HomeMy WebLinkAbout _ 4.6(c)--Approve Lease Agreement with Shasta Hangar, LLC GI �" Y C� F
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REPORT TO THE CITY COUNCIL
MEETING DATE: March 17, 2026 FROM: Travis Menne, Director of
ITEM NO. 4.6(c) Community Services/Airports
***APPROVED BY***
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tmenne@cityofredding.org wtarbox@cityofredding.gov
SUBJECT: 4.6(c)--Approve Ground Lease Agreement with Shasta Hangar at the Redding
Ai ort
Recommendation
Authorize and approve the following:
(1) Approve the Ground Lease Agreement for 195,584 square feet of ground space with
Shasta Hangar, LLC, for land located at the Redding Regional Airport — 3760 Flight
Avenue, for a period of 36 years with two five-year extension options;
(2) Authorize the Mayor, or designee, to sign and execute the lease agreement; and
(3) Find the action categorically exempt from review under the California Environmental
Quality Act Guidelines, pursuant to Section 15301 —Existing facilities.
Fiscal Impact
There is no negative impact to the General Fund with this action. The term of this agreement is
for a period of 36 years with two five-year extension options. The rent will be adjusted three
percent annually. Shasta Hangar, LLC., (Shasta Hangar) intends to use the leasehold for the
purpose of maintaining and utilizing a hangar/office complex, fueling services, and for the
purpose of aircraft parking. Annual rent for the initial 12 months period will be $62,896.66 (this
is during the construction phase), with an increase the second year to $86,839.32 and scheduled
increases each year thereafter.
Alterna�ive Action
City Council may choose not to approve the lease agreement and provide alternative direction to
staf£ However, this may cause a delay in the scheduled construction.
Report to Redding City Council March 12,2026
Re: 4.6(c)--Approve Lease Agreement with Shasta Hangar, LLC Page 2
Background/Analysis
The City of Redding (City) operates and owns the Redding Regional Airport (RDD), a public-
use airport with commercial air service. RDD consists of facilities for both commercial and
general aviation users, as well as developable space which is further detailed in several planning
documents including the Airport Layout Plan, Airport Strategic Plan, and Airport Master Plan.
All land, including developable land, can be generally divided into land which is dedicated to
either aeronautical or non-aeronautical land-uses. This important distinction determines the
applicability of certain regulations and grant sponsor obligations imposed by the Federal
Aviation Administration (FAA).
In late 2022, the City of Redding Airports Division identified several pieces of land suitable for
development of aeronautical land-use facilities. The Airports Division solicited bids for four
development sites at the airport between December 30, 2022, and February l, 2023, as Schedule
Number 5342. After review of submitted proposals, Air Shasta was selected by the panel as the
best and highest use of the site in the bid package.
The Shasta Hangar development includes the lease of approximately 195,584-square-feet to
incl�ude an aircraft storage hangar, office space, fuel farm, and associated parking lot in support
of its overall Fixed Base Operator (FBO) operations at the airport. The proposed lease terms
include an initial term of 36 years commencing on the date the Agreement is executed. So long
as Lessee is not in default under this Agreement, Lessee shall have two, five-year options to
extend the term of the Agreement. These improvements will benefit all airport users by
providing additional aircraft storage space, expansion for FBO services, and additional revenue
to support the airport operating budget.
Air Shasta currently hold leases for multiple properties at RDD. As a result of the new lease,
staff will request that the existing lease agreement with Air Shasta (C-3873) be terminated at a
future City Council meeting as this new lease includes their existing facilities and extends the
terms to align with the new construction (agreement with Shasta Hangar, LLC attached). The
current lease is set to expire in February 2027. Combining the ground operations into one lease
agreement allows for a more efficient operation and a single lease rather than multiple
agreements with varying terms.
In accordance with Government Code section 54221(�(1)(0), land that is owned by a California
public use airport on which residential uses are prohibited pursuant to the Federal Aviation
Administration Order 5190.6B are declared exempt surplus land.
Environmental Review
Staff has reviewed the action and determined that approval of the lease agreement is
categorically exempt from review under the California Environmental Quality Act (CEQA)
Guidelines, pursuant to Section 15301 — Existing Facilities. Class 1 exemptions include the
permitting, leasing, and operation of public or private structures, facilities, mechanical
equipment, or topographieal features that involve negligible or no expansion of existing or
former use. Approval of the lease agreement has no potential to have a significant effect on the
environment.
Report to Redding City Council March 12,2026
Re: 4.6(c)--Approve LeaseAgreement with Shasta Hangar, LLC Page 3
The Shasta Hangar is responsible for meeting certain regulatory requirements in order to develop
land as required by the FAA in a process that includes National Environmental Policy Act
(NEPA) and CEQA consideration. Shasta Hangar worked with a qualified aviation consultant to
obtain necessary NEPA and CEQA approvals which were submitted to the City Planning
Department and FAA as part of the development approval process.
Council PNio�^ity/City Manager Goals
• Economic Development — "Facilitate and become a catalyst for economic development
in Redding to create jobs, retain current businesses and attract new ones, and encourage
investment in the community."
Attachments
Shasta Hangar, LLC Lease Agreement- unsigned
Air Shasta C-3873 (to be terminated upon execution of new lease)
GROUND LEASE AGREEMENT
This Agreement is entered into as of March 1'7, 2026, (the "Effective Date") by and between
the City of Redding, a municipal corporation (the "Agreement'), (the "City"), and Shasta Hangar,
LLC., (the"Lessee").
RECITALS
A. City operates and maintains the Redding Regional Airport (the "Airport") and is owner
of certain real property in the County of Shasta, State of California, described on
Exhibit A (the"Property").
B. Lessee desires to lease from City approximately 195,584 square feet of ground space to
use current leased facilities and develop an aircraft storage hangar, office space and
public parking lot.
AGI2EEMENT
1. PREIVITSES. Lessee desires to lease from City and City desires to lease to Lessee on the terms
and conditions contained in this Agreement, 195,584 square feet ground area, legally depicted
on Exhibits A (Legal Description), B (Site Plan) and C (Site B) attached hereto and
incorporated herein by reference, (the "Premises").
2. TERM.
A. Lease Commencement: the TERM will begin effective the date the Agreement is
executed. The term of this Agreement shall be for the period of thirty-six (36) years
(the "Initial Term").
B. So long as Lessee is not in default under this Agreement, Lessee shall have two (2) five
(5) year options to extend the term of this Agreement. If Lessee exercises such
option(s), all of the terms of this Lease Agreement shall remain in full force and effect
except that the City shall become the owner of all improvements on the :Premises
pursuant to Section 7(L) and there shall be no further options to extend or renew the
Lease beyond the renewal terms set forth herein.. The option(s) shall be exercised by
written notice addressed to City no less than ninety (90) calendar days prior to the
expiration of the then current Lease term. Failure to exercise the option may, in the
City's sole discretion, be considered a forfeiture of the right to exercise the option.
3. USE.
A. The Premises are leased to Lessee for the sole purpose of maintaining and utilizing a
hangar/office complex and for the purpose of aircraft parking. Use of site shall include
(1) aircraft charter service; (2) aircraft rental service; (3) aircraft flying instruction; (4)
aircraft sales and service; (5) sales of aircraft parts and accessories; (6) sale of pilot
supplies; (7) aircraft maintenance and repair; (8)purchase and sale of aviation gasoline,
jet fuel, and lubricants; (10) office, storage and vehicle parking activities related to the
aforementioned activities in this paragraph; (11) storage of aircraft. Lessee shall not use
or permit the Premises to be used for any other purposes without the prior written
consent of the Airports Manager.
B. Lessee shall not engage in the sale of alcoholic beverages at the Premises or Airport
without the prior written consent of the Airports Manager.
