HomeMy WebLinkAboutReso 1990-256 - Approving the lease and a permit for commercial activities between the city of redding and hillside aviation i
RESOLUTION NO. ?C).„7,57„
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
APPROVING THE LEASE AND A PERMIT FOR COMMERCIAL ACTIVITIES
BETWEEN THE CITY OF REDDING AND HILLSIDE AVIATION, INC. AT
BENTON AIRPARK, AND AUTHORIZING THE MAYOR TO SIGN BOTH
AGREEMENTS .
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IT IS HEREBY RESOLVED by the City Council of the City of
Redding as follows :
1 . That the City Council of the City of Redding hereby
approves the Lease and a Permit for Commercial Activities between
the City of Redding and Hillside Aviation, Inc. at Benton
Airpark, effective February 1 , 1990 . A true copy of each is
attached hereto and incorporated herein by reference .
, i 2 . That the Mayor of the City of Redding is hereby
authorized and directed to sign said Lease and Permit on behalf
of the City of Redding, and the City Clerk is hereby authorized
and directed to attest the signature of the Mayor and to impress
the official seal of the City of Redding.
I HEREBY CERTIFY that the foregoing Resolution was
introduced and read at a regular meeting of the City Council of
the City of Redding on the 5th day of June , 1990 , and was duly
adopted at said meeting by the following vote:
AYES: COUNCIL MEMBERS : Arness, Dahl , Fulton, Moss & Buffum
NOES : COUNCIL MEMBERS : None
ABSENT: COUNCIL MEMBERS : None
ABSTAIN: COUNCIL MEMBERS : None
NANCY FFUM, .yor
I City f Redding
ATTEST: FORM PPROVED:
0. J &
ETHEL A. NICHOLS, City Clerk RANDALL A. HAYS , ity Attorney
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LEASE AGREEMENT
THIS LEASE AGREEMENT is made and entered into as of the 1st
it day of February, 1990 , by. and between the CITY OF REDDING, a
Municipal Corporation and General Law City, hereinafter referred
to as "LESSOR, " and HILLSIDE AVIATION, INC. , a California
Corporation, hereinafter referred to as "LESSEE. "
WITNESSET H:
WHEREAS , LESSOR owns and maintains Benton Airpark (herein-
after 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 and building
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area at said Airport, and has applied to the City Council of
LESSOR for a permit to carry on revenue-producing activities on
said area in accordance with Section 3 . 08 . 030 of the Redding
Municipal Code and City Council Resolution No. 2978 ; and
WHEREAS, City Council, in accordance with Resolution No.
2978 , has determined that the proposed commercial activities are
compatible with the Master Plan of the Benton Airpark; and that
the best interests of LESSOR and the public will be served by
approval of LESSEE' s application for a permit; and
WHEREAS, LESSEE, if granted a Lease of sufficient term, has
indicated a willingness to properly keep, maintain, and improve
said ground and building area in accordance with the standards
i � established by LESSOR; and
WHEREAS, LESSEE desires to obtain and avail itself of the
privileges, rights, uses, and interests therein and herein as a
Fixed Base Operator at said Airport; 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 and building area (hereinafter called "premises") ,
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together with said privileges, rights, uses, and interests
therein, as hereinafter set forth; and
WHEREAS, it has been determined that this matter is
categorically exempt from the provisions of the California
H ' Environmental Quality Act;
NOW, THEREFORE, IT IS AGREED by and between the parties
hereto as follows:
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1 . TERM.
For and in consideration of the terms, covenants,
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
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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
fifteen (15) years commencing February 1 , 1990 , and terminating
January 31 , 2005 .
2 . LESSEE'S RIGHTS OF OPTION.
(a) Provided LESSEE is not in default hereunder, and
provided LESSOR has not determined to leave the
premises vacant, operate the premises itself, or devote
the premises to a different type of municipal or
governmental purpose, LESSEE shall have the right of
option to lease said premises for an additional period
of ten (10) years, namely February 1 , 2005 , to and
including January 31 , 2015 . The right to renew for
said 10-year option period shall be exercised by
written notice addressed by LESSEE to LESSOR no less
than ninety (90) days prior to the expiration of the
initial 15-year term of this Lease. If LESSEE
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said additional period of 10 years, all of the terms,
II' covenants, conditions, and agreements contained in this
Lease Agreement shall remain in full force and effect,
with the exception of this paragraph 2 (a) giving LESSEE
a right of option to renew the leasehold term.
' I (b) LESSEE shall also have the right of first refusal
during the term of this Lease, or the renewal thereof
if exercised, as to any sale/purchase of said premises
in the event LESSOR elects to sell same.
