HomeMy WebLinkAboutReso. 1986 - 062 - Approving the modification to lease agreement between the city of redding and the small business administration an agency of the united states of america 411
RESOLUTION NO. ��,
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
APPROVING THE MODIFICATION TO LEASE AGREEMENT BETWEEN THE
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CITY OF REDDING AND THE SMALL BUSINESS ADMINISTRATION, AN
AGENCY OF THE UNITED STATES OF AMERICA, ON THE FORMER "CAL
TODD" FACILITY AT THE REDDING MUNICIPAL AIRPORT, AND
AUTHORIZING THE MAYOR TO SIGN.
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 Modification to Lease Agreement between the
City of Redding and the Small Business Administration, an Agency
of the United States of America, on the former "Cal Todd"
facility at the Redding Municipal Airport; 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
documents, when appropriate; and
3. That a true copy of the Modification to Lease Agreement
referred to herein is attached hereto and made a part hereof.
I HEREBY CERTIFY that the foregoing Resolution was
introduced and read at a regular meeting of the City Council of
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the City of Redding on the 17th day of March , 1986,
and was duly adopted at said meeting by the following vote:
AYES: COUNCIL MEMBERS: Demsher, Fulton, Pugh, & Gard
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: Kirkpatrick
ABSTAIN: COUNCIL MEMBERS: None
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BARBARA ALLEN GARD �5�. Vice Mayor
City of Redding
ATTEST:
ETHEL A. NICHOLS, City Clerk
ORM ?PROVED �
RAN ALL A. HAYS, City Attorney
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MODIFICATION TO LEASE AGREEMENT
This Modification to Lease Agreement, made and entered into
this day of , 1986 , by and between the CITY
OF REDDING, a Municipal Corporation and General Law City of the
State of California, hereinafter called "LESSOR, " and the SMALL
BUSINESS ADMINISTRATION, an Agency of the United States of
America, hereinafter called "LESSEE" :
WITNESSETH:
WHEREAS, LESSOR did enter into a Lease Agreement dated
November 5 , 1979, with the ECONOMIC DEVELOPMENT CORPORATION OF
SHASTA COUNTY regarding the premises described in Exhibit "A"
attached hereto and incorporated herein by reference (hereinafter
called "Lease A" ) ; and
WHEREAS, LESSOR did enter into a Lease Agreement dated
November 5 , 1979 , with EUGENE F. CALANCHINI and KAREN L.
CALANCHINI regarding the same premises (hereinafter called
"Lease B") ; and
WHEREAS, the Lessees ' interests under both Lease A and
Lease B have been assigned to LESSEE by Assignment recorded
June 26 , 1985,' in Book 2158 , page 548 , of Official 'Records of
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Shasta County, and by Quitclaim Deed recorded June 26, 1985 , in
Book 2158 , page 552 , of Official Records of Shasta County; and
WHEREAS , questions have arisen regarding these assignments
and other provisions of the Leases, and LESSOR and LESSEE wish to
modify Lease A and Lease B to resolve these questions and to
amend the terms of these Leases .
NOW, THEREFORE, IT IS AGREED as follows :
1 . LESSOR acknowledges that the Lessees ' leasehold
interests in both Lease A and Lease B are validly held by LESSEE
as a recognized lending institution pursuant to Paragraph 16 of
Lease A and Paragraph 17 of Lease B, and that LESSEE has a right
of reassignment pursuant to those paragraphs without the consent
of LESSOR.
2 . LESSEE agrees that it will, with reasonable dispatch,
seek a suitable assignee of the Leases to operate on the premises
as a fixed-base operator, and LESSOR agrees that it will not
unreasonably withhold its consent from such an assignee to so
operate pursuant to the Resolution of the City Council of the
City of Redding recorded May 20 , 1981 , in Book 1812 , page 219 , of
Official Records of Shasta County.
3. LESSEE agrees to maintain the security of the premises
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until such an assignment , and to pay all delinquent ground
rentals and fuel flowage fees to date and all ground rentals due
up to the date of such assignment. Payment of said rentals and
fees shall be made within thirty (30) days of execution of this
Agreement. LESSOR agrees that once an acceptable assignment by
LESSEE has been made, LESSEE will no longer have any liability
under any provisions of the Leases. LESSOR and LESSEE agree that
if recent fuel flowage fees cannot be documented by LESSOR,
LESSEE shall pay an estimated charge based upon the history of
fuel sales at the facility.
