HomeMy WebLinkAboutReso. 1988-346 - Approving the lease of land and addendum to said lease entered into between the city of reddinfg and chris a smith dba cas properties at redding municipal airport f •
RESOLUTION NO. S- 3 7 /
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
APPROVING THE LEASE OF LAND AND ADDENDUM TO SAID LEASE
ENTERED INTO BETWEEN THE CITY OF REDDING AND CHRIS A. SMITH,
DBA CAS PROPERTIES, AT REDDING MUNICIPAL AIRPORT, AND
AUTHORIZING THE MAYOR TO SIGN SAME.
IT IS HEREBY RESOLVED by the City Council of the City of
Redding as follows :
1 . That the City Council of the City of Redding hereby
approves the Lease between the City of Redding and Chris A. Smith
for land at Redding Municipal Airport, together with an Addendum
to said Lease, 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 and Addendum to Lease
on behalf of the City of Redding, and the City Clerk is hereby
authorized and directed to attest the signature of the Mayor and
to impress the official seal of the City of Redding on the
aforesaid documents, when appropriate.
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 20th day of September , 1988 , and was
duly adopted at said meeting by the following vote:
AYES: COUNCIL MEMBERS: Buffum, Carter, Dahl , Fulton & Johannessen
NOES : COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS : None
(4,/i/ r f..
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K. MAURI�CE 4OHANNESSEN, Mayor
City of Redding
ATTEST: FORM,*PROVED:
ETHEL A. NICHOLS , City Clerk RA 'IALL A. HAYS , Ci y Attorney
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ADDENDUM TO LEASE
This Addendum to Lease Agreement is made and entered into
this 20th day of September, 1988 , by and between the CITY OF
REDDING, a Municipal Corporation and General Law City, herein-
after called "Lessor, " and CHRIS A. SMITH, doing business as CAS
PROPERTIES, hereinafter called "Lessee" :
WITNESSET H:
WHEREAS, Lessor and Lessee entered into a Lease Agreement
dated September 20 , 1988 ; and
WHEREAS, Lessor and Lessee wish to amend said Lease
Agreement pursuant to the terms and conditions of this Addendum
to Lease;
NOW, THEREFORE, it is agreed between the parties hereto as
follows:
1 . The following subparagraph (e) is added to Paragraph 9,
Lessor' s Representations:
(e) To the best of Lessor' s knowledge, there are no
hazardous substances, as defined in applicable environ-
mental laws and regulations, existing on the leasehold.
Lessee shall not be responsible for any hazardous
substances present on the premises at the inception of
this Lease.
2 . The following is added to Paragraph 26 (9) , FAA
Requirements:
If Lessor allows the landing or taxiing areas of
Redding Municipal Airport to deteriorate to the extent
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that it is not useable for safe takeoff, landing, and
transit, Lessee shall have the option to terminate this
Lease and enforce his rights in the manner provided by
law.
3 . The following is added to Paragraph 33 , entitled
Cooperation:
Lessor agrees that wherever its consent is required
under this Lease, such consent shall not be
unreasonably withheld.
4 . The following Paragraph 40 , Access Road, is added to
said Lease:
40 . Access Road . In consideration for the unlimited,
although not exclusive, use of the access road
constructed by CAS Properties to the leasehold as
described in Exhibit "A, " City shall pay a one-time
payment of $5 ,000 .00 to CAS Properties . In addition,
CAS Properties shall, at its actual time and materials
cost, on a chip seal basis, extend the American
Propeller access road from the leasehold to its
terminus at the American Propeller leasehold. Upon
receipt of cost documentation to which the City agrees,
City shall reimburse CAS Properties for the chip seal
road.
5 . Exhibit "A" attached to said Lease shall be amended to
include the following:
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The use of the ten-foot wide Public Service Easement
shall be limited to the placement of two 4" pvc duct
and electrical conductors for ramp lighting, placed at
a minimum depth of 36" , with crushed rock backfill
compacted to 95% . City maintenance shall not impact
Lessee' s building or other site improvements.
6 . All other terms and conditions of said Lease dated
September 20 , 1988 , shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have set their hands
on the day and year set forth below.
