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HomeMy WebLinkAboutReso. 1989-086 - Approving the lease agreement and permit for commercial activities entered into between the city of redding and redding aerotronics bh rh Ali Q RESOLUTION NO. ! - D�. g i A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING THE LEASE AGREEMENT AND PERMIT FOR COMMERCIAL ACTIVITIES ENTERED INTO BETWEEN THE CITY OF REDDING AND REDDING AEROTRONICS, INC. , AT REDDING MUNICIPAL AIRPORT, AND AUTHORIZING THE MAYOR TO SIGN SAME. V 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 Agreement and Permit for Commercial Activities entered into between the City of Redding and Redding Aerotronics, Inc. , true copies of which are attached hereto and incorporated herein. 2 . That the Mayor of the City of Redding is hereby authorized and directed to sign said Lease Ageement and Permit PI' for Commercial Activities on behalf of the City of Redding, and the City Clerk is hereby authorized and directed to attest the signature of the Mayor and to impress the official seal of the City of Redding on the aforesaid documents, when appropriate. I 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 21st day of March , 1989 , and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: Buffum, Carter, Dahl , Fulton, and Johannessen NOES : COUNCIL MEMBERS : None ABSENT: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS: None 11 /16 fs x K. ,MAURICEJOHANNESSEN, Mayor City, of Redding ATTEST: F• %i $ •PROVED: 46e- Gr , H ETHEL A. NICHOLS, City Clerk RA +DALL A. HAYS , Cit Attorney A i �4 ttql - S LEASE THIS LEASE , made and entered into as of the first day of April, 1989 , by and between the CITY OF REDDING, a Municipal Corporation and General Law City, hereinafter referred to as "Lessor, " and REDDING AEROTRONICS , INC. , a California Corporation, hereinafter referred to as "Lessee" : WITNESSETH: IT IS MUTUALLY AGREED by and between the parties hereto as follows: it 1 . Description of Premises . Lessor hereby leases to Lessee and Lessee hires from Lessor, on the terms and conditions hereinafter set forth, those certain premises, with taxiway access, described in Exhibit "A" attached hereto and incorporated herein by reference, hereinafter referred to as "premises") . 2 . Term. The term of this Lease shall be for a period of five (5) years, commencing April 1 , 1989 , to and including March 31 , 1994 . 3 . Lessee' s Option to Renew Lease. Lessee shall have two five-year options to extend the term of this Lease. Such options shall extend the initial 5-year term of this Lease for two I, additional five-year periods, to March 31 , 1999 , and March 31 , i C ii 2004 , respectively. If Lessee exercises such option (s) , all of i. the terms of this Lease Agreement shall remain in full force and t Y„ i ill �j 1 T r effect, with the exception of this clause covering Lessee' s option to renew. The option (s) shall be exercised by written notice addressed by Lessee to Lessor no less than ninety (90) ` j days prior to the expiration of the then current Lease term. 4 . Rent and Other Charges. (a) The rent to be paid by Lessee to Lessor under this Lease Agreement, including any renewal term, shall be the sum of Five Hundred Sixty-eight Dollars ($568 . 00) NNu per month; provided, however, that when the existing aircraft parking apron is enlarged, the monthly rental fee will be negotiated between the parties and incorporated in an Addendum to this Lease. Said rent li shall be payable in advance on the first day of each L. II! and every month during the term of this Lease, or any h ' lid renewal term, commencing April 1 , 1989 . (b) In addition, the rental payments shall be evaluated every three (3) years, commencing April 1 , 1992 , and adjusted by the average of the United States Bureau of Labor Statistics National Consumer Price Index (CPI) for the San Francisco/Oakland area for the previous A f { three-year period. i! (c) Subject to the CPI adjustment in paragraph 4 (b) , at the end of the first five-year period of this Lease, and for each five-year period thereafter during the term of this Lease or the renewal thereof (each five-year period being hereinafter individually referred to as a lid i; -2- G . 111 4 "rental period") , the fair market value of the leased area for the following rental period shall be determined by written agreement between Lessor and Lessee executed at least thirty (30) days prior to the hi expiration of the rental period then in effect, and the monthly rent to be paid by Lessee to Lessor under this � 1 Lease Agreement shall be adjusted accordingly. (d) In the event of anydisagreementbetween the parties as to the fair market value of the leased area to be valued under the terms of paragraph 4 (c) , determination of such fair market value shall be made by three appraisers, one to be selected by each party, and the NI third to be selected by the two appraisers appointed by the parties; the costs of appraisal to be borne equally NI by each of the parties hereto, and both Lessee and Lessor shall be bound by the appraisals rendered. In the event of disagreement among the appraisers, the decision of any two of the three appraisers shall govern; provided, however, that in no event shall the monthly rent to be paid by Lessee to Lessor under this Lease Agreement, or any renewal thereof, be less than the amount paid by Lessee in the 4th, 8th, and 12th yl ` year thereafter. (e) Utilities . The cost of providing lights, sewer service, water service, and other utility services for the premises shall be paid by Lessee, and Lessor shall 1 -3- G r. not be required to furnish or pay for any of such services . (f) All payments called for in this Lease, including the above rent, Lessee ' s share of security services, and other charges , shall be payable monthly, in advance. Lessor is entitled to collect from Lessee, and Lessee agrees to pay to Lessor, upon invoice, those rentals, fees , and charges set forth herein. Any rentals, fees, C" and charges more than thirty (30) days past due shall be subject to a service charge of one and one-half percent (1i%) per month, based on an annual rate of eighteen percent (18%) . Without prejudice to any other Ni remedy which otherwise might be used for non-payment of rent, fees, and charges, or other breach of this Lease, if Lessor is required or elects to pay any sum or sums 11 or incurs any obligations or expense by reason of a failure, neglect, or refusal of Lessee to perform any li one or more of the terms, conditions, and covenants of this Lease, or as the result of any act or omission of Lessee contrary to said terms , conditions, or it covenants, the sum or sums so paid by Lessor, including all interest, costs, damages, or penalties, may be added, after thirty (30) days' written notice by Lessor to Lessee, to any installment or rent thereafter due hereunder, and each and every day thereafter the same shall be and become additional rent recoverable by -4- Lessor in the same manner and with like remedies as though it were originally a part of the rent as set forth hereinabove. 5 . Taxes. (a) Lessee shall pay promptly any taxes assessed against its personal property, and any possessory interest tax levied by reason of its occupancy of the subject premises and the improvements constructed thereon. (b) Lessee covenants and agrees to pay any and all taxes j which may be levied and assessed againstthe leased premises, in addition to the rental payments herein provided. Lessor represents that the subject property is currently exempt from taxation, though it is unclear as to whether such exemption will continue in the future . Lessor shall not resist Lessee' s challenge of nor appeal of property tax assessments or valuations. i', Any property taxes payable for the current year shall II be prorated as of the date on which the Lease term N ' r I commences. 6 . Use. The premises are leased to Lessee for the sole purpose of its Aircraft Avionics Sales and Service. Any other commercial activity that Lessee may wish to carry on at the Redding Municipal Airport, in connection with the foregoing or Ciindependently, shall first require the written permission of • Lessor, which shall not be unreasonably withheld. -5- I, 4 o , pp� 7 . Permit. Lessor, by even date, has granted a Permit to Lessee to conduct its Aircraft Avionics Sales and Service in � IF accordance with Section 3 . 