HomeMy WebLinkAboutReso. 1986 - 323 - Approving the ground lease at redding municipal airport between the city of redding and sierra pacific industries and authorizing the mayor to sign • 4
RESOLUTION NO. 2W-11,22./
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
APPROVING THE GROUND LEASE AT REDDING MUNICIPAL AIRPORT
BETWEEN THE CITY OF REDDING AND SIERRA PACIFIC INDUSTRIES,
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 Ground Lease between the City of Redding and Sierra
Pacific Industries, a true copy of which is attached hereto; 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 Ground Lease, 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
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 1st day of December , 1986, and
was duly adopted at said meeting by the following vote:
AYES: COUNCIL MEMBERS: Carter, Dahl , Gard, Johannessen, & Fulton
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
/40,56644
LEE D. FULTON, M.D. , Mayor
City of Redding
ATTEST: APPROVED:
Z516.-61
ETHEL A. NICHOLS, City Clerk RA DALL A. HAYS, ity Attorney
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GROUND LEASE
This lease is made and executed on f`,(J'((( z
1986 , between the CITY OF REDDING, a municipal corporation and
general law city, herein referred to as lessor, and SIERRA
PACIFIC INDUSTRIES, a corporation organized and existing under
the laws of the State of California, having its principal office
at 3735 El Cajon Avenue, Central Valley, California, herein
referred to as lessee.
RECITALS
A. Lessor owns property consisting of about 16, 480 square
feet at Redding Municipal Airport, in Shasta County, California,
more particularly described in Exhibit A, attached hereto and
made a part hereof . Such property is hereinafter referred to as
"the property. "
B. The property is currently unimproved land, zoned
U-unclassified by the City of Redding.
C. Lessee desires to lease the property for the purpose of
conducting aircraft storage, maintenance, refueling, and related
activities in a metal building of about 8 , 000 square feet and on
adjacent areas designed for automobile and aircraft parking to be
erected on the property by lessee.
D. Lessor desires to lease the property in an unimproved
condition.
For the reasons above stated, and in consideration of
the covenants contained herein, the parties agree as follows:
1 . LEASE OF PROPERTY; TERM
Lessor grants the property as lessor, and lessee
leases and takes the property as lessee, for a term of thirty
( 30 ) years . Such term shall commence on the date hereof , or if
such date is not the first day of a month, the Commencement Date
shall be the first day of the following month, with rental paid
pro rata for the intervening period, and shall expire at midnight
on the last day of the preceding month thirty ( 30 ) years there-
after.
2 . PURPOSE
The property shall be used by lessee for the purpose
of storing, maintaining, and refueling lessee-owned or operated
aircraft only, and for such other related lawful activities as
may from time to time be required to permit lessee ' s full use and
enjoyment of the property; provided, however, that lessee shall
not operate a business offering goods or services to the general
public. Lessee shall also have the right of access to and use
of facilities at the airport designed for common use, such as
landing areas, aprons , taxiways , landing lights, beacons,
signals , and other common use facilities available at said
airport for the convenience, accommodation, operation, landing
and take-off of aircraft, including safe ingress and egress for
helicopter use of the designated landing area on the property.
The rights herein extended to lessee shall include the right to
land, take-off , tow, load and unload persons and personal
property from aircraft.
3 . RENT
Subject to adjustment as provided below, monthly rent
for the lease term shall be Two Hundred Thirty Dollars and
No/100s ( $230. 00 ) , which lessee shall pay to lessor, at such
place as may be designated from time to time by lessor, annually
in advance, due on the Commencement Date and every twelve months
thereafter until the expiration of this lease. (Said twelve-
month period shall be known as a "Rental Year, " hereinafter. )
In the event the monthly rental is to be adjusted pursuant to
either subparagraph ( a) or (b) , below, during any given Rental
Year, lessee shall pay the monthly rental in advance at the rate
in effect upon the anniversary of the Commencement Date, and
then, within thirty ( 30) days after the effective date of the
rental adjustment, either lessee shall pay the additional rental
or lessor will refund the overage, as the case may be.
The rent to be paid by lessee hereunder shall be
subject to adjustment as follows:
a. CPI Adjustment. The monthly rental shall be
adjusted effective the thirty-first ( 31st) month of the term and
on the one hundred-twentieth ( 120th) month of the term and
every sixty ( 60) months thereafter to reflect movement in the
purchasing power of the dollar as measured by the Consumer Price
Index, U.S. City Average, All Items, All Urban Consumers, as
such is published by the Bureau of Labor Statistics of the
United States Department of Labor, with a level of 100 for the
base year of 1967 ( "CPI" herein) . The calculation shall be made
by multiplying the monthly rental paid for the month preceding
the CPI adjustment by the CPI level for that same month, and
dividing the product thereof by the CPI level for the month which
was thirty ( 30) months prior thereto. For example, assuming the
thirtieth month of the term is November 1989, multiply ( $100) x
(November 1989 CPI ) and divide by (May 1987 CPI ) . The result of
this calculation shall be the new adjusted rental.