CITY OF REDDING
Dated September 20 , 1988 By:
K. MAURICE JOHANNESSEN
Mayor
CHRIS A. SMITH, doing business
as CAS PROPERTIES
Dated September 20 , 1988 By:
CHRIS A. SMITH
ATTEST: FORM APPROVED:
1 ETHEL A. NICHOLS, City Clerk RANDALL A. HAYS, City Attorney
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LEASE
THIS LEASE is made and entered into this 20th day of
September, 1988 , by and between the CITY OF REDDING, a Municipal
Corporation and General Law City, hereinafter referred to as
"Lessor, " and CHRIS A. SMITH, doing business as CAS PROPERTIES,
hereinafter referred to as "Lessee" :
WITNESSET H:
IT IS MUTUALLY AGREED by and between the parties hereto as
follows:
1 . Description of Premises. The parties acknowledge that
Lessor owns, maintains, and operates the Redding Municipal
Airport, and that Lessee desires to use a portion of said Airport
for the purpose of constructing and maintaining thereon one or
more buildings to be used for air freight business and/or
permitted, lawful Airport-related activities. Therefore, Lessor
hereby leases to Lessee, as his sole and separate property, and
Lessee hires from Lessor, on the terms and conditions hereinafter
set forth, that part of the Redding Municipal Airport described
in Exhibit "A" attached hereto (hereinafter called "premises")
and incorporated herein by reference.
Lessee is also authorized to use, at the established
tie-down rates as they may exist from time-to-time, the
commercial aircraft apron as designated on Exhibit "B" attached
hereto and made a part hereof by reference for the loading,
unloading, and parking of air-freight aircraft.
2 . Term. The term of this Lease shall be for a period of
thirty (30) years , commencing September 1 , 1988 , to and including
August 31 , 2018 .
3 . Lessee ' s Option to Renew Lease.
(a) Lessee shall have two five-year options to extend the
term of this Lease. Such options shall extend the
initial 30-year term of this Lease for two additional
five-year periods, to September 14 , 2023 , and
September 14 , 2028 , respectively. If Lessee exercises
such option (s) , all of the terms of this Lease
Agreement shall remain in full force and 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) days prior to the expiration of the then
current Lease term.
(b) In addition, Lessor hereby grants to Lessee a right of
first refusal to lease that parcel of land, designated
in Detail "A" attached hereto and incorporated herein
by reference. Lessor shall not enter into a binding
lease or option to lease such property until it has
first offered Lessee, in writing, a lease on said
property. Lessee shall have sixty (60) days from
receipt of such notice from Lessor in which to accept
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or reject such offer. The right of first refusal given
is subject to the then existent Airport Master Plan and
development policies. Any acceptance by Lessee shall
be in accordance with said plan and policies . Any
lease of the property designated in Detail "A" shall
have a term not in excess of any lease of the premises
as described in Exhibit "A. "
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
figured on the basis of 10% of fair market value
appraisal which initially is ninety-five cents ($ .95)
per square foot, calculated on the total square footage
of the premises, estimated at approximately 38 , 400
square feet. Said rent shall be payable in advance on
the first day of each and every month during the term
of this Lease, or any renewal term, commencing
September 15 , 1988 . The initial monthly rent will be
Three Hundred Four Dollars ($304 . 00) .
(b) In addition, the rental payments shall be evaluated
every three (3) years, commencing September 15 , 1991 ,
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
three-year period.
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(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
"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
expiration of the rental period then in effect, and the
monthly rent to be paid by Lessee to Lessor under this
Lease Agreement shall be adjusted accordingly.
(d) In the event of any disagreement between 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
third to be selected by the two appraisers appointed by
the parties; the costs of appraisal to be borne equally
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
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the amount paid by Lessee in the 4th, 8th, 12th, and
any subsequent fourth year thereafter.
(e) Utilities . The cost of providing lights, sewer
service, water service, and other utility services for
the premises or the buildings thereon shall be paid by
Lessee or his tenants, and Lessor shall not be required
to furnish or pay for any of such services. Lessee
shall contribute One Thousand Six Hundred Twenty
($1 ,620 . 00) Dollars to be paid to Lessor within ninety
(90) days of the inception of this Lease for
participation in and the expansion of the Airport
sewage system (leach-field system) . Lessee further
agrees to connect to and pay the connection charges for
such connection to the Stillwater sewer system. If the
leach-field system has not been expanded at the time
connection to the Stillwater system is available,
1 Lessee shall be given a dollar-for-dollar credit of
$1 , 620 . 00 against the Stillwater system connection
charges.