08 . 030 of the Redding Municipal Code and Resolution Nos . 2978 and 4162 . City Council of Lessor has determined that these commercial activities are compatible with the Airport Master Plan, and that the best interests of the p, I public and the City of Redding will be served by such approval. F` 8 . Airport Facilities. Nothing contained herein shall be construed as entitling Lessee to the exclusive use of any services, facilities, or property rights at said Airport, except use of the premises described herein for the purposes set forth above. 9 . Acceptance of Premises as is; Surrender at End of Term. By entry hereunder, Lessee accepts the premises as being in good and sanitary order, condition, and repair; and agrees that on the last day of said term or sooner termination of this Lease to surrender unto Lessor all and singular said premises with said appurtenances in the same condition, reasonable use and wear thereof and damage by fire, Act of God, or the elements excepted; provided, however, that Lessee shall have the right to remove such personal property placed in and upon the premises by Lessee as may be removed without damage to the leased premises and appurtenances. I 10 . Waste, Quiet Conduct. Lessee shall not commit or suffer to be committed any waste upon said premises, nor any N � nuisance or other act or thing which may disturb the quiet ilk -6- f 411 S r i enjoyment of any other occupant or use of Lessor' s adjoining . ci premises. i 11 . Maintenance of Building. Lessee covenants and agrees that it will, at its own cost and expense, keep and maintain the premises covered by this Lease and the building and improvements placed or erected thereon in a reasonably good and attractive state of repair. 12 . Improvements . On expiration or termination of this Lease, Lessee may remove from the premises any improvements which have been installed thereon by Lessee; or, with the written pkv consent of Lessor first had and obtained, which consent shall not be unreasonably withheld, Lessee may sell such improvements to future leaseholders , or leave such improvements for the use or disposal by Lessor. When any improvements are removed, Lessor shall restore the premises to as good a condition as the same were when first occupied by Lessee. Any improvements not removed Hj by Lessee upon the expiration or termination of this Lease shall become and remain the property of Lessor. 13 . Signs. The size and location of signs advertising the activities of Lessee shall be subject to the prior written approval and control of Lessor. 14 . Storage. No machinery, equipment, or property of any kind shall be stored or kept outside of the building on the premises. Any wrecked, permanently disabled, or otherwise unsightly aircraft, or any other vehicles, shall not be kept on ai the premises unless housed. The storage of any toxics by Lessee -7- 411 Ill , G'' shall be done in accordance with any applicable laws or regulations . Lessee shall be responsible for any charges Np associated with the storage of toxics occurring during the term of this Lease, or any renewal thereof. 15 . Aircraft. Lessee shall permit no aircraft at any time pi. to be left standing or parked, even temporarily, upon any roadway or access road within said Airport. Lessor shall have the right and privilege, at the expense of Lessee, to remove from any public road or access road which approaches the Airport or within the Airport any such aircraft that Lessee or its agents, employees , and customers may leave standing or parking upon any such roadway. may leave standing or parking upon any such roadway. V 16 . Mechanics '. Liens . Lessee shall keep the demised premises and the property on which the demised premises are situated free from any liens arising out of any work performed, material furnished, or obligations incurred by Lessee. 17 . Rules and Regulations. Lessee agrees to observe and ij obey all rules and regulations promulgated and enforced by Lessor and any other appropriate authority having jurisdiction over the Redding Municipal Airport during the term of this Lease. Lessor covenants that the rules and regulations so promulgated will H apply to and be enforced uniformly by Lessor as to all lessees of said Airport as their interests and activities are related ' ' thereto. Ib 1 -8- III 18 . Compliance with Law. Lessee covenants and agrees to comply with all statutes, laws, ordinances, regulations, orders, � 1 judgments, decrees, directions, and requirements of Lessor, and of all Federal, State, County, and City authorities now in force or which mayhereafter be in force applicable to said leased PP premises. The judgment of any Court of competent jurisdiction or the admission of Lessee in any action or proceeding against P, Lessee, whether Lessor be a party thereto or not, that Lessee has violated any such ordinance or statute in the use of the premises Wi shall be conclusive of the fact as between Lessor and Lessee and shall subject this Lease to immediate termination at the option of Lessor. Yy pl19 . Security Responsibilities and Fees . Lessee agrees to accept its security responsibilities with regard to access by authorized and unauthorized persons using the leased premises at all times that said Avionics Building is left open. Any fines imposed upon Lessor by the Federal Aviation Administration Security Field Office for violation of security caused by the actions of Lessee' s personnel shall be paid by Lessee. Lessee shall pay to Lessor its proportional share of the total cost of Airport security, which, on commencement of the , term hereof, is the sum of Twenty-five Dollars ($25 . 00) per month, payable in advance on the first day of each and every month during the term of this Lease , or any renewal thereof, commencing April 1 , 1989 . Lessor shall give to Lessee thirty ; -9- YI • ' I 1 IuI II� (30) days' written notice of any change in the amount to be paid by Lessee for security service. Failure to comply with the provisions of this section shall subject this Lease to immediate termination at the option of Lessor. u' 1 20 . Hold Harmless; Insurance. a. This Lease is granted upon the express condition that Lessor, its officers , agents , and employees, shall be free from any and all liability and claims for damages for personal injury, r!, death, or property damage in any way connected with Lessee' s use X1 of the premises hereunder leased, including claims of Lessee, its 91 officers, 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 r 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, or any renewal thereof, comprehensive general wl liability insurance policy for aircraft liability and airport premises liability in an amount of $2 ,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, -10- 411 • harmless from any and all claims arising out 'of the use and occupancy of said premises . A Certificate. evidencing such insurance shall be 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 insurance coverage. Insurance l requirements will be reevaluated every year. c. It is further understood and agreed as a, condition of ' this Lease that should Lessee hire an employee or employees, it • will provide workers ' compensation insurance on its employees, and shall furnish 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 "i insurance requirements set forth above. • 21 . Assignment or Subletting. Lessee shall not assign this . I ' - i Lease or any interest therein and shall not sublet said premises ilk ; or any part thereof, or any right or privilege 4appurtenant • �. thereto, or suffer any other person (the agents and servants of Lessee excepted) to occupy or use said premises or any portion thereof, without the written consent of Lessor first had and . -11- 111 1111 . ' , II • obtained; and a consent to one assignment, subletting, occupation, or use by another person shall not be deemed to be a Ni consent to any subsequent assignment, subletting, occupation, or use by another person. Any such assignment or subletting without such consent shall be void and shall, at the option of Lessor, terminate this Lease . This Lease shall not, nor shall any pp interest therein, be assignable as to the interest of Lessee by operation of law without the written consent of Lessor. 