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HomeMy WebLinkAboutReso. 1986 - 121 - Approving the consent of lessor to the sublease between small business adminitration and hillside aviation inc _ - RESOLUTION NO. se-42-1 A RESOLUTION OF THE CITY COUNCIL OF THE CITY SOF REDDING APPROVING THE CONSENT OF LESSOR TO THE SUBLEASE BETWEEN SMALL BUSINESS ADMINISTRATION AND HILLSIDE AVIATION, INC. , 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 attached Consent of Lessor to the Sublease between the Small Business Administration and Hillside Aviation, Inc. ; 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 in connection with said Consent of Lessor, and that 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 Consent of Lessor 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 N. Cv • • the City of Redding on the 19th day of May , 1986 , and was duly adopted at said meeting by the following vote: AYES : COUNCIL MEMBERS: Carter, Dahl , Johannessen, & Fulton NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Gard ABSTAIN: COUNCIL MEMBERS: None LEE D. FULTON, M.D. , Mayor City of Redding ATTEST: a Ac.,;(,,, E HEL A. NICHOLj y Clerk (29A5111-72 , ,A4;14-a/649-45:- FORM APPROVED: g RA DALL A. HAYSAity Attorney -2- , . , III III , CONSENT OF LESSOR The undersigned, CITY OF REDLJING, is the Lessor in the ground lease described in the Sublease attached hereto as Exhibit "A" and incorporated herein by reference, and hereby consents to said Sublease to HILLSIDE AVIATION, INC. , a California Corporation, waiving none of its rights thereunder as to the original Lessee, SMALL BUSINESS ADMINISTRATION, provided that, this Consent shall be revoked as of June 2, 1986 , if HILLSIDE AVIATION, INC. and SMALL BUSINESS ADMINISTRATION have not fully executed the Sublease in the form attached hereto as Exhibit "A. " Further provided that, this consent, if. not revoked, shall be for a term of six (6) months, ' commencing on June 1, 1986 , and terminating on November 30 , 1986 , and continuing thereafter on a month-to-month basis. From and after November 30 , 1986 , this consent may be terminated without cause and for dny : eascn by action of the City Council of the City of Redding and the giving of thirty (30) days ' written notice to sub-lessor and sub-lessee. This Consent shall be binding on and inure to the benefit of the undersigned and its successors-in-interest and assigns. DATED: May , 1986 . CITY OF REDDING By: LEE D. FULTON, M.DII , Mayor ATTEST: ETHEL A. NICHOLS , City Clerk FORJ�M?�PPROVED: G ,� RANDALL A. HAYS,' City Attorney `. { 110 SUB--LEASE THIS LEASE, made and entered into at Redding, Shasta County, California, on May 1986, by and between the SMALL BUSINESS ADMINISTRATION (Lessor) and HILLSIDE AVIATION, INC. , a California corporation, (Lessee) , is based on the following agreed recital of facts; a) That lessor is the owner of that certain aviation building located at the Redding Municipal Airport, previously occupied by Cal-Todd Aviation, and is desirous of leasing to lessee all of the first floor of said building, but excluding those portions of said building currently containing the parts, avionics, and machine shop areas as more particularly described on Exhibit "A", which is a diagram of said building and which is made a part hereof for all purposes. In addition, this lease shall include all property contiguous to said building which is included in lessor's ground lease with • the City of Redding. Collectively, the building and contiguous land described in this paragraph shall be known herein as "said premises". NOW, THEREFORE, IT IS MUTUALLY AGREED AS FOLLOWS: 1. LEASE: For and in consideration of the rents, covenants and agreements herein contained, lessor hereby leases unto lessee said premises, and lessee does hereby lease said premises promising to perform the obligations and covenants incumbent upon lessee herein. • i 2. TERM: The term of this lease shall be for a period of six (6) months, commencing on June 1, 1986, and terminating on November 30, 1986, at : TOO p.m. It is contemplated by the parties that upon the termination of the originaL lease term the tenancy created hereunder shall continue on month-to- month basis; however, on the same terms and conditions • provided for herein. 3. RENTAL: The rental for said premises shall be the sum of $1,133 per month, payable by the tenth day of each month throughout the term of the lease, but with' the first month's rental payable by lessee to lessor upon execution of this lease by lessor. 4. USE OF PREMISES: The leased premises shall be utilized for an aircraft sales, maintenance, and service facility. 