(c) Said rights of option given to LESSEE shall not be
construed as a waiver of LESSOR' S right to remove
LESSEE for breach of any of the terms, covenants,
conditions, and agreements contained in this Lease by
LESSEE, nor of LESSOR' S right to remove LESSEE from the
subject premises at the end of the initial 15-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 purpose.
I 3. USE OF PREMISES.
(a) The premises demised herein and any improvements
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subsequently constructed thereon shall be used by
LESSEE for the conduct of the following commercial
activities, and no others:
(1) Aircraft charter service;
(2) Aircraft rental service;
(3) Aircraft flying instructions;
(4) Aircraft sales and service;
(5) Sale of aircraft parts and accessories;
(6) Sale of pilots ' supplies, i.e. , computers,
maps, oxygen, etc. ;
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(7) Aircraft maintenance and repair;
(8) Purchase and sale of aviation gasoline and
jet fuel; and
(9) Sale of food and beverages. The sale of any
alcoholic beverages shall include beer and
wine only.
The provisions of the foregoing paragraph shall not be
construed to authorize LESSEE to conduct a separate
business or 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 3 (a)
above.
I , (b) LESSEE shall have the right of access to and the use of
facilities at the Airport designed for common use, such
as landing areas, aprons, taxiways, landing lights,
Ubeacons, signals, and other common use facilities
' ! available at said Airport for the convenience, accom-
modation and operation, landing and take-off of air-
craft. The rights herein extended to LESSEE shall
Ii include the right to land, take off, tow, load, and
it unload persons and personal property from aircraft.
4. GROUND RENTAL.
LESSEE shall pay to LESSOR base ground rental in accordance
' i with the following provisions:
IIS (a) For the 10 ,160 square feet of hangar and office space,
plus approximately 44 , 140 square feet of adjacent
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parking apron, the annual rent will be Twenty-four
Thousand Eight Hundred Eighty-eight Dollars
($24 ,888 .00) per year. Said annual rent shall be
payable in twelve (12) monthly installments of Two
Thousand Seventy-four Dollars ($2,074 .00) each, payable
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to LESSOR in advance on the 10th day of each month
commencing the 10th day of February, 1990 .
(b) Any rentals, fees, and charges not delivered to LESSOR
by the 10th day of the month may be subject to a
service charge of one and one-half percent (1i%) per
month, and cumulatively one and one-half percent (1}%)
,1 each month thereafter, not to exceed State law limit.
Service charges may be changed by City Council
Resolution.
(c) At the end of the first three-year period from the
beginning date of this Lease, and at the end of each
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three-year period thereafter (individually referred to
as a "rental period") , a fair market total rental value
of the leased ground area, hangar, building, and
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below-ground fuel tanks, pumps, dispensers, and gauges,
shall be determined and become effective for the
following rental period by written agreement between
LESSOR and LESSEE to be executed at least thirty (30)
days prior to the expiration of the rental period then
in effect, and the base ground rental shall be adjusted
1i accordingly. Provided, however, that in no event shall
the minimum ground rental be less than the minimum
provided for in paragraph 4 (a) above.
(d) In the event of any disagreement between LESSOR and
LESSEE as to the fair market value of the leasehold
interest represented by this Lease to be valued under
the terms of this paragraph, determination of such fair
market value shall be made by three (3) appraisers, one
to be selected by each party and the third to be
selected by the two appraisers appointed by the
parties. The costs of appraisal are to be borne
equally by each of the parties hereto, and both LESSEE
! I and LESSOR shall be bound by the appraisal rendered.
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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
minimum ground rental be less than the minimum provided
for in paragraph 4 (a) above.
5 . PERFORMANCE BOND.
LESSEE shall provide to LESSOR a Letter of Credit in the
! amount of Five Thousand Dollars ($5 ,000 .00) . Said Letter of
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Credit value shall be re-evaluated by LESSOR at the conclusion of
each rental period.
6 . FLOWAGE FEES.
LESSEE shall pay to LESSOR fuel flowage fees for all
aviation fuels sold during the previous monthly billing period by
the 10th day of each month in accordance with the rates
established by City Council Resolution. Fuel supplier invoices
will accompany each monthly payment; and LESSEE consents to
LESSOR obtaining copies of invoices directly from suppliers.
The fees required to be paid in accordance with the
provisions of this paragraph shall be paid to LESSOR by LESSEE on
or before the 10th day of the month immediately following the
month in which the aviation fuels were dispensed by LESSEE for
LESSEE' s use or resale. Payments shall be accompanied by a
duplicate original invoice or true copy thereof prepared by the
supplier from which LESSEE receives the aforesaid aviation fuels.