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b. Fair Market Rental Adjustment. Commencing the
ninetieth ( 90th) month of the term, and every sixty ( 60) months
thereafter, the monthly rental shall be adjusted to reflect an
annual return to lessor of seven percent (7%) of the then market
value of the property, as if the property were unimproved but
subject to the use restrictions set forth in paragraph 2 above.
Lessor and lessee shall execute a written agreement setting forth
the new rental amount at least thirty ( 30) days prior to the end
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.
4. WARRANTIES OF TITLE AND QUIET POSSESSION
Lessor covenants that lessor is seized of the property
in fee simple and has full right to make this lease, and that
lessee shall have and hold quiet and peaceable possession of the
property during the term hereof , without hindrance, objection,
or molestation.
5. DELIVERY OF POSSESSION
Subject to lessor ' s plan approval as provided in
paragraph 12 , below, lessor shall permit lessee and lessee' s
agents and contractors entry upon the property as soon as
possible after the execution hereof for the purpose of construc-
ting the improvements contemplated herein. Lessee may enter upon
such areas of lessor ' s surrounding property as may be reasonably
required to permit such construction, provided that such sur-
rounding areas are returned to substantially the same condition
they were in prior to lessee' s entry thereupon. In the event
lessee shall require easements across lessor' s property for
ingress, egress or for the delivery of utilities, including but
not limited to water, sewer, gas , electricity, telephone and
storm drain, lessor shall execute all such documents as may be
reasonably required to permit or facilitate same.
6 . RULES AND REGULATIONS
Lessee agrees to observe and obey all rules and
regulations legally promulgated and enforced by lessor and any
other 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
be enforced uniformly by lessor as to all lessees of said
airport.
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7 . WASTE, NUISANCE, AND UNLAWFUL USE PROHIBITED
During the term of this lease, lessee shall comply
with all applicable laws affecting the property, the breach of
which might result in any penalty on lessor or forfeiture of
lessor ' s title, including but not limited to the United States
restrictions set forth in Exhibit B hereto. Lessee shall not
commit or allow to be committed any waste on the property, nor
maintain or allow to be maintained any nuisance thereon.
No building, structure, or improvement of 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 , bylaw, order, or rule of the governmental agency
having jurisdiction thereover.
8 . COMPLIANCE WITH LAW
Lessee covenants and agrees to comply with all safety
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
property; provided, however, that should lessee, in lessee' s
sole and absolute discretion determine that compliance with any
such statute, law, ordinance, regulation, order, judgment,
decree, direction, or requirement may require lessee ' s expendi-
ture of money or may otherwise adversely affect lessee ' s use
and enjoyment of the property, lessee may terminate this lease
without further liability, upon thirty ( 30 ) days ' prior written
notice to lessor. The final judgment of any court of competent
jurisdiction or the unqualified admission of lessee in any action
or proceeding against lessee, whether lessor be a party thereto
or not, that lessee has knowingly, wantonly, or recklessly
violated any such safety ordinance or statute in the use of the
property so as to pose a real and immediate threat of serious
bodily injury or significant property damage shall be conclusive
of the fact as between lessor and lessee and shall subject this
lease to termination at the option of lessor upon one hundred
eighty ( 180 ) days ' prior written notice to lessee.
9 . LESSOR' S RIGHT OF ENTRY
Lessee shall permit lessor and the agents and employees
of lessor to enter into and upon the property at all reasonable
times for the purpose of inspecting the same, or for the purpose
of posting notices of non-responsibility for alterations ,
additions, or repairs, without any rebate of rent and without
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any liability to lessee for any loss of occupation or quiet
enjoyment of the property thereby occasioned.
10 . ENCUMBRANCE OF LESSEE' S LEASEHOLD INTEREST
Lessee may encumber by mortgage or deed of trust, or
other property instrument, its leasehold interest and estate in
the property, together with all buildings and improvements placed
by lessee thereon, as security for any indebtedness of lessee.