22 . Inspection. Lessee shall permit Lessor to inspect said premises and any improvements thereon or therein at all reasonable times during the term of this Lease or any extension 1 thereof. 23 . Cancellation. This Lease or any extension thereof may be cancelled by Lessor or Lessee any time during the term of this Lease upon giving thirty (30) days ' advance written notice to the 1,1 other party. Breach by Lessee of any of the terms, conditions, and agreements contained in this Lease or any extension thereof shall, at the option of Lessor, be a basis for immediate ' i! cancellation of this Lease or any extension thereof. 24 . Default. If Lessee shall be in arrears in the payment of rent 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 � I. Lessee violates or neglects or . fails to keep, observe, and perform any of the covenants, promises, or conditions herein 'i contained which are on its part to be kept, observed, and -12- • 411 111 performed, Lessor may, at its election, give Lessee written 11 notice of such default. If such default shall continue for sixty (60) days , and Lessee has failed to commence good faith efforts k' k 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. E p25 . Eminent Domain. In the event the entire premises shall GI t be appropriated or taken under the power of eminent domain by any ul public or quasi-public authority, this Lease shall terminate and i 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, GII 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 Ibeen 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, 1 . -13- . . ' X • immediately after learning of any appropriation or taking, to give Lessee notice thereof in writing. If the premises are taken, or Lessee elects to terminate upon a partial taking, Lessor agrees to offer to lease to Lessee similar space on similar terms for a term equal to the remaining term hereunder, including any renewals thereof, if any such land is available for lease at the Redding Municipal Airport. • If this Lease is terminated in either manner hereinabove u' provided, Lessor shall be entitled to the entire award or compensation for the land in such proceedings, but the rent and other charges for the last month of Lessee' s occupancy shall be prorated and Lessor agrees to refund to Lessee any unused portion of said rent or other charges paid in advance. Lessee' s right to receive compensation or damages for its improvements , fixtures, pi personal property, and for the moving or relocation expenses shall not be affected in any manner hereby, and Lessee reserves ,.i the right to bring an action for such compensation or damages, including loss of business, leasehold interest, and other reasonable damages. 26 . Bankruptcy and Insolvency. If Lessee shall be adjudged bankrupt, either by voluntary or involuntary proceedings, or if Lessee shall be the subject of any proceeding to stay the enforcement of obligations against it in the form of reorgani- zation 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 n -14- ® 4 , ii said premises , or make an assignment for the benefit of r creditors , or if said premises should come into possession and 1'i 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 , Lessor pI shall have the option to forthwith terminate this Lease and re-enter the leased premises and take possession thereof. In no IF event shall this Lease be deemed an asset of Lessee after adjudi- cation in bankruptcy. 27 . United States of America Restrictions. (a) Itis 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 ' c Redding. (2) Instrument of Transfer dated October 7 , 1947 , to the City of Redding. I 1 P (3) Grant Agreement executed by the City of Redding on December 1 , 1948 , covering Federal Aid Airport Project No. 9-04-062-901 . (4) Grant Agreement executed by the City of Redding on May 18 , 1949 , covering Federal Aid Airport Project I!I No. 9-04-062-092 . I (5) Grant Agreement executed by the City of Redding on July 10, 1950 , covering Federal Air Airport Gi Project No. 9-04-062-903 . (b) To the extent that the United States of America may MI release said property or any part thereof from any of 11 , I gj • -15- 411 II � said covenants, restrictions, and reservations, Lessee shall likewise be released by Lessor. (c) Lessee, for itself, its successors-in-interest and assigns, as a part of the consideration hereof, does hereby covenant and agree as a covenant running with 41 the land that in the event facilities are constructed, maintained, or otherwise operated on the property described in this Lease for a purpose for which a N., Department of Transport program or activity is extended, or for another purpose involving the provision of similar services or benefits, that it shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to 49 CRF Part 21 , Nondiscrimination in Federally Assisted Programs of the Department of h. I Transportation, and as said Regulations may be amended. �l I (d) Lessee, for itself, its successors-in-interest and assigns, as a part of the consideration hereof, does hereby covenant and agree as a covenant running with the land: (1) that no person on the grounds of race, f color, or national origin shall be excluded from participation in, denied the benefits of, or be other- wise subjected to discrimination in the use of said facilities; (2) that in the construction of any improvements on, over, or under such land and the .ti furnishing of services thereon, no person on the {�I I1 -16- Bfl N • grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subject to discrimination; and (3) that • Lessee shall use the premises in compliance with all Y� other requirements imposed by or pursuant to 49 CFR Part 21 , Nondiscrimination in Federally Assisted 6 Programs of the Department of Transportation, and as said Regulations may be amended. u, I h I. (e) That in the event of breach of any of the above nondis- crimination covenants, Lessor shall have the right to g VV terminate the Lease and to re-enter and repossess said land and facilities thereon, and hold the same as if • • said Lease had never been made or issued; provided, however, that Lessee allegedly in breach shall have the right to contest said alleged breach under applicable Federal Aviation Administration procedures , and, any . j Gi sanctions under or termination of the Lease shall be „!! withheld pending completion of such procedures. (f) That in the event of breach of any of the above nondis- • crimination covenants, Lessor shall have the right to . re-enter said land and facilities thereon, . and the above-described lands and facilities shall thereupon. i. aj revert to and vest in and become the absolute property I of Lessor and its assigns; provided, however, that the party allegedly in breach shall have the right to contest said alleged breach under applicable Federal • 111 -17- 1 . pI Aviation Administration procedures , and the right of reverter shall not be exercised until completion of such procedures. ti 4h L 28 . FAA Requirements . To comply with Federal Aviation Administration requirements, Lessee , for itself, its successors and assigns, as a part of the consideration hereof, does hereby covenant and agree , as a covenant running with the land: y . (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 Ali 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 pursuant to Title 49 , Code of Federal Regulations, DOT, Subtitle Ni A, Office of the Secretary, Part 21 , Nondiscrimination in Federally-Assisted Programs of the Department of Transportation--Effectuation of TitleVI of the Civil ' Rights Act of 1964 , and as said Regulations ulations ma be amended. (2) That (a) no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected k to discrimination in the use of said facilities; (b)that in the construction of any improvements on, over, i ; or under such land and the furnishing of services I 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 h Rights