HomeMy WebLinkAboutReso 92-099 - Approve & Authorize the mayor to execute the lease between the COR & Exchange Club of Redding for the Const of a warehouse facility at Muni Airport for Air Show Dry-Storage Activities RESOLUTION NO. C �
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE THE LEASE
BETWEEN THE CITY OF REDDING AND THE EXCHANGE CLUB OF
REDDING FOR THE CONSTRUCTION OF A WAREHOUSE FACILITY AT THE
MUNICIPAL AIRPORT FOR AIR SHOW DRY-STORAGE ACTIVITIES.
IT IS HEREBY RESOLVED that the City Council of the City of
Redding hereby approves the above-mentioned Lease with the Exchange
Club of Redding, 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 17th day of March, 1992 , and was duly adopted at said
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meeting by the following vote:
AYES: COUNCIL MEMBERS: Arness, Carter, Fulton, Moss & Dahl
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
G�
MIKE DAHL, Mayor
City of Redding
ATTEST: O PPROVED:
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'Aga
CONNIE STROHMAYER, ity Clerk ALL A. HAYS, ity Attorney
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L E A S E
THIS LEASE is made and entered into, effective March 17 ,
1992 , by and between the CITY OF REDDING, a Municipal Corporation
and General Law City, hereinafter referred to as "LESSOR," and
the EXCHANGE CLUB OF REDDING, hereinafter referred to as
!� "LESSEE. "
W I T N E S S E T H:
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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
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WHEREAS, LESSEE desires to lease certain ground at said
Airport, as depicted in Exhibits A and B attached hereto and
incorporated herein by reference, upon which to construct a
warehouse facility, and has applied to the City Council of LESSOR
for a lease to carry on its non-profit Air Show dry-storage
activities in said warehouse facility; and
WHEREAS, LESSEE agrees to provide a minimum of 1500 square
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feet of wall-separated space within the warehouse facility to the
City Airports Department for Airport maintenance-storage
purposes; and
WHEREAS, City Council has determined that the proposed use
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of said warehouse facility is compatible with the Master Plan of
the Redding Municipal Airport; and that the best interests of
LESSOR and the public will be served by approval of LESSEE' s
application for a lease; and
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WHEREAS, LESSEE has indicated a willingness to properly
construct, keep, maintain, and improve said warehouse facility in
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accordance with the standards established by LESSOR; and
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WHEREAS, LESSEE desires to obtain and avail itself of the
privileges, rights, uses , and interests therein and herein; and
WHEREAS, LESSOR deems it advantageous to the City and to the
11 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
i� interests therein, as hereinafter set forth;
NOW, THEREFORE, IT IS AGREED by and between the parties
hereto as follows:
1. TERM.
A. For and in consideration of the terms, covenants,
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conditions, and agreements herein set forth to be kept and
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
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Exhibit "B" attached hereto and incorporated herein by
reference, representing 24,500 square feet of ground, for a
period of ten ( 10) years commencing March 17, 1992 , and
terminating March 16 , 2002.
B. At the end of the hereinafter-described Amortization Period,
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this Lease shall terminate.
C. At the end of the Amortization Period, LESSEE shall have the
right of first refusal as to any lease of the Premises
negotiated by LESSOR with any other party. This right of
first refusal
given to LESSEE shall not breach any of the
terms, covenants, conditions, and agreements contained in
this Lease by LESSEE, nor of LESSOR' s right to remove LESSEE
from the Premises at the end of the Amortization Period of
this Lease in the event LESSOR determines to leave the
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Premises vacant, operate the Premises itself, or devote the
i Premises to a different type of municipal or governmental
purpose.
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2. OPTIONS TO RENEW LEASE.