4. LESSOR agrees that an acceptable assignee of LESSEE
shall have all rights of LESSEE under Lease A and Lease B
including, but not limited to, the right to assign its interest
to a lender, which is a recognized lending institution, without
the consent of LESSOR required for such an assignment or for the
lender' s right to reassign.
5 . Paragraphs 3 of Lease A and Lease B are amended as
follows:
3 . Ground Rental . Lessee shall pay to Lessor under this
lease and under a companion lease dated this same date
a combined base ground rental in accordance with the
following provisions:
a) For the approximately 2 . 47 acres of demised
premises, $1 , 133. 00 per month, for the first five
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(5) years from the date of this Modification to
Lease Agreement. Said monthly installments shall
be payable in advance to Lessor on the first day
of each month, commencing on the first day of
April, 1986 , through and including the 31st day of
March, 1991 .
b) At the end of such five (5) -year period and for
one (1) five-year period thereafter, and every
three (3) years after the initial fifteen (15) -
year portion of the term (the lease term to date ,
the two (2) five-year periods and said subsequent
three-year periods being hereinafter individually
referred to as "rental period" ) , a fair market
value of the leased ground 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 base
ground rental shall be adjusted accordingly.
c) In the event of any disagreement between the
parties as to the fair market value of the lease-
hold ground area to be valued under the terms of
this paragraph, 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
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parties . The costs of appraisal are to be borne
equally by each of the parties hereto, and both
Lessee and Lessor shall be bound by the appraisal
rendered. In the event of disagreement among the
appraisers , the decision of any two of the three
appraisers shall govern; provided, however, that
in no event shall the minimum ground rental be
less than the minimum provided for in subparagraph
(a) above.
d) Lessor agrees to provide notice to any lender of
Lessee holding a collateral assignment of this
lease of any delinquencies and of any adjustments
to these fees, provided the lender requests such
notice in writing.
6 . Paragraph 5 of Lease A and Lease B are amended to read
as follows :
5 . Flowage Fees .
Lessee shall pay to Lessor fuel flowage fees by
the 10th of each month in accordance with rates estab-
lished by City Council Resolution. Fuel supplier
invoices will accompany each monthly payment, and
Lessee consents to Lessor obtaining copies of invoices
directly from supplier.
The fees required to be paid in accordance with
the provisions of this paragraph shall be paid to
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Lessor by Lessee on or before the tenth (10th) day of
the month immediately following the month in which the
gasoline or jet fuel was delivered to Lessee or trans-
ported by Lessee to Redding Municipal Airport for
Lessee ' s use or resale. Payment shall be accompanied
by a duplicate original invoice or true copy thereof
prepared by the oil company from which Lessee receives
the aforesaid gasoline or jet fuel . Such invoice shall
show the amount delivered to Lessee and the date of
delivery.
At the option of Lessee, Lessee may arrange with
any oil company from which Lessee obtains gasoline or
jet fuel that the fees hereinabove specified shall be
paid by the gasoline and oil company distributor
directly to Lessor. Such arrangement must provide that
such payment be made on or before the tenth (10th) day
of the month following the date of delivery of the
gasoline or jet fuel to Lessee, and Lessee shall remain
primarily liable for the payment of the fee specified
in this paragraph, whether or not such arrangement is
made.
Lessor agrees to provide notice to any lender of
Lessee holding a collateral assignment of this lease of
any delinquency and of any adjustments to these fees,
provided the lender requests such notice in writing.
Lessee is hereby designated a fixed-base operator
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at Redding Municipal Airport. Such designation shall
not convey any exclusive right or franchise to Lessee,
but it is to be noted that the policy of Lessor at the
time of execution of this Agreement is that no lessee
at Redding Municipal Airport shall have the right of
resale of gasoline or jet fuel unless such lessee has
been designated a fixed-base operator by the City
Council of the City of Redding. In consideration of
the designation of fixed-base operator and the authori-
zation to sell gasoline and jet fuel at Redding
Municipal Airport, Lessee agrees to install/maintain
gasoline and jet fuel facilities within the leased
premises.