C. The City hereby grants Lessee a non-exclusive, revocable right to use, in common with
others, all public Airport facilities and improvements, which are not by right the
exclusive use of other users of the Airport, including all necessary landing area
appurtenances, including approach areas, runways, taxiways, aprons, aircraft and
automobile parking areas, roadways, sidewalks, navigational aids, lighting facilities, or
other public facilities at the Airport, subject to the rules and regulations, ordinances,
and policies of the City. Lessee agrees that the timing, location, and manner of use of
such facilities shall be subject to the prior approval and absolute discretion of the
Airports Manager. The Airport Director reserves the right to reassign, restrict, or
suspend such use at any time to ensure the safe, secure, and efficient operation of the
Airport, or to accommodate changing aeronautical needs. Any unauthorized use or
failure to comply with the Director's directives may result in immediate revocation of
access to these areas.
4. RENTAL PAYMENTS.
A. The monthly rent to be paid by Lessee to the City under this Agreement during the
Term of this Agreement(the "Rent"), shall be the following:
1. For the period beginning from the date this Agreement is executed through the
first twelve months of the Initial Term (36 years), the Rent to be paid by Lessee
for the :Premises shall be broken out into the Existing Area and the New Area.
The Existing Area is comprised of a 150 feet x 370 feet area for a total of
55,500 square feet and the fuel farm area of 32,234 square feet, as shown on the
map incorporated by reference and attached hereto as Exhibit C. Lessee shall
pay Rent for the Existing Area for the first twelve months of the Initial Term at
$0.037 per square foot per month for a total amount of $3,246.16 per month
[55,500 square feet + 32,234 square feet = 8'7,734 square feet total x $0.037 =
$3,246.16 per month]. The New Area, incorporated into the Lease Site by
reference and attached hereto as Exhibit :B, is comprised of a total of 107,850
square feet. Lessee shall pay Rent for the New Area for the first twelve months
of the Initial Term at fifty percent (50%) of the initial rate of$0.03'7 per square
foot per month for a total amount of$1.995.23 per month (107,850 square feet x
$0.0185 = $1,99523 per month). The total Rent due per month for the Existing
Area and the New Area for the first twelve months from the date this
Agreement is fully executed equals $5,241.39. The annual total for the first
twelve months equals $62,896.66.
2. After the first twelve (12) months of the Initial Term (36 years), Lessee shall
pay Rent for the Premises each month in the amount of Seven Thousand, Two
Hundred Thirty-Six Dollars and Sixty-One Cents ($7,236.61) ($0.037 per
square foot per month for approximately 195,584 square feet). For each year of
the Initial Term thereafter, the base rent shall increase annually on each
anniversary of the Initial Term commencement date (the "Adjustment Date") by
three percent (3%) over the base rent paid during the immediately preceding
lease year.
3. In the event Lessee exercises a five-year option to extend this Lease, the rent to
be paid monthly by Lessee for the Premises for the first year of the five-year
option shall be the then current monthly rental fee increased by three percent
(3%). For each year of the renewal term thereafter, the base rent shall increase
annually on each anniversary of the renewal term commencement date (the
"Adjustment Date") by three percent (3%) over the base rent paid during the
immediately preceding lease year.
B. Lessee shall pay to the City all rent for the Premises and all other payments, if any,
required by this Agreement, without deduction, set off, prior notice or demand on or
before the first (lst) day of the month. Payments not paid when due are subject to late
fees and penalty charges as shown in the City's current Schedule of Fees and Charges.
Rent for any partial month shall be prorated based on a thirty(30) day month.
Notwithstanding the foregoing, Lessee's failure to timely pay Rent or other monetary
obligations due under this Lease shall constitute a material breach of this Lease. Upon
Lessee's failure to make any payment when due, the City shall provide Lessee with
written notice of such default. Lessee shall have three (3) business days from receipt of
such notice to cure the default by making full payment of all amounts due. If Lessee
fails to cure the default within the specified cure period, the City shall have the right, at
the City's sole discretion, to terminate this Lease by providing written notice to Lessee.
Upon termination, Lessee shall immediately vacate the Premises and surrender
possession to the City. Termination of this Lease shall not limit the City's right to
pursue any other remedies available under this Lease or applicable law, including
recovery of unpaid Rent, damages, and costs of enforcement.
5. UTILITIES. Lessee shall, at its own expense, provide and timely pay for all utilities
furnished on the Premises and plan for the provision and payment prior to delinquency of any
and all utility charges furnished to the Premises, including without limitation, electricity, gas,
water, sewer, telephone services, garbage and rubbish removal and other public utilities. In no
event shall the City be liable for any damage, loss, or expense arising out of any interruption,
failure, or defect in the supply or character of water, sewer, gas, or electrical services to the
Property, whether caused by maintenance, repair, breakdown, or causes beyond the City's
reasonable control. The City shall have no responsibility to pay for utilities furnished to the
Premises, and Lessee shall hold the City free and harmless from all charges for the furnishing
of utilities to the Premises.
6. TAXES.
A. Lessee is advised that, pursuant to Revenue and Taxation Code §10'7.6, a possessory
interest subject to taxation may be created by the grant of this lease and that Lessee
may be subject to the payment of property taxes levied upon the interest.
B. Lessee shall promptly pay before delinquency any taxes and/or special assessments
assessed against the Premises and any improvements and/or Lessee's personal property,
and any possessory interest tax levied by reason of its use and/or occupancy of the
Premises. On demand from the City, Lessee shall furnish the City with satisfactory
evidence of these payments.
7. CONSTRUCTION BY LESSEE.
A. Duty to Construct. Lessee shall, at Lessee's sole cost and expense, construct or cause to
be constructed on the Premises, a one-hundred-ten foot by three-hundred and twenty-
four foot (110' x 324') aircraft storage hangar and an 8,000 square foot attached office
space, landscaping, a connecting automobile parking lot comprised of a suitable
finished surface of either a minimum of three (3) inches of asphalt concrete or the
appropriate thickness of concrete over the appropriate base of aggregate as calculated
by Lessee's engineer and other related improvements (the "Hangar"), in the manner and
according to the terms and conditions specified in this Article and shall be subject to
any necessary permits as required by Redding Municipal Code thereby meeting the
requirements of the City Zoning Ordinance, California:Buildings Standards Code and
the California Fire Code. The duty to construct for the Hangar and any other
improvements includes the duty for site preparation, including the removal, if
necessary, of any buildings or other structures located on the Premises, the installation
or relocation of any utilities and the obtaining of any and all necessary permits,
including building and planning permits.
B. Lessee shall, at Lessee's sole cost and expense, decommission or remove the existing
hangar and office structure for the purpose of replacement with a similar type building
or replace with concrete apron to support aeronautical activity with the parking and
placement of aircraft and equipment necessary for the business.
C. Requirement of City's Written Approval.
i. N�othing contained in this Article '7 is intended to address the requirements or
timing of the City of Redding Development Services Department. The City's
approval pursuant to this Section is not intended to be, nor shall it be deemed to
be, approval for purposes of receiving a building or use permit.
ii. No structure or other improvement of any kind shall be constructed on the
Premises unless and until the plans, specifications, and proposed location of that
structure or improvement have been approved in writing by the Airports
Manager. The submission of plans for the Airports .Manager's approval is for
review of preliminary site layout plans and building elevations and is not
intended to be nor shall it be deemed a submission for purposes of receiving a
building or use permit. Furthermore, no structure or other improvements shall
be constructed on the Premises that do not comply with plans, specifications,
and locations approved in writing by City.
D. Preparation and Submission of Plans. Lessee shall, at Lessee's own cost and expense,
engage a licensed architect or engineer to prepare plans and specifications for the
Hangar and other improvements and shall submit to the Airports Manager for approval:
i. Within one hundred eighty(180) days after the effective date of this Lease, one
copy of:
1. Drawings and materials in the form of preliminary plans and elevations
sufficient to convey the architectural design of the Hangar and other
improvements to the Airports Manager, and
2. A statement of estimated construction costs for the Hangar and other
improvements prepared by the engaged architect or engineer.
ii. The plans and specifications may be submitted to the City Planning and
Building Division's concurrent with the Airports Manager's review.
iii. Within ninety(90) calendar days after approval by Airports Manager of the
items specified in Subsection (2) of this Subdivision C, and the obtaining by
Lessee of any building permit, variance, use permit, or rezoning or
administrative permit required for the Hangar and other improvements, Lessee
shall provide the Airports Manager with one(1) copy o£
1. Detailed working drawings,plans, and specifications for the Hangar and
other improvement; and
2. A revised statement of estimated construction costs for the Hangar and
other improvements prepared by the engaged architect or engineer.