A. LESSEE shall have two five-year options to extend the term
of this Lease. Such options, if exercised, shall extend the
initial 10-year term of this Lease for additional five-year
j periods, to March 16 , 2007 , and March 16, 2012,
respectively. If LESSEE exercises such options, 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 first
five-year option shall be exercised by written notice
addressed by LESSEE to LESSOR no less than 180 days prior to
March 16 , 2002 . The second five-year option shall be
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exercised by written notice addressed by LESSEE to LESSOR no
less than 180 days prior to March 16, 2007 .
B. In accordance with LESSOR' s Airport Development Policies,
attached hereto as Exhibit "C" and incorporated herein by
reference, any option exercised by LESSEE will be subject to
refurbishment requirements.
3. SUBLEASING.
LESSEE may not sublease any portion of the Premises or the
improvements thereon. The provisions of paragraph 23 herein
shall apply to subleasing.
4. USE OF PREMISES.
A. The Premises demised herein and any improvements
subsequently constructed thereon may be used by LESSEE in
support of LESSEE' s conduct of the following non-commercial
and non-profit activities, and for no other activities:
( 1) Warehouse dry-storage of Air Show
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equipment and supplies.
B. LESSEE shall have the right of access to and the use of the
following Airport facilities:
Aprons, taxiways, roadways, and other common
use facilities available at said Airport for
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the convenience, accommodation, and operation
of Air Show activities.
LESSEE shall pre-coordinate any movement upon taxiways and
aircraft parking aprons which are separate from the T-Hangar
areas with both the Airports Director and the FAA Control
'! Tower Manager.
C. LESSEE shall ( 1) have sole and exclusive use of its
separated space within the warehouse; ( 2 ) share the use of
all approaches to the Premises and the ground surrounding
the warehouse with LESSOR; and ( 3 ) maintain the cleanliness
and surface markings of its separated warehouse space as may
be reasonably required by its use thereof. LESSOR has no
li legal responsibility for LESSEE' s exclusive areas; or for
the shared-use areas, other than as used by LESSOR in
conjunction with the separated space within the warehouse
occupied by the City Airports Department for Airport-
maintenance storage.
5. GROUND RENTAL.
A. LESSEE' s ground rental shall not apply during the
Amortization Period as long as the City Airports Department
occupies the agreed-upon portion of said Premises and
facilities.
B. If, during the Amortization Period, LESSEE should cease to
occupy the warehouse facility, LESSEE shall then pay LESSOR
a ground rental in accordance with the then-average Airport
ground-rental rate for the total ground area, with ground
rental adjustments to be conducted not less than every two
and one-half years based upon fair market appraisal ( see
paragraph 8) and/or adjustment 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.
C. Without prejudice to any other remedy which otherwise might
be used for non-payment of rent, fees, and charges, oFz
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non-allowance of use of the separated warehouse space by
LESSOR' s Airports Department, oR other breach of this
Lease by LESSEE, 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,
conditions, or agreements, the sum or sums so paid or the
expense so incurred by LESSOR, including all interest,
costs, damages, and penalties, may:
( 1) during the period LESSEE is not required to pay ground
rental because of LESSOR' s occupation of the agreed-
upon portion of the warehouse facility, and after seven
( 7 ) days ' written notice in advance by LESSOR to
LESSEE, become immediately due and payable; (Dl-;,,
( 2) if LESSOR' s Airports Department is no longer occupying
the agreed-upon portion of the warehouse facility, be
added, after seven (7 ) days ' written notice in advance
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.
D. 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
thereafter, not to exceed State law limit. Service charges
may be changed by City Council Resolution.
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6. OTHER FEES.
Throughout the initial Lease term or any extension thereof,
LESSEE shall be subject to other fees which may be enacted by
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LESSOR and which would apply to all other similar classes of
Airport tenants.
7. IMPROVEMENT RENTALS.
LESSEE shall pay to LESSOR improvement rentals in accordance
with the following provisions:
A. It is understood and agreed that the costs of improvements
to be constructed by LESSEE, as hereinafter provided for,
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shall be amortized.
