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HomeMy WebLinkAboutReso. 1987 - 197 - Approving the lease agreement between the city of redding and hillside aviation and authorizing the mayor to sign same 411 111 RESOLUTION NO. 27-",,7 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING THE LEASE AGREEMENT BETWEEN THE CITY OF REDDING AND HILLSIDE AVIATION, AND AUTHORIZING THE MAYOR TO SIGN SAME. BE IT 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 attached Lease between the City of Redding and Hillside Aviation providing for the rental of hangar facilities at Benton Airpark; and 2. That the Mayor of the City of Redding is hereby authorized and directed to sign all necessary documents 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 Lease, when appropriate. 3 . That a true copy of said Lease is attached hereto and incorporated herein by reference. I HEREBY CERTIFY that the foregoing Resolution was intro- duced and read at a regular meeting of the City Council of N • • the City of Redding on the 16th day of June , 1987, and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: Carter, Fulton, Gard, Johannessen, & Dahl NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS: None MIKE DAHL, Mayor City of Redding ATTEST: P E HEL A. NICHOLS, City Clerk FORM APPROVED: • A i'DAL A. HAYS, C '/ y Attorney -2- • • • LEASE THIS LEASE AGREEMENT is made and entered into this glUV day of June, 1987 , by and between the CITY OF REDDING, a Municipal Corporation and General Law City of the State of California, hereinafter referred to as "Lessor, " and HILLSIDE AVIATION, hereinafter referred to as "Lessee" : WITNESSET H: WHEREAS, Lessor owns and maintains Benton Airpark, an aircraft facility located in the City of Redding,, County of Shasta; and WHEREAS, Lessee desires to lease certain hangar facilities at said airport and has applied to the City Council of Lessor for a permit to operate an airplane hangar at said airport; and WHEREAS , the City Council has determined that: (1) the proposed aircraft hangar activity is compatible with the Master Plan of the airport, and (2) that the best interests of the public and of Lessor will be served by approval of the applica- tion for a permit; and WHEREAS, Lessee has indicated a willingness and ability to properly keep, maintain, and improve said hangar area in accordance with standards established by Lessor; and WHEREAS , Lessee desires to obtain and avail itself of the privileges, rights , uses, and interest therein and herein; and WHEREAS, Lessor deems it advantageous to itself and to the operation of said airport to demise and lease unto Lessee said hangar area, together with said privileges, rights, uses, and interest therein as hereinafter set forth; NOW, THEREFORE, IT IS AGREED as follows: 1. Term. Lessor, for and in consideration of the covenants, conditions, and agreements herein set forth to be kept and performed by Lessee, does hereby grant, demise, and lease unto Lessee, subject to all of the conditions, covenants, terms, and agreements hereinafter set forth, those certain premises as the same are shown on Exhibit "A, " incorporated herein for all purposes, for a term of three (3) years, commencing July 1, 1987 and terminating June 30 , 1990. At the end of said term, Lessee shall have the right of first refusal as to any lease of such premises negotiated by Lessor with any other party. Lessee shall also have the right to first refusal as to any sale of said premises in the event Lessor elects to sell same. These rights of first refusal given to Lessee herein, however, shall not be construed as a waiver of Lessor' s rights to remove Lessee for breach of any term or condition of this Lease by Lessee. 2. Ground Rental. Lessee shall pay to Lessor hangar building rental in accordance with the following provisions: a. For the 6, 930 square foot premises, Eleven Thousand Seven. Hundred and 00/100 Dollars ($11, 700. 00) per year. Said annual rental shall be payable in twelve (12) monthly installments of Nine Hundred Seventy Five and 00/100 Dollars ($975 . 00) , payable in advance to Lessor -2- • . . . on the first day of each month during the term of this Lease, commencing July 1 , 1987. b. Lessor is entitled to collect and Lessee agrees to pay to Lessor upon invoice said rentals, fees, and charges set forth above. Any said rentals, fees, or 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 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 or 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 or the expense so incurred, including all interest, costs, damages and penalties which may be added, after fifteen (15) days notice by Lessor to Lessee to any installment of rent thereafter due hereunder and each and every part of the same shall be and become additional rent recoverable by Lessor in the same manner and with like remedies as though it were originally a part of the rent as set forth hereinabove. 3 . Use of Premises. The ground area and improvements thereon shall be used by Lessee for the storage of aircraft and the repair and maintenance of Lessee-owned or leased aircraft. -3- • Lessee shall not permit any type of maintenance or commercial activity of those premises that may be subleased. 