Such invoice shall show the amount delivered to LESSEE and the
date of delivery.
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delivery of the aviation fuels to LESSEE. LESSEE shall remain
primarily liable for the payment of the fee specified in this
paragraph, whether or not such arrangement is made.
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1 7 . TRANSIENT TIE-DOWN FEES.
LESSEE shall collect transient tie-down fees at a rate
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established by City Council Resolution. One-half of the fees
collected by LESSEE shall be provided to LESSOR by the 10th day
1 ; of each month following the previous monthly billing period, with
a listing of the general type of aircraft collected from, i.e. ,
twin engine, helicopter, or single-engine aircraft. The Airports
Director of LESSOR will establish the specific areas and general
procedures for transient aircraft area collections.
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8 . TIE-DOWN SPACES.
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LESSEE will be assigned ten (10) aircraft tie-down spaces
for its exclusive use only and not for subsequent subleasing. If
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LESSEE requires additional tie-down spaces in the future, and
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additional tie-down spaces are available, they may be leased from
the City at normal rates.
L'! 9 . AIR OPERATIONS REPORT.
LESSEE will, upon request, provide Airport management with
an estimated monthly count of all aircraft operations, using
criteria established by the FAA.
10 . UNICOM OPERATIONS.
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UNICOM radio will be provided and operated by LESSEE to
provide air traffic advisories during all business hours. LESSEE
will comply with all appropriate State and Federal regulations
associated with UNICOM operations .
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agents, employees and customers . LESSEE shall
indemnify and save harmless LESSOR, its officers,
agents, and employees, 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
I ; of this Lease that LESSEE shall procure and maintain
li from a company authorized to do business in the State
i of California, at its sole cost and expense and at all
times during the term of this Lease, or any renewal
thereof, comprehensive general liability insurance
policy for aircraft liability and airport premises
liability in an amount of $1 , 000 ,000 .00 combined single
limits. Said insurance shall be in form and content
sufficient and adequate to save LESSOR, its officers,
agents, and employees , harmless from any and all claims
arising out of the use and occupancy of said premises.
h A Certificate evidencing such insurance shall be
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approved by the Risk Manager of LESSOR and filed with
him, naming LESSOR, its officers, agents, and
employees , as additional insureds and guaranteeing at
least ten (10) days ' advance notice to LESSOR, in
writing, before any cancellation or reduction of such
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insurance coverage.
(c) LESSEE shall also secure and maintain fire insurance on
buildings and structures if erected by LESSEE as a part
of the aviation operation created by this Lease, and
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insurance coverage shall be to the full insurable value
of the structures and buildings and contents as erected
and placed upon the leased area. LESSEE further agrees
that in the event of any fire or partial or complete
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destruction of the structures erected by LESSEE, any
proceeds of insurance received by LESSEE shall be
utilized in the replacement, reconstruction, or repair
of the damaged or destroyed improvements.
(d) It is further understood and agreed as a condition of
this Lease that LESSEE will provide workers ' compen-
sation insurance on its employees, and shall furnish
the Risk Manager of LESSOR with a Certificate
evidencing such insurance. To obtain an exemption from
this requirement should LESSEE have no employees,
LESSOR shall provide the Risk Manager of LESSOR with a
letter stating that it is not employing any person or
persons in any manner so as to become subject to the
workers ' compensation laws of California; provided,
however, that should LESSEE later become subject to the
workers ' compensation provisions of the Labor Code, it
will forthwith comply with the insurance requirements
set forth above.
(e) All insurance requirements on the part of LESSEE to be
performed as set forth in this Lease will be re-
evaluated every three (3) years for appropriate
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coverage.
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 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.
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21 . INSPECTION AND NOTICE.
Insofar as the same may be necessary for the protection of
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
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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
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
j 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.
22 . ASSIGNMENT OR SUBLETTING.
,
I LESSEE shall not assign this Lease or any interest therein,
II and shall not sublet the premises or any part thereof or any
right or privilege pertinent 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
;1 consent of LESSOR first had and obtained. A consent by LESSOR to
one assignment, subletting, occupancy, or use by another party
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shall not be deemed to be a consent to any subsequent assignment,
1 ,1 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,
, I at the option of LESSOR, terminate this Lease. LESSOR shall not
unreasonably withhold its consent to a sublease or assignment by
LESSEE.
iIThis Lease or any interest therein shall not be assigned as
to the interest of LESSEE by operation of law without the written
, 1 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
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subletting, occupancy, or use by another person or entity. Any
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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 to a sublease or assignment by
LESSEE.
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
f. 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 necessary.