( 1) over 10 years, being the initial 10-year term of this
Lease; CDR
( 2) over 15 years if LESSEE shall exercise its first option
to renew for a further term of five years; oR
( 3 ) over 20 years if LESSEE shall exercise its second
option to renew for a further term of five years;
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hereinafter referred to as the "Amortization Period. " The
intent of this paragraph is that LESSEE shall pay no rent
for the improvements placed upon the Premises until LESSEE
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has amortized the costs over the Amortization Period. If
LESSEE elects to add to said improvements during the term of
this Lease, the costs of such additions, as established by
II proof presented by LESSEE to LESSOR in a manner and form
acceptable to LESSOR, shall be amortized within the
I Amortization Period set forth above.
iB. Upon completion of the improvements as herein agreed to,
LESSEE shall file an accurate statement of its 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 amortization of the improvements by
LESSEE, oR upon vacation of the Premises and improvements
by LESSEE, whichever shall first occur, title to same shall
pass to LESSOR, and LESSOR shall become sole owner of the
warehouse and all improvements upon the Premises. From and
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after the date title passes to LESSOR, the CITY OF REDDING
may rent the Premises and improvements thereon to the
EXCHANGE CLUB OF REDDING; and the annual rental to be paid
by the EXCHANGE CLUB OF REDDING to the CITY shall be ten
percent ( 10%) of the fair market value of the Premises and
i improvements as determined from time-to-time, in accordance
with paragraph 8 below. Said annual rent shall be paid in
twelve ( 12 ) equal installments, in advance, on or before the
first day of each and every month.
8. FAIR MARKET VALUE.
During the initial 10-year term of this Lease; oR any
renewal term if LESSEE shall exercise its first or both option
periods; oR from and after the date title passes to LESSOR as
set forth in paragraph 7 .C. above and the CITY OF REDDING as
LANDLORD rents the Premises and improvements to the EXCHANGE CLUB
OF REDDING as TENANT:
A. Every two and one-half years after commencement of the term
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( said 22 year periods being hereinafter individually
referred to as a "Rental Period" ) , the fair market value of
the Premises and improvements for the Rental Period to
follow shall be determined by written agreement between
LESSOR/LANDLORD and LESSEE/TENANT, executed at least thirty
( 30) days prior to the expiration of the Rental Period then
in effect.
B. In the event LESSOR/LANDLORD and LESSEE/TENANT are unable to
reach such agreement thirty ( 30) days prior to the
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expiration of the Rental Period then in effect, but no
dispute exists between LESSOR/LANDLORD and LESSEE/TENANT as
to the method used to arrive at the fair market value and
the results thereof, the adjusted rent shall be retroactive
to the starting date of the subsequent Rental Period.
C. Further, in the event LESSOR/LANDLORD and LESSEE/TENANT are
unable to reach such agreement thirty ( 30) days prior to the
expiration of the Rental Period then in effect, the fair
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market value of the Premises and 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
LESSOR/LANDLORD and LESSEE/TENANT 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 Premises and improvement rent to be paid by
LESSEE/TENANT to LESSOR/LANDLORD under this Lease, or any
renewal thereof, or any subsequent rental agreement, be less
than that established for the previous Rental Period.
D. Pending a decision by said appraisers, LESSEE/TENANT shall
continue to pay monthly Premises and improvement rent at the
rate previously in effect. In the case of the first Rental
Period, if the monthly rent has not been agreed upon by the
commencement of the Rental Period, LESSEE/TENANT shall pay
Premises and improvement rent in U.S. dollars in a sum
equal, in then-current purchasing power, to the purchasing
power existing at the time of execution of this Lease of the
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sum of Two Hundred Ten Dollars ( $210 . 00) not later than the
10th day of each month until the appraisers have agreed upon
the appropriate rent.
E. Within ten ( 10 ) days after a decision by the appraisers, the
Premises and warehouse rent shall be retroactively adjusted
to the beginning of such new Rental Period by payment of the
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accumulated overpayment or underpayment from LESSOR/LANDLORD
to LESSEE/TENANT, or from LESSEE/TENANT to LESSOR/LANDLORD,
as the case may be. LESSOR/LANDLORD and LESSEE/TENANT shall
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each pay one-half the cost of the aforesaid appraisals.