5. PERSONAL PROPERTY TAXES: Lessee shall pay, before delinquent, all taxes, assessments, license fees and other charges that are levied and assessed against lessee's personal property installed or located in or on the leased premises, • and that become payable during the term of this lease. On demand by lessor, lessee shall furnish lessor with satisfactory evidence of these payments. 6. RIGHT OF OCCUPANCY: Lessee, paying the rent and performing the covenants herein specified, shall and may peaceably hold and enjoy the said premises for the term set forth herein or any extension thereof. 7. COVENANT TO COMPLY WITH LAWS: Lessee, in carrying on and conducting business on the leased premises shall, at its. -2- �. ' • • sole cost and expense, comply with and conform to all municipal, county, state, and federal laws, ordinances and regulations now in force c -. which may hereinafter be in force • pertaining to, governing or affecting the use of the leased • i premises and the conduct of such business thereo . 8. INSPECTION BY LESSOR: Lessor, or his agents, shall 'i ;have the right at all times during the existence of this lease to enter into any part of said demised premises to ascertain its condition. 9. REPAIR AND MAINTENANCE: Lessee shall, at its sole cost and expense, perform routine cleaning and minor maintenance of the leased premises, including existing fuel pits and the cultivation and irrigation of landscaping; and shall perform routine upkeep And maintenance on heating and air conditioning systems, interior plumbing, electrical and water service, but shall not be responsible for the repair or replacement of any parts of such systems. Lessor, at lessor's yi sole cost and expense, shall keep and maintain and repair as necessary all other portions of the leased premises. 10. UTILITIES: Lessee shall pay for all utilities and other services provided to said premises and shall maintain • • those services in lessee's name. 11. TRADE FIXTURES: Lessee shall have the right to install trade fixtures and equipment in and on (laid property so long as the installation does not damage said property. All personal property installed in or on said property by lessee which can be removed without permanent damage, or with repairs by lessee which shall leave. said property undamaged, j . -3- • • 7i 1t shall constitute trade fixtures, the title to which shall i` remain in lessee. Lessee may, at any time priorlto the expiration or termination of this lease, or upon termination or expiration of this lease, or any extension (thereof, remove ti trade fixtures and equipment and furniture installed in or on said property,' provided that lessee promptly repair all damage • done to said property in removing the same and restore said property to the .condition in which it existed at the time lessee entered possession hereunder, reasonable use and wear is excepted. Lessee shall immediately repair any damage to the H structure of said premises which may result from the installation of trade fixtures by lessee. 12. ALTERATIONS TO PREMISES: Lessee shall not make any • physical alterations of the leased premises without the prior written consent of lessor. 13. INSURANCE: Lessee,. at its cost, shall maintain public liability and property damage insurance in single limits of not less than $1,000,000 per occurrence, insuring • against all liability of lessee and his authorized representatives arising out of and in connection with lessee's use or occupancy of the premises. All public liability insurance and property damage insurance shallinsure performance by lessee of the indemnity provisions of Paragraph 14. Lessor, the City of Redding and its officers, agents, and employees, and lessee shall be named co-insured on such policies and lessee shall furnish to lessor and to the City of • Redding certificates of such insurance, with provisions that such insurance cannot be modified, canceled or altered without giving ten (10) days' written notice to lessor and to the City of Redding. -4- • { Lessee, at its sole cost and expense, shall maintain a policy of standard fire and extended coverage insurance, with vandalism and malicious mischief endorsements, and glazing and • plate glass endorsements, covering the leased premises, in a policy amount of not less than $1,000,000, naming lessor as the primary loss payee. Lessee shall furnish to lessor certificates of such insurance with provisions that such insurance cannot be modified, canceled or altered without giving written notice to lessor. • 14. INDEMNITY AND LIABILITY FOR DAMAGE: Lessee shall hold lessor harmless from all damages arising out of any injury to persons or property which may occur on said property during the term of this lease or any extension thereof, and which may occur as a result of lessee's use and occupancy of said property. This covenant of indemnification and hold • harmless shall apply to any claim or assertion of liability made against lessor because of lessor's status and shall include any costs or attorney's fees incurred by lessor as a result of any action filed or claim for liability. 