Act of 1964 , and as said Regulations may be amended. (3) That in the event of breach of any of the above nondis- •? r, crimination covenants, Lessor shall have the right to ' terminate this Lease and to re-enter and repossess said -18- N� 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 discrimi- ; natory basis to all users thereof, and it shall charge fair, reasonable, and not unjustly discriminatory prices for each unit or service; provided that Lessee may be allowed to make reasonable and nondiscriminatory discounts, rebates, or other similar type of price reductions to volume purchasers . (5) That non-compliance with paragraph 28 (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 28 (1) through 28 (5) in any lease agreement, contract, etc . , by which said Lessee grants a right or privilege to any person, firm, or corporation to render accommodations and/or services to the public on the Mi 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 Ifs 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 view of r Lessee and without interference or hindrance. U , -19- BI 410 r, (9) That Lessor reserves the right, but shall not be obligated to Lessee, to maintain and keep in repair the landing area of Redding Municipal Airport and all publicly-owned facilities of said Airport, together with the right to direct and control all activities of Lessee in this regard. (10) That this Lease shall be subordinate to the provisions and requirements of any existing or future agreement between Lessor and the United States relative to the development, operation, or maintenance of the Redding Municipal Airport. (11) That there is hereby reserved to Lessor, its successors and assigns , for the use and benefit of the public, a right-of-flight for the passage of aircraft in the airspace above the surface of the premises herein leased. This public right-of-flight shall include the right to cause in said airspace any noise inherent in the operation of any aircraft used for navigation or flight through said airspace or landing at, taking off from, or operation of the Redding Municipal Airport. (12) That Lessee agrees to comply with the notification and i 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. hi (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 above the mean sea level elevation 502 feet. In the event the aforesaid covenants are breached, Lessor reserves the right to enter upon the land leased hereunder and to remove the offending li structure or object or cut the offending tree, all of which shall be at the expense of Lessee. (14) That Lessee, by accepting this Lease, agrees for ; ;'� itself, its successors and assigns, that it will not make use of the leased premises in any manner which might interfere with the landing and taking off of p,) aircraft from the Redding Municipal Airport, or other- wise 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 I -20- PJ qi • • 41111 Lf 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 pi U.S.C. 1349a) . 111'1 29 . Discrimination. Notwithstanding any other provisions rl of this Lease, Lessee shall make its services available to the public without unjust discrimination; provided, however, that Lessee shall have the privilege of refusing service to any person � I or persons for just cause, but not to discriminate by virtue of race , creed, or color. Lessee shall furnish said services on a fair, equal, and not unjustly discriminatory basis to all persons and users thereof, and will charge fair, reasonable, and not 11 unjustly discriminatory prices for such services . 1 j 30 . Revocation of Lease, Permit, or License. Lessor shall have the right to terminate any lease, permit, license, or agreement (including that of Lessee herein) covering a commercial 4 f or noncommercial operation and to revoke a lease on any land or !y facility at the Airport (including that of Lessee herein) for any cause or reason provided by these standards, by the lease, license, or agreement itself, or by law, or upon the happening of % I one or more of the following: a. Filing a petition of voluntary or involuntary bankruptcy with respect to the operator or license. tl ' b. The making by the operator or licensee of any general I assignment for the benefit of creditors. Ni c. The abandonment or discontinuance of any operation at the Airport by the commercial operator, or the failure -21- p[ 111 to conduct any service, operation, or activity which the lessee or licensee has agreed to provide under the terms of his contract. If this condition exists for a period of ten (10) days without prior written consent of Lessor, it will constitute an abandonment of the land or facilities and the lease and/or license shall become null and void. d. The failure of an operator or licensee to pay promptly II when due all rents , charges, fees, or other payments in accordance with applicable leases or licenses. e. The failure of the operator or licensee 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 Lessor. Ni f. Violation of any of these standards and rules and regulations or failure to maintain current licenses required for the permitted operation. g. Intentionally supplying the Lessor with false or misleading information or misrepresenting any material fact on the application or documents, or in statements (,I to or before the Lessor, or intentional failure to make full disclosure on a financial statement, or other " required documents . 31 . Cooperation. The parties hereto agree to fully r' H cooperate in carrying out the terms of this Lease, including the " f execution of all documents reasonably necessary to effectuate the intention of thearties . p 32 . Entire Agreement. This Lease sets forth the entire agreement between the parties hereto. Modifications or additions to this Lease Agreement shall be considered valid only when r1 mutually agreed upon by the parties in writing. 33 . Waiver. No delay or failure by any party to exercise i 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. -22- g'I . y 1 4 . • . anv 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 . an_;, other provisions of this Agreement. 34 . Invalid Provision. In the event any covenant, CI condition, or provision herein contained is held invalid by any . Court of competent jurisdiction, the invalidity of same shall in no way affect any other covenant, condition, or provision herein 1 I. . contained, provided that the validity of any such covenant, ,�+ condition, or provision does not materially prejudice either b Lessor or Lessee in its respective rights and obligations • contained in the valid covenants , conditions , and provisions of N 1 this Agreement.g L 35 . Attorney' s Fees. In case suit or action is instituted to enforce any of the provisions of this Lease Agreement, the prevailing party therein shall be entitled to attorney' s fees and , j' ' . I other sums as may be adjudged reasonable and necessary at trial • and on appeal. 'f H 36 . Notice . Any notices or demands that may be given by 11li 0, either party hereunder, including notice of default and notice of . e. termination, shall be deemed to have been fully and properly given when made in writing, enclosed in a sealed envelope, and P . deposited in the United States Post Office, certified mail, • illi postage prepaid, addressed as follows : • Ali To Lessor: City of Redding 1 , c/o Director of Airports . 760 Parkview Avenue 11 , Redding, California 96001-3396 , -23- • To Lessee: Redding Aerotronics, Inc. Avionics Service Center 6751 Airport Road Redding, California 96002 . 37 . City Administration. Whenever Lessee is required to secure approval or consent from Lessor, Lessor shall mean the Director of Airports of the City of Redding. However, at the option of the Director of Airports or the Lessee, and according to proper procedure , any such questions may be referred to the � I City Council of the City of Redding, whose decision thereon shall be final. 38 . Successors and Assigns . All covenants, stipulations, and agreements in this Lease shall extend to and bind the legal representatives, successors, and assigns of the respective pf parties hereto. 