E. City's Approval or Rejection of Plans. Within fifteen (15) days after receipt by
Airports Manager of any of the documents submitted to City for approval pursuant to
Section '7C of this Lease, the Airports Manager shall either approve those documents by
endorsing City's approval on each such document and returning one set of the
documents to Lessee, or the Airports Manager shall give written notice to Lessee of any
objections City may have to those documents. Within thirty(30) days after service on
Lessee of the written notice of City's objections, Lessee shall deliver corrective
amendments to the documents to the Airports Manager and City shall, within ten(10)
days after receiving the corrective amendments, serve written notice on Lessee of City's
approval or rejection of the documents as so amended. City's failure to comply with
the times stated herein shall not constitute approval of Lessee's plans.
F. Changes in Plans. After approval by the Airports .Manager of the documents
described in Section 7.C.3 of this Lease, any material change in the plans or
specifications for the Hangar and other improvements shall be approved by the City.
City shall give written notice to Lessee of any objections the City may have to any
proposed changes within twenty(20) days after a written statement of the proposed
changes has been given to City by Lessee. Minor changes in work or materials need
not be approved by City but a copy of the altered plans and specifications reflecting
those changes shall be given to City within a timely manner. For the purposes of this
Section, "minor change" means one that does not materially change the exterior
appearance, internal plan, location on the Premises or result in a change in the cost of
construction of more than Ten Thousand Dollars ($10,000.00). All other changes are
material.
G. All Work Under Direction and Supervision of Licensed Contractor. All work required
in the construction of the Hangar and other improvements, including site preparation
work, landscaping work, and utility installation work, as well as actual construction
work on the Hangar and other improvements, shall be performed under the direction
and supervision of a competent contractor(s) licensed and in good standing under the
laws of the State of California. Such contractor(s) may be an employee of Lessee and
shall have a current class B General Contractor's license issued by the State of
California.
i. Lessee shall record that Certificate of Completion promptly within the time
specified by law for the recording of that notice; and
ii. Lessee shall settle and discharge all liens of record claimed by persons who
supplied either labor or materials for the construction of the Hangar and other
improvements.
H. Compliance With Law and Standards. The Hangar and other improvements shall be
constructed, all work on the Premises shall be performed, and all buildings or other
improvements on the Premises shall be erected in accordance with all valid laws,
ordinances, regulations, and orders of all federal, state, county, or local governmental
agencies or entities having jurisdiction over the Premises; provided,however, that any
structure or other improvement erected on the Premises, including the Hangar, shall be
deemed to have been constructed in full compliance with all such valid laws,
ordinances, regulations, and orders when a valid final Certificate of Occupancy
entitling Lessee and sublessees, is so authorized, of Lessee to occupy and use the
structure or other improvement has been duly issued by proper governmental agencies
or entities. All work performed pursuant to this Lease, or authorized by this Lease,
shall be done in a good workmanlike manner and only with new materials of good
quality and high standard.
I. Time for Completion. Lessee shall begin substantial construction of the Hangar,
pursuant to acquisition of a valid building permit, within twelve (12) months of the
effective date of this Lease. Lessee shall cause construction of the Hangar and other
improvements to thereafter be diligently pursued without unnecessary interruption and
shall cause the Hangar and other improvements to be completed and ready for
occupancy not later than one hundred eighty (180) days after completion of its
construction. Lessee sha11 be excused for any reasonable delays in construction or
commencement of construction caused by a natural disaster, fire, flood, earthquake,
war, terrorism,pandemic, government order, or other cause reasonably beyond the
control of such Lessee,provided Lessee gives prompt written notice to the City and
exercises reasonable diligence to avoid any such delay, to mitigate the effects of the
delay, and to resume construction as promptly as possible after the delay.
J. Mechanics' Liens.
i. At all times during the term of this Lease, Lessee shall keep the Premises and all
improvements now or hereafter located on the Premises free and clear of all
liens and claims of liens for labor, services, materials, supplies, or equipment
performed on or furnished to the Premises.
ii. Should Lessee fail to pay and discharge or cause the Premises to be released
from any such lien or claim of lien within twenty (20) days after service on
Lessee of written request from City to do so, City may,but is not required to
pay, adjust, compromise, and discharge any such lien or claim of lien on any
terms and in any manner that City may deem appropriate unless Lessee is in
good faith contesting, opposing or objecting to such lien or claim of lien in
compliance with subsection(3)below. In the event Lessee so fails to pay and
discharge or cause the Premises to be released from any such lien or claim of
lien, Lessee shall, on or before the first day of the next calendar month
following any such payment by City, reimburse City for the full amount paid by
City in paying, adjusting, compromising, and discharging that lien or claim of
lien, including any reasonable attorneys' fees or other costs expended by City,
and late fees and penalty charges, as appropriate, as shown in City's then
current Schedule o�Fees, together with interest at the then-maximum legal rate
from the date of payment by City to the date of repayment by Lessee.
iii. Lessee shall have the right to contest, oppose or object in good faith to the
amount or the validity of any liens and claims of liens for labor, services,
materials, supplies, or equipment performed on or furnished to the Premises,
provided that written notice of the contest, opposition or objection must be
given to City at least five (5) days prior to Lessee making or filing the contest,
opposition or objection. Lessee shall promptly and diligently prosecute the
dispute to resolution in a manner that protects the City's interest in the property
and be responsible for and shall pay all costs and expenses in any contest or
legal proceeding instituted by Lessee. In no event shall City be subjected to any
liability for costs or expenses connected to any contest, and Lessee agrees to
indemnify and hold City harmless from any such costs and expenses.
Furthermore, no such contest, opposition, or objection shall be continued or
maintained unless Lessee has provided to City such further written assurances
as City may require within ten (10) days of City's written request. Lessee shall
have no authority to subject the City's interest in the property to any mechanic's
liens. Any mechanic's liens shall attach only to Lessee's leasehold interest in
the property. If Lessee fails to remove any lien as required herein, the City shall
have the right, but not the obligation, to pay and discharge the lien. Any
amounts paid by the City in connection with such lien shall be deemed
additional rent, and the City shall reimburse the City immediately upon demand.
K. Zoning and Use Permits. Should Lessee deem it necessary or appropriate to obtain any
building permit, use permit, variance,rezoning or administrative permit for the
Premises in order to construct or operate the Hangar or any other improvements,
Airports Manager, or designee, agrees to execute any documents,petitions,
applications, and authorizations that may be necessary or appropriate; provided,
however, that any such permits, variances, or rezoning shall be obtained at the sole cost
and expense of Lessee and Lessee agrees to protect and save City and the property of
City, including the Premises, free and harmless from any such cost and expense. This
does not obligate other City departments that are not within the control of Airports
Manager.
L. Ownership of Improvements.
i. N�otwithstanding Section 2B of this Agreement, title to all improvements,
including the Hangar, to be constructed on the Premises by Lessee shall be
owned by Lessee until expiration of the initial Term from the commencement
date of this Lease or earlier termination of this Lease. All improvements,
including the Hangar, on the Premises at the expiration of the term or earlier
termination of this Lease shall, without compensation to Lessee, then
automatically and without any act of Lessee or any third party become City's
property. Lessee shall surrender the improvements to City at the expiration of
the term or earlier termination of this Lease, free and clear of allliens and
encumbrances, other than those, if any, permitted under this Lease or otherwise
created or consented to by City. Without taking any action to alter the function
or habitability of the improvements or to reduce the economic value of the
same, Lessee agrees to execute, acknowledge, and deliver to City any
instrument requested by City as necessary in City's opinion to perfect City's
right, title, and interest to the improvements and the Premises.
ii. Upon expiration or termination of Lease, Lessee shall have the right to remove
such personal property, machinery, and equipment as may be removed without
threat to the structural integrity of any building or improvement. If damage
results from the removal of any such items, Lessee shall repair such damage at
its sole expense.
