening of one or more
of the following:
i
a. Filing a petition of voluntary or involuntary bank-
ruptcy by the lessee, permittee, licensee, or operator.
b. The making by the lessee, permittee, licensee, or
operator of any general assignment for the benefit of
creditors.
C. The abandonment or discontinuance of any operation at
the Airport by a commercial operator; or the failure to
conduct any service, operation, or activity which the
lessee, permittee, licensee, or operator has agreed to
provide under the terms of his contract with the City
of Redding. If this condition exists for a period of
ten ( 10) days without prior written consent of the City
of Redding, it will constitute an abandonment of the
land or facilities and the lease, permit, license,
and/or agreement shall become null and void.
d. The failure of a lessee
permittee, licensee, or
operator to pay promptly when due all rents, charges,
fees, or other payments owed to the City of Redding in
accordance with his contract with the City.
e. The failure of the lessee
permittee, licensee, or
operator 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 of Redding.
f. Violation of any of these standards and rules and
regulations, or failure to maintain current licenses
required for the operations permitted under his or her
lease, permit, license, and/or agreement with the City
of Redding.
g. Intentionally supplying the City of Redding with false
or misleading information or misrepresenting any
material fact on the application or documents, or in
statements to or before the City, or intentionally
failing to make full disclosure on a financial
statement, or other required documents.
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19 �y,,�
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h. The failure of the licensee, permittee, licensee, or
operator to perform any provision or covenant within
his contract with the City of Redding.
28. UNITED STATES OF AMERICA RESTRICTIONS.
A. It is understood and agreed that this Lease is subject to
the covenants, restrictions, and reservations contained 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.
i
( 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
'i.
Projects.
i
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, LESSEE shall
likewise be released by LESSOR.
29. FAA REQUIREMENTS.
To comply with Federal Aviation Administration requirements,
LESSEE, for himself, his heirs, executors, administrators,
,I
personal representatives, successors, and assigns, as a part of
the consideration hereof, does hereby covenant and agree, as a
covenant running with the land:
( 1) That in the event facilities are constructed,
maintained, or otherwise operated on the said property
described in this Lease for a purpose for which a
Department of Transport program or activity is
extended, or for another purpose involving the
provision of similar services or benefits, LESSEE shall
maintain and operate such facilities and services in
1 compliance 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
20 �;'=
Transportation--Effectuation of Title VI of the Civil
Rights Act of 1964 , and as said Regulations may be
amended.
( 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 land 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
discrimination; and (c) that LESSEE 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 nondis-
crimination covenants, LESSOR shall have the right to
terminate this Lease and to reenter and repossess said
land and the facilities thereon, and hold the same as
if said Lease had never been made or issued. This
provision does not become effective until the
procedures of 49 CFR Part 21 are followed and
'i completed, including expiration of appeal rights.
( 4) That LESSEE shall furnish his accommodations and/or
services on a fair, equal, and not unjustly
discriminatory basis to all users thereof, and shall
charge fair, reasonable, and not unjustly
discriminatory prices for each unit or service;
provided that LESSEE may be allowed to make reasonable
and nondiscriminatory discounts, rebates, or other
similar type of price reductions to volume purchasers.
( 5) That non-compliance with paragraph 29( 4) above shall
constitute a material breach thereof, and in the event
of non-compliance LESSOR shall have the right to
terminate this Lease and the estate hereby created
without liability therefor, or at the election of
LESSOR or the United States either or both said
Governments shall have the right to judicially enforce
provisions.
( 6) That LESSEE agrees that he shall insert the above five
provisions 29( l) through 29( 5) in any lease, agreement,
i
i
contract, etc. , by which said LESSEE grants a right or
privilege to any person, firm, or corporation to render
accommodations and/or services to the public on the
Premises herein leased.
( 7 ) That LESSEE assures that he will undertake an
affirmative action program as required by 14 CFR Part
1.52, 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 in 14 CFR Part 152 , Subpart E.
I LESSEE 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
j by this subpart. LESSEE assures that he will require
that his covered suborganizations provide assurances to
LESSEE 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) That LESSOR reserves the right to further develop or
improve the landing area of Redding Municipal Airport
as it sees fit, regardless of the desires or views of
LESSEE and without interference or hindrance.
( 9) That LESSOR reserves the right, but shall not be
obligated to LESSEE, 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
LESSEE in this regard.