(f) All payments called for in this Lease, including the
above rent 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, and charges more than thirty (30) days
past due shall be subject to a service charge of one
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and one-half percent (1}%) per month, based on an
annual rate of eighteen percent (18%) . Without
prejudice to any other 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 or incurs any obligations
or expense by reason of a failure, neglect, or refusal
of Lessee to perform any one or more of the terms,
conditions, and covenants of this Lease, or as the
result of any act or omission of Lessee contrary to
said terms, conditions, or 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 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
his personal property and any possessory interest tax
levied by reason of his occupancy of the subject
premises, and the improvements constructed thereon.
(b) Lessee covenants and agrees to pay any and all taxes
which may be levied and assessed against the leased
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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.
Any property taxes payable for the current year shall
be prorated as of the date on which the Lease term
commences.
6 . Use. The premises are leased to Lessee for the sole
purpose of constructing and maintaining a building or buildings
thereon for the operation of an air freight business and/or
permitted, lawful Airport-related uses. Any other commercial
activity that Lessee may wish to carry on at said Airport, in
connection with the foregoing or independently, shall first
require the written permission of Lessor, which shall not be
unreasonably withheld.
7 . Permit. Lessor hereby grants a permit to Lessee to
conduct an air freight business and lawful Airport-related uses
in 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
public and the City of Redding will be served by such approval.
8 . Airport Facilities. Nothing contained herein shall be
construed as entitling Lessee to the exclusive use of any
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services , facilities, or property rights at said Airport, except
the use of the premises described herein for the purposes set
forth above.
9 . Lessor' s Representations . Lessor does hereby represent
and warrant that:
(a) There are no laws, regulations, rules, or policies
adopted or approved, or under consideration for
adoption or approval, by the City of Redding which
would prohibit Lessee' s intended use and business
activities on the premises.
(b) To the best of Lessor' s knowledge, there are no laws,
regulations, rules, or policies adopted and in effect,
or under consideration for adoption, by any other
federal, state, county, city, or other governmental
body which would prohibit Lessee' s intended use and
business activities on the premises.
(c) The premises is free and clear of all liens and
encumbrances of whatever kind or nature, and there are
no claims, suits, or actions, whether actual or
threatened, as of the date hereof which will or could
result in any such liens or encumbrances or other
impairments, restrictions, or prohibitions on Lessee' s
use of the premises .
(d) Lessor has the full power and authority to enter into
this Lease agreement and to fully comply with all of
its terms and provisions, and this Agreement will be
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valid and binding against Lessor upon City Council
approval and execution by the Mayor of the City of
Redding.
10 . Building Specifications; Signs.
(a) Lessee shall construct all buildings on the premises
with non-metallic siding, and the building exterior
wall construction shall be exposed (split) face
concrete masonry units, painted metal roofing
materials, nonreflective glass, or other material
reasonably satisfactory to the Director of Airports of
Lessor.
(b) Lessee shall be privileged to erect such signs and
advertising media as may be required and place the same
upon the improvements to be constructed by him on the
premises, subject to first securing the written
approval of the Director of Airports of Lessor. The
Director of Airports shall determine whether such
advertising media is aesthetically harmonious with said
improvements and facilities at the Airport.
11 . Mortgage (s) . Lessee and his assigns shall have, and
are hereby given, the right to mortgage the leasehold created by
this Lease for any amount and for any term not extending beyond
the lease term, or any renewal thereof. Lessor shall reasonably
cooperate with Lessee ' s efforts to apply for and obtain a
mortgage or other financing secured by the leased premises.
Lessor shall be given written notice thereof of any such
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mortgage, including the mortgagee ' s address and loan number. In
the event of default hereunder, Lessor shall have no right to
terminate the Lease or retake possession of the premises or expel
Lessee unless 60 days ' advance written notice of such default is
given by Lessor to Lessee. Nothwithstanding the foregoing,
Lessor shall have no right to terminate the Lease and retake
possession if there is instituted by the mortgagee a suit to
foreclose the mortgage on the leasehold interest, and such suit
is diligently prosecuted to conclusion. The mortgagee is hereby
given the power and authority, at its option, to cure all such
events of default which may be cured by action of the Lessee, and
in the name, place, and stead of the Lessee. In the event a
mortgage on the leasehold is foreclosed, the purchaser at the
foreclosure sale may assign, sell, or otherwise dispose of the
leasehold interest, subject to approval by Lessor of any such
assignment or assignee; such approval shall not be unreasonably
withheld.