8. TNDEMNTFTCATION. Lessee shall indemnify and defend the City, its officers, officials,
employees, agents and volunteers, against and hold them harmless from any and all claims,
losses, damages, civil penalties, and liability for damages, including reasonable attorneys' fees
and other costs of defense incurred by the City, whether for damage to or loss of property or
injury to or death of person(s), including properties of the City and injury to or death of the
City's officers, officials, employees, agents and volunteers, arising out of or resulting from the
negligence or willful misconduct of Lessee, or from the actions of Lessee's officers,
employees, agents and invitees. The parties intend that any such claims or losses shall first be
satisfied from applicable insurance coverage before resorting to Lessee's indemnity
obligations. Lessee's obligations under this Section shall not apply to the extent of the sole
negligence or willful misconduct of the City. The indemnification obligations hereunder shall
be coordinated with, and not in duplication of, the insurance obligation set forth in Section 9,
and the City's rights as an additional insured under Lessee's policies shall be primary as to
such covered matters. Lessee's obligations under this Section shall survive termination or
expiration of this Agreement.
9. INSURANCE.
A. Unless modified in writing by City's Risk Manager, Lessee shall maintain, during the
duration of this Agreement, the following insurance from an insurance company
authorized to do business in the State of California. The cost of such insurance shall be
borne by Lessee. Subject to policy terms, conditions, limitations and exclusions,
coverage shall be at least as broad as:
1. Insurance Services Office form number CG-00 O1, Commercial General
Liability Insurance, in an amount not less than $2,000,000 per occurrence and
$4,000,000 general aggregate for bodily injury and property damage liability,
personal injury and advertising injury liability, medical payments and, as
applicable, products-completed operations coverage, explosion, fueling,
defueling and refueling operations.
2. Aircraft Liability, in respect of all aircraft owned, leased, hired, borrowed or
operated, including passengers and non-passengers, and including contractual
liability coverage in an amount not less than $1,000,000 per occurrence for
bodily injury and property damage, with a sublimit per passenger of no less than
$100,000.
3. Insurance Services Office form number CA-0001 (Ed. 1/8'7), Comprehensive
Automobile Liability Insurance, which provides for total limits of not less than
$1,000,000 combined single limits per accident applicable to all owned, non-
owned and hired vehicles.
4. Statutory Workers' Compensation required by the Labor Code of the State of
California and Employers' Liability Insurance in an amount not less than
$1,000,000 per occurrence. Both the Workers' Compensation and Employers'
Liability policies shall contain the insurer's waiver of subrogation in favor of
City, its elected officials, officers, employees, agents and volunteers.
5. Property Insurance against all risks of loss to any tenant improvements,
betterments, and contents at full replacement value. The property insurance
policy shall contain a waiver of subrogation in favor of City, its officers,
officials, agents, employees and volunteers.
B. Deductibles and Self-Insurance Retentions. Any deductibles or self-insured retentions
must be declared to and approved by the City.
C. Other Insurance Provisions. The general liability policies are to contain or be endorsed
to contain the following provisions:
1. The City, its officers, officials, employees, agents and volunteers are to be
covered as additional insured as respects liability arising out of work or
operations performed by or on behalf of Lessee; premises leased or used by
Lessee; or automobiles owned, leased, hired or borrowed by the Lessee. The
coverage shall contain no special limitations of the scope of protection afforded
to the City, its officers, officials, employees, agents or volunteers.
2. Lessee's insurance coverage shall be primary insurance as respects the City, its
officers, officials, employees, agents or volunteers. Such insurance shall apply
without contribution from any insurance maintained by or on behalf of any the
City. Any insurance or self-insurance maintained by the City, its officers,
officials, employees, agents or volunteers shall be excess of and shall not
contribute with, the insurance required to be maintained by Lessee under this
Agreement. The parties intend and agree that the Lessee's insurance shall
respond first to any claim, demand, loss, damage, suit, or liability arising out of
or relating to this Agreement, the leased premises, or Lessee's operations,
occupancy, or use, and that any insurance of the City shall be excess and non-
contributory with Lessee's insurance.
3. Coverage shall state that Lessee's insurance shall apply separately to each
insured against whom claim is made or suit is brought, except with respect to
the limits of the insurer's liability.
D. Cancellation Clause. Each insurance policy required by this section shall be endorsed
to state that coverage shall not be canceled except after thirty (30) calendar days' prior
written notice has been given to the City.
E. Certificate Holder. The Certificate Holder shall be the City of Redding, 777 Cypress
Avenue, Redding CA 96001.
F. Sublessees. Sublessees shall be required to procure and maintain insurance applicable
to their service and/or operation and meet the insurance requirements set forth in this
Section. City shall determine the type(s) of insurance to be provided by Sublessee.
G. Acceptabilitv of Insurers. Insurance is to be placed with insurers admitted to conduct
business in the State of California with a current A.M. Best's rating of no less than A-
:VII.
H. Verification of Covera�e. Lessee shall furnish the City with certificates of insurance
and original endorsements affecting coverage required by this clause. The
endorsements are to be signed by a person authorized by that insurer to bind coverage
on its behalf.
I. Covera�e. All coverage types and limits required are subject to approval, modification
and additional requirements by the City, as the need arises. City reserves the right at
any time during the term of the Agreement to change the amounts and types of
insurance required by giving Lessee thirty (30) days' advance written notice of such
change. Lessee shall satisfy said insurance requirement within thirty(30) calendar days.
J. The requirements as to the types and limits of insurance coverage to be maintained by
Lessee as required by Section 9 of this Agreement, and any approval of said insurance
by City, are not intended to and will not in any manner limit or qualify the liabilities
and obligations otherwise assumed by Lessee pursuant to this Agreement, including,
without limitation,provisions concerning indemnification.
10. MAINTENANCE AND REPAIRS.
A. Lessee shall, at Lessee's sole cost and expense and at all times during the term,
maintain the Premises and structure(s) in a safe and attractive condition and in the same
or improved condition as received at the beginning of the initial and renewal term(s),
ordinary wear and tear excepted. Lessee shall do, or cause to be done without delay, all
those things which, in the opinion of the Airports Manager, are necessary or desirable
in the interests of safety or to maintain the Premises in good repair and appearance,
including, but not limited, to all actions identified in this section. All damage caused to
the Premises and/or Airport by Lessee, its officers, employees, agents and invitees,
shall be repaired at Lessee's sole expense.
B. Lessee is responsible for pest control.
C. Lessee is responsible for HVAC maintenance and repair.
D. Lessee shall, at Lessee's sole cost and expense and at all times during the term, be
responsible for the following:
1. Sweeping and maintaining the aircraft and vehicle parking aprons in a clean
condition;
2. Conduct vegetation and weed management.
11. ALTERATIONS AND ADDITIONS.
A. Lessee shall not make or cause to be made any alterations or improvements to the
Premises without first securing the written consent of the Airports Manager. The
Airports Manager, in their sole discretion, may impose restrictions upon any proposed
alterations or improvements. All such alterations or improvements shall comply with
Airport Policy and all applicable building, zoning and fire codes.
B. Any trade fixtures, equipment, and other property brought, installed, or placed by
Lessee in or about the Premises shall be and remain the property of Lessee except as
otherwise provided herein. Lessee shall have the right at any time during the term
hereof to remove any or all of its property, subject to Lessee's obligation to repair all
damage, if any, resulting from such removal.
C. N�otwithstanding Section '7(K), upon the termination of this Agreement, at the sole
option of the City: (1) The alterations or improvements shall become the property of
the City and shall remain on the Premises; or (2) Lessee shall remove all alterations or
improvements and return the Premises to the City in substantially the same condition as
the Premises existed at the commencement of this Agreement.