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' j 23 . SERVICES TO THE PUBLIC.
it LESSEE shall make its services available to the public
without unjust discrimination, and shall refrain from imposing or
levying excessively discriminatory or otherwise unreasonable
charges or fees for any use of its facilities or services;
i provided, however, that LESSEE shall have the privilege to refuse
service to any person or persons for just cause, but not to
discriminate by virtue of race, color, or creed.
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24 . PASSENGER AIR ENPLANEMENT FIGURES.
LESSEE agrees to provide to LESSOR, on a calendar quarterly
basis, the passenger air enplanement figures associated with
LESSEE' s air charter or air taxi services to or from Redding
Municipal Airport.
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25 . REVOCATION OF LEASE, PERMIT, LICENSE, OR AGREEMENT.
LESSOR shall have the right to terminate any lease, permit,
, i license, or agreement (including that of LESSEE herein) covering
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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
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
1I of the following:
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
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failing to make full disclosure on a financial
statement, or other required 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.
1 26 . AMENDMENT.
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LESSOR may, by City Council Resolution, amend this Lease to
I include minimum operating standards applicable without discrimi-
I nation to all aviation fixed-base operators conducting commercial
aviation business at either Benton Airpark or Redding Municipal
Airport.
27 . RECORDATION.
The parties hereto mutually agree that the execution of this
Lease shall be acknowledged before a notary public, and that this
instrument shall be recorded in the office of the Shasta County
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Recorder.
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28 . MAINTENANCE.
As an additional consideration for the execution of this
Lease by LESSOR, LESSEE expressly agrees to maintain the demised
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premises and all improvements thereon during the entire term of
I ; this Lease, unless terminated sooner with the consent of LESSOR,
in good repair and appearance and in a safe condition at all
it times , reasonable wear and tear excepted. Such maintenance shall
expressly include a regular and consistent program of repainting,
renovation, and prompt repair of any portions of the leased
hangar building that becomes damaged.
i LESSOR will maintain the primary structure of the leased
hangar building, and will also provide for major repair or
l replacement of its roof, hangar doors, plumbing, electrical,
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heating, and air conditioning. LESSOR may refuse to maintain any
systems installed on the premises by LESSEE, and may charge
LESSEE for any repair resulting from LESSEE' s negligence.
29 . 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
LESSOR, LESSOR shall have the right to enter and take over the
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.
30 . 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 Agreement, 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 Agreement. The waiver by LESSOR of any breach
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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.
31 . DEFAULT.
If LESSEE shall be in arrears in the payment of rent for
thirty (30) days or more, or if the transfer or assignment,
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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.
32 . EMINENT DOMAIN.
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 thereupon be released from
any liability thereafter accruing hereunder.
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,
1Ibe 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,
11, both LESSOR and LESSEE shall thereupon be released from any
liability thereafter accruing hereunder. LESSOR agrees,
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immediately after learning of any appropriation or taking, to
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give LESSEE notice thereof in writing.
If the premises are taken, or LESSEE elects to terminate
1 upon a partial taking, LESSOR agrees to offer to lease to LESSEE
similar space on similar terms for a term equal to the remaining
1 term hereunder, if any such land is available for lease at the
IBenton Airpark.
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If this Lease is terminated in either manner hereinabove
II provided, LESSOR shall be entitled to the entire award or compen-
I
sation for the land in such proceedings, but the rent and other
Il charges for the last month of LESSEE' s occupancy shall be
prorated and LESSOR agrees to refund to LESSEE any unused portion
H . of said rent or other charges paid in advance. LESSEE' s right to
receive compensation or damages for its improvements, fixtures,
I. personal property, and for the moving or relocation expenses
shall not be affected in any manner hereby, and LESSEE reserves
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the right to bring an action for such compensation or damages,
including loss of business, leasehold interest, and other
reasonable damages.
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33 . BANKRUPTCY OR INSOLVENCY.
� If LESSEE shall be adjudged bankrupt, either by voluntary or
k 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
I, existing or future laws of the Congress of the United States, or
H if LESSEE shall discontinue business or fail in business, or
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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
I power to take charge, possession, control, or care of said
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property, LESSOR shall have the option to forthwith terminate
this Lease, and re-enter the property and take possession
thereof. In no event shall this Lease be deemed an asset of
LESSEE after adjudication in bankruptcy.
34 . SURRENDER.
At the termination of this Lease by lapse of time or other-
wise, LESSEE shall surrender possession of the premises to
LESSOR; deliver all keys to the premises and all locks therein to
LESSOR; make known to LESSOR the combination of all combination
locks in the premises; and return the premises and all equipment
and fixtures of LESSOR therein to LESSOR in broom-clean condition
' i 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
condition and LESSEE shall pay the cost thereof to LESSOR on
demand.