15. CONDITION OF PREMISES: At the commencement of the term hereunder, as hereinabove provided, the lessee acknowledges that said premises, and every part thereof, and all window glass or other glazing, electric and Igas globes, plumbing, heating and lighting fixtures, locks, bolts, heating system and other fixtures in and about the said premises, are, at the date of such entry complete and in good order, condition and repair; and that on the last day of said term, or other sooner termination of this lease, the lessee shall -5- • • • is peaceably and quietly leave, surrender and yield up to the lessor, all and singular, the said premises, with the said ixtures in good order, condition and appurtenances and f • repair, reasonable use and wear thereof and damage by acts of God or by the elements excepted. If lessee wishes to assert • that the premises are not as described in this paragraph, then .lessee shall immediately deliver to lessor a written description of any deficiencies in the premises. If lessee does not deliver such a written notice to lessor, then lessee shall be deemed to waive any such deficiency and agree with the statements set forth in this paragraph. 16. EMINENT DOMAIN: In the event the entire demised • premises shall be appropriated or taken under the power of • eminent domain by any public or quasi-public authority, then this lease shall terminate and expire as of the date of such • taking and the parties hereto shall thereupon be released from any further liability hereunder, except such liabilities as have accrued to the date of such termination. In the event part of the demised premises shall be appropriated or taken under the power of eminent domain by any public or quasi-public authority, and the part so taken would substantially impair the continued operation of the business thereon by lessee, lessee shall have the right to terminate this lease as of the date of such taking upon giving to the lessor notice in writing of such election within thirty (30) days after the receipt- by the lessee from lessor of written • notice that said premises have been so appropriated or taken. In the event of such termination, the parties hereto shall 1, : -6- • 1 thereupon be released from any further liability under this lease, except such liabilities as have accrued to the date of { such termination. "Substantial impairment", as used herein, shall mean an anticipated loss of revenue to the extent of 25% of the gross of said business. In the event that the entire demised premises, or any part thereof, shall be appropriated or taken under the power of eminent domain by any public or'.quasi-public authority,. lessor and lessee shall share in any award of compensation from such authority as their respective interests exist at the is date of the appropriation or taking. 17. WASTE: The lessee shall not commit any waste on said premises, or any public or private nuisanceI, or any act or thing which will interfere with or disturb the quiet enjoyment of any person. 18. WAIVER: If the lessee should default as to any of the conditions, covenants or agreements herein contained and the lessor having knowledge of such breach should not take advantage of the same, such failure on his part shall not be construed as a waiver of such conditions, covenants or agreements and the right of termination shall remain in full force and effect unless expressly waived in writing; provided further, that no amendment to this lease or any waiver of any term, provision or condition hereof shall be effective unless such amendment or waiver be in writing signed by lessor and lessee. 19. DEFAULT: If any rent shall be due and unpaid, or if default shall be made in any of the covenants herein contained, or if this lease is affected by the lessee becoming -7- • • • • legally involved, the lessor or agent may re-enter said premises and remove all persons therefrom, or without terminating this lease the lessor may have the remedies provided in California Civil Code Section 1951.4.. A, 20. FIRE LOSS: In the event the leased premises, or any part thereof, are at any time damaged or destroyed by fire, casualty or other cause, then said facilities shall be restored or rebuilt in accordance with the following terms and conditions, to wit: a) If the leased premises are damaged or destroyed to the extent of more than 50% of the replacement cost thereof, either the lessor or lessee shall have the right to terminate this lease by giving notice to the other within thirty (30) days after the date of the occurrence and thereupon the term of this lease shall