HomeMy WebLinkAboutReso. 1986 - 156 - Approving the lease agreement between the city of redding and american propeller service . .
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RESOLUTION NO. , 45-6)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY loF REDDING
APPROVING THE LEASE AGREEMENT BETWEEN THE CITY OF REDDING
AND AMERICAN PROPELLER SERVICE, A DIVISION OF AMERITECH
INDUJSTRIES, INC. , AND AUTHORIZING THE MAYOR TO SIGN.
BE IT RESOLVED bythe CityCouncil of the Cityof Reddin as
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follows:
1 . That the City Council of the City of Redding hereby
approves the attached. Lease Agreement between the City of Redding
and American Propeller Service , a Division of. Ameritech
Industries, Inc. ;
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 Lease Agreement,
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 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 Reddingon the 7th dayof 1986 , and
July ,
was duly adopted at said meeting by the following vote:
AYES: COUNCIL MEMBERS: Carter, Dahl , Gard, & Fulton
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: Johannessen
ABSTAIN: COUNCIL MEMBERS: None
ZUA5a1.041----
LEE D. FULTON, M.D. , Mayor
City of Redding
ATTEST:� Q "Z
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efloie
ETHEL A. NICHOLS , City Clerk
FORM I1/27ROVED:
RAN ALL A. HAYS, Cit Attorney
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THIS LEASE, made and entered into this ,j(J�. day of
- ����i , • 1986 , by and between the CITY OF REDDING, a -
Municipal Corporation and general law City, hereinafter referred
to as "Lessor, " and AMERICAN PROPELLER SERVICE, a Division of
AMERITECH INDUSTRIES, INC. , hereinafter referred to as "Lessee" :
WITNESSETH:
IT IS MUTUALLY AGREED by and between -the parties hereto as
follows:
1 . Description of Premises . Lessor hereby leases to
. Lessee and Lessee hires from Lessor, on the terms and conditions
hereinafter set forth, those certain premises situate in the
County of Shasta, State of California, described in Exhibit "A"
and depicted in Exhibit "B" attached hereto and incorporated
herein by reference.
2. Term. The term of this Lease shall be fifteen (15)
years , commencing May 1 , 1986 , and terminating April 30 , 2001 .
Lessee shall then have the option of entering into an extension
of this Lease for a second 15-year term, upon giving written
notice to Lessor on or before July 1 , 2000 , of its intention to
do so.
. 3 . Performance Bond. Lessee shall provide to , Lessor a
performance bond in the amount of $5, 000. 00 . Said bond value
shall be re-evaluated every three (3) years by Lessor.
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4: Rental Charge.
(a) For the first three (3) years of the term of this
Lease, through and including April 30 , 1989 , the rent
to be paid by Lessee to Lessor under this Lease
. Agreement shall be the sum of One Thousand Twenty-three
Dollars ($1 , 023. 00) per month, payable in advance on
the first day of each and every month, commencing May
1 , 1986.
(b) The rental payments shall be evaluated every three (3)
years, commencing May 1 , 1989 , and adjusted by the
average of the United States Bureau of Labor Statistics
National Consumer Price Index for the San
Francisco/Oakland area for the previous three-year
period.
(c) Subject to the 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 Bessor_ 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.
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(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 (b) , 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 t.n he paid by Lessee to Lessor under this
Lease ' Agreement, or the renewal thereof , be less than
the amount paid by Lessee in the 4th, 8th, 12th, and
any subsequent fourth year thereafter.
(e) Payments delinquent over thirty (30) days will be
- assessed one and one-half percent (11/2%) per month
interest on the amount of arrearage each month.
5 . Use. The premises are leased to Lessee for the sole
purpose of conducting and operating thereon. a propeller repair
and overhaul business and aviation manufacturing.
6 . Waste , Quiet Conduct. Lessee shall not commit or
suffer to be committed any waste upon the said premises, or any
nuisances or other act or thing which may disturb the quiet
enjoyment- of any other occupant or use of Lessor ' s adjoining
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12. Acceptance of Premises as is; Surrender at End of Term.