12. Mechanics ' Liens . Lessee shall keep the demised
premises free from any liens arising out of any work performed,
material furnished, or obligations incurred by Lessee.
13 . Waste, Quiet Conduct. Lessee shall not commit or
suffer to he committed any waste upon said premises, or any
nuisance or other act or thing which may disturb the quiet
enjoyment of any other occupant of or use of Lessor' s adjoining
property.
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14 . Storage. No machinery, equipment, or property of any
kind shall be stored or kept outside of the buildings on the
premises . Any wrecked, permanently disabled, or otherwise
unsightly aircraft, or any other vehicles, shall not be kept on
the premises unless housed. The storage of any toxics by Lessee
shall be done in accordance with any applicable laws or
regulations. Lessee shall be responsible for any charges
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
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 any of his tenants
may leave standing or parking upon any such roadway.
16 . Security Responsibilities and Fees . Lessee agrees to
accept his security responsibilities with regard to access by
authorized and unauthorized persons using the leased premises at
all times. Any fines imposed upon Lessor by the Federal Aviation
Administration Security Field Office for violation of security
caused by the actions of Lessee or his agents or personnel shall
be paid by Lessee. Failure to comply with the provisions of this
section shall subject this Lease to immediate termination at the
option of Lessor.
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17 . Rules and Regulations. Lessee agrees to observe and
obey all rules and regulations promulgated and enforced by Lessor
and any other appropriate authority having jurisdiction over the
Redding Municipal Airport during the term of this Lease,
including the Federal Aviation Agency and other federal agencies,
the United States, the State of California, County of Shasta, and
City of Redding. Lessor covenants that the rules and regulations
so promulgated will apply to and be enforced uniformly by Lessor
as to all lessees of said Airport as their interests and
activities are related thereto.
18 . Compliance with Law. Lessee covenants and agrees to
comply with all statutes, laws, ordinances, regulations, orders,
judgments, decrees, directions and requirements of Lessor, and of
all federal, state, county, and city authorities now in force or
which may hereafter be in force applicable to said leased
premises. The judgment of any Court of competent jurisdiction or
the admission of Lessee in any action or proceeding against
Lessee, whether Lessor be a party thereto or not, that Lessee has
violated any such ordinance or statute in the use of the premises
shall be conclusive of the fact as between Lessor and Lessee and
shall subject this Lease to immediate termination at the option
of Lessor.
19. Maintenance of Building(s) . Lessee covenants and
agrees that he will, at his own cost and expense, keep and
maintain the premises covered by this Lease and all buildings and
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improvements placed or erected thereon in a reasonably good and
attractive state of repair.
20 . Inspection. During the term of this Lease or any
renewal thereof, Lessee shall permit Lessor or its agent or
agents to enter upon the premises and buildings erected thereon
for the purpose of inspection of same; Lessor' s right of
inspection shall be exercised during the normal business hours of
Lessee. Lessor agrees not to unreasonably disturb Lessee' s
peaceable possession and use of the premises in so doing.
21 . Hold Harmless; Insurance.
a. This Lease is granted upon the express condition that
Lessor shall be free from any and all liability and
claims for damages for personal injury, death, or
property damage in any way connected with Lessee' s use
of the premises hereunder leased, whether or not the
same be groundless , including claims of Lessee, his
agents, employees, tenants (if approved by Lessor) ,
customers, or other persons upon the leased premises
for any reason. 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 acts or omissions,
injury, death, or loss caused by the negligence or
other legal fault of Lessee or his agents, employees,
tenants (if approved by Lessor) , customers, or other
persons upon the leased premises for any reason.
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b. It is specifically understood and agreed as a condition
of this Lease that Lessee shall, at his own expense,
obtain and keep in full force and effect comprehensive
general liability insurance in the amount of
$1 ,000 ,000 . 00 combined single limits, which insurance
shall be in a 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. Such insurance shall
be carried with an insurance company acceptable to
Lessor, and a Certificate evidencing such insurance
shall be approved by the Risk Manager and filed with
the City Clerk of Lessor which shall name Lessor, its
officers, agents, and employees, as additional insureds
and guarantee at least thirty (30) days ' advance notice
to Lessor, in writing, before any cancellation or
reduction of such insurance coverage. Insurance
requirements will be reevaluated every year.