35 . ADMINISTRATION BY LESSOR.
Whenever LESSEE is required to secure the approval or
consent of LESSOR under this Lease, "LESSOR" shall mean the
ii Director of Airports of the City of Redding. However, at the
option of the Director of Airports of LESSOR, or the LESSEE, any
' ! suchuestions maybe referred to the City Council of the City of
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Redding, whose decision thereon shall be final.
36 . ENTIRE AGREEMENT.
Ii This Lease sets forth the entire agreement between the
parties hereto. Modifications or additions to this Lease
Agreement shall be considered valid only when mutually agreed
i , upon by the parties in writing.
II
-19-
37 . 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
'H respective rights and obligations contained in the valid
covenants, conditions, and provisions of this Agreement.
38 . 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 2600 Gold Street, Redding, California 96001 .
39 . ATTORNEY' S FEES .
In case suit or action is instituted to enforce any of the
i ' provisions of this Lease Agreement, 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.
40 . 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.
-20-
111 411
41 . TIME OF ESSENCE.
Time is of the essence of this Lease and of each and every
provision thereof.
42 . CEQA.
It has been determined that this matter is categorically
it exempt from the provisions of the California Environmental
i. Quality Act.
II
j IN WITNESS WHEREOF, the parties hereto have executed this
jj Lease in the presence of their respective officers duly
I
authorized in that behalf on the day and year set forth below.
I I.
CITY OF REDDING
Date: , 1990 By:
NANCY BUFFUM, Mayor
I '
HILLSIDE AVIATION, INC. ,
Date: .5-- ;2.5 , 1990 By: .40/417:
STEVE MILLER, Pr- ident
i '.
ATTEST: FORM APPROVED:
ETHEL A. NICHOLS, Clerk RANDALL A. HAYS, City Attorney
-21-
II
410
HILLSIDE AVIATION, INC . LEASE
EXHIBIT "A"
Commencing at the most northerly centerline monument of Airpark
Drive as shown on that certain map recorded in Book 25 of Parcel
Maps, page 2 , Shasta County Records; thence continuing on said
centerline from a tangent which bears north 4°53 ' 50" east on a
251 . 37 radius curve to the left, through a central angle of
22°30 ' 00" , a distance of 98 .71 feet; thence north 16°59 ' 41" west
50 . 88 feet; thence leaving said centerline, south 66°06 ' 41" west,
30 . 22 feet to the point of beginning on the westerly right-of-way
line of Airpark Drive; thence running the following bearings and
distances: south 66°06 ' 41" west, 224 .17 feet; thence north 23°37 '
13" west, 159 . 74 feet; thence north 66°22 ' 01" east, 242 .59 feet
Airpark ;
to a point on said westerly right-of-way line o f Drive;
thence south 16°59 ' 41" east 159 . 67 feet on and along said right-
of-way to the point of beginning; containing 37 , 125 . 93 square
I.I feet.
VIII
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' I .
PERMIT FOR COMMERCIAL ACTIVITIES
1 ' BENTON AIRPARK
HILLSIDE AVIATION, INC.
Effective February 1 , 1990
WHEREAS, the CITY OF REDDING, a Municipal Corporation and
General Law City, hereinafter referred to as "CITY, " owns and
' I
maintains Benton Airpark, hereinafter referred to as "Airport, "
situate in the City of Redding, Shasta County, California; and
WHEREAS, HILLSIDE AVIATION, INC. , a California Corporation,
has entered into a Lease Agreement with CITY of even date
(February 1 , 1990) , hereinafter referred to as "Lease Agreement, "
covering certain ground and building area at said Airport,
hereinafter referred to as "premises" ; and
it
WHEREAS , said premises are more particularly described in
Exhibit "A" and shown on Exhibit "B" attached hereto and incorpo-
', 1 rated herein by reference; and
WHEREAS, in conjunction with said Lease Agreement, HILLSIDE
AVIATION, INC. , hereinafter referred to as "OPERATOR, " wishes to
carry on revenue-producing commercial activities at said Airport,
hereinafter described, under approval from the CITY in accordance
with Section 3 . 08 .030 of the Redding Municipal Code and
Resolution Nos. 2978 and 4162 ; and
WHEREAS, OPERATOR has now applied for a Permit; and
1 WHEREAS , City Council has determined that these commercial
activities are compatible with said Airport, and that the best
interests of the public and the CITY will be served by approval
Iof this Permit;
NOW, THEREFORE, CITY hereby grants to OPERATOR a Permit,
license, and privilege to conduct and carry on from the premises
at said Airport the hereinafter-described revenue-producing
commercial activities for a period of fifteen (15) years, com-
111
III
1
mencing February 1 , 1990 , and terminating January 31 , 2005 ; with
the option to renew for a subsequent ten-year period as set forth
in the Lease Agreement.