39 . CEQA. It has been determined that this matter is Cj categorically exempt from the provisions of the California Environmental Quality Act. IN WITNESS WHEREOF, the parties hereto have executed this Lease in the presence of their respective officers duly authorized in that behalf on the day and year first above written. CITY OF REDDING ,1, By: K. MAURICE JOHANNESSEN, Mayor qi [signatures continued on page 25] I -24- �. cii urP I. Continuation of signatures to Lease entered into April 1 , 1989 , between the City of Redding and Redding Aerotronics, Inc . : REDDING AEROTRONICS, INC. til ZiAgigg_ /By: u i ►•RTIN L. ELSHIRE, President { By BRIAN DYER, ice-President By: �. U 429 STEVEN A. VOID, Secretary- Treasurer ATTEST: ri 1 , ETHEL A. NICHOLS , City Clerk ui 1 FORM APPROVED: 0 RANDALL A. HAYS , City Attorney ul � N I -25- i h ® r , p , I EXHIBIT "A" All that certain property in the City ty of Redding, County of 4 Shasta, State of California, more particularly described as II; follows: q,l Commencing at the northeast corner of Section 27 , Township ci 31 North, Range 4 West, MDB&M; thence westerly on and along said section line S . 89°14 ' 56" W. , 2000 . 00 feet to the centerline of Airport Road; thence southerly on and along said centerline S. 00°02 ' 04" E. , 3939 . 68 feet to a point of plintersection with the centerline of the old entrance road to NI Redding Municipal Airport; thence easterly on and along said centerline N. 89°57 ' 56" E. , 1129 . 56 feet to a point of intersection with the centerline of Taxiway "A" of said "' Airport; thence northerly on and along said centerline N. U 00°03 ' 56" E. , 526 . 36 feet; thence continuing along said bi centerline N. 06°03 ' 56" E. , 460 feet; thence S . 89°57 ' 56" W. , 90 . 00 feet to the true point of beginning; thence running the following bearings and distances, S. 89°57 ' 56" W. , 172 . 00 feet; thence N. 00°02 ' 04" W. , 100 . 00 feet; thence N. 89°57 ' 56" E . , 172 . 00 feet; thence S . 00°02 ' 04" E. , 100 . 00 feet to the point of beginning, containing 17 , 200 square H�! feet. I II I " �II li �I I See attached sketch h�l � I;b 1,II „ i [ rl B ~� :-!...4.16:,11.-„:"..,•:-..•.-4 r...A.!_kr. ) 1 • , i 4.. .. ,L_. ' ' • � | rl 411o PERMIT FOR COMMERCIAL ACTIVITIES REDDING MUNICIPAL AIRPORT REDDING AEROTRONICS , INC. 1 b ' WHEREAS, the CITY OF REDDING, a Municipal Corporation and ! • General Law City, hereinafter referred to as "CITY, " owns and maintains the Redding Municipal Airport, situate in the City of Redding, Shasta County, California; and � F WHEREAS, REDDING AEROTRONICS, INC. , a California Corporation, has entered into a Lease Agreement with CITY of even date, hereinafter referred to as "Lease Agreement, " covering the premises known as the "Avionics Building, " with taxiway access, hereinafter referred to as "premises" ; and Pi WHEREAS, said premises, with taxiway access, are more particularly described in Exhibit "A" attached' hereto and incorporated herein by reference; and u`I ! WHEREAS, in conjunction with said Lease Agreement, REDDING AEROTRONICS, INC. , hereinafter referred to as "OPERATOR, " wishes to carry on revenue-producing commercial activities at said Airport, namely Aircraft Avionics Sales and Service,' under approval from the CITY in accordance with Section 3.08 . 030 of the I Redding Municipal Code and Resolution Nos. 2978 and 4162; and WHEREAS, OPERATOR has now applied for a new Permit; and WHEREAS, City Council has determined that these commercial GI activities are compatible with the Airport Master Plan, and that the best interests of the public and the CITY will be served by approval of this Permit. . I !. 1! 111 NOW, THEREFORE, CITY hereby grants to OPERATOR a Permit, license, and privilege to conduct and carry on from the premises at Redding Municipal Airport the hereinafter-described revenue-producing commercial activities for a period of five (5) hl years , commencing April 1 , 1989 , and terminating March 31 , 1994; with two subsequent five-year options as set forth in the Lease Ni Agreement. ,I IIl This Permit is subject to the following terms and conditions: 1 . COMMERCIAL ACTIVITIES. a. OPERATOR' s commercial activities shall consist of and be limited to Aircraft Avionics Sales and Service only. b. Any other commercial activity that OPERATOR may wish to carry on at said Airport, in connection with the foregoing or independently, shall first require the I,II 1 '' written permission of CITY. 1 , 2 . FEES; CHARGES; PERFORMANCE BOND. ° a. OPERATOR will pay to CITY for the Permit, license, and privileges herein granted an annual fee of Two Hundred r'' Dollars ($200 . 00) , due and payable on the first day of , , April in each and every year during the term hereof, or any renewal term, commencing April 1, 1989 . b. CITY is entitled to collect, and OPERATOR agrees to pay to CITY, upon invoice, the annual fees set forth above. Ni -2- ui1 , 411 s , Any fees and charges more than thirty (30) days past due may be subject to a service charge of one percent (1%) per month, based on an annual rate of twelve percent (12%) . Without prejudice to any other remedy which otherwise might be used for no::-payment of fees and charges , or other breach of this Permit, if CITY is required or elects topayany any q sum or sums or incurs obligations or expenses by reason of a failure, neglect, or refusal of OPERATOR to perform any one or �i. more of the terms, conditions, and covenants of this Permit, or as the result of any act or omission of OPERATOR contrary to said terms, conditions, or covenants, the sum or sums so paid, including all Lr, interest, costs , damages , or penalties , may be added, i 1 ul after fifteen (15) days ' written notice by CITY to yu , OPERATOR, to any fee thereafter due hereunder, and shall be and become additional fees recoverable by CITY in the same manner and with like remedies as though it were originally a part of the fees and charges set C { forth above. N c. The fees contained herein shall be reviewed on a ++ periodic basis and submitted for City Council approval. d. During the term of this Permit, OPERATOR will post with the City Clerk of CITY a performance bond in the amount of Four Thousand Dollars ($4 , 000 .00) in favor of CITY. Failure on the part of OPERATOR to make timely payment -3- i . ! • of invoices due CITY will result in a claim being made against said bond. Cancellation of the performance bond for whatever reason shall forthwith terminate this Permit for Commercial Activities. f li 3 . RIGHT OF ACCESS. 11 CITY shall permit full and unrestricted access by OPERATOR, its employees and invitees, between the Avionics Building and the aircraft parked upon the adjacent apron that are being serviced by OPERATOR, for all purposes contemplated by this Permit. 4 . USE OF AIRPORT. bl CITY licenses OPERATOR to (a) use, in common with others authorized so to do, all runways, taxiways, and aprons which are i q Pi or may hereafter be provided at Redding Municipal Airport; and (b) to use all other facilities, improvements, equipment, and services which are or may hereafter be provided at the Airport, I' yI, except those under lease, permit, or assignment to another. rP These uses shall include and be limited to those reasonably pj necessary for the proper operation by OPERATOR of its Aircraft SII Avionics Sales and Service; and CITY will grant to OPERATOR, ! without charge, all rights reasonably necessary for such uses . N• I • 5 . AIRPORT FACILITIES. q' Nothing herein contained shall be construed as entitling OPERATOR to the exclusive use of any services, facilities, or ii N j -4- d, I . . prcperty rights at said Airport, except those facilities ii described in Exhibit "A" attached hereto. 6 . SERVICE TO THE PUBLIC. OPERATOR shall make its services available to the public seven (7) days a week without unjust discrimination, and shall refrain from imposing or levying excessive, discriminatory, or otherwise unreasonable charges or fees for any use of its NI services; provided, however, that OPERATOR shall have the privi- a 11 '_ece of refusing service to any person or persons for just cause, without discrimination by virtue of race, color, creed, or sex. NN � 7 . SECURITY RESPONSIBILITIES AND FEES . i,i OPERATOR agrees to accept its security responsibilities with Ii reg and to access by authorized and unauthorized persons using the ' herein premises at all times that the Avionics Building is left 4II open. Any fines imposed upon CITY by the Federal Aviation Administration Security Field Office for violation of security caused by the actions of OPERATOR' s personnel shall be paid by OPERATOR. 