12. ASSIGNMENT. Lessee shall not voluntarily assign, encumber, or sublet its interest in this
Agreement or in the :Premises, or allow any other person or entity (except its authorized
representatives) to occupy or use any or all part(s) of the Premises, without �'irst obtaining the
City's prior written consent which shall not be unreasonably withheld. Any assignment,
encumbrance, or subletting made without the City's consent shall be voidable, and, at the sole
election of the City, shall constitute a default of this Agreement and grounds for the City to
terminate this Agreement. No consent to any assignment or encumbrance shall constitute a
further waiver of the provisions of this section.
13. INVOLUNTARY ASSIGNMENT.
A. No interest of Lessee in this Agreement shall be assignable by operation of law by
voluntary or involuntary assignment. Involuntary assignments include but are not
limited to the following:
L If Lessee is or becomes bankrupt (whether voluntary or involuntary) or
insolvent, makes an assignment for the benefit of creditors, or institutes a
proceeding under the Bankruptcy Act in which Lessee is the bankrupt; or, if
Lessee is a partnership or consists of more than one person or entity, if any
partner of the partnership, or other person or entity, is or becomes bankrupt
(whether volunta�ry or involuntary) or insolvent, or makes an assignment for the
benefit of creditors;
2. If a writ of attachment or execution is levied on this Agreement;
3. If, in any proceeding or action to which Lessee is a parry, a receiver is appointed
with authority to take possession of the Premises; or
4. The abandonment or discontinuance of any operation at the Airport by Lessee,
or the failure to conduct any service, operation or activity permitted by this
Agreement. If this condition exists for a period of fifteen (15) days without the
prior written consent of the City, it will constitute an abandonment of the land,
facility or location, and this Agreement shall become null and void.
B. An involuntary assignment shall constitute a default by Lessee, and the City shall have
the right to elect to terminate this Agreement. In no event shall this Agreement be
deemed or treated as an asset of Lessee.
14. NO EXCLUSIVE USE. Nothing contained in this Agreement shall be construed as entitling
Lessee to the exclusive use of any services, facilities, or property rights of any nature at the
Airport, except the use of the Premises for the purpose and approved use set forth in this
Agreement.
15. WASTE; QUIET CONDUCT. Lessee shall not commit or suffer to be committed any waste
upon the Premises, or any nuisance or other act or thing which may disturb the quiet enjoyment
of any other occupant of or user of the Airport or the City's adjoining property.
16. STORAGE. Lessee shall not store anything outside of the Premises without the prior written
approval of the Airports Manager.
17. RIGHT TO INSPECT.
A. The City and its authorized officers, agents, employees, volunteers, contractors,
subcontractors and other representatives shall have the right to inspect the Premises for
any purpose, including,but not limited to, the following:
1. To inspect the Premises at reasonable intervals between 8:00 a.m. to 6:00 p.m.
with twenty-four (24) hours prior notice to determine whether Lessee has
complied with or is complying with the promises, terms, covenants and
conditions of this Agreement;
2. To make repairs, additions, or alterations as may be necessary or convenient for
the conduct, safety, improvement, or preservation of the Airport;
3. For emergency purposes; and
4. In the exercise of the City's police power.
B. No inspection by or on behalf of the City of the Premises shall cause or constitute a
termination of this Agreement or be deemed to constitute an interference with Lessee's
possession or use thereof.
18. RULES AND REGULATIONS; COMPLIANCE WITH LAWS.
A. Lessee shall, at Lessee's sole cost and expense, comply with all of the requirements of
all city, county, state and federal authorities now in force, or which may hereafter be in
force, pertaining to Lessee's possession and use of the Premises, and shall faithfully
observe in the use of the Premises all city and county ordinances and state and federal
statutes and regulations, now in force or which may hereafter be in force. Lessee's
possession and use of the Premises shall conform to all Airport rules and regulations
and local building and fire codes.
B. In the event of any conflict or inconsistency between the provisions of this Agreement
and any applicable federal laws, regulations, or clauses (Federal Clauses), the Federal
Clauses shall prevail and take precedence over the conflicting or inconsistent provisions
of this Agreement. The Parties agree to interpret and apply the terms of this Agreement
in a manner consistent with the Federal Clauses to the fullest extent possible. If any
provision of this Agreement is determined to be in conflict with a Federal Clause, such
provision shall be deemed modified or superseded to the extent necessa�ry to eliminate
the conflict, without affecting the validity or enforceability of the remaining provisions
of this Agreement.
19. I-IAZARDOUS MATERIALS.
A. Hazardous substances or materials include,but are not limited to:
1. Substances which are flammable, explosive, corrosive,radioactive, or toxic;
2. Any material or substances defined as hazardous substances, hazardous
materials, toxic substances, or hazardous wastes in the Comprehensive
Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C.
Sections 9601, et seq.), the Resource Conservation and Recovery Act (42
U.S.C. Sections 6901, et seq.), the Hazardous Waste Control Act (California
Health & Safety Code Sections 25100, et seq.) the Hazardous Substance
Account Act (California Heath & Safety Code Sections 25300, et seq.),
California Health and Safety Code Section 25280, et seq., Hazardous Materials
Release Response Plans and Inventory or the California Porter-Cologne Water
Quality Control Act, (Water Code Sections 13000, et seq.), and all amendments
to these laws and regulations adopted or publications promulgated pursuant to
these laws;
3. Those asbestos-containing materials defined and described in Environmental
Protection Agency Report No. 56/5-85-024 (June 1985) whether or not friable,
or any related or successor report, or other applicable government regulations
defined or describing such materials;
4. Pesticides as defined by Section 136(u) of FIFRA (7 U.S.C. Section 136) as
may be present in soil or groundwater;
5. "Hazardous wastes" as defined in Section 2511'7 of the California Health and
Safety Code, or as a chemical that is known to the State of California "to cause
cancer or reproductive toxicity" under the Safe Drinking Waster and Toxic
Enforcement Action of 1986, California Health and Safety Code Sections
25249.5, et seq.; and
6. Hazardous materials, substances or waste, or toxic materials, substances or
waste as those terms or similar terms are defined by any other federal, state or
locallaw or regulation or orders.
B. Lessee agrees to indemnify, protect, hold harmless, and defend City, its elected
officials, officers, employees, agents and volunteers from and against any and all
liability, including without limitation, (1) all foreseeable and unforeseeable
consequential damages, directly or indirectly arising from the use generation, storage,
or disposal of hazardous materials by Lessee, and (2) the cost of any required or
necessary repair, cleanup or detoxification and the preparation of any closure or other
required plans, to the full extent that such liability is attributable, directly or indirectly,
to the presence of use, generation, storage, release, threatened release, or disposal of
hazardous materials by Lessee, its officers, employees, agents and/or invitees on the
Premises or Airport after the beginning of the term of this Agreement.
C. Lessee releases City from any and all claims Lessee may have against City of whatever
kind or nature resulting from or in any way connected with the environmental condition
of the Premises, including any and all claims Lessee may have against City under the
Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as
amended ("CERCLA"), or any other federal, state, or local law, whether statutory or
common law, ordinance, or regulation pertaining to the release of hazardous materials
into the environmental from or at the Premises. Lessee expressly waives the benefits of
Civil Code Section 1542, which provides as follows: "A general release does not
extend to claims which the creditor does not know or expect to exist in his favor at the
time of executing the release, which if known by him must have materially affected his
settlement with the debtor."
D. Lessee's obligations under this Section shall survive termination or expiration of this
Agreement.
20. SECURITY. Lessee shall completely secure the Premises to prevent unauthorized access to
the secure side of the Airport at all times. Lessee shall defend, indemnify, hold harmless and
pay any fines imposed upon the City by the Federal Aviation Administration (FAA),
Department of Homeland Security (DHS), or Transportation Security Administration (TSA)
for violations of security caused by actions of Lessee or its agents, employees, or invitees.