The execution of any such mortgage, or deed of trust, or other
instrument, or the foreclosure thereof , and any sale thereunder,
either by judicial proceedings or by virtue of any power reserved
in such mortgage or deed of trust, or conveyance by lessee to
the holder of such indebtedness, or the exercising of any right,
power, or privilege reserved in any mortgage or deed of trust,
shall not be held as a violation of any of the terms or con-
ditions hereof, or as an assumption by the holder of such
indebtedness personally of the obligations hereof . No such
encumbrance , foreclosure, conveyance, or exercise of right shall
relieve lessee from its liability hereunder.
If lessee shall so encumber its leasehold interest and
estate, and if lessee or the holder of the indebtedness secured
by such encumbrance shall give notice to lessor of the existence
thereof and the address of such holder, then lessor will mail or
deliver to such holder, at such address, a duplicate copy of
all notices in writing which lessor may, from time to time, give
to or serve on lessee under and pursuant to the terms and
provisions hereof . Such copies shall be mailed or delivered to
such holder at, or as near as possible to, the same time such
notices are given to or served on lessee. Such holder may, at
its option, at any time before the rights of lessee shall be
terminated as provided herein, pay any of the rents due here-
under, or pay any taxes, or do any other act or thing required of
lessee by the terms hereof , or do any act or thing that may be
necessary and proper to be done in the observance of the cove-
nants and conditions hereof , or to prevent the termination
hereof. All payments so made, and all things so done and
performed by such holder shall be as effective to prevent a
foreclosure of the rights of lessee thereunder as the same would
have been if done and performed by lessee.
In the event of foreclosure, lessor shall have the
right to demand such information and assurances necessary to
reasonably satisfy lessor of the character, reputation, and
financial ability of any successor tenant of the property. No
successor tenant shall be permitted to take occupancy until the
lessor has given its written approval, which approval shall not
be unreasonably withheld.
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11 . SUBLETTING AND ASSIGNMENT
Lessee may sublet up to fifty percent ( 50%) of the
property for a term of ninety ( 90 ) days or less for the sole
purpose of aircraft storage, without lessor ' s consent, but the
making of any such sublease shall not release lessee from, or
otherwise affect in any manner, any of lessee' s obligations
hereunder. Lessee shall not otherwise sublet, assign, or
transfer this lease, or any interest herein, without the prior
written consent of lessor, which consent shall not be unreason-
ably withheld. Consent to one assignment shall not be deemed to
be a consent to any subsequent assignment. Any such assignment
without such consent shall be void, and shall, at the option of
lessor, terminate this lease. Notwithstanding the foregoing,
lessee may assign this lease to a subsidiary or wholly-owned
company without lessor ' s prior written consent, subject to
written notice to lessor of each such assignment. Neither this
lease nor the leasehold estate of lessee nor any interest of
lessee hereunder in the property or any buildings or improvements
thereon shall be subject to involuntary assignment, transfer, or
sale, or to assignment, transfer, or sale by operation of law in
any manner whatsoever, and any such attempted involuntary
assignment, transfer, or sale shall be void and of no effect and
shall, at the option of lessor, terminate this lease.
12 . CONSTRUCTION OF NEW BUILDING
a. Plans and Specifications. On or before January
1 , 1987 , lessee shall, at lessee ' s sole expense, prepare plans
and specifications for a new building ( including aircraft apron,
heliport, parking and utility service) to be erected on the
property which shall provide for a metal hangar of approximately
8, 000 square feet and associated improvements, including aircraft
apron, parking area and temporary taxiway, which three areas may
be concrete , asphalt, or both, at lessee' s option, subject
to lessor' s prior reasonable approval. Such plans and specifica-
tions shall be submitted to lessor for lessor' s written approval
or any revisions required by lessor. Such submission is for
basic design review and is not intended nor shall it be deemed a
submission for purposes of receiving a building permit. Lessor
shall not unreasonably withhold such approval; in the event of
disapproval , lessor shall give to lessee an itemized statement of
reasons therefor within fifteen ( 15 ) days after the same are
submitted to lessor. Lessee shall, at lessee' s sole expense,
commence, and shall diligently prosecute the construction of the
improvements contemplated in accordance with such plans and
specifications, within thirty ( 30) days after receiving a
building permit therefor, weather permitting.
b. Alterations, Improvements, and Changes Permitted.