8 . WASTE; QUIET CONDUCT. rl 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. 6� I p�'I -5- 411 " y . 9 . MECHANICS LIENS. OPERATOR shall keep the premises and the property on which �. 1 p the premises are situated free from any liens arising out of any GI work performed, material furnished, or obligations incurred by OPERATOR. 10 . 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 NI ` premises and facilities , or to any adjoining public ways. /y W ' r , 11 . UNITED STATES OF AMERICA RESTRICTIONS. a. It is understood and agreed that this Permit, insofar I!� as it pertains to the use of the Redding Municipal Airport, is subject to the covenants, restrictions, and reservations contained in the following instruments to a 4 which the United States of America is a party: (1) Quitclaim Deed dated June 3, 1947, to the City of Redding; (2) Instrument of Transfer dated October 7 , 1947, to the City of Redding; and (3) Grant Agreements of record executed by the City of Redding in connection with Federal Aid Airport Projects. b. The permittee (OPERATOR) , for itself, its successors and assigns, as a part of the consideration hereof, qi m -6- S i ) t • does hereby covenant and agree that in the event facilities are constructed, maintained, or otherwise operated on the said property described in this Permit `. for a purpose for which a Department of Transport program or activity is extended, or for another purpose involvingthe provision of similar services or benefits, the permittee (OPERATOR) spall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to 49 CFR- Part 21 , Nondiscrimination in Federally Assisted . Programs of the Department of Transtortation, and as I l " said Regulations may be amended. c. Permittee (OPERATOR) , for itself, its successors and assigns , as a part .of the consideration hereof, does hereby covenant and agree that: (1 ) 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; (2) that in the construction of any improvements on, over, or under such lands 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 (3) that the permittee (OPERATOR) shall use the premises in ! compliance with all other requirements imposed by or -7- �1 L. II 1 411 411 pursuant to 49 CFR Part 21 , Nondiscrimination in Federally Assisted Programs of the Department of 111 Transportation, and as said Regulations may be amended. d. That in the event of breach of any of the above nondis- crimination covenants, CITY shall have the right to terminate the Permit and to re-enter and repossess said lands and facilities thereon, and hold the same as if said Permit had never been made or issued; provided, however, that the permittee (OPERATOR) allegedly in pl, breach shall have the right to contest said alleged � I breach under applicable Federal Aviation Administration procedures , and any sanctions under or termination of ti. the Permit shall be withheld pending completion of such Gi procedures . h e. That in the event of breach of any of the above nondis- crimination covenants, CITY shall have the right to re-enter said lands and facilities thereon, and the IP above-described lands and facilities shall thereupon revert to and vest in and become the absolute property i I of CITY and its assigns; provided, however, that the LI, party allegedly in breach shall have the right to contest said alleged breach under applicable Federal i rC h! Aviation Administration procedures, and the right of reverter shall not be exercised until completion of such procedures. H -8- 1 • 411 • p , I . f. To the extent that the United States of America may . release said Airport or any part thereof from any of said covenants, restrictions, and reservations, OPERATOR shall likewise be released by CITY. P 1 12 . FAA REQUIREMENTS. To comply with Federal Aviation Administration requirements, permittee (OPERATOR) , for itself, its successors and assigns, as di a part of the consideration hereof, does hereby covenant and agree, as material terms of this Permit: (1) That in the event facilities are constructed, main- tained, or otherwise operated on the property described in this Permit for a purpose for which a Department of Transport program or activity is extended, or for another purpose involving the provision of similar 0! services or benefits, permittee (OPERATOR) shall . maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to Title 49 , Code of Federal Regulations, DOT, Subtitle A, Office of the Secretary, Part 21 , Nondiscrimination in Federally-Assisted Programs of the Department of !, N'I Transportation--Effectuation of Title VI of the Civil Rights Act of 1964 , and as said Regulations may be I amended. C y (2) That (a) no person on the grounds of race, color, or ! RI 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 it H discrimination; and (c) that permittee (OPERATOR) shall use the premises in compliance with all other require- , NI ments imposed by or pursuant to Title 49 , Code of Federal Regulations, Department of Transportation, ISubtitle A, Office of the Secretary, Part 21 , Non- discrimination in Federally-Assisted Programs of the Department of Transportation--Effectuation of Title VI d -9- I1 4 0 0 rI :P. of the Civil Rights Act of 1964 , and as said Regulations may be amended. 1 (3) That in the event of breach of any of the above nondis- crimination covenants, CITY shall have the right to terminate this Permit and to re-enter and repossess said premises and the facilities thereon, and hold the same as if said Permit 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 . ! l (4) That permittee (OPERATOR) shall furnish its accommo- dations and/or services on a fair, equal, and not ' unjustly discriminatory basis to all users thereof, and . 1 it shall charge fair, reasonable, and not unjustly ' discriminatory prices for each unit or service; 1 provided that permittee (OPERATOR) may be allowed to make reasonable and nondiscriminatory discounts, I;, rebates, or other similar type of price reductions to volume purchasers. I� �1 (5) That non-compliance with paragraph 12 (4) above shall � constitute a material breach thereof; and in the event of non-compliance CITY shall have the right to (I terminate this Permit and the estate hereby created without liability therefor, or, at the election of CITY or the United States, either or both Governments shall provisions.fi have the right to judicially enforce (6) That permittee (OPERATOR) agrees that it shall insert il; the above five provisions 12 (1) through 12 (5) in any agreement, contract, etc. , by which said permittee ri (OPERATOR) grants a right or privilege to any person, I' firm, or corporation to render accommodations and/or LI services to the public on the premises herein. „l (7) That permittee (OPERATOR) assures that it will under- I take an affirmative action program as required by 14 CFR Part 152 , Subpart E, to ensure that no person 1. '' shall, on the grounds of race, creed, color, national lil origin, or sex, be excluded from participating in any employment activities covered in 14 CFR Part 152, I! Subpart E. Permittee (OPERATOR) assures that no person shall be excluded on these grounds from participating , 11 in or receiving the services or benefits of any program or activity covered by this subpart. Permittee , (OPERATOR) assures that it will require that its I ;' covered suborganizations provide assurances to permittee (OPERATOR) that they similarly will undertake affirmative action programs, and that they will require pl Fi i.1 II -10- . I, j4 III 411 1 assurances from their suborganizations, as required by 14 CFR 152 , Subpart E, to the same effort. r (8) That CITY reserves the right to further develop or improve the landing area of Redding Municipal Airport as it sees fit, regardless of the desires or view of �j permittee (OPERATOR) and without interference or H hindrance. N' rj (9) That CITY reserves the right, but shall not be obligated to permittee (OPERATOR) , 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 permittee (OPERATOR) in this regard. w H (10) That this Permit shall be subordinate to the provisions i. and requirements of any existing or future agreement between CITY and the United States relative to the 11 development, operation, or maintenance of the Redding Municipal Airport. (11) That there is hereby reserved to CITY, its successors and assigns , for the use and benefit of the public , a kri ht of flight for the � q g passage of aircraft in the airspace above the surface of the premises herein. 