4 . Maintenance and Repairs. Lessee shall at its sole cost and expense keep and maintain said internal hangar area, improve- ments, appurtenances, and every part thereof in good and sanitary order, condition, and repair, hereby waiving all rights to make repairs at the expense of Lessor as provided in Section 1942 of the Civil Code of the State of California, and all rights provided for by Section 1941 of said Civil Code. Such mainte- nance shall expressly include a regular and consistent program of repainting and prompt repair of any damaged portions of the internal building area. Lessor will maintain the external hangar building portion. 5 . Alterations and Additions . Lessee shall not make any alterations to or erect any additional structures or improvements on the leased ground area without prior written permission of Lessor. Any alterations or additions approved by Lessor shall be constructed at the sole expense of Lessee. 6. Signs. Lessee shall be privileged to erect such signs and advertising media and place the same upon the improvements to be constructed by Lessee as may be required, subject to first securing the approval of the Airports Manager of Lessor. The Airports Manager shall determine whether such advertising media is aesthetically harmonious with said improvements and facilities at the airport. 7. Unlawful Use. No building, structure or improvement of -4- any kind shall be erected, placed upon, operated or maintained on the leased area, nor shall any business or operation be conducted or carried on therein or thereon in violation of any ordinance, law, statute, by-law, order or rule of the governmental agency having jurisdiction thereover. 8. Waste, Quiet Conduct. Lessee shall not commit nor suffer to be committed any waste upon said area or improvements, or any nuisance or other act or thing which may disturb the quiet enjoyment of the use of said airport or surrounding property. 9. Trade Fixtures. Any trade fixtures , equipment, or other property brought, installed or placed by Lessee in or about the leased premises shall be and remain the property of Lessee except as otherwise provided herein. Lessee shall have the right at any time during the term hereof to remove any or all of its property, subject to Lessee ' s obligation to repair all damage, if any, resulting from such removal. Such trade fixtures, equipment, and other property of Lessee shall be removed by Lessee from the leased premises upon the expiration or earlier termination of this Lease. 10. 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 from personal injury, death or property damage in any way connected with Lessee ' s activities at said airport, including claims of Lessee, its officers, agents or -5- employees. 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 or employees. b. Lesseeshall procure and maintain at all times during the term of this Lease at its sole cost and expense, public liability insurance in the sum of $300, 000. 00 for each person and $1 , 000, 000. 00 for two or more persons , and property damage insurance in the sum of not less than $500 , 000 . 00 . Evidence of such insurance shall be filed with the City Clerk of Lessor and shall contain a hold harmless provision on behalf of Lessor, its officers, agents , and employees, in accordance with Subparagraph a. above; provided, however, that Lessee shall not be liable for any damages occasioned by the sole negligence of Lessor, its officers, agents or employees. Such insurance shall further contain a provision which obligates the insurance carrier to notify Lessor in writing at least ten (10) days prior to any cancellation or reduction in coverage of such insurance. c. Lessee shall also secure and maintain fire insurance on the buildings and structures to be erected by Lessee as a part of the aviation operation created by this Lease, -6- • and insurance coverage shall be to the full insurable value of the structures, buildings, and contents as erected and placed upon the leased area. Lessee further agrees that in the event of any fire or partial or complete destruction of the structures erected by Lessee, any proceeds of insurance received by Lessee shall be utilized in the replacement, reconstruction or repair of the damaged or destroyed improvements. 11 . Possessory Interest Taxes. Lessee shall pay any and all possessory interest taxes levied against Lessee by the County Assessor of the County of Shasta, State of California, , arising out of its use of the demised premises. In addition thereto, Lessee shall pay any and all charges incurred for telephone service and any and all other utilities subscribed to by Lessee which are not expressly leased in the paragraph entitled "Mainte- nance and Operation of Airport" hereinabove to be provided and paid for by Lessor. 12. Inspection and Notice. Insofar as the same may be necessary for the protection of Lessor' s rights, Lessor or its agents shall at any and all times have the right to go upon and inspect the ground area and improvements hereby leased and any and every structure or improvement erected or constructed or in the course of being erected or constructed, repaired, added to, rebuilt or restoredthereon, and also to serve or to post and to keep posted thereon, or on any part thereof, any notices provided in Section 1183 . 1 of the Code of Civil Procedure of the State of -7- • California,. or any other section of the Code of Civil Procedure of the State of California, or any other notice or notices that may be at any time required or permitted by law. 13 . Assignment or Subletting. Lessee shall not assign this Lease or any interest therein and shall not sublet the said premises or any part thereof, or any right or privilege pertinent thereto, or suffer any other person (the officers, agents , and employees of Lessee excepted) to occupy or use the said real property or any portion thereof without the written consent of Lessor first had and obtained, and a consent to one assignment, subletting, occupancy or use by another party shall not be deemed to be a consent to any subsequent assignment, subletting, occupancy or use by another person. 