This Permit is subject to the following terms and
11
conditions:
1 . COMMERCIAL ACTIVITIES .
a. OPERATOR' s commercial activities shall consist of
conducting the following commercial activities, and no
others:
, (1) Aircraft charter service;
(2) Aircraft rental service;
(3) Aircraft flying instructions;
(4) Aircraft sales and service;
(5) Sale of aircraft parts and accessories;
(6) Sale of pilots ' supplies, i.e. , computers ,
maps , oxygen, etc. ;
(7) Aircraft maintenance and repair;
(8) Purchase and sale of aviation gasoline and
jet fuel; and
(9) Sale of food and beverages. The sale of any
alcoholic beverages shall include beer and
wine only.
The provisions of the foregoing paragraph shall not be
construed to authorize OPERATOR to conduct a separate
1 business or businesses at said Airport, but shall
relate only to OPERATOR' s aviation operation,
'a activities, uses, and purposes in connection therewith,
or incidental to, or related thereto, as specified in
1 (a) above.
b. Anyother commercial activitythat OPERATOR maywish to
carry on at said Airport, in connection with the fore-
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•
110
111
1 , .
going or independently, shall first require the written
permission of CITY.
IIS
li
2 . RIGHT OF ACCESS .
For all purposes contemplated by this Permit, OPERATOR shall
have the right of access to and the use of 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 said Airport for the convenience, accom-
modation
and operation, landing and take-off of aircraft. The
rights herein extended to OPERATOR shall include the right to
land, take off, tow, load, and unload persons and personal
' 1 property from aircraft.
3 . USE OF AIRPORT.
CITY licenses OPERATOR to (a) use, in common with others
authorizedsoto--do, -a-11 runways, taxiways, and aprons which are
H or may hereafter be provided at said Airport; and (b) to use all
other facilities, improvements, equipment, and services which are
or may hereafter be provided at the Airport, except those under
lease, permit, or assignment to another.
These uses shall include and be limited to those reasonably
necessary for the proper operation by OPERATOR of its services as
i , outlined in paragraph 1 (a) of this Permit; and CITY will grant to
OPERATOR, without charge, all rights reasonably necessary for
such uses.
4 . AIRPORT FACILITIES.
Nothing herein contained shall be construed as entitling
I ; OPERATOR to the exclusive use of any services, facilities, or
property rights at said Airport, except those facilities
described in Exhibit "A" attached hereto.
i
II
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i.
•
•
5. SERVICE TO THE PUBLIC.
OPERATOR shall make its services available to the public
without unjust discrimination, and shall refrain from imposing or
levying excessive, discriminatory, or otherwise unreasonable
charges or fees for any use of its services; provided, however,
I that OPERATOR shall have the privilege of refusing service to any
person or persons for just cause, without discrimination by
virtue of race, color, creed, or sex.
6. SECURITY RESPONSIBILITIES.
OPERATOR agrees to accept its security responsibilities with
regard to access by authorized and unauthorized persons using the
herein premises at all times that the building is left open.
7 . WASTE; QUIET CONDUCT.
OPERATOR shall not commit or suffer to be committed any
waste upon -the---premises,- nor any nuisance or other act or thing
which may disturb the quiet enjoyment of any other occupant or
use of CITY' s adjoining premises.
8 . MECHANICS' LIENS .
OPERATOR shall keep the premises and the property on which
the premises are situated free from any liens arising out of any
work performed, material furnished, or obligations incurred by
OPERATOR.
9 . RULES AND REGULATIONS.
OPERATOR covenants and agrees to comply with all statutes,
laws, ordinances , regulations, orders, judgments, decrees,
directions, and requirements of all federal, state, county, and
city authorities now or hereafter applicable to the herein
premises and facilities, or to any adjoining public ways.
I
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'I�
411
10 . RESTRICTION OF OPERATIONS.
If CITY' S operation of the Airport or OPERATOR' s operations
at the Airport are substantially restricted by any competent
governmental or judicial action, either party hereto will have
the right, upon notice, to an equitable reduction in the services
and facilities to be afforded hereunder, or the annual fee due
hereunder, from the time of such notice until such restriction
' j has been remedied and normal operations restored.
11 . MAINTENANCE AND OPERATION OF AIRPORT.
CITY will properly maintain and operate the Airport for the
safe, convenient, and proper use thereof by OPERATOR, and in
accordance with all FAA rules and regulations.
12 . CITY ADMINISTRATION.