c. Lessee shall also secure and maintain fire insurance on
the buildings and structures to be erected by Lessee on
the premises, to the full insurable value of the
structures and buildings and contents as erected and
placed upon the leased premises. Lessee further agrees
that in the event of any fire or partial or complete
destruction of the structures erected by Lessee, any
proceeds of insurance received by Lessee shall be
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utilized in the replacement, reconstruction, or repair
of the damaged or destroyed improvements,
22 . Assignment or Subletting. Lessee shall not assign this
Lease or any interest therein and shall not sublet said premises
or any part thereof, or any right or privilege appurtenant
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
obtained; and a consent to one assignment, subletting,
occupation, or use by another person or entity shall not be
deemed to be a consent to any subsequent assignment, subletting,
occupation, or use by another person or entity. 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 interest therein, be assignable as to
the interest of Lessee by operation of law without the written
consent of Lessor, which shall not be unreasonably withheld.
Notwithstanding the foregoing, approval and consent by
Lessor of assignment, sale, or sublease to Federal Express
Corporation is hereby given.
If Lessee assigns or sells his total interest in this Lease,
Lessor will release Lessee from all further liability under this
Lease, provided that the assignee agrees to all terms and
conditions of this Lease then in effect.
23 . Improvements . On expiration or termination of this
Lease, Lessee may remove from the premises any improvements which
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have been installed thereon by Lessee; or, with the written
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, Lessee
shall restore the premises to as good a condition as the same
were when first occupied by Lessee. Any improvements, including
the buildings, not removed by Lessee upon the expiration or
termination of this Lease shall become and remain the property of
Lessor. Lessee shall not allow any toxic materials to remain on
the premises upon the expiration or termination of this Lease.
Lessee shall be responsible for the removal and/or charges of any
toxics on the premises.
24 . 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 him 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
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 bankruptcy, or if any receiver should
be appointed in anyaction or
PP proceeding with power to take
charge, possession, control, or care of said premises, Lessor
shall have the option to forthwith terminate this Lease, or any
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renewal thereof, and re-enter the leased premises and take
possession thereof. In no event shall this Lease be deemed an
asset of Lessee after adjudication in bankruptcy.
25 . United States of America Restrictions.
(a) It is understood and agreed that this Lease is subject
to the covenants, restrictions and reservations
contained in the following instruments to which the
United States of America is a party, to wit:
(1) Quitclaim Deed dated June 6 , 1947 , to the City of
Redding.
(2) Instrument of Transfer dated October 7 , 1947 , to
the City of Redding.
(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
No. 9-04-062-092 .
(5) Grant Agreement executed by the City of Redding on
July 10 , 1950 , covering Federal Air Airport
Project No. 9-04-062-903 .
(b) To the extent that the United States of America may
release said property or any part thereof from any of
said covenants, restrictions, and reservations, Lessee
shall likewise be released by Lessor.
26 . FAA Requirements. To comply with Federal Aviation
Administration requirements , Lessee, for himself, his heirs,
executors, administrators, legal representatives, successors, and
assigns, as a part of the consideration hereof, does hereby
covenant and agree, as a covenant running with the land:
(1) That in the event facilities are constructed,
maintained, or otherwise operated on the premises
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described in this Lease for a purpose for which a
Department of Transport program or activity is
extended, or for another purpose involving the
provision of similar services or benefits, Lessee shall
maintain and operate such facilities and services in
compliance with all other requirements imposed 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
Transportation--Effectuation of Title VI of the Civil
Rights Act of 1964 , and as said Regulations may be
amended.
(2) That (a) no person on the grounds of race, color, or
national origin shall be excluded from participation
in, denied the benefits of, or be otherwise subjected
to discrimination in the use of said facilities; (b)
that in the construction of any improvements on, over,
or under such land and the furnishing of services
thereon, no person on the grounds of race, color, or
national origin shall be excluded from participation
in, denied the benefits of, or otherwise be subject to
discrimination; and (c) that Lessee shall use the
premises in compliance with all other requirements
imposed by or pursuant to Title 49 , Code of Federal
Regulations, Department of Transportation, Subtitle A,
Office of the Secretary, Part 21 , Non-discrimination in
Federally-Assisted Programs of the Department of
Transportation--Effectuation of Title VI of the Civil
Rights Act of 1964 , and as said Regulations may be
amended.