By entry hereunder, Lessee accepts the premises as being in good
and sanitary order, condition and repair, and agrees on the last
day of said term or sooner termination of this Lease to surrender
unto Lessor all and singular said premise: ,with said appurte-
nances in the same condition as when received, reasonable use and
wear thereof and damage by fire, Act of God, or the elements
excepted; provided, however, that Lessee shall have the right to
remove such personal property placed in and upon the premises by
Lessee as may be removed without damage to the leased premises .
Additionally, Lessee accepts the access road to the demised
premises to be in good condition and repair, and agrees that
Lessor shall do repairs on said road only when necessary and at
Lessor ' s sole discretion.
13. 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 arid
shall subject this Lease to immediate termination at the option
of Lessor. •
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premises.
7. Mechanics ' Liens. Lessee shall keep the demised
premises and the property on which the demised premises are
situated free from any liens arising out of any work performed,
material furnished, or obligations incurred by Lessee.
8 . Utilities. Lessee shall pay promptly when due all
charges for all utilities used by Lessee on or about the demised
premises.
9 . Taxes. Lessee shall pay promptly any taxes assessed
against its personal property and any possessory interest tax
levied by reason of its occupancy of the subject property.
10 . 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 Director of Lessor. The
Airports Director shall determine whether such advertising media
is aesthetically harmonious with said improvements and facilities
at the . Airport.
. 11. 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. Lessor
covenants that the rules and regulations so promulgated will
apply to and will he enforced uniformly by Lessor as to all
lessees of said Airport as their interests and activlities are
related thereto.
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14 . Security Responsibilities and Fees . Lessee •agrees to
accept its security responsibilities with regard to access - by
authorized and unauthorized persons using the gate located near
its facility at all times that said gate is left open. Any fines
imposed upon Lessor by the Federal Aviation Administration
Security Field Office for violation of security caused by the
• actions of Lessee' s personnel shall be paid by Lessee .
Lessee shall . pay to Lessor its proportional share of the
total cost of Airport . security, which shall be the sum of Fifty
Dollars ($50. 00) per month, payable in advance on the first day
of each month throughout the term of this Lease.. It is under-
stood that this amount may be increased proportionately whenever
there is an increase in Lessor' s contract with the firm providing
security services .
Failure to comply with all of the provisions of this section
shall subject this Lease to immediate termination at the option
of Lessor.
15. Insurance. Lessee shall assume all responsibility and
liability in connection with the operation of. said propeller
business , and Lessee assumes and agrees to pay and hold. Lessor,
its officers , agents and employees , harmless from any responsi-
bility or liability in connection with Lessee ' s use and occupancy
of the premises hereunder leased during the term of this Lease or
any extension thereof, including damages for injuries to persons
or property of persons using said premises. It is specifically
understood and agreed as a condition of this Lease that Lessee
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shall , at its own expense, obtain and keep in full force and
• effect public liability insurance in the amounts of $300, 000 for
one person, $500 , 000 for one accident, personal injury and
$1 , 000 , 000 property damage limits, which insurance shall be in
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
public liability and property damage insurance shall be carried
with an insurance company acceptable to Lessor, and a Certificate
_ evidencing such insurance shall be filed with the City Clerk of
Lessor which shall name Lessor, its officers, agents and
employees , as additional insureds and guarantee at least ten (10)
days ' advance notice to Lessor , in writing; before any , cancelli-
tion or reduction of such insurance coverage.
16. Tie-Down Fees . Four (4) permanent aircraft tie-downs
have been installed near Lessee ' s facility for its use. , The cost
to Lessee for these tie-downs is included in the rental charge
found in Paragraph 4 hereof.
17. 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 anv right or privilege, appurte-
nant thereto, or suffer any other person (the agents and servants
of Lessee excepted) to occupy or use the said premises or any
portion thereof, without the written consent of Lessor first had
and obtained; and a consent to one assignment, subletting or
occupation or use by another person shall not be deemed to be a
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consent to any subsequent assignment, subletting, occupation or
use by another person. Any such assignment or subletting without
such consent shall be void and shall, at the option of Lessor,
terminate this Lease. This Lease shall not, nor shall any
interest therein, be assignable as to the interest of Lessee by
operation of law without the written consent of Lessor.
18. Inspection. Lessee shall permit Lessor to inspect said
premises and any improvements constructed thereon or therein at
all reasonable times during the term of this Lease or any
extension thereof.