Whenever OPERATOR is required to secure the approval or
consent from CITY herein, CITY shall mean the Director of
Airports of CITY. However, at the option of the Director of
Airports or the OPERATOR, and according to proper procedure, any
such questions may be referred to the City_ Council of CITY, whose
decision thereon shall be final.
13 . TAXES.
OPERATOR agrees to pay promptly when due any and all taxes
assessed against its personal property . and any possessory
i ' interest tax levied by reason of its occupancy of the premises.
14 . INSURANCE.
a. This Permit is granted upon the express condition that
! I' CITY, its officers, agents , and employees, shall be
free from any and all liability and claims for damages
for personal injury, death, or property damage in any
way connected with OPERATOR' s activities at said
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III _ •
1
1
411 110
. .
Airport, including claims of OPERATOR, its officers,
agents, employees, and invitees. CITY, its officers,
agents, and employees, shall be held harmless from any
and all liability, loss, cost, or obligation on account
of or arising out of any such injury, death, or loss,
{ however occurring.
b. OPERATOR 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 Permit, comprehensive general
liability insurance policy for aircraft liability and
airport premises liability in an amount of
1 $1 , 000 , 000 . 00 combined single limits. Said policy
shall name CITY, its officers, agents, and employees,
1 as additional insured, and shall further contain a
provision obligating the insurance carrier to notify
I {
CITY in writing at least ten (10) days prior to any
cancellation or reduction of such insurance. A Certi-
ficate of Insurance evidencing such coverage and notice
requirement shall be approved by the Risk Manager of
CITY, and filed with the Risk Manager of CITY prior to
the commencement of this Permit.
c. It is further understood and agreed as a condition of
this Permit that OPERATOR will provide workers ° compen-
11
1 sation insurance on its employees, and furnish the Risk
Ii Manager of CITY with a Certificate evidencing such
I11 insurance, approved by said Risk Manager. Said Certi-
ficate shall contain a provision obligating the
insurance carrier to notify CITY in writing at least
ten (10) days prior to any cancellation or reduction of
such insurance. To obtain an exemption from this
1i
! requirement should OPERATOR have no employees, OPERATOR
shall provide the City Clerk of CITY with a letter
1.
I -6-
111
1
411 •
stating that it is not employing any person or persons
I � in any manner so as to become subject to the workers'
li compensation laws of California; provided, however,
that should OPERATOR later become subject to the
workers ' compensation provisions of the Labor Code, it
will forthwith comply with the insurance requirements
i set forth above.
15 . SIGNS.
The size and location of signs advertising the activities of
il . OPERATOR shall be subject to the prior written approval and
control of CITY.
16 . TRADE FIXTURES .
Any trade fixtures , equipment, and other property brought,
II installed, or placed by OPERATOR in or about the herein premises
shall be and remain the property of OPERATOR except as otherwise
provided herein. OPERATOR shall have the right at any time
during the term hereof to remove any or all of its property,
subject to OPERATOR' s obligation to repair all damage, if any,
resulting from such removal. Such trade fixtures, equipment, and
other property of OPERATOR shall be removed by OPERATOR from the
herein premises by the expiration or earlier termination of this
Permit.
17 . RIGHT TO ENTER AND MAKE REPAIRS.
CITY and its authorized officers, agents, employees ,
contractors, subcontractors, and other representatives shall have
the right to enter on and into OPERATOR' s premises and facilities
(as set forth in attached Exhibit "A") for the following
purposes:
(a) To inspect said premises and facilities at reasonable
intervals during regular business hours (or at any time
in case of emergency) to determine whether OPERATOR has
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II
•
fi 1 •
• III .
* .
complied with and is complying with the terms and
conditions of this Permit with respect to such premises
and facilities;
(b) In the exercise of CITY police power;
(c) To inspect the herein premises and facilities, and
perform any and all things with reference thereto which
CITY is obligated or authorized to do as set forth
herein.
11 No such entry by or on behalf of CITY within or upon said
premises and facilities shall cause or constitute a termination
of this Permit, or be deemed to constitute an interference with
the possession thereof by OPERATOR.
18 . ASSIGNMENT OR SUBLETTING.
OPERATOR shall not assign this Permit or any interest
therein, and shall not sublet the premises or any part thereof,
j or any right or privilege appurtenant thereto, nor suffer any
jother person (agents and employees of CITY excepted) to occupy or
use the premises or any portion thereof without the written
consent of CITY first had and obtained. A consent by CITY to one
1 assignment, subletting, occupancy, or use by another party shall
not be deemed to be a consent to any subsequent assignment,
subletting, occupancy, or use by another person or entity. Any
such assignment, subletting, occupancy, or use by another person
or entity without such consent by CITY shall be void and shall,
at the option of CITY, terminate this Permit. This Permit shall
not, nor shall any interest therein, be assigned as to the
interest of OPERATOR, by operation of law, without the written
consent of CITY. CITY agrees that it will not arbitrarily or
capriciously withhold its consent required hereunder.