Lessee shall have the right to make such alterations , improve-
ments, and changes to any building that may from time to time be
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on the property as lessee may deem necessary, or to replace any
such building with a new one of at least equal value, provided
that prior to making any structural alterations, improvements, or
changes , or to replacing any such building, lessee shall obtain
lessor ' s written approval of plans and specifications therefor,
which approval lessor shall not unreasonably withhold, as long as
the value of the building shall not be diminished and the
structural integrity of the building shall not be adversely
affected by any such alterations, improvements, or changes, or as
long as any proposed new building is at least equal in value to
the one it is to replace, as the case may be. In the event of
disapproval, lessor shall give to lessee an itemized statement of
reasons therefor. If lessor does not disapprove the plans and
specifications provided for in this paragraph within thirty ( 30 )
days after the same have been submitted to lessor, such plans and
specifications shall be deemed to have been approved by lessor.
13 . REPAIRS; DESTRUCTION OF IMPROVEMENTS
a. Maintenance of Improvements. Lessee shall,
throughout the term of this lease, at its own cost, and without
any expense to lessor, keep and maintain the property, including
all buildings and improvements of every kind that may be a part
thereof , and all appurtenances thereto in good and neat order,
condition, and repair. Lessor shall not be obligated to make
any repairs , replacements , or renewals of any kind, nature, or
description whatsoever to the property or any buildings or
improvements thereon. In the event lessor fails to make repairs
to the aircraft apron and/or parking areas within thirty ( 30 )
days after lessee' s written request to do so, lessee may, but
shall not be obligated to, perform such repairs and lessee may
thereupon deduct the actual cost thereof from any rent and/or
fees which would have otherwise been due to lessor.
b. Damage or Destruction Occurring Toward End of
Term. In the case of destruction of the building on the property
or damage thereto from any cause so as to make it disadvantageous
for lessee to continue to operate on the property at lessee' s
sole and absolute discretion, occurring during the last five ( 5 )
years of the term hereof ( including any extended term) , lessee,
if not then in default hereunder, may elect to terminate this
lease by written notice served on lessor within ninety ( 90) days
after the occurrence of such damage or destruction. On such
termination, rent, taxes and any other sums payable by lessee
hereunder shall be prorated as of the termination date, and in
the event any rent, taxes or any other sum shall have been paid
in advance, lessor shall rebate the same for the unexpired period
for which payment shall have been made.
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14 . AIRCRAFT FUEL FLOWAGE FEE, APRON, TAXIWAY, AND VEHICLE
PARKING AREA
a. Fuel Flowage Fees. In consideration of the
privilege to conduct aircraft refueling on the property, and not
as rental, lessee shall pay to lessor a fuel flowage fee calcu-
lated in cents and mils per gallon, at the rate established
for all refueling operations at the Redding Municipal Airport by
resolution of the Redding City Council. Said fee shall be paid
on a monthly basis, no later than the twentieth ( 20th) day of the
month following the billing period, and shall be based upon the
number of gallons of aviation fuel pumped into aircraft at said
airport by lessee, as indicated by the meter located upon
lessee ' s pump. Lessee may refuel aircraft by way of truck, above
ground or below ground tanks or a combination thereof , as lessee
sees fit and at lessee' s sole option, provided, that all re-
fueling facilities at all times comply with all applicable safety
standards and regulations .
b. Interim and Permanent Taxiway. Lessee may
construct an interim taxiway serving the property in such manner
and in the design and construction of lessee' s sole choosing,
pending lessor ' s completion of the Runway 12/30 extension and
permanent taxiways serving the property, which items shall be
provided at lessor ' s sole cost and expense. Lessor will use its
best efforts to insure that lessee ' s aircraft will have access
to and from the property at all times. In the event lessee' s
aircraft are unable to achieve safe access to or from the
property, lessor shall make such other reasonable provisions for
aircraft service and storage as lessee may reasonably require,
provided, that such service and storage shall be at the Redding
Municipal Airport.
c. Exclusive Use of Aircraft Apron and Vehicle
Parking Areas. Lessee shall have sole and exclusive use of the
aircraft apron and vehicle parking areas appurtenant to the
property, and will maintain their cleanliness and surface
painting as may be reasonably required by lessee ' s use thereof .
Lessor maintains no legal responsibility for the exclusive areas .
15 . UTILITIES
Lessee shall fully and promptly pay for all water,
gas , heat, light, power, telephone service, and other public
utilities of every kind furnished to the property throughout the
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term hereof , and all other costs and expenses of every kind
whatsoever of or in connection with the use, operation, and
maintenance of the property and all activities conducted thereon.
Lessor shall have no responsibility to provide or in any manner
furnish utility services to the property.
16 . LIENS
a. Lessee' s Duty to Keep Property Free of Liens.