Lessee shall pay such fine within thirty (30) days of written notice from the City of the
obligation to pay the fine. Failure to comply with the provisions of this Section is grounds for
termination of this Agreement by the City.
21. FEDERAL REQUTREMENTS. To comply with Federal Aviation Administration
requirements, Lessee and its officers, administrators, representatives, successors and assigns, as
part of the consideration hereof, do hereby covenant and agree to adhere to the following:
A. GENERAL CIVIL RIGHTS PROVISIONS: The "Lessee" agrees to comply with
pertinent statutes, Executive Orders and such rules as are promulgated to ensure that no
person shall, on the grounds of race, creed, color, national origin, sex, age, or disability
be excluded from participating in any activity conducted with or benefiting from
Federal assistance. If the "Lessee" transfers its obligation to another, the transferee is
obligated in the same manner as the "Lessee".
This provision obligates the "Lessee" for the period during which the property is
owned, used or possessed by the "Lessee" and the airport remains obligated to the
Federal Aviation Administration. This provision is in addition to that required by Title
VI of the Civil Rights Act of 1964.
B. CIVIL RIGHTS — TITLE VI ASSU��RANCE: Title VI of the Civil Rights Act of
1964, as amended, (Title VI) prohibits discrimination on the grounds of race, color,
or national origin under any program or activity receiving Federal financial
assistance. Sponsors must include appropriate clauses from the Standard DOT Title
VI Assurances in all contracts and solicitations.
C. SOLICITATION CLAU�SE: The City of Redding, in accordance with the provisions
of Title VI of the Civil Rights Act of 1964 (78 Stat. 252, 42 USC §§ 2000d to
2000d-4) and the :Regulations, hereby notifies all bidders or offerors that it will
affirmatively ensure that any contract entered into pursuant to this advertisement,
disadvantaged business enterprises will be afforded full and fair opportunity to
submit bids in response to this invitation and will not be discriminated against on the
grounds of race, color, or national origin in consideration for an award.
D. CLAUSE — CONTRACTS: During the performance of this contract, the Lessee, for
itself, its assignees, and successors in interest (hereinafter referred to as the
"Lessee"), agrees as follows:
l. Compliance with Regulations: The Lessee (hereinafter includes
consultants) will comply with the Title VI List of Pertinent
Nondiscrimination Acts and Authorities, as they may be amended from time
to time, which are herein incorporated by reference and made a part of this
contract.
2. Nondiscrimination: The Lessee, with regard to the work performed by it
during the contract, will not discriminate on the grounds of race, color, or
national origin in the selection and retention of subcontractors, including
procurements of materials and leases of equipment. The Lessee will not
participate directly or indirectly in the discrimination prohibited by the
Nondiscrimination Acts and Authorities, including employment practices
when the contract covers any activity, project, or program set forth in
Appendix B of 49 CFR part 21.
3. Solicitations for Subcontracts, including Procurements of Materials and
Equipment: In all solicitations, either by competitive bidding or negotiation
made by the Lessee for work to be performed under a subcontract, including
procurements of materials, or leases of equipment, each potential
subcontractor or supplier will be notified by the Lessee of the Lessee's
obligations under this contract and the Nondiscrimination Acts and
Authorities on the grounds of race, color, or national origin.
4. Information and Reports: The Lessee will provide all information and
reports required by the Acts, the Regulations, and directives issued pursuant
thereto and will permit access to its books, records, accounts, other sources
of information, and its facilities as may be determined by the sponsor or the
Federal Aviation Administration to be pertinent to ascertain compliance with
such Nondiscrimination Acts and Authorities and instructions. Where any
information required of a contractor is in the exclusive possession of another
who fails or refuses to furnish the information, the Lessee will certify to the
sponsor or the Federal Aviation Administration, as appropriate, and will set
forth what efforts it has made to obtain the information.
5. Sanctions for Noncompliance: In the event of Lessee's noncompliance with
the non-discrimination provisions of this contract, the sponsor will impose
such contract sanctions as it or the Federal Aviation Administration may
determine to be appropriate, including, but not limited to:
a. Withholding payments to the Lessee under the contract until the
Lessee complies; and/or
b. Cancelling, terminating, or suspending a contract, in whole or in part.
E. Tncorporation of Provisions: The Lessee will include the provisions of paragraphs
one through five in every subcontract, including procurement of materials and leases
of equipment, unless exempt by the Acts, the Regulations, and directives issued
pursuant thereto. The Lessee will act with respect to any subcontract or procurement
as the sponsor or the Federal Aviation Administration may direct as a means of
enforcing such provisions including sanctions for noncompliance. :Provided that if
the Lessee becomes involved in, or is threatened with litigation by a subcontractor,
or supplier because of such direction, the Lessee may request the sponsor to enter
into any litigation to protect the interests of the sponsor. In addition, the Lessee may
request the United States to enter into the litigation to protect the interests of the
United States.
F. CLAU�SES FOR DEEDS TRAN�SFERRTN�G UNITED STATES PROPERTY:
NOW, TH�EREFORE,the Federal Aviation Administration as authorized by law
and upon the condition that the City of Redding will accept title to the lands and
maintain the project constructed thereon in accordance with Executive Order 9689,
for the Surplus Property Act of 1944, and the policies and procedures prescribed by
the Federal Aviation Administration of the U.S. Department of Transportation in
accordance and in compliance with all requirements imposed by Title 49, Code of
Federal Regulations, U.S. Department of Transportation, Subtitle A, Office of the
Secretary, Part 21, Non-discrimination in Federally-assisted programs of the U.S.
Department of Transportation pertaining to and effectuating the provisions of Title
VI of the Civil Rights Act of 1964 (�8 Stat. 252; 42 USC § 2000d to 2000d-4), does
hereby remise, release, quitclaim and convey unto the City of Redding all the right,
title and interest of the U�.S. Department of Transportation/Federal Aviation
Administration in and to said lands described in Exhibit A attached hereto and made
a part hereof.
HABENDUM CLAU�SE: TO HAVE AND TO HOLD said lands and interests
therein City of Redding and its successors forever, subject,however, to the
covenants, conditions,restrictions and reservations herein contained as follows,
which will remain in effect for the period during which the real property or
structures are used for a purpose for which Federal financial assistance is extended
or for another purpose involving the provision of similar services or benefits and will
be binding on the City of Redding, its successors and assigns.
The City of Redding, in consideration of the conveyance of said lands and interests
in lands, does hereby covenant and agree as a covenant running with the land for
itself, its successors and assigns, that (1) no person will on the grounds of race,
color, or national origin, be excluded from participation in, be denied the benefits of,
or be otherwise subjected to discrimination with regard to any facility located wholly
or in part on, over, or under such lands hereby conveyed, (2) that the City of
Redding will use the lands and interests in lands and interests in lands so conveyed,
in compliance with all requirements imposed by or pursuant to Title 49, Code of
Federal Regulations, U.S. Department of Transportation, Subtitle A, Office of the
Secretary, Part 21, Non-discrimination in Federally-assisted programs of the U.S.
Department of Transportation, Ef�ectuation of Title VI of the Civil Rights Act of
1964, and as said Regulations and Acts may be amended, and(3) that in the event of
breach of any of the above-mentioned nondiscrimination conditions, the Department
will have a right to enter or re-enter said lands and facilities on said land, and that
above described land and facilities will thereon revert to and vest in and become the
absolute property of the Federal Aviation Administration and its assigns as such
interest existed prior to this instruction.
G. CLAUSES FOR TRANSFER OF REAL PROPERTY ACQUIRED OR
IMPROVED UNDER THE AIRPORT INIPROVEMENT PROGRAM:
A. The Lessee for himself/herself,his/her heirs,personal representatives,
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:
1. In the event facilities are constructed, maintained, or otherwise
operated on the property described in this Agreement for a purpose
for which a Federal Aviation Administration activity, facility, or
program is extended or for another purpose involving the provision of
similar services or benefits, the lessee will maintain and operate such
facilities and services in compliance with all requirements imposed
by the Nondiscrimination Acts and Regulations listed in the Pertinent
List of Nondiscrimination Authorities (as may be amended) such that
no person on the grounds of race, color, or national origin, will be
excluded from participation in, denied the benefits of, or be otherwise
subjected to discrimination in the use of said facilities.