19 . BANKRUPTCY AND INSOLVENCY.
If OPERATOR shall be adjudged bankrupt, either by voluntary
iI or involuntary proceedings, or if OPERATOR shall be the subject
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, .
, ,
111 III
of any proceeding to stay the enforcement of obligations against
it in the form of reorganization or otherwise under and pursuant
to any existing or future laws of the Congress of the United
States, or if OPERATOR shall discontinue business or fail in
business, or abandon or vacate said premises, or make an assign-
ment for the benefit of creditors, or if said premises should
come into possession and control of any trustee in bankruptcy, or
if any receiver should be appointed in any action or proceeding
with power to take charge, possession, control, or care of said
premises, CITY shall have the option to forthwith terminate this
Permit and re-enter the premises and take possession thereof. In
no event shall this Permit be deemed an asset of OPERATOR after
adiudication in bankruptcy.
. 20 . REVOCATION OF LEASE, PERMIT, LICENSE, OR AGREEMENT.
CITY shall have the right to terminate any lease, permit,
license, or agreement (including that of OPERATOR herein)
covering a commercial or noncommercial operation, and to revoke a
lease, permit, license, or agreement on any land or facility at
the Airport (including that of OPERATOR herein) for any cause or
reason provided by these standards, by the lease, permit,
'j license, or agreement itself, or by law, or upon the happening of
one or more of the following:
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
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• •
411
III, "
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.
ir
f. Violation of any of these standards and rules and
regulations, or failure to maintain current licenses
'1 . 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
i statements to or before the City, or intentionally
failing to make full disclosure on a financial
statement, or other required 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.
21 . NOTICE.
Any notices or demands that may be given by either party
hereunder, including notice of default and notice of termination,
shall be deemed to have been fully and properly given when made
in writing, enclosed in a sealed envelope, and deposited in the
United States Post Office, certified mail, postage prepaid,
addressed as follows : To CITY c/o Director of Airports,
760 Parkview Avenue , Redding, California 96001-3396; and to
OPERATOR at 2600 Gold Street, Redding, California 96001 .
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, ' III
22 . CEQA.
It has been determined that this matter is categorically
exempt from the provisions of the California Environmental
Quality Act.
23. ENTIRE AGREEMENT.
This Permit sets forth the entire agreement between the
parties hereto. Modifications or additions to this Permit shall
be considered valid only when mutually agreed upon by the parties
in writing.
24 . SUCCESSORS AND ASSIGNS.
All covenants , stipulations , and agreements in this Permit
shall extend to and bind the legal representatives, successors,
and assigns of the respective parties hereto.
IN WITNESS WHEREOF, the parties hereto have-executed this
Permit on the day and year set forth below, in the presence of
their respective officers duly authorized in that behalf.
it
CITY OF REDDING
DATED: , 1990 By:
NANCY BUFFUM, Mayor
HILLSIDE AVIAT ON, INC.
DATED: /' , 1990 By: o/
STEVE MILLER, President
ATTEST: FORM APPROVED:
ETHEL A. NICHOLS, City Clerk RANDALL A. HAYS, City Attorney
it
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. ,• •
III 110 .
HILLSIDE AVIATION, INC. PERMIT FOR COMMERCIAL ACTIVITIES
11
EXHIBIT "A"
1
Commencing at the most northerly centerline monument of Airpark
Drive as shown on that certain map recorded in Book 25 of Parcel
Maps , page 2 , Shasta County Records; thence continuing on said
centerline from a tangent which bears north 4°53 ' 50" east on a
251 . 37 radius curve to the left, through a central angle of
22°30 ' 00" , a distance -of--98 . 71- feet;- thence north-1-6°59 ' 41" west
' 50 . 88 feet; thence leaving said centerline, south 66°06 ' 41" west,
I' 30 . 22 feet to the point of beginning on the westerly right-of-way
line of Airpark Drive; thence running the following bearings and
distances: south 66°06 ' 41" west, 224 . 17 feet; thence north 23°37 '
13" west, 159 . 74 feet; thence north 66°22 ' 01" east, 242 .59 feet
1 to a point on said westerly right-of-way line of Airpark Drive;
thence south 16°59 ' 41" east 159 . 67 feet on and along said right-
of-way to the point of beginning; containing 37 , 125 .93 square
I feet.
1
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