(3) That in the event of breach of any of the above nondis-
crimination covenants , Lessor shall have the right to
terminate this Lease and to re-enter and repossess said
land and the facilities thereon, and hold the same as
if said Lease had never been made or issued. This
provision does not become effective until the
procedures of 49 CFR Part 21 are followed and
completed, including expiration of appeal rights.
(4) That Lessee shall furnish his 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.
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i
(5) That non-compliance with paragraph 26 (4) above shall
constitute a material breach thereof, and in the event
of non-compliance Lessor shall have the right to
terminate this Lease and the estate hereby created
without liability therefor, or at the election of
Lessor or the United States either or both said
Governments shall have the right to judicially enforce
provisions .
(6) That Lessee agrees that he shall insert the above five
provisions 26 (1) through 26 (5) in any lease agreement,
contract, etc. , by which said Lessee grants a right or
privilege to any person, firm, or corporation to render
accommodations and/or services to the public on the
premises herein leased.
(7) That Lessee assures that he will undertake an
affirmative action program as required by 14 CFR Part
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 he will require
that his covered suborganizations provide assurances to
Lessee that they similarly will undertake affirmative
action programs, and that they will require assurances
from their suborganizations, as required by 14 CFR 152 ,
Subpart E, to the same effort.
(8) That Lessor reserves the right to further develop or
improve the landing area of Redding Municipal Airport
as it sees fit, regardless of the desires or view of
Lessee and without interference or hindrance.
(9) That Lessor reserves the right, but shall not be
obligated to Lessee, to maintain and keep in repair the
landing area of Redding Municipal Airport and all
publicly-owned facilities of said Airport, together
with the right to direct and control all activities of
Lessee in this regard.
(10) That this Lease shall be subordinate to the provisions
and requirements of any existing or future agreement
between Lessor and the United States relative to the
development, operation, or maintenance of the Redding
Municipal Airport.
-19-
(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
review requirements covered in Part 77 of the Federal
1 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 .
(13) That Lessee, by accepting this Lease, expressly agrees
for himself, his heirs, executors, administrators,
legal representatives, successors, and assigns, that he
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 of 550 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 structure or object and cut the offending
tree, all of which shall be at the expense of Lessee.
(14) That Lessee, by accepting this Lease, agrees for
himself, his heirs, executors, administrators, legal
representatives, successors, and assigns, that he will
not make use of the leased premises in any manner which
might interfere with the landing and taking off of
aircraft from the Redding Municipal Airport, or 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
abatement of such interference at the expense of
Lessee.
(15) 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) .
27 . Discrimination. Notwithstanding any other provisions
of this Lease, Lessee shall make its services available to the
-20-
public without unjust discrimination; provided, however, that
Lessee shall have the privilege of refusing service to any person
or persons for just cause, but not to discriminate by virtue of
race, creed, sex, 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 unjustly discriminatory prices for such services.
28 . 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
or noncommercial operation and to revoke a lease 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,
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
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
when due all rents, charges, fees, or other payments in
accordance with applicable leases or licenses.
-21-
•
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 written notice from the Lessor.
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 Lessor with false or misleading
information or misrepresenting any material fact on the
application or documents, or in statements to or before
the Lessor, or intentional failure to make full
disclosure on a financial statement, or other required
documents.
29 . 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
Lessee violates or neglects or fails to keep, observe, and
perform any of the covenants, promises , or conditions herein
contained which are on his part to be kept, observed, and
performed, Lessor may, at its election, give Lessee written
notice of such default. If such default shall continue for sixty
(60) days, and Lessee has failed to commence good faith efforts
to cure such default within said period, Lessor shall have the
right at any time thereafter and while such neglect or default
continues to enter into or upon said premises, or any part
thereof, and repossess the same, including all buildings and
improvements thereon, and expel Lessee and those claiming under
Lessee, and remove their effects, forcibly if necessary, without
prejudice to any remedies which might otherwise be invoked by
Lessor.
-22-
•
30 . 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,
be used for its intended purposes, Lessee shall have the right to
terminate this Lease as of the date Lessee is required to vacate
a portion of the premises, upon the giving of notice in writing
of such election within thirty (30) days after said premises have
been so appropriated or taken. In the event of such termination,
both Lessor and Lessee shall thereupon be released from any
liability thereafter accruing hereunder. Lessor agrees,
immediately after learning of any appropriation or taking, to
give Lessee notice thereof in writing.