9. IMPROVEMENTS.
A. LESSEE agrees to:
( 1) construct a warehouse structure of a minimum size of
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5 , 000 square feet, at a cost estimated to be
$50 ,000 . 00 , in accordance with plans and specifications
approved in advance by LESSOR in writing;
( 2) provide a minimum of 1500 square feet of wall-separated
space to the City Airports Department for Airport
maintenance-storage purposes;
( 3 ) provide separate utilities for LESSEE' s use and for
LESSOR' s Airports Department' s use in their respective
warehouse space; and
( 4) pave any and all areas adjacent to said warehouse
necessary to provide safe and convenient vehicle access
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from the access roadway to and from the warehouse.
All of the above shall be constructed according to standards
under CITY OF REDDING guidelines and as approved by the
appropriate departments of LESSOR. All of the aforesaid
improvements shall be completed within 180 days from the
date of execution of this Lease. Said 180-day period may be
extended by LESSOR upon LESSEE furnishing proof to LESSOR
that the delay in construction and completion has been
occasioned or caused by an Act 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 the improvements, and a payment bond or
labor-and-materials bond in the amount of fifty percent
( 500) of the contract price, with LESSOR named as co-obligee
on both bonds.
C. In constructing said improvements, all plans and
'i specifications for fill, grading, paving, interior utility
lines , buildings, or other improvements shall be submitted
to the appropriate departments of LESSOR for approval, in
writing, before any work in relation thereto is commenced.
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10. MAINTENANCE AND REPAIRS.
LESSEE shall, at its sole cost and expense, keep and
maintain said warehouse area, improvements, appurtenances, and
every part thereof in good and sanitary order, condition, and
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repair, hereby waiving all right to make repairs at the expense
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of LESSOR as provided in Section 1942 of the Civil Code of the
State of California, and all rights provided by Section 1941 of
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said Civil Code. Such maintenance shall expressly include a
regular and consistent program of repainting and prompt repair of
the Premises and improvements.
11. 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.
12. MECHANICS' LIENS.
LESSEE shall keep the Premises, the warehouse, and other
improvements to be constructed thereon free from liens arising
out of any work performed, materials furnished, or obligations
incurred by LESSEE.
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13. SIGNS.
LESSEE shall be allowed to erect such signs as may be
required, and 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.
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The Director of Airports shall also determine if the proposed
signage meet the standards of the Airport Development Policies
and the City of Redding sign regulations.
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14. 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 its 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.
15. UNLAWFUL USE.
No building, structure, or improvement of any kind shall be
erected, placed upon, operated, or maintained on the Premises,
nor shall any business or operation be conducted or carried on
therein or thereon in violation of any ordinance, law, statute,
bylaw, order, or rule of the governmental agency having
jurisdiction thereover.
16. WASTE; QUIET CONDUCT.
LESSEE shall not commit nor suffer to be committed any waste
upon said Premises or improvements, nor any nuisance or other act
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or thing which may disturb the quiet enjoyment of the use of said
Airport or surrounding property.
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17. RULES AND REGULATIONS.
LESSEE agrees to observe and obey all rules and regulations
promulgated and enforced by LESSOR and any other appropriate
authority having jurisdiction over said Airport during the term
of this Lease or the renewal thereof. LESSOR covenants that the
rules and regulations so promulgated will apply to and be
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enforced uniformly by LESSOR as to all lessees/tenants of the
Airport as their interests and activities are related thereto.
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18. 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.
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19. HOLD HARMLESS; INSURANCE.
!� A. This Lease is granted upon the express condition that
LESSOR, its officers, officials, agents, employees, and
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, or the improvements thereon,
including claims of LESSEE, its officers, 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 its officers, agents, employees, and customers.