Lessee shall keep all the property and every part thereof and
all buildings and other improvements at any time located thereon
free and clear of any and all mechanics ' , materialmen' s, and
other liens for or arising out of or in connection with work or
labor done, services performed, or materials or appliances used
or furnished for or in connection with any operations of lessee,
any alteration, improvement, or repairs or additions which lessee
may make or permit or cause to be made, or any work or construc-
tion, by, for, or permitted by lessee on or about the property,
or any obligations of any kind incurred by lessee. Lessee shall
at all times promptly and fully pay and discharge any and all
claims on which any such lien may or could be based, and shall
indemnify lessor and all of the property and all building(s) and
improvements thereon against all such liens and claims of liens
and suits or other proceedings pertaining thereto. Lessee shall
give lessor written notice no less than seven (7 ) days in advance
of the commencement of any construction, alteration, addition,
improvement, or repair estimated to cost in excess of Five
Thousand Dollars ( $5 , 000 . 00 ) in order that lessor may post
appropriate notices of lessor' s non-responsibility.
b. Contesting Liens . If lessee desires to contest
any such lien, it shall notify lessor of its intention to do so
within seven ( 7 ) days after the claim for such lien is filed.
In such case, and provided that lessee shall on demand protect
lessor by a good and sufficient surety bond against any such
lien and any cost, liability, or damage arising out of such
contest, lessee shall not be in default hereunder until thirty
( 30 ) days after the final determination of the validity thereof ,
within which time lessee shall satisfy and discharge such lien
to the extent held valid. However, the satisfaction and dis-
charge of any such lien shall not, in any case, be delayed
until execution is had on any judgment rendered thereon, and
such delay shall be a default of lessee hereunder. In the event
of any such contest, lessee shall protect and indemnify lessor
against all loss, expense, and damage resulting therefrom.
17 . TAXES
a. Taxes. Lessee shall pay and discharge as they
become due, promptly and before delinquency, all taxes, which may
be levied, assessed, charged, or imposed, or which may become a
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lien or charge on or against the property, including any "posses-
sory interest tax" imposed by Shasta County.
b. Taxes Excepted. Anything in this paragraph to the
contrary notwithstanding, lessee shall not be required to pay
any estate, gift, inheritance, succession, franchise, income, or
excess profits taxes that may be payable by lessor or lessor' s
legal representative, successors, or assigns; nor shall lessee
be required to pay any tax that might become due on account of
ownership of property other than that herein leased which may
become a lien on the property herein leased or collectable out
of the same.
c. Contesting Taxes . If lessee shall in good faith
desire to contest the validity or amount of any tax, assessment,
levy, or other governmental charge herein agreed to be paid by
lessee, lessee shall be permitted to do so, and to defer payment
of such tax or charge until final determination of the contest,
on giving to lessor written notice thereof prior to the commence-
ment of any such contest, which shall be at least fifteen ( 15 )
days prior to delinquency, and on protecting lessor on demand by
a good and sufficient surety bond against any such tax, levy,
rate, or governmental charge, and from any costs, liability, or
damage arising out of any such contest.
d. Disposition of Rebates. All rebates on account
of any taxes , rates , levies, charges, or other sums required to
be paid and paid by lessee shall belong to lessee. Lessor will,
on the request of lessee, execute any receipts, assignments, or
other acquittances that may be necessary to secure the recovery
of any such rebates, and will pay over to lessee any such
rebates that may be received by lessor.
18 . INDEMNIFICATION OF LESSOR
Lessee shall assume all responsibility and liability in
connection with the operation of said hangar, maintenance and
aircraft refueling, and lessee assumes and agrees to hold lessor,
its officers, agents , and employees, harmless from any responsi-
bility or liability in connection with lessee' s use and occupancy
of the property during the term of this lease or any extension
thereof , including damages for injuries to persons or property of
persons using said property, excepting for any such damage or
injury arising from lessor ' s negligence or the negligence of
lessor ' s officers, employees, agents or invitees .
19 . INSURANCE
a. Insurance. It is specifically understood and
agreed as a condition of this lease that lessee shall, at its own
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expense, obtain and keep in full force and effect public liabil-
ity insurance in the amounts of $300 , 000 for one person, $500,000
for one accident, personal injury and $1, 000 , 000 property damage
limits , or be permissibly self-insured, 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 property.
The three preceding sentences shall not apply to loss, injury,
death, or damage arising by reason of the negligence or mis-
conduct of lessor, or its officers, employees, agents, or
invitees . Insurance requirements will be reevaluated every five
( 5 ) years , subject to the mutual agreement of the parties.
b. Certificate of Insurance. A certificate evi-
dencing 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 cancel-
lation or reduction of such insurance coverage.