19. Cancellation. This Lease or any extension thereof may
be cancelled by the City Council of Lessor or Lessee any time
during the term of this Lease upon giving Lessor or Lessee nine
(9) months advance notice in writing , except when conditions in
Paragraph 24 are involved. Breach by Lessee of any of the terms,
conditions and agreements contained in this Lease or any exten-
sion thereof shall, at the option of Lessor, be a basis for an
immediate cancellation of this Lease or any extension thereof.
20. Improvements. As a further consideration of this
Lease , Lessee agrees to maintain in good and sanitary order at
all times , all the improvements which are presently installed on
or in the leased property. No future alterations or additions
shall be commenced on the premises by Lessee without first
obtaining, in writing, the approval of the Director of Airports
of Lessor and the Airports Commission. Any alterations or
additions approved by Lessor shall be constructed at the sole
expense of Lessee and., at the termination of this Lease or any
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extension thereof, said alterations or additions shall become the
property of Lessor, excluding Lessee' s commercial mobile office
unit. Lessee shall, at no expense to Lessor, perform all
maintenance and "housekeeping" chores -in and about the leased
property and maintain the standards of upkeep, appearance ,
maintenance and repairs on said property equal to standards
followed by Lessor for similar buildings and premises owned and
operated by Lessor.
In the event that future Airport Master Plan requirements
dictate the relocation of the demised premises , Lessee agrees to
accept said relocation plans and to cooperate fully in the
relocation process only upon Lessee ' s approval of these plans
prior to the final plans being drawn up. If Lessee does not .
approve of these relocation plans , Lessee shall have the option
to cancel its lease with Lessor and Lessor shall allow Lessee_ at
least nine (9) months to find a new location for its business.
21 . Bankruptcy and Insolvency. If Lessee shall be adjudged
bankrupt, either by voluntary or involuntary proceedings , or if
Lessee shall be the subject of any proceeding to stay the
enforcement of obligations against it in the form of
reorganization or otherwise under and pursuant to any existing or
future laws of the Congress of the United States , or if Lessee
abandon 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
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appointed in any action or proceeding with power to take charge,
possession, control or care of said premises, Lessor shall have
the option to forthwith terminate this Lease and to re-enter� the
real property and take possession thereof. In no event shall
this Lease be deemed an asset of Lessee after adjudication in
bankruptcy.
22. United States of America Restrictions. '
(a) It is understood and agreed that this Lease is subject
to the covenants, restrictions and reservations con-
tained 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.
f2) Instrument of Transfer date October 7 , 1947 , to
the City of Redding.
(3)
(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 front any of
said covenants , restrictions and r.eservatiolns , Lessee
shall likewise be released by Lessor.
(c) Lessee , for itself, its successors in interest and
assigns, as a part of the consideration hexeef, does
hereby covenant and agree as a covenant running with
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the land that in the event facilities are constructed,
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maintained, or otherwise operated on the said property
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, that it
shall maintain and operate such facilities and services
in compliance with all other requirements -imposed
pursuant to 49 CRF Part 21 , Nondiscrimination in
Federally Assisted Programs of the Department of
Transportation, and as said Regulations may be amended.
(d) Lessee, for itself, its successors in interest and
assigns , as a part of the consideration hereof, does .
hereby covenant and agree as a covenant running with
the land: (1) that no person on the grounds of race,
color, or national origin shall be excluded from •
participation in, denied the benefits of, or be other-
wise subjected to discrimination in the use of said
facilities ; (2) that in the construction of any
improvements on , over, or under such land and the .
furnishing of services thereon , no person on the
grounds of race, color , or national origin shall be
excluded from participation• in, denied the benefits of,
or otherwise be subject to discrimination; and (3) that
Lessee shall use the premises in compliance with all
other requirements imposed by or pursuant to 49 CFR
Part 21 , Nondiscrimination in Federally Assisted
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Programs of the Department of Transportation, and as
said. Regulations may be amended.
(e) That in the event of breach of any of the above nondis-
crimination covenants, Lessor shall have t�e right to
terminate the Lease and to re-enter and repossess said
land and facilities thereon, and hold the same as if
said Lease had never been made or issued; provided,
however, that the Lessee allegedly in breach shall have
the right to contest said alleged breach under appli-
cable Federal Aviation Administration procedures, and
any sanctions under or termination of the Lease shall
be withheld pending completion of such procedures.