B. It is specifically understood and agreed as a condition of
this Lease that LESSEE shall procure and maintain from a
company authorized to do business in the State of
California, at its sole cost and expense and at all times
during the term of this Lease, comprehensive general
liability insurance 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
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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.
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C. LESSEE shall also secure and maintain property insurance
against all risks of loss on the warehouse and improvements
to be constructed by LESSEE as a part of the Air Show
support operation created by this Lease, and insurance
coverage shall be to the full replacement value of the
'! warehouse, improvements, and contents as erected and placed
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upon the Premises. LESSEE further agrees that in the event
of any loss or partial or complete destruction of the
warehouse 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 warehouse and/or improvements.
D. It is further understood and agreed as a condition of this
Lease that LESSEE will provide and maintain statutory
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
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
( including death) and property damage, with limits of not
' less than $500,000 combined single limits per occurrence,
'I applicable to all owned, non-owned, and hired vehicles.
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F. Any deductibles or self-insured retentions must be declared
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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,
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
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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:
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,
agents, employees, or volunteers.
( 2) LESSEE' s insurance coverage shall be primary insurance
as respects LESSOR, its officers, officials, agents,
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employees, and volunteers. Any insurance or self-
insurance maintained by LESSOR, its officers,
officials, agents, employees, or volunteers, shall be
excess of LESSEE' s insurance and shall not contribute
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with it.
( 3 ) Any failure to comply with reporting or other
provisions of the policies, including breaches of
warranties, shall not affect coverage provided to
LESSOR, its officers, officials, agents, employees, or
volunteers.
( 4) Coverage shall state that LESSEE' s insurance shall
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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.
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( 5) Each insurance policy required by this clause shall bE
endorsed to state that coverage shall not be suspended,
voided, cancelled, reduced in coverage or in limits
except after 30 days' prior written notice by certifies
mail, return receipt requested, has been given tc
LESSOR.
( 6) All required insurance policies shall be issued b)�
companies which hold a current policy holder' s
alphabetic and financial size category rating of not
less than A: VII according to the most recent issue of
Best' s Insurance Reports.
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20. TAXES.
LESSEE agrees to pay promptly all taxes and assessments
which shall be assessed upon any real or personal property,
including possessory interest taxes, owned by LESSEE or in whicl
LESSEE has a leasehold interest, to the extent of LESSEE' s
interest therein as such interest may appear at the time wher
said taxes or assessments become due or payable under any levy or
y assessment by any legally authorized governmental agency.
21. UTILITIES.
LESSEE shall be responsible for the prompt payment of ani
utility service charges applicable to the ground area leased tc
LESSEE herein or to any improvements placed thereon; and the
failure to pay these charges promptly when due and payable shall
expressly constitute a material breach of this Lease.
Furthermore, if water, sewer, or electric utility lines are
:installed on the subject property, either at the desire of LESSOF
or as a requirement of any provision of law enacted by either the
State of California or the County of Shasta, such installatior
shall be at the sole cost and expense of LESSEE.
22. INSPECTION AND NOTICE.
Insofar as the same may be necessary for the protection of
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LESSOR' s rights, LESSOR or its agents shall, at any and all
times, have the right to go upon and inspect the ground area
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 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.
23. ASSIGNMENT OR SUBLETTING.
A. 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 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
obtained. A consent by LESSOR 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 written consent shall
be void and shall, at the option of LESSOR, terminate this
Lease. LESSOR shall not unreasonably withhold its consent
II to a sublease or assignment by LESSEE.
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B. This Lease or any interest therein shall not be assigned as
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 to reassign, shall not be
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necessary.
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24. REVOCATION OF LEASE, PERMIT, LICENSE, OR AGREEMENT.