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 assigned as to the interest of Lessee by operation of law without the written consent of Lessor; provided, however, that if Lessee' s financial arrangements require that this Lease be made assignable to Lessee ' s lender, said lender being a recognized lending institution, said consent to assign, including the lender' s right to reassign, shall not be necessary. Lessor agrees that it will not arbitrarily or capriciously withhold its consent required hereunder. 14 . Bankruptcy or Insolvency. If Lessee shall be adjudged bankrupt, either by voluntary or involuntary proceedings , or if Lessee should be the subject of any proceedings to stay the -8- • . enforcement of obligations against it in the form or reorganiza- tion or otherwise under and pursuant to any existing or future laws of the Congress of the United States, or if Lessee shall discontinue business or fail in business or abandon or vacate said real property or make an assignment for the benefit of creditors, or if said real property should come into possession and control of any trustee in bankruptcy, or if any receiver should be appointed in any action or proceeding with power to take charge, possession, control or care of said real property, Lessor shall have the option to forthwith terminate, this Lease and to reenter the real property and take possession thereof. In no event shall this Lease be deemed an asset of Lessee after adjudication in bankruptcy. 15 . Utilities . Lessee shall be responsible for the prompt payment of any utility service charges applicable to the ground area leased to him by the provisions of this Lease and the failure to pay these charges promptly shall expressly constitute a material breach of this Lease. 16 . Binding on Heirs . The provisions and conditions of this Lease shall be binding upon and inure to the benefit of the heirs, assigns , and successors in interest of the parties hereto. 17 . Maintenance and Operation of Airport. Lessor will properly maintain and operate the airport (including all build- ings and facilities) for the safe, convenient, and proper use thereof by Lessee and in accordance with all Federal Aviation Administration rules and regulations . -9- 411 • 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 or hereafter applicable to the leased premises and facilities or to any adjoining public ways. 19. Discrimination. Lessee, in the operation and use of Benton Airpark or of its facilities thereon, will not on the grounds of race, color, sex or national origin discriminate or permit discrimination against any person or group of persons in any manner prohibited by the United States of America or the State of California. 20 . Breach. Upon written notice from Lessor to Lessee that Lessee is committing a material breach of a term or condition of this Lease, Lessee shall forthwith cure such breach. In the event that Lessee has not cured such breach of a term or condi- tion of this Lease, Lessee shall forthwith cure such breach. In the event that Lessee has not cured such breach of a term or condition of this Lease within thirty (30) days following the mailing of such written notice to Lessee by Lessor, Lessor shall have the right to enter and take over the demised premises and exclude Lessee therefrom. This right shall be in additions to any and all other rights possessed by Lessor under the laws of the State of California relating to landlord and tenant. 21 . Cancellation. This Lease may be cancelled by either party at any time during the term of this Lease upon thirty (30) -10- • . . III _ . days ' advance written notice of such cancellation. 22. California Environmental Quality Act. It has been determined that this matter is categorically exempt from the provisions of CEQA. IN WITNESS WHEREOF, the parties hereto have executed this Lease on the day and year first above written. CITY OF REDDING By; �� f MIKE DAHL, Mayor HILLSIDE AVIA _ ON rtf By: .�L By: • ATTEST:40 / / EL A. NICHOLS, City Cl, FORM A'PROVED: Oligf RANIALL A. HAY , C . y Attorney -11- • • • . EXIIIBIT "A" HILLSIDE AVIATION LEASE AREA Commencing at a point on the centerline of the runway of, Benton Airpark, which point is designated as Engineer' s Station '0400 on the plans for grading and paving of Benton Airpark and which point has the following Lambert Grid distances : X = 1 , 887, 007. 07 Y = 453, 535. 89 thence S. 7°03 ' 08" E. , on and along the centerline of said runway, a distance of 1202 feet to Engineer' s Station 12402 S. , 0400 E. ; thence N. 82°56 ' 52" E. , a distance of 247 feet to the true point of beginning of this description, which is Engineer' s Station 12402 S. , 2447 E. ; thence N. 82°56 ' 52" E. , a distance of 198 feet to Engineer' s Station 12402 S. , 4445 E. ; thence S. 7°03 ' 08" E. , a distance of 35 feet to Engineer ' s Station 12437 S. , 4445 E. ; thence S. 82°56 ' 52" W. , a distance of 198 feet to Engineer' s Station 12437 S. , 2447 E. ; thence N. 7°03 ' 08" W. , a distance of 35 feet to the true point of beginning of this description. Containing 6930 square feet.