11 This public right of flight shall include the right to cause in said airspace any noise inherent in the `N operation of any aircraft used for navigation or flight I through said airspace, or landing at, taking off from, uI or operation on the Redding Municipal Airport. ill tli (12) That permittee (OPERATOR) agrees to comply with the notification and review requirements covered in Part 77 II of the Federal Aviation Regulations in the event future construction of a building is planned for the herein premises, or in the event of any planned modification Gni or alteration of any present or future building or structure situated on the herein premises. (13) That permittee (OPERATOR) , by accepting this Permit, expressly agrees for itself, its successors and assigns, that it will not erect nor permit the erection 0 of any structure or object, nor permit the growth of H any tree, on the land subject to this Permit above the mean sea level elevation of 502 feet. In the event the ! I aforesaid covenants are breached, City reserves the I; ' right to enter upon the land/premises hereunder and to ji remove the offending structure or object and cut the offending tree, all of which shall be at the expense of I permittee (OPERATOR) . ;j bl -11- ill, 110 4 (14) That permittee (OPERATOR) , by accepting this Permit, agrees for itself, its successors and assigns, that it will not make use of the premises herein 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, CITY reserves the right to enter upon the herein premises and cause the abatement of such interference at the expense of permittee (OPERATOR) . (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) . pj 13 . RESTRICTION OF OPERATIONS. If CITY ' s operation of the Airport or OPERATOR' s operations !, 11 at the Airport are substantially restricted by any competent I governmental or judicial action, either party hereto will have 'I the right, upon -notice, to an equitable reduction in the services p; l and facilities to be afforded hereunder, or the rental to become Ni due hereunder, from the time of such notice until such yy � restriction has been remedied and normal operations restored. ul 14 . MAINTENANCE AND OPERATION OF AIRPORT. CITY will properly maintain and operate the Airport (including all buildings and facilities) for the safe, ' I convenient, and proper use thereof by OPERATOR, and in accordance with all FAA rules and regulations. iu CITY will provide adequate light, heat, water, janitor service, and air conditioning for the public spaces. p � r � c� l -12- Ni 0 • 15 . CITY ADMINISTRATION. . Whenever OPERATOR is required to secure the approval or consent from CITY herein, CITY shall mean the Director of i . . 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 i decision thereon shall be final. • 16 . PREMISES AS-IS. OPERATOR hereby certifies and agrees that it has inspected . the above-described premises and accepts the same in its . existing condition. OPERATOR expressly covenants and agrees that any �. rexpenses incurred in the maintenance, repair, and modification or improvements of said premises shall be the sole obligation of . ! �I CPERATOR; OPERATOR further covenants and agrees to hold CITY harmless therefrom. • 17 . TAXES . OPERATOR agrees to pay promptly when due any and all taxes • II' assessed against its personal property and any possessory ih interest tax levied by reason of its occupancy of the premises. !tt •18 . INSURANCE. a. This Permit is granted upon the express condition that • p; CITY, its officers , agents, and employees, shall be �I1 free from any and all liability and claims for damages ,i -13- qi 1 • 1 for personal injury, death, or property damage in any way connected with OPERATOR' s activities at said Airport, including claims of OPERATOR, its officers, agents, employees , and invitees . CITY, its officers, agents, and employees, shall be held harmless from any 0. and all liability, loss, cost, or obligation on account of or arising out of any such injury, death, or loss, however occurring. II; 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 Nthe term of this Permit, comprehensive general liability insurance policy for aircraft liability and airport premises liability in an amount of $2 , 000 , 000 . 00 combined single limits. Said policy shall name CITY, its officers, agents, and employees, as additional insured, and shall further contain a provision obligating the insurance carrier to notify F.I, CITY in writing at least ten (10) days prior to any cancellation or reduction of such insurance. A Certificate of Insurance evidencing such coverage and I I notice requirement shall be approved by the Risk jl Manager of CITY, and filed with the Risk Manager of CITY prior to the commencement of this Permit. 'Ipu c . It is further understood and agreed as a condition of it this Permit that OPERATOR will provide workers' NI -14- • 410w; r 0, compensation insurance on its employees, and furnish the Risk Manager of CITY with a Certificate evidencing such insurance, approved by said Risk Manager. Said Certificate 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 requirement should OPERATOR have no employees , OPERATOR tl shall provide the City Clerk of CITY with a letter stating that it is not employing any person or persons in any manner so as to become subject to the workers' li l 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 set forth above. 1 . SII 19 . SIGNS. The size and location of signs advertising the activities of OPERATOR shall be subject to the prior written approval and control of CITY. i 20 . TRADE FIXTURES. Any trade fixtures, equipment, and other property brought, pi'' installed, or placed by OPERATOR in or about the herein premises ,I + I shall be and remain the property of OPERATOR except as otherwise 4p', pl -15- II F O • Hprovided 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 1 other property of OPERATOR shall be removed by OPERATOR from the III herein premises by the expiration or earlier termination of this Permit. ' hl 21 . RIGHT TO ENTER AND MAKE REPAIRS . CITY and its authorized officers, agents, employees, contractors, subcontractors, and other representatives shall have , ;;i the right to enter on and into OPERATOR' s premises and facilities (as set forth in attached Exhibit "A") for the following I'l purposes: (a) To inspect said premises and facilities at reasonable intervals during regular business hours (or at any time I in case of emergency) to determine whether OPERATOR has complied with and is complying with the terms and ', � conditions of this Permit with respect to such premises and facilities; II:! (b) In the exercise of CITY police power; R' (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 11 ' herein. i No such entry by or on behalf of CITY within or upon said � wi 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. .i I J -16- • s . 