20 . ATTORNEYS' FEES
If any action at law or in equity or by way of arbitra-
tion shall be brought under this lease, or for or on account of
any breach of , or to enforce or interpret any of the covenants,
terms , or conditions of this lease, the prevailing party shall be
entitled to recover from the other party as part of the prevail-
ing party' s costs, reasonable attorneys ' fees , the amount of
which shall be fixed by the court or by the panel of appraisers
or arbitrators , as the case may be, and shall be made a part of
any judgment, decree or decision rendered.
21 . SIGNS
Lessee may erect signs and advertising and place
same upon the improvements to be constructed by lessee as may be
desired, subject to first securing the approval of the Airport
Director of lessor, which approval shall not be unreasonably
withheld.
22 . SECURITY RESPONSIBILITIES AND FEES
Lessee agrees to accept its security responsibilities
with regard to access by authorized persons using the gate
located near its facility. Lessee shall pay to lessor its
proportional share of the total cost of airport security, payable
in advance on the first day of each month throughout the term of
this lease. It is understood that this amount may be adjusted
proportionately whenever there is a change in lessor' s contract
with the firm providing security services.
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23 . PROHIBITION OF INVOLUNTARY ASSIGNMENT; EFFECT OF
BANKRUPTCY OR INSOLVENCY
a. Prohibition of Involuntary Assignment. Neither
this lease nor the leasehold estate of lessee nor any interest
of lessee hereunder in the property or in the building or
improvements thereon shall be subject to involuntary assignment,
transfer, or sale, or to assignment, transfer, or sale by
operation of law in any manner whatsoever (except through
statutory merger or consolidation, or devise, or intestate
succession) . Any such attempt at involuntary assignment,
transfer, or sale shall be void and of no effect.
b. Effect of Bankruptcy. Without limiting the
generality of the provisions of the preceding subparagraph (a) of
this paragraph, lessee agrees that in the event any proceedings
under the Bankruptcy Act or any amendment thereto are commenced
by or against lessee, and, if against lessee, such proceedings
shall not be dismissed before either an adjudication in bank-
ruptcy or the confirmation of a composition, arrangement, or
plan of reorganization, or in the event lessee is adjudged
insolvent or makes an assignment for the benefit of its credi-
tors, or if a receiver is appointed in any proceeding or action
to which lessee is a party, with authority to take possession or
control of the property or the business conducted thereon by
lessee, and such receiver is not discharged within a period of
one hundred twenty ( 120 ) days after his appointment, any such
event or any involuntary assignment prohibited by the provisions
of the preceding subparagraph ( a) of this paragraph shall be
deemed to constitute a breach of this lease by lessee and shall,
at the election of lessor, but not otherwise, without notice or
entry or other action of lessor terminate this lease and also all
rights of lessee under this lease and in and to the property and
also all rights of any and all persons claiming under lessee.
24 . NOTICE OF DEFAULT
a. Lessee shall not be deemed to be in default
hereunder in the payment of rent or the payment of any other
moneys as may be herein required or in the furnishing of any
insurance certificate when required herein unless lessor shall
first give to lessee thirty ( 30 ) days ' written notice of such
default and lessee fails to cure such default within such thirty
( 30 ) days .
b. Except as to the provision or events referred to
in subparagraph (a) of this paragraph, lessee shall not be
deemed to be in default hereunder unless lessor shall first give
to lessee forty-five ( 45 ) days ' written notice of such default,
and lessee fails to cure such default within such forty-five
( 45 ) day period or, if the default is of such a nature that it
12
• .
cannot be cured within forty-five ( 45) days, lessee fails to
commence to cure such default within such period of 30 days or
fails thereafter to proceed to cure the default with reasonable
diligence.
25 . DEFAULT
In the event of any default under this lease by
lessee, lessor, in addition to the other rights or remedies it
may have , shall have the right to re-enter pursuant to legal
proceedings or pursuant to notice provided for by law. Such re-
entry shall automatically effect a termination of this lease
agreement.
26 . OPTION OF LESSEE TO RENEW LEASE
Provided that lessee shall not then be in default
hereunder, lessor at the option of lessee shall renew this lease
at the expiration of the term hereby granted for an additional
period of ten ( 10 ) years under the same terms and conditions as
herein contained, at a fair market rental to be determined in
accordance with the provisions in paragraph 3 (b) , (c) , above,
with CPI rental adjustments effective the thirty-first ( 31st) and
ninety-first ( 91st) months of the extended term, as such adjust-
ments are provided for in paragraph 3 (a) , above. To exercise
such option, lessee shall give notice in writing to lessor by
registered mail addressed to lessor at the address herein set
forth of its election to renew the lease no fewer than forty-
five ( 45 ) days before the expiration of the term herein speci-
fied.