Lessee agrees to maintain such equipment in good
operating condition, and at the end of this lease or
any earlier termination thereof to deliver over same to
Lessor clear of any and all encumbrances. Lessee
further agrees to obtain and maintain, during the term
of Lessee ' s gasoline, oil and jet fuel resale permit or
permits , comprehensive public liability insurance on
the aforesaid underground fuel tanks, lines and
appurtenances thereto, with a company licensed by the
State of California to write such policies ii an amount
not less than $1 ,000 ,000 . 00 per occurrence and naming
Lessor, its officers , employees and agents as
additional insureds, and to provide Lessor with a
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411
certificate evidencing such policy and providing that
the issuing insurance company shall notify Lessor in
writing at least thirty (30) days prior to any modifi-
cation or cancellation of said policy.
IN WITNESS WHEREOF, the parties hereto have executed this
Modification to Lease Agreement on the day and year first above
written.
HOWARD D. KIRKPATRICK Mayor
CITY OF REDDING
ATTEST:
ETHEL A. NICHOLS , City Clerk
FORM APPROVED:
RANDALL A. HAYS, City Attorney
SMALL BUSINESS ADMINISTRATION
By:
Acting Branch Manager
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Legal Description
All that land located in the County of Shasta, State of
California, described as follows:
Parcel 1:
Commencing at the corner common to Sections 22, 23 , 26 and 27 , T.
31 N. , R. 4 W. , M.D.B.& M. , and thence westerly on and along the
section line common to Sections 22 and 27, S. 89 degrees 14 ' 56"
W. , 2000 .00 feet to the centerline of Airport Road; thence
southerly on and along said centerline, S. 00 degrees 02 ' 04" E. ,
3939 .68 feet to the centerline of Municipal Airport Entrance Road;
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thence on and along said, centerline, N. 89 degrees 57 ' 56" E. ,
1004.56 feet; thence, leaving said centerline, S. 00 degrees _03 '
56" E. , and parallel with the centerline of the taxiway, 194.22
feet to the point of beginning; thence running the following
bearings and distances: S. 00 degrees 03 ' 56" E. , and parallel
with the centerline of said taxiway, 180 .00 feet; thence S. 89
degrees 57 ' 56" W. , and parallel with the centerline of said
entrance road, 325 .00 feet; thence N. 00 degrees 03 ' 56" W. , and
parallel to the centerline of said taxiway, 180 .00 feet; thence N.
89 degrees 57 ' 56" E. , and parallel with the centerline of said
EXHIBIT "A"
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entrance road, 325 .00 feet, more or less, to the point of
beginning.
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Parcel 2
Commencing at the corner common to Section 22, 23, 26 and 27 , T.
31 N. , R. 4 W. , M.D.B. & M. , and thence westerly on and along the
section line common to Sections 22 and 27 , S. 89 degrees 14 ' 56"
( W. , 2000 .00 feet to the centerline of Airport Road; thence
southerly on and along said centerline, S. 00 degrees 02 ' 04" E. ,
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3939.68 feet to the centerline of Municipal Airport Entrance Road;
thence on and along said centerline N. 89 degrees 57 ' 56" E. ,
1004.56 feet; thence, leaving said centerline, S. 00 degrees 03 '
56" E. , and parallel with the centerline of the taxiway 40 .00 feet
to the point of. beginning; thence running the following bearings
and distances: S. 00 degrees 03 ' 56" E. , and parallel with the
centerline of said taxiway, 154.22 feet; thence S. 89 degrees 57 '
.
56" W. , and parallel with the centerline of said entrance road,
350.00 feet; thence N. 00 degrees 03 ' 56" W. , and parallel to the
centerline of said taxiway, 154.22 feet; thence N. 89 degrees 57 '
56" E. , and parallel with the centerline of said entrance road,
325 .00 feet, more or less, to the point of beginning.
Excepting therefrom the Easterly 45 .00 feet of the Northerly 21 . 80
1 feet.
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