( 10) That this Lease shall be subordinate to the provisions
and requirements of any existing or future agreement
between LESSOR and the United States relative to the
development, operation, or maintenance of the Redding
Municipal Airport.
( 11) That there is hereby reserved to LESSOR, 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
leased. 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 LESSEE agrees to comply with the notification and
review requirements covered in Part 77 of the Federal
Aviation Regulations in the event future construction
/
22 %/X
of a building is planned for the leased Premises, or in
the event of any planned modification or alteration of
any present or future building or structure situated on
the leased Premises.
( 13 ) That LESSEE, by accepting this Lease, expressly agrees
for himself , his heirs , executors, administrators,
personal representatives, successors, and assigns, that
they will not erect nor permit the erection of any
structure or object, nor permit the growth of any tree,
on the land leased hereunder to be more than 62 feet at
the most northeastern corner of the Premises to more
than 92 feet above the mean sea level .elevation of the
most southwestern corner of the Premises. In the event
the aforesaid covenants are breached, LESSOR reserves
the right to enter upon the land leased hereunder and
to remove the offending structure or object and cut the
offending tree, all of which shall be at the expense of
LESSEE.
' ( 14) That LESSEE, by accepting this Lease, agrees for
himself , his heirs, executors, administrators, personal
representatives, successors, and assigns, that they
will not make use of the leased Premises in any manner
which might interfere with the landing and taking off
of aircraft from the Redding Municipal Airport, or
otherwise constitute a hazard. In the event the
aforesaid covenant is breached, LESSOR reserves the
right to enter upon the Premises hereby leased and
cause the abatement of such interference at the expense
of LESSEE.
( 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 Lease and all the 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.
30. AMENDMENT.
LESSOR may, by City Council Resolution, amend this Lease to
include standards applicable without discrimination to all
23 +, '
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lessees conducting similar operations at either Benton Airport or
Redding Municipal Airport.
31. BREACH.
Upon written notice from LESSOR to LESSEE that LESSEE is
committing a material breach of any term, covenant, condition, or
agreement of this Lease, LESSEE shall forthwith cure such breach.
I
In the event LESSEE has not cured such breach within thirty ( 30 )
days following the mailing of such written notice to LESSEE by
LESSOR, LESSOR shall have the right to enter and take over the
i
demised Premises and exclude LESSEE therefrom. This right shall
be in addition to any and all other rights possessed by LESSOR
under the laws of the State of California relating to landlord
and tenant.
32. WAIVER.
No delay or failure by any party to exercise any right,
power, or remedy with regard to any breach or default by such
party under this Lease, or to insist upon strict performance of
any of the provisions hereof, shall impair any right, power, or
remedy of such party, and shall not be construed to be a waiver
of any breach or default of the same or any other provision of
this Lease. The waiver by LESSOR of any breach or default of any
term, covenant, or condition herein contained shall not be deemed
to be a waiver of such term, covenant, or condition, or any
subsequent breach of the same, or any other term, covenant, or
condition herein contained.
33. DEFAULT.
If LESSEE shall be in arrears in the payment of rent for
thirty ( 30) days or more, or if the transfer or assignment,
j voluntarily or involuntarily, of this Lease or any interest
therein is attempted, except as herein provided, or if LESSEE
violates or neglects or fails to keep, observe, and perform any
of the covenants, promises, or conditions herein contained which
I 24
��
are on his part to be kept, observed, and performed, LESSOR may,
at its election, give LESSEE written notice of such default. If
such default shall continue for sixty ( 60 ) days, and LESSEE has
failed to commence good faith efforts to cure such default within
said period, LESSOR shall have the right at any time thereafter
and while such neglect or default continues to enter into or upon
said Premises, or any part thereof, and repossess the same,
including all buildings and improvements thereon, and expel
LESSEE and those claiming under LESSEE, and remove their effects,
forcibly if necessary, without prejudice to any remedies which
might otherwise be invoked by LESSOR.
34. EMINENT DOMAIN.
A. In the event the entire Premises shall be appropriated or
taken under the power of eminent domain by any public or
quasi-public authority, this Lease shall terminate and
expire as of the date of such taking, and LESSEE shall
j thereupon be released from any liability thereafter accruing
hereunder.