B. With respect to licenses, leases, permits, etc., in the event of breach of any of
the above Nondiscrimination covenants, City of Redding will have the right
to terminate the license and to enter, re-enter, and repossess said lands and
facilities thereon, and hold the same as if the license had never been made or
issued.
C. With respect to a deed, in the event of breach of any of the above
Nondiscrimination covenants, the City of Redding will have the right to enter
or re-enter the lands and facilities thereon, and the above described lands and
facilities will there upon revert to and vest in and become the absolute
property of the City of Redding and its assigns.
H. CLAUSES FOR CONSTRUCTION/USE/ACCESS TO REAL PROPERTY
ACQUIRED UNDER THE ACTIVITY, FACILITY OR PROGRAM: The
following clauses will be included in deeds, licenses, permits, or similar
instruments/agreements entered into by City of Redding pursuant to the provisions
of the Airport Improvement Program grant assurances.
A. The lessee for himself/herself, his/her heirs, personal representatives,
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 (1) no
person on the ground of race, color, or national origin, will 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 ground of race, color, or national origin, will be
excluded from participation in, denied the benefits of, or otherwise be
subjected to discrimination, (3) that the lessee will use the premises in
compliance with all other requirements imposed by or pursuant to the List of
discrimination Acts And Authorities.
B. With respect to licenses, in the event of breach of any of the above
nondiscrimination covenants, City of Redding will have the right to terminate
the license and to enter or re-enter and repossess said land and the facilities
thereon and hold the same as if said license had never been made or issued.
C. With respect to deeds, in the event of breach of any of the above
nondiscrimination covenants, City of Redding will there upon revert to and
vest in and become the absolute property of City of Redding and its assigns.
I. TITLE VI LIST OF PERTTNENT NONDISCRIIVIINATION� ACTS AND
AUTHORITIES: During the performance of this contract, the Lessee, for itself, its
assignees, and successors in interest (hereinafter referred to as the "Lessee") agrees
to comply with the following non-discrimination statutes and authorities; including
but not limited to:
• Title VI of the Civil Rights Act of 1964 (42 U�SC § 2000d et seq., �8 stat.
252) (prohibits discrimination on the basis of race, color, national origin);
• 49 CFR part 21 (Non-discrimination in Federally-assisted programs of the
Department of Transportation—Effectuation of Title VI of the Civil :Rights
Act of 1964);
• The Uniform Relocation Assistance and Real Property Acquisition Policies
Act of 19'70, (42 USC § 4601) (prohibits unfair treatment of persons
displaced or whose property has been acquired because of Federal or
Federal-aid programs and projects);
• Section 504 of the Rehabilitation Act of 19�3 (29 USC § 794 et seq.), as
amended (prohibits discrimination on the basis of disability); and 49 CFR
part 27;
• The Age Discrimination Act of 1975, as amended (42 U�SC § 6101 et seq.)
(prohibits discrimination on the basis of age);
• Airport and Airway Improvement Act of 1982 (49 USC § 4'71, Section
47123), as amended (prohibits discrimination based on race, creed, color,
national origin, or sex);
• The Civil Rights Restoration Act of 1987 (PL 100-209) (broadened the
scope, coverage and applicability of Title VI of the Civil Rights Act of 1964,
the Age Discrimination Act of 19'75 and Section 504 of the Rehabilitation
Act of 1973, by expanding the definition of the terms "programs or
activities" to include all of the programs or activities of the Federal-aid
recipients, sub-recipients and contractors, whether such programs or
activities are Federally funded or not);
• Titles II and III of the Americans with Disabilities Act of 1990, which
prohibit discrimination on the basis of disability in the operation of public
entities, public and private transportation systems, places of public
accommodation, and certain testing entities (42 USC §§ 12131 — 12189) as
implemented by U.S. Department of Transportation regulations at 49 CFR
parts 3� and 38;
• The Federal Aviation Administration's N�ondiscrimination statute (49 U�SC §
47123) (prohibits discrimination on the basis of race, color, national origin,
and sex);
• Executive Order 12898, Federal Actions to Address Environmental Justice in
Minority Populations and Low-Income Populations, which ensures
nondiscrimination against minority populations by discouraging programs,
policies, and activities with disproportionately high and adverse human
health or environmental effects on minority and low-income populations;
• Executive Order 13166, Improving Access to Services for Persons with
Limited English Proficiency, and resulting agency guidance, national origin
discrimination includes discrimination because of limited English proficiency
(LEP). To ensure compliance with Title VI, you must take reasonable steps
to ensure that LEP persons have meaningful access to your programs (70
Fed. Reg. at 74087 to 74100);
Title IX of the Education Amendments of 19'72, as amended, which prohibits you
from discriminating because of sex in education programs or activities (20 USC
1681 et se�.
J. Lessee acknowledges that City is subject to Federal Grant Agreement obligations as
a condition precedent to the granting of federal funds for improvements to the
Airport, and, accordingly, Lessee agrees to, and agrees to be bound by, the following
covenants provided by the Federal Aviation Administration as they may apply to
Lessee.
A. Lessee for itself, its personal representatives, successors in interest and
assigns, as a part of consideration hereof, does hereby covenant and agree
that in the event facilities are constructed, maintained, or otherwise operated
on any areas occupied by Lessee and described in this Agreement for a
purpose for which a DOT program or activity is extended or for another
purpose involving the provision of similar services or benefits, Lessee shall
maintain and operate such facilities and services in compliance with all other
requirements imposed pursuant to Title 49, Code of Federal Regulations,
DOT, Subtitle A, Office of the Secretary, Part 21, N�ondiscrimination in
Federally-Assisted Programs of the Department of Transportation -
Effectuation of Title VI of the Civil Rights Act of 1964, and as said
Regulations may be amended.
B. Lessee for itself, its personal representatives, successors in interest and
assigns, as a part of consideration hereof, does hereby covenant and agree
that: (1) 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 use of the facilities, (2) that in the construction
of any improvements on, over, or under any areas by Lessee 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, (3) that Lessee shall occupy and
use the Premises in compliance with all other requirements imposed by or
pursuant to Title 49, Code of Federal Regulations, Department of
Transportation, Subtitle A, Office of the Secretary, Part 21,
Nondiscrimination in Federally-Assisted Programs of the Department of
Transportation-Effectuation of Title VI of the Civil Rights Act of 1964, and
as the Regulations may be amended.
C. That in the event of breach of any of the above nondiscrimination covenants,
the City shall have the right to terminate this Agreement and to reenter and
repossess the land and the areas occupied by Lessee and the facilities
thereon, and hold the same as if this Agreement had never been made or
issued. This provision does not become effective until the procedures of 49
CFR Part 21 are followed and completed including expiration of appeal
rights.
D. Lessee shall furnish its accommodations and/or services on a fair, equal and
not unjustly discriminatory basis to all users thereof and shall charge fair,
reasonable, and not unjustly discriminatory prices for each unit or service.
Lessee may be allowed to make reasonable and nondiscriminatory discounts,
rebates or other similar type of price reductions to volume purchasers.
E. Without limiting the generality of any other terms or provisions of this
Agreement, non-compliance with subsection D above shall constitute a
material breach thereof and in the event of such non-compliance the City
shall have the right to terminate this Agreement and the estate hereby created
without liability therefore or, at the election of the City or the United States,
either or both Governments shall have the right to judicially enforce
subsections A, B, C, and D.
F. Lessee agrees that it shall insert the above five (5) provisions, subsection A
through E, in any agreement by which Lessee grants a right or privilege to
any person, firm or corporation to render accommodations and/or services to
the public on the Premises.