(f) ' That • in the event of breach. of any of the above nondis-
crimination covenants , Lessor shall have the right to •
. re-enter said land and facilities thereon, and the
above-described lands and facilities shall thereupon
revert to and vest in and. become the absolute property
of Lessor and its assigns; provided, however, that the
party allegedly in. breach shall have the right to
contest said alleged breach under applicable Federal
Aviation Administration. procedures , and the right of
reverter shall not be exercised until completion of
such procedures.
• 23. Discrimination. Notwithstanding any other provisions
of this Lease,- Lessee shall make its services available to the
public without unjust discrimination; provided, however, that
Lessee shall have the privilege of refusing service to any person
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or persons for just cause, but not to discriminate by virtue of
race, creed or color. Lessee shall furnish said services on a
fair, equal and not unjustly discriminatory basis to all persons
and users thereof and will chare fair, reasonable and not
unjustly discriminatory prices for such services .
24 . 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 llicense.
• 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
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of. Lessor, it will constitute an abandonment of the
land or facilities and the lease and/or license shall
become null and void.
0. The failure of an operator or licensee to pay prom.',-t 1y
when due all rents , charges , fees , or other payments in
accordance with applicable leases or licenses.
e. The failure of the operator or licensee to remedy any
default, breach or violation of the Airport Rules and
Regulations by him or his employees within thirty (30)
days after notice from the Lessor.
f. Violation of any of these standards and rules and
regulations or failure to maintain current licenses
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required for the permitted operation.
g. Intentionally supplying the Lessor with false or
misleading information or misrepresenting any material
fact on the application or documents, or in statements
to or before the Lessor, cr intentional failure to make
full disclosure on a financial statement, or other
required documents .
25. Successors and Assigns . All covenants, stipulations
and agreements in this Lease shall extend to and bind the legal
representatives, successors and assigns of the respective parties
hereto.
26 . 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
co tained, provided that the validity of any such covenant,
condition or provision does not materially prejudice either
Lessor or Lessee in its respective rights and obligations
contained in the valid covenants, conditions and provisions of
this Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this
Lease on the day and year first above written.
CITY OF REDDING AMERICAN PROPELLER SEI . CE ,
A DIVI?S\ION OF AMFRIT, CH
INDUST R r 5 , INC D ,
By: (40 -30-9P
LEE D. FUL 'ON, M.D. , Mayor. BY:
_ 4/1 1,. ms's .3 ..t.
By` �' k. 6.e6
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Signatures to Lease between the City of Redding and American
Propeller Service, effective May 1 , 1986 , continued:
ATTEST:
ETHEL A. NICHOLS, City Clerk
FORM APPROVED:
RANDALL A. HAYS, City Attorney
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EXHIBIT "A"
Commencing at the U.S.C. & G.S. Monument (STA "A" ) at the south
end of Runway 34 , Redding Municipal Airport; thence
S. 89°47 ' 36" E. , 74 . 70 feet to the centerline intersection of
Runway 34 and Taxiway "A, " also designated as Engineer ' s Station
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0+00 . 00; thence on and along the centerline of Taxiway "A"
N. 44°56 ' 04" W. , 1 , 045 . 00 feet; thence leaving said centerline of
Taxiway "A" S. 45°03 ' 56" W. , 125. 00 feet to a poiiit on the
Taxiway clearance line, the true point of beginning; thence
running the following bearings and distances, N. 89°5604" W. ,
185. 69 feet; thence S. 00°03 ' 56" W. , 330 . 54 feell; thence
S. 89°56 ' 04" E. , 263. 00 feet; thence N. 00°03 ' 56" E. , 253. 22 feet
to . a point on : the Taxiway clearance line; thence oni and along
said Taxiway clearance line, N. 44°56 ' 04" W. , 109. 34 Meet to the
point of beginning, containing 83 , 942 square feet.
NOTE: NO BUILDING IS TO TAKE PLACE NORTHEAST OF THE BUILDING
RESTRICTION LINE (B. R.L. ) AS SHOWN ON EXHIBIT "B"
ATTACHED HERETO.
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