LESSOR shall have the right to terminate any lease, permit,
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license, or agreement ( including that of LESSEE 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 LESSEE herein) for any cause or reason
provided by these standards, by the lease, permit, license, or
agreement itself, or by law, or upon the happening of one or more
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of the following:
A. Filing a petition of voluntary or involuntary bankruptcy 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.
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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.
i G. Intentionally supplying the City of Redding with false or
misleading information or misrepresenting any material fact
17
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on the application or documents, or in statements to or
before the City, or intentionally failing to make full
i disclosure on a financial statement, or other required
i� documents.
H. The failure of the licensee, permittee, licensee, or
operator to perform any provision or covenant within his
contract with the City of Redding.
25. 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.
( 2) Instrument of Transfer dated October 7 , 1947, to the
City of Redding.
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( 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, LESSEE shall
likewise be released by LESSOR.
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26. FAA REQUIREMENTS.
To comply with Federal Aviation Administration requirements,
LESSEE, for itself, its successors and assigns, as a part of the
,I 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 compliance with all other requirements imposed
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pursuant to Title 49, Code of Federal Regulations, DOT,
Subtitle A, Office of the Secretary, Part 21, Nondiscrimi-
nation 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
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 completed, including expiration of appeal
rights.
( 4) That LESSEE shall furnish its 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
i of price reductions to volume purchasers.
( 5) That non-compliance with paragraph 26( 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 it shall insert the above five
provisions 26( 1) through 26( 5) in any lease, agreement,
contract, etc. , by which said LESSEE grants a right or
privilege to any person, firm, or corporation to render
19
accommodations and/or services to the public on the Premises
herein leased.
( 7 ) That LESSEE assures that it will undertake an affirmative
action program as required by 14 CFR Part 152 , 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. 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
by this subpart. LESSEE assures that it will require that
its 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.
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( 10 ) That this Lease shall be subordinate to the provisions and
requirements of any existing or future agreement between
1i LESSOR and the United States relative to the development,
operation, or maintenance of the Redding Municipal Airport.
it ( 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 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.
20
( 13 ) That LESSEE, by accepting this Lease, 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 leased hereunder
to be more than 50 feet at the most northeastern corner of
the Premises to more than 63 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.
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i ( 14) That LESSEE, by accepting this Lease, agrees for itself, its
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.
27. 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.
In the event LESSEE has not cured such breach within thirty ( 30)
days following the mailing of such written notice to LESSEE by
j 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.
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28. 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.
29. DEFAULT.
If LESSEE shall be in arrears in the payment of rent or any
other sum pursuant to paragraph 5.C. hereof for thirty ( 30) days
or more, or if the transfer or assignment, 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 are on
its 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.
30. EMINENT DOMAIN:
j A. In the event the entire Premises shall be appropriated or
22
it
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
thereupon be released from any liability thereafter accruing
hereunder.
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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
term equal to the remaining term hereunder, if any such land
'I is available for lease at said Airport.
D. If this Lease is terminated in either manner hereinabove
provided, LESSOR shall be entitled to the entire award or
,I
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
�I
unused portion of said rent or other charges paid in
advance. LESSEE' s right to receive compensation or damages
for its 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.
it
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31. 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 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 LESSEE shall discontinue business or fail in business, or
abandon or vacate said real property, or make an assignment for
the 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.
32. CANCELLATION.
A. This Lease may be cancelled by either party at any time
during the term of this Lease upon one hundred twenty ( 120)
days ' advance written notice to the other party of such
cancellation.
B. Should this Lease be cancelled for reasons other than those
addressed in paragraphs 24 , 27 , and 29 above, it is the
intent of LESSOR and LESSEE that LESSEE be compensated for
the unamortized amount of the improvements; said amount
being based upon the statement of value pursuant to
paragraph 7 .B. above.
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33. DISPOSITION OF IMPROVEMENTS ON TERMINATION OF LEASE.
On expiration of the Amortization Period as set forth in
paragraph 7 .A. above, or earlier termination of this Lease for
any cause, LESSOR shall become the owner of any building or
improvements on the Premises; provided, however, that LESSEE
shall have the right to remove such personal property, machinery,
24
and equipment as may be removed without threat to the structural
integrity of the building or improvements . If damage results
from the removal of any such items, LESSEE shall repair such
damage at its 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.