27 . LESSEE' S RIGHT OF FIRST REFUSAL TO PURCHASE PROPERTY
If at any time during the term hereof, lessor shall
receive from any third party a bona fide offer to purchase the
property at a price and on terms acceptable to lessor, lessor
shall give written notice of such price and terms to lessee, and
lessee shall have ninety ( 90 ) days thereafter in which to
execute a written agreement with lessor for purchase of the
property at such price and on such terms. If lessor shall so
notify lessee and lessee shall fail to execute such agreement
within said ninety ( 90 ) day period, lessor shall thereafter be
free to sell the property to the third party making the offer on
the same terms and conditions set forth in such offer, subject,
however, to this lease agreement, but not to the provisions of
this paragraph 27 . If the property is not sold to the party
making the offer, then lessor shall give lessee the same right to
purchase the property on receiving any/all subsequent offer/s
from any third party that is/are acceptable to lessor.
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28 . TERMINATION OF AIRPORT USE
In the event that the use of Redding Municipal Airport
as an airport is terminated for any reason, lessor agrees to pay
to lessee a sum equal to the unamortized balance of the original
cost of said improvements, as such balance is carried upon
lessee ' s books . It is agreed by lessee that the foregoing shall
be the sole obligation of lessor to the lessee in such event, and
that lessor shall have no obligation to pay any other or further
sum to lessee for any vested interest which lessee may have in
the property at the time of the termination of the use of such
facility as an airport.
29 . EFFECT OF EMINENT DOMAIN
a. Effect of Total Condemnation. In the event the
entire property shall be appropriated or taken under the power
of eminent domain by any public or quasi-public authority or by
any private entity empowered to do so, 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.
b. Effect of Partial Condemnation. In the event a
portion of the property shall be so appropriated or taken and
the remainder of the property is, in lessee ' s sole and absolute
discretion, thereby rendered not suitable for the use then being
made of the property, or if the remainder of the property is not
one undivided parcel of property, lessee shall have the right to
terminate this lease as of the date of such taking on giving to
lessor written notice of such termination within sixty ( 60) days
after lessor has notified lessee in writing that the property
has been so appropriated or taken.
If , in the event of such partial taking, lessee does
not so terminate this lease, then this lease shall continue in
full force and effect as to the part not taken, and the rent to
be paid by lessee during the remainder of the term, subject to
adjustment as provided in the rent adjustment provisions of
paragraph 3 hereof, shall be abated in like proportion as the
area taken bears to the whole of the property.
c. Condemnation Award. In the event of a total or
partial taking of the property under the aforesaid power of
eminent domain, then in any condemnation proceedings lessor and
lessee shall be free to make claim against the condemning or
taking authority for the amount of any damage done to them,
respectively, as a result thereof.
14
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30 . DISPOSITION OF IMPROVEMENTS ON TERMINATION OF LEASE
•
On expiration or earlier termination of this lease for
any cause, lessor shall become the owner of any building or
improvements on the property; provided, however, that lessee
shall have the right to remove such personal property, machinery,
and equipment as may be removed without threat to the structural
integrity of the building or improvement. If damage results from
the removal of any such items, lessee shall repair such damage at
its sole expense; provided, however, that lessee shall have no
obligation to otherwise restore or replace the building( s)
located upon the property.
31 . FORCE MAJEURE
The term "force majeure" as used herein means unfore-
seeable causes beyond the reasonable control of and without the
fault or negligence of lessee, including but not limited to
actions by federal, state, county, and municipal courts, legisla-
tures, or regulatory bodies .
If lessee, because of force majeure, is rendered
wholly or partly unable to perform its obligations under this
lease agreement, lessee shall be excused from whatever perform-
ance is affected by the force majeure to the extent so affected,
provided that:
i. within two weeks after the occurrence of the
force majeure, lessee gives lessor written notice describing the
particulars of the occurrence;
ii. the suspension of performance is of no
greater scope and of no longer duration than is required by the
force majeure;
iii . no obligations of lessee that arose before
the occurrence causing the suspension of performance are excused
as a result of the occurrence; and
iv. lessee uses all reasonable efforts to remedy
its inability to perform. This subparagraph shall not require
the settlement of any strike, walkout, lockout, or other labor
dispute on terms that, in the sole judgment of lessee, are
contrary to its interest. It is understood and agreed that the
settlements of strikes, walkouts , lockouts, or other labor
disputes shall be entirely within the discretion of lessee.