11 22 . DAMAGE OR DESTRUCTION OF PREMISES. - a. In the event the Avionics Building in which OPERATOR occupies space hereunder shall be partially damaged by fire or other casualty, but not rendered untenantable, I'i�l the same shall be repaired with due diligence by. CITY c�� at its own cost and expense. b. If the damage by fire or other casualty shall be so d extensive as to render the premises untenantable but 'I ) capable of being repaired within 45 days, the same ! I shall be repaired with due diligence by CITY at its own cost and expense, and the rent payable hereunder with 1' respect to OPERATOR' s space shall be proportionately paid up to the time of such damage, and shall thenceforth cease until such time as the premises shall ! I be fully restored. c. In the event the Avionics Building is completely I,I destroyed by fire or other casualty, cr so damaged that it will remain untenantable for more than 45 days,,11 �. OPERATOR shall pay said proportionate rent up to the 1 p' I ; : time of such damage, and shall have following options: 1! i. to cancel this Permit forthwith in writing; G or I N , , al ii. if said building shall be repaired or reconstructed by CITY at its own cost and expense, OPERATOR may temporarily suspend its operations, or a part thereof. If OPERATOR temporarily suspends its entire operation, , i;l rent shall thenceforth cease until the ; �H premises shall be fully restored. If I '1) OPERATOR continues to operate a portion of 1 -17- 1 410 its services, OPERATOR shall pay a proportionate rent until such time as the premises shall be fully restored. d. In the event that the Redding Municipal Airport or the premises herein occupied by OPERATOR are rendered untenantable or unusable because of the condition Gj thereof other than due to fire or casualty as set forth above, and except by reason of fog, snow, flood, I I�' earthquake, or other uncontrollable conditions, there shall be a reasonable and proportionate abatement of 11 , the charges provided for herein during the period that the same are so untenantable or unusable. bj G 23 . ASSIGNMENT OR SUBLETTING. OPERATOR shall not assign this Permit or any interest therein, and shall not sublet the premises or any part thereof, . or any right or privilege appurtenant thereto, nor suffer any II other person (agents and employees of CITY excepted) to occupy or use the premises or any portion thereof without the written pi consent of CITY first had and obtained. A consent by CITY to one assignment, subletting, occupancy, or use by another party shall ,I Ij 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 1 �� 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 -18- t � 110 ,If 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. 24 . BANKRUPTCY AND INSOLVENCY. If OPERATOR shall be adjudged bankrupt, either by voluntary or involuntary proceedings, or if OPERATOR shall be the subject of any proceeding to stay the enforcement of obligations against 'G I . 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 assignment for the benefit of creditors , or if said premises should come into possession and control of any trustee in bank- ruptc y, or if any receiver should be appointed in any action or proceeding with power to take charge, possession, control, or hj care of said premises, CITY shall have the option to forthwith terminate this Permit and re-enter the premises and take a:I possession thereof. In no event shall this Permit be deemed an f,,1 asset of OPERATOR after adjudication in bankruptcy. 25 . REVOCATION OF LEASE, PERMIT, OR LICENSE. IP FI CITY shall have the right to terminate any lease, permit, V1 license, or agreement (including that of OPERATOR herein) Y covering a commercial or noncommercial operation, and torevoke a I lease, permit, license, or agreement on any land or facility at ' -19- ii ! 1 • r 1 •1 the Airport (including that of OPERATOR herein) for any cause or ureason provided by these standards, by the lease, permit, 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 bankruptcy with respect to the operator or license. b. The making by the operator or licensee of any general assignment for the benefit of creditors. c. The abandonment or discontinuance of any operation at the Airport by the commercial operator, or the failure p"' to conduct any service, operation, or activity which !'i the lessee, permittee, or licensee has agreed to provide under the terms of his contract. If this condition exists for a period of ten (10) days without N prior written consent of CITY, it will constitute an abandonment of the land or facilities and the lease, . permit, and/or license shall become null and void. NI d. The failure of an operator, permittee, or licensee to pay promptly when due all rents, charges, fees, or ! other payments in accordance with applicable leases., . : permits, or licenses. e. The failure of the operator, permittee, or licensee to remedy any default, breach, or violation of the Airport 11 Rules and Regulations by him or his employees within 1 , thirty (30) days after notice from the CITY. 1!II ' f. Violation of any of these standards and rules and regulations, or failure to maintain current licenses ryj required for the permitted operation. h' g. Intentionally supplying CITY with false or misleading P . information or misrepresenting any material fact on the , application or documents, or in statements to or before ' r the CITY, or intentional failure to make full u' disclosure on a financial statement, or other required k� documents. I . C i , U 1 p, ' 1 -20- � I �I r 26 . TERMINATION. a. This Permit is subject to cancellation by either party upon giving sixty (60) days ' written notice in advance of such cancellation date. b. Breach by OPERATOR of any of the terms, conditions , and agreements contained herein, if not corrected by OPERATOR within sixty (60) days ' written notice by CITY to do so, shall be a basis for cancellation of this Permit. 27 . 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 I � United States Post Office, certified mail, postage prepaid, H addressed as follows: To CITY c/o Director of Airports, H 760 Parkview Avenue, Redding, California 96001-3396; and to i10 OPERATOR at Avionics Service Center, 6751 Airport Road, Redding, California 96002 . 28 . CEQA. It has been determined that this matter is categorically nli exempt from the provisions of the California Environmental , t Quality Act. � G -21- 6 E • r 29 . ENTIRE AGREEMENT. ill 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. „,, 30 . SUCCESSORS AND ASSIGNS . All covenants, stipulations, and agreements in this Permit r� I 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. NI CITY OF REDDING �., DATED: , 1989 By: K. MAURICE JOHANNESSEN, Mayor REDDING AEROT: , ICS, INC. DATED: , 1989 By: INC. •T N L. ELSHIRE, President EI By:44%. 12"_—_ BRIAN DYER, Vi j-P ident By: U E N A. VOID, ecretary/Treas. M1 ATTEST: FORM APPROVED: ETEEL A. NICHOLS, City Clerk RANDALL A. HAYS, City Attorney -22- I • t rI EXHIBIT "A" All that certain property in the City of Redding, County of Shasta, State of California, more particularly described as fcllows : Commencing at the northeast corner of Section 27 , Township 31 North, Range 4 West, MDB&M; thence westerly on and along said section line S . 89°14 ' 56" W. , 2000.00 feet to the centerline of Airport Road; thence southerly on and along said centerline S . 00°02 ' 04" E. ; 3939 . 68 feet to a point of intersection with the centerline of the old entrance road to Redding Municipal Airport; thence easterly on and along said centerline N. 89°57 ' 56" E. , 1129 . 56 feet to a point of intersection with the centerline of Taxiway "A" of said Airport; thence northerly on and along said centerline N. 00°03 ' 56" E. , 526 . 36 feet; thence continuing along said centerline N. 06°03 ' 56" E. , 460 feet; thence S. 89°57 ' 56" ;'. W. , 90 . 00 feet to the true point of beginning; thence running the following bearings and distances, S. 89°57 ' 56" W. , 172 . 00 feet; thence N. 00°02 ' 04" W. , 100 .00 feet; thence N. 89°57 ' 56" E. , 172 . 00 feet; thence S . 00°02 ' 04" E. , 100 .00 feet to the point of beginning, containing 17 , 200 square feet. See attached sketch P F •-•--- • .' • ',....f.---,..---'---4-t i. • i ,-if -.rf---,,,1 -; .... ., -- - - •--, ;;..--;...1, -. ..., -..- .‘.--e ,..-4,-,,-.,.I .. . . --. • '..•-,' r*- '-;-..-- • • .,' *.P...•=e„'',-,,sr --- .. -:•!,.. • -ki,7".Ot---',...C."r."..' ,.,,,,,,:„..,„,c,..... ...,4„:„-; -, ,,,,,24.,..;;;,.-4-,.-4.,...• .. ' . - -'.... '''-,-4,:,.•••1-.X;t.::-•,:k • . - * ..--• ..--- •At"- C.k•••-?1'.•,...s''''''7,•7:".;•:,MI,. . i• -• '4.71, ••='•34..i7•-•."•;..:..,: Uktie. '',..14i4-k•••••7 -1-1' !--,;tt'lt:• ' '' 3:-;/,‘In'•-6•• . ; lie',.."74•'•••1.7.4.•;•9;;41...44,• - )1r, . . • -'40.4-1":1•3-•,. •='-';,;."?.,;".<7 44,.....:"7, • I .. 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