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
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
-23-
prorated and Lessor agrees to refund to Lessee any unused portion
of said rent or other charges paid in advance. Lessee' s right to
receive compensation or damages for his building and other
improvements, as well as his fixtures, personal property, and for
the moving or relocation expenses shall not be affected in any
manner hereby, and Lessee reserves the right to bring an action
for such compensation or damages, including loss of business,
leasehold interest, and other reasonable damages.
31 . Professional Fees. In case suit or action is
instituted to enforce any of the provisions of this Agreement,
the prevailing party therein shall be entitled to all reasonable
and necessary bookkeeper and accountant fees incurred by that
party in connection with such suit or action, plus such sums as
may be adjudged reasonable for that party' s attorney fees at
trial and on appeal.
32 . 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 Lessor: City Manager
City of Redding
760 Parkview Avenue
Redding, California 96001-3396
-24-
• 4
To Lessee: Chris A. Smith dba CAS Properties, P.O. Box 1602,
Portland, Oregon 97207 ;
And to: James C. Waggoner, Waggoner, Rarleigh, Wada and
Borland, 121 S.W. Morrison, Suite 1000 , Portland,
Oregon 97204-6044 .
33 . Cooperation. The parties hereto agree to fully
cooperate in carrying out this Agreement, including the execution
of all documents reasonably necessary to effectuate the intention
of the parties .
34 . Entire Agreement. This Agreement sets forth the entire
agreement between the parties hereto. Modifications or additions
to this Agreement shall be considered valid only when mutually
agreed upon by the parties in writing.
35 . 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 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
provisions of this Agreement.
36 . City Administration. Whenever Lessee is required to
secure approval or consent from Lessor, Lessor shall mean the
Director of Airports of Lessor. 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 City Council
of Lessor, whose decision thereon shall be final.
37 . Successors and Assigns . All covenants, stipulations,
and agreements in this Lease shall extend to and bind the heirs,
-25-
• 111
executors, administrators, legal representatives, successors, and
assigns of the respective parties hereto.
38 . Invalid Provision. In the event any covenant,
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
contained, provided that the validity of any such covenant,
condition, or provision does not materially prejudice either
Lessor or Lessee in their respective rights and obligations
contained in the valid covenants, conditions, and provisions of
this Agreement.
39 . CEQA. It has been determined that this matter is
categorically exempt from the provisions of the California
Environmental Quality Act.
IN WITNESS WHEREOF, the parties hereto have executed this
Lease on the day and year set forth below.
CITY OF REDDING, Lessor Lessee: CHRIS A. SMITH
dba CAS PROPERTIES
By: By:
K. MAURICE JOHANNESSEN CHRIS A. SMITH
Mayor
ATTEST: FORM APPROVED:
ETHEL A. NICHOLS, City Clerk RANDALL A. HAYS, City Attorney
-26-
' •
• • .
EXHIBIT "A"
That real property situate in the City of Redding, County of
Shasta, State of California, described as follows:
COMMENCING at the northeast corner of Section 27 , Town-
ship 31 North, Range 4 West, M.D.M. ; thence on and along the
north line of said Section 27 , south 89°25 ' 16" west,
1 , 999 . 34 feet to a point on the centerline of Airport Road;
thence on and along said centerline, south 00°10 ' 38" west,
4 , 100 . 26 feet; thence, continuing south 00°10 ' 05" west,
1 , 283 . 34 feet; thence, continuing south 00°10 ' 14" west,
782 . 92 feet; thence leaving said centerline south 89°49 ' 14"
east, 729 . 83 feet to the true point of beginning; thence
running the following bearings and distances, continuing
south 89°49 ' 14 " east; 192 . 00 feet to the west line of the
Municipal Airport commercial ramp; thence, on and along said
west line of commercial ramp, south 00°10 ' 46" west, 200 . 00
feet; thence leaving said west line, north 89°49 ' 14" west,
192 . 00 feet; thence, north 00°10 ' 46" east, 200 . 00 feet to
the point of beginning, containing 38 , 400 square feet.
RESERVING UNTO CITY THEREFROM, a 10-foot wide public service
easement lying westerly of and adjacent to the east line of
the above-described parcel.
(SKETCH ATTACHED)
PREMISES LEASED BY CHRIS A. SMITH
AT REDDING MUNICIPAL AIRPORT.
SHEET NO. OF
CHKD. BY^ DATE S JOB NO.
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