32 . REMEDIES CUMULATIVE
All remedies hereinbefore conferred on lessor shall be
deemed cumulative and no one exclusive of the other, or of any
other remedy conferred by law.
15
33 . NOTICES
All notices , demands, or other writings in this lease
provided to be given or made or sent, or which may be given or
made or sent, by either party hereto to the other, shall be
deemed to have been fully given or made or sent when made in
writing and deposited in the United States mail, registered and
postage prepaid, and addressed as follows :
TO LESSOR: City Manager
City of Redding
760 Parkview Avenue
Redding, CA 96001
TO LESSEE: Corporate Controller
P.O. Box 4728
Redding, CA 96099
The address to which any notice, demand, or other
writing may be given or made or sent to any party as above
provided may be changed by written notice given by such party as
above provided.
34 . EFFECT OF LESSEE' S HOLDING OVER
Any holding over after the expiration of the term of
this lease, with consent of lessor, shall be constructed to be a
tenancy from month to month, at the same monthly rent as required
to be paid by lessee for the period immediately prior to the
expiration of the term hereof , and shall otherwise be on the
terms and conditions herein specified, so far as applicable.
35 . PARTIES BOUND
The covenants and conditions herein contained shall,
subject to the provisions as to assignment, transfer, and
subletting, apply to and bind the heirs, legal representatives,
successors , and assigns of all of the parties hereto; and all of
the parties hereto shall be jointly and severally liable here-
under.
36 . TIME OF THE ESSENCE
Time is of the essence of this lease, and of each and
every covenant, term, condition, and provision hereof .
37 . PARAGRAPH CAPTIONS
The captions appearing under the paragraph number
designations of this lease are for convenience only and are not
16
411
•
a part of this lease and do not in any way limit or amplify the
terms and provisions of this lease.
Executed at Redding, California, on the day and year
first above written.
LESSOR
FORM APPROVED CITY OF REDDING
CITY LEGAL D T. By:
Title:
LESSEE
SIERRA PACIFIC INDUSTRIES
By: Li! '✓t C/1?i/Y�1h��7-�-�
A.A. EMMERSON, President
By:
ODORE B. HANNON, Secretary
17
• 1
EXHIBIT "A"
GROUND LEASE BETWEEN THE CITY OF REDDING
AND SIERRA PACIFIC INDUSTRIES
All that portion of the County of Shasta, State of California,
described as follows :
Commencing at the Northeast corner of Section 27 , Township 31
North, Range 4 West, M.D.M. ; thence on and along the North line
of Section 27 , S. 89°14 ' 56" W. , 2000 . 00 feet to a point on the
centerline of Airport Road; thence on and along said centerline,
S. 00°02 ' 04" E. , 3939. 68 feet to the intersection with the
centerline of the old Municipal Airport entrance road; thence on
and along said centerline , N. 89°57 ' 56" E. , 1129. 56 feet to a
point on the centerline of Taxiway "A" of Redding Municipal
Airport; thence on and along said taxiway centerline,
N. 00°03 ' 56" E. , 526 . 36 feet; thence N. 6°03 ' 56" E. , 448 . 32 feet;
thence leaving said taxiway centerline , S. 89°51 ' 11" W. ,
793 . 87 feet; thence N. 00°08 ' 49" W. , 445 . 69 ' feet to the true
point of beginning; thence running the following bearings and
distances , S . 89°51 ' 11" W. , 50. 00 feet; thence N. 00°08 ' 49" W. ,
230. 00 feet; thence N. 89°51 ' 11" E. , 50 . 00 feet; thence
S. 00°08 ' 49" E. , 40. 00 feet; thence N. 89°51 ' 11" E. , 50 . 00 feet;
thence S. 00°08 ' 49" E. , 170. 00 feet; thence S. 89°51 ' 11" W. ,
50 . 00 feet; thence S. 00°08 ' 49" E. , 20 . 00 feet to the point of
beginning, containing 20 ,000 square feet.
SKETCH ATTACHED
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4 110
EXHIBIT "B"
GROUND LEASE BETWEEN CITY OF REDDING AND
SIERRA PACIFIC INDUSTRIES DATED NOVEMBER 23, 1986
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.
(c) 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 that in the
event facilities are constructed, 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 otherwise 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 partici-
pation 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 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 the right to
terminate the Lease and to re-enter and repossess said land
-2-
4 411
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 applicable 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.
4i
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