G. Lessee assures that it will comply with pertinent statues, executive orders and
such rules as are promulgated to assure that no person shall, on the grounds
of race, creed, color, national origin, sex, age, or handicap be excluded from
participating in any activity conducted with or benefitting from federal
assistance. This section obligates Lessee or its transferee for the period
during which federal assistance is extended to the Airport, except where
federal assistance is to provide, or is in the form of personal property or real
property or interest therein or structures or improvements thereon. In these
cases, this subsection obligates Lessee or any transferee for the longer of the
following periods: (a) the period during which the property is used by City or
any transferee for a purpose for which federal assistance is extended, or for
any purpose involving the provision of similar services or benefits; or (b) the
period during which City or any transferee retains ownership or possession of
the property. In the case of Lessees, this subsection binds the subsection
binds the Lessees from the bid solicitation period through the completion of
the contract.
H. Lessee agrees to adopt and enforce workplace safety policies to decrease
crashes caused by distracted drivers including policies to ban text messaging
while driving when performing any work for, or on behalf of, the Federal
government, including work related to a grant or sub-grant.
I. Lessee agrees to conduct workplace safety initiatives in a manner
commensurate with the size of the business, such as:
1. Establishment of new rules and programs or re-evaluation of existing
programs to prohibit text messaging while driving; and
2. Education, awareness, and other outreach to employees about the
safety risks associated with texting while driving.
J. The City reserves the right, but shall not be obligated, to Lessee to maintain
and keep in repair the landing area of the Airport and all publicly-owned
facilities of the Airport, together with the right to direct and control all
activities of Lessee in this regard.
K. The City reserves the right to further develop or improve the landing area of
the Airport as it sees fit, regardless of the desires or view of Lessee and
without interference or hindrance.
L. This Agreement shall be subordinate to the provisions and requirements of
any existing or future agreement between the City and the United States
relative to the use, development, operation, security or maintenance of the
Airport, the execution of which is or may be required by the United States as
a condition precedent to the grant or expenditure of federal funds for the
Airport.
M. There is hereby reserved to the City, its successors and assigns, for the use
and benefit of the public, a right of flight for the passage of aircraft in the
airspace above the surface of the Premises herein leased. This public right of
flight shall include the right to cause in said airspace any noise inherent in the
operation of any aircraft used for navigation or flight through the said
airspace or landing at, taking off from or operation on the Redding Regional
Airport.
N. Lessee agrees to comply with the notification and review requirements
covered in :Part 77 of the Federal Aviation Regulations in the event future
construction of a building is planned for the Premises, or in the event of any
planned modification or alteration of any present or future building or
structure situated on the Premises.
O. Lessee, its officers, administrators, representatives, successors, and assigns
will not erect nor permit the erection of any structure or object, nor permit
the growth of any tree or vegetation on the Airport to a height above the
mean sea level that would exceed Federal Aviation Regulations Part '7'7
standards or elevations af�ecting Airport navigable airspace. In the event the
aforesaid covenants are breached, the City reserves the right to enter upon the
Premises and to remove the offending structure or object and cut the
offending tree or vegetation, all of which shall be at the expense of Lessee.
P. Lessee, its officers, administrators, representatives, successors and assigns
will not make use of the Premises in any manner which might interfere with
the landing and taking off of aircraft from Redding Regional Airport or
otherwise constitute a hazard. In the event the aforesaid covenant is
breached, the City reserves the right to enter upon the :Premises and cause the
abatement of such interference at the expense of Lessee.
Q. This Agreement and all the provisions hereof shall be subject to whatever
right the United States Government now has or in the future may have or
acquire, affecting the control, operation, regulation and taking over of the
Redding Regional Airport or the exclusive or non-exclusive use of the
Airport by the United States during the time of war or national emergency.
Lessee agrees that this Agreement is subject to the ongoing jurisdiction of the
United States of America and that if the provisions set forth in this Section 23
are altered, amended or changed in any way by an agency having jurisdiction
over the Airport, the Lessee hereby agrees to amendment of this Agreement
in order to adopt any such changes.
22. DAMAGE; DESTRUCTION.
A. If the Premises are so damaged or destroyed by fire, flood, earthquake, the elements,
casualty, war, riot,public disorder, or any other cause not the fault of Lessee, its
officers, employees, agents or invitees so as to render the entire Premises unusable
for Lessee's operations, the Lessee shall have the option to either repair the Premises
or terminate this Agreement. If the Lessee elects to terminate this Agreement, rent
for the month in which the Premises are damaged shall be prorated and the unearned
portion refunded to Lessee within three (3) days of the Lessee's election to terminate
this Agreement. Notwithstanding, Lessee shall bear the cost of removing all
material, structures and improvements from the Premises and City may recover as a
set-off to rent to be returned to Lessee pursuant to this subdivision or by any other
means af�orded to it in law or equity the cost of removing the same if Lessee does
not do so within thirty (30) calendar days of City having deposited notice to Lessee
of its obligation as set forth herein."
B. If the Premises are partially damaged or rendered partially unusable by fire, flood,
earthquake, the elements, casualty, war,riot,public disorder, or any other cause not
the fault of City, its officers or employees, City shall give the Lessee written notice
of such damage, and if the Lessee does not commence repairs within thirty(30)
calendar days from the date of the notice, City may elect to terminate this Agreement
by giving written notice to the Lessee of City's election to terminate this
Agreement. If City elects not to terminate this Agreement, this Agreement shall
continue in full force and effect except that the damage to the Premises shall be
repaired by and at the expense of the Lessee and until such repair is substantially
completed so that full use and occupancy of the Premises by Lessee is possible, the
rent shall be apportioned according to the portion of the Premises which remains
useable. Lessee shall ensure repairs are completed in a timely manner. If such repairs
are not completed in a timely manner not to exceed one hundred eighty(180)
calendar days from the date of the City's notice of the damage, City may terminate
this Agreement by giving Lessee ten (10) calendar days written notice.
23. DEFAULT.
A. The occurrence of any of the following shall constitute a material breach or default
of this Agreement by Lessee:
1. Failure to pay any payment due under this Agreement when due, if the failure
to pay continues for three (3) days after written notice of the failure has been
given to Lessee;
2. Failure to perform any other provision of this Agreement if the failure to
perform is not cured within thirty (30) days after notice of the failure has
been given to Lessee. If the breach or default cannot be reasonably cured
within thirty (30) days, Lessee shall not be in breach or default of this
Agreement if Lessee commences to cure the breach or default within the
thirty (30) day period and diligently and in good faith continues to cure the
default.
3. Failure to maintain current licenses, if any, required for the permitted
operation.
4. Intentionally supplying the City with false or misleading information or
misrepresenting any material fact on documents or in statements to or before
the City and its employees, or the intentional failure to make full disclosure
on a financial statement or other required documents.
B. Notices given under this section shall be made in writing, and shall specify the
alleged breach or default, and shall demand that Lessee perform the provisions of
this Agreement or pay the payment that is in arrears, as the case may be, within the
applicable time period, or this Agreement is terminated. No such notice shall be
deemed a forfeiture or a termination of this Agreement unless the City so elects in
the notice.
The City, at any time after Lessee commits a breach or default of this Agreement,
can cure the breach or default at Lessee's cost. Tf the City, at any time, by reason of
Lessee's breach or default, pays any sum or does any act that requires the payment
of any sum, the sum paid by the City shall be due immediately from Lessee to the
City at the time the sum is paid, and if paid at a later date shall be subject to late fees
and penalty charges as shown in the City's then current Schedule of Fees and
Charges. The sum, together with the late fees or penalty charges, shall be an
additional payment owed to the City pursuant to this Agreement.
24. CTTY'S 12EMEDI�ES F012 DEFAULT.
A. Termination of Lease. Upon the occurrence of a default that is not timely cured by
Lessee, the City may immediately terminate this Agreement and recover possession
of the Premises. Once the City has terminated this Agreement, Lessee shall
immediately surrender the Premises to the City. On termination o�this Agreement,
the City may recover from Lessee all of the