34. 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
such
questions may be referred to the City Council of the City of
i
Redding, whose decision thereon shall be final.
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35. 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.
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36. INVALID PROVISIONS.
In the event any covenant, condition, or provision herein
contained is held invalid by any Court of competent jurisdiction,
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
covenants, conditions, and provisions of this Lease.
25
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37. 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, Post Office Box 496071, Redding, California 96049-6071 ; and
to LESSEE: President, Exchange Club of Redding, Post Office Box
994085, Redding, California 96099-4085 .
38. ATTORNEY'S FEES.
i
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 any other sums as may be
adjudged reasonable and necessary at trial and on appeal.
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39. BINDING ON SUCCESSORS.
The provisions and conditions of this Lease shall be binding
upon and inure to the benefit of the successors and assigns of
the parties hereto.
40. TIME OF ESSENCE.
Time is of the essence of this Lease and of each and every
i provision thereof.
41. CEQA.
It has been determined that this matter is categorically
exempt from the provisions of the California Environmental
Quality Act.
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IN WITNESS WHEREOF, the CITY OF REDDING and the EXCHANGE
CLUB OF REDDING have hereunto executed this Lease in the presence
26
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of their respective officers duly authorized in that behalf on
the days and year set forth below.
CITY OF REDDING
1
Date: 1992 By:
MIKE DAHL, Mayor
EXCHANGE CLUB OF REDDING
Date: 1992 By:
JEFF PETERSON, President
ATTEST:
CONNIE STROHMAYER, City Clerk
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FORM APPROVED:
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RANDALL A. HAYS, City Attorney
27
EXHIBIT "A"
GROUND LEASE BETWEEN THE CITY OF REDDING
AND REDDING EXCHANGE CLUB
All that portion of the County of Shasta, State of California, described as
follows:
Commencing at the northeast corner of Section 27, Township 31 North, Range 4
West, M.D.M; thence on and along the North line of Section 27, S. 89114'56" W. ,
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I
2000.00 feet to a point on the centerline of Airport Road; thence on and along
said centerline, S. 00002'04" E. , 3939.68 feet to the intersection with the
centerline of the old Municipal Airport entrance road; thence on and along said
centerline, N. 89057'56" E. , 1129.56 feet to a point on the centerline of Taxiway
"A" of Redding Municipal Airport; thence on and along said taxiway centerline,
N. 00003'56" E. , 526.36 feet; thence N. 06003'56" E. , 1390.09 feet; thence
j leaving said taxiway N. 89037'35" W. , 944.11 feet to the true point of beginning;
thence running the following bearings and distances, S. 00°22'25" W. ,
101.79 feet; thence S. 52041'26" W. , 43.85 feet; thence N. 86139'01" W. , 165.52
" ° " to
• � et thence S 89 37 35 E. , 200.00 feet
feet, thence N. 00 22 25 E. , 120.00 feet;
the point of beginning, containing 24,500.00 square feet more or less.
SKETCH ATTACHED
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S.89' 14'56"W. 2000'
2223
2726
I� LEASE SITE T 31 N, R 4 W, MDM
N.00'22'25"E. 120.00'
S.89'37'35" E. 944.11 '
� S.89'37'35" E. 200.00'
58.06' ls�
l� P.OB.
<1ti
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`N�.WSJ, S.00'22'25"W. 101 .79'
X 17 30,
50
— S.52'41 '26"W 43.85'
x —
I o 5' o
N.86'39'01"W. 165.52'
L0 TOP EDGE DITCH I
�i
o Q SECURITY FENCE
N
O M
O
o I �' zo
O
Z
I M
C6
U Q
IW Q
I I ° x
O
b.eJ
O
N.89'S7'S6"E. 1129.56' Z
"OLD" AIRPORT ENTRANCE ROAD
EXHIBIT B - EXCHANGE CLUB