expire on the thirtieth day after such notice is given and the lessee shall vacate the premises and surrender the same to lessor. b) If the leased premises are damaged or destroyed to the extent of less than 50% of the replacement cost thereof, or if the parties otherwise determine to restore or rebuild the premises, and if the insurance proceeds payable as a result of said damage or loss are sufficient for the purpose, the lessor shall, at his own cost and expense andl with due diligence, restore the leased premises to as good a condition as the premises were in immediately prior to such destruction or damage. If the insurance proceeds exceed the cost of such _restoration or rebuilding, the excess shall be retained by lessee if such proceeds are paid on policies maintained and • 'I -g- ii i • i • { paid for by lessee pursuant to the terms of this lease. c) In the event the leased premises are damaged from fire or any other cause and this lease is not canceled pursuant to the terms herein, the rental shall be suspended during the period of rebuilding and restoration if the leased premises are untenantable, and such rental shall be suspended pro rata if the leased premises are partially tenantable. 21. HOLD OVER: In the event lessee occupies said demised premises from and after the term of this lease or any extension thereof, such occupancy shall be deemed a month-to-month tenancy and on the same terms and conditions as herein set forth. ' 22. BANKRUPTCY: If lessee should be adjudged bankrupt, either by voluntary or involuntary proceedings, for if lessee should discontinue business or fail in business, or it -lessee should be placed in a receivership, arrangement or composition, or if a trustee in bankruptcy should be appointed to conduct his affairs, or if any other form of proceedings in bankruptcy, voluntary or involuntary, 'including proceedings under Chapter 10 or 11 of the Bankruptcy Act, should be filed against him, or if lessee should abandon said demised premises or make an assignment for the benefit of creditors, or if said demised premises should come into possession and control of any trustee in bankruptcy, or if any receiver should be appointed in any action or proceeding with power to take charge, possession, control or care of said demised premises, lessor shall have the option to forthwith terminate this lease �9- • • • • i{ and tore-enter said demised premises and take possession thereof. In no event shall said demised premises be deemed an asset of lessee after adjudication in bankruptcy. 23. CONDITIONS PRECEDENT: Lessee's obligations. hereunder are expressly conditioned on lessee obtaining all necessary operating permits from the City of Redding by June 1, 1986, and upon lessee obtaining an oil and fuel dealership from a major supplier. • 24. FLOWAGE FEES: Lessee shall be exclusively • .responsible for the payment of all flowage fees (required to be made to the City of Redding and resulting from the sale of fuel and related products by lessee from said premises, and shall indemnify and hold lessor harmless from anylclaim for flowage fees. made by he City of Redding resulting from sales by lessee. 25. NOTICES: All notices required by law, or by this lease, to be given either party may be given personally or by depositing the same in the United States mail, certified mail, with postage prepaid, and addressed as follows: To Lessee: 2600 Gold St. , Redding, CA 96001 To Lessor: 660 J St. , Room 215, Sacramento, CA 95814 Such addresses may be changed from time to time by either party serving notices as above provided. 26. CONSTRUCTION OF LEASE: Time is of the essence of this lease and all of the terms and covenants hereof are to be construed as conditions. 27. ATTORNEY'S FEES AND COSTS: In the event suit shall be brought for unlawful detainer of the demised premises, or ij -10- d I • • iI for the recovery of any rent due under the provisions of this lease, or because of the breach of any other covenant herein contained on the part of &ther party to be kept or performed, the lessee or lessor will pay to the successful party • reasonable attorney's fees, which shall be fixed by the Judge of the court. • 28. BINDING EFFECT: The terms and conditions of this agreement shall be binding upon and inure to the benefit of the heirs, successors and assigns of the parties -hereto. IN WITNESS WHEREOF, the parties hereto have executed this lease the day and year first hereinabove written. • SMALL BUSINESS ADMINISTRATION HILLSIDE AVIATION, INC. • By By Jerry Belmore Steve Miller President • • -11- , • . 4•..' • . . .••••••I S • • . ^- ' • , . . . . . . . I i • .. ' . . . , 1, /* , . I i 7- q(5 Z . . . . • I114.110=11110 , rti ' Ali 1 , . NOT 1 . ,A \ ,. 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