B. In the event a portion of the Premises is taken under the
power of eminent domain by any public or quasi-public
authority, such that the improvements thereon cannot, in
LESSEE' s opinion, be used for its intended purposes, LESSEE
shall have the right to terminate this Lease as of the date
LESSEE is required to vacate a portion of the Premises, upon
the giving of notice in writing of such election within
thirty ( 30) days after said Premises have been so
appropriated or taken. In the event of such termination,
both LESSOR and LESSEE shall thereupon be released from any
liability thereafter accruing hereunder. LESSOR agrees,
immediately after learning of any appropriation or taking,
to give LESSEE notice thereof in writing.
C. If the Premises are taken, or LESSEE elects to terminate
upon a partial taking, LESSOR agrees to offer to negotiate
with LESSEE for similar space on similar terms and for a ;
25
I
term equal to the remaining term hereunder, if any such land
is available for lease at the Redding Municipal Airport.
D. If this Lease is terminated in either manner hereinabove
d provided, LESSOR shall be entitled to the entire award or
compensation for the land in such proceedings, but the rent
and other charges for the last month of LESSEE' s occupancy
shall be prorated and LESSOR agrees to refund to LESSEE any
unused portion of said rent or other charges paid in
advance. LESSEE' s right to receive compensation or damages
for his improvements, fixtures, personal property, and for
the moving or relocation expenses shall not be affected in
any manner hereby, and LESSEE reserves the right to bring an
action for such compensation or damages, including loss of
business, leasehold interest, and other reasonable damages.
35. BANKRUPTCY OR INSOLVENCY.
If LESSEE shall be adjudged bankrupt, either by voluntary or
involuntary proceedings, or should be the subject of any
proceedings to stay the enforcement of obligations against him 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 LESSEE shall discontinue business or fail in business, or
abandon or vacate said real property, or make an assignment for
Ithe benefit of creditors, or if said real property should come
into possession and control of any trustee in bankruptcy, or if
any receiver should be appointed in any action or proceeding with
power to take charge, possession, control, or care of said
property, LESSOR shall have the option to forthwith terminate
this Lease, and reenter the property and take possession thereof .
In no event shall this Lease be deemed an asset of LESSEE after
adjudication in bankruptcy.
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36. CANCELLATION.
This Lease may be cancelled by either party at any time
during the term of this Lease upon one hundred twenty ( 120) days '
26
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advance written notice to the other party of such cancellation.
37. DISPOSITION OF IMPROVEMENTS ON TERMINATION OF LEASE.
On expiration of the amortization term as set forth in
paragraph 10A above, or earlier termination of this Lease for any
cause, LESSOR shall become the owner of any hangar, building, or
improvements on the Premises; provided, however, that LESSEE
shall have the right to remove such personal property, machinery,
and equipment as may be removed without threat to the structural
integrity of the hangar, building, or improvements. If damage
results from the removal of any such items, LESSEE shall repair
such damage at his sole expense. The Premises and all remaining
improvements, equipment, and fixtures shall be turned over to
LESSOR broom-clean and in as good a condition as when LESSEE
originally took possession, ordinary wear and tear excepted,
failing which LESSOR may restore the Premises and such equipment
and fixtures to such wear and tear accepted condition and LESSEE
shall pay the cost thereof to LESSOR on demand.
38. ADMINISTRATION BY LESSOR.
Whenever LESSEE is required to secure the approval or
consent of LESSOR under this Lease, "LESSOR" shall mean the
Director of Airports of the City of Redding. However, at the
option of the Director of Airports of LESSOR, or the LESSEE, any
i
such questions may be referred to the City Council of the City of
Redding, whose decision thereon shall be final.
I
39. ENTIRE AGREEMENT.
This Lease sets forth the entire agreement between the
parties hereto. Modifications or additions to this Lease shall
be considered valid only when mutually agreed upon by the parties
in writing.
40. INVALID PROVISIONS.
i In the event any covenant, condition, or provision herein
27
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l
contained is held invalid by any Court of competent jurisdiction,
I
the invalidity of the same shall in no way affect any other
covenant, condition, or provision herein contained, provided that
the validity of any such covenant, condition, or provision does
not materially prejudice either LESSOR or LESSEE in their
respective rights and obligations contained in the valid
i covenants, conditions, and provisions of this Lease.
'I
41. 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 with postage prepaid, certified mail,
addressed as follows: To LESSOR c/o Director of Airports, City
Hall, 760 Parkview Avenue, Redding, California 96001-3396; and to
LESSEE at 5800 Airport Road, Redding, California 96002 .
42. ATTORNEY'S FEES.
In the event suit or action is instituted to enforce any of
the provisions of this Lease, the prevailing party therein shall
be entitled to attorney' s fees and other sums as may be adjudged
reasonable and necessary at trial and on appeal.
II
43. BINDING ON SUCCESSORS.
The provisions and conditions of this Lease shall be binding
upon and inure to the benefit of the heirs, executors,
administrators, personal representatives, successors, and assigns
of the parties hereto.
44. TIME OF ESSENCE.
Time is of the essence of this Lease and of each and every
provision thereof.
28
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45. CEQA.
It has been determined that this matter is categorically
exempt from the provisions of the California Environmental
Quality Act.
IN WITNESS WHEREOF, the parties hereto have executed this
Lease on the days and year set forth below.
CITY OF REDDING
.I
i
Date: 1992 By:
Mayor
Date 1992 �-
II BILL R. WOODS
I
ATTEST:
i
CONNIE STROHMAYER, City Clerk
FORM APPROVED:
RANDALL A. HAYS, City Attorney
29
LEASE DESCRIPTION FOR BILL WOODS
I
Commencing at the section corner common to Sections 22, 23, 26, and 27, T. 31 N. ,
R. 4 W. , M.D.B.&M. ; thence westerly on and along the north line of Section 27,
S. 89014'56" W. , 2000.00 feet to the centerline of Airport Road; thence southerly
on and along said centerline of Airport Road, S. 00002'04" E. , 3939.68 feet to
a point of intersection with the centerline of the old entrance road to Redding
Municipal Airport; thence easterly on and along said old entrance road
centerline, N. 89057'56" E. , 1129.56 feet to a point of intersection with the
centerline of Taxiway A; thence northerly on and along said centerline of Taxiway
A, N. 00003'56" E. , 526.36 feet; thence continuing along said centerline of
Taxiway A, N. 06003'56" W. , 792.17 feet to a point of intersection with the
centerline of Runway 12-30; thence continuing along said centerline of!Taxiway
A, N. 06003' 56" W. , 40.00 feet; thence 1 eavi ng Taxiway A, N. 83056,04" W. , 530.96
feet; thence on a 125.00 foot radius curve to the right, through a central angle
of 48054' 18", a distance of 106.69 feet; thence N. 35001'46" W. , 215.81 feet;
thence on a 125.00 foot radius curve to the left, through a central angle of
53054'18", a distance of 117.60 feet; thence N. 88°56'04" W. , 122.55 feet to the
true point of beginning; thence running the following bearings and distances, N.
00008'49" W. , 50.00 feet; thence S. 89051' 11" W. , 130.00 feet; S. 00008'49" E. ,
95.00 feet; thence N. 89°51'11" E. , 130.00 feet; thence N. 00008'49" W. , 45.00
1 feet to the point of beginning; containing 12,350 square feet.
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7A.MIS
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4
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EXHIBIT A
it
J •
1
i
r S.89*14'56"W. 2000.00'
22 23
2726
S.89'51 '1 1"W. 130.00' T 31 K R 4 W, MDM
N.00'08'49"W. 50.00'
i
L2
P.O.B.
N.00'08'49"W. 45.00'
1
I I j I LY,
' __ I ''�� ► L1
SIERRA i •'�
o I PACIFIC
Cl
N.83'56'04"W. 530.96' o0
1
w 1 LEASE SITE
CD
o N.89'51 '1 1"E. 130.00'
oo `�O
i �
U) I
F
000 I cNi
°) I LINE DATA �'
i 0
LINE DIRECTION DISTANCE w
L1 N.35'01 '46'W. 215.81 '
Lj o L2 N.8E'56'04'W. 122.55' o
o � z
o
CURVE DATA
vi CURVE RADIUS DELTA LENGTH
Cl 125.00' 48'54'18" 106.69'
C2 125.00' 53'54'18" 117.60' M
IN Q
I U,)
I I
I W 3
r
1 � X
i I 10
I I
N.89'57'56"E. __ 1129.56'
"OLD" AIRPORT ENTRANCE ROAD
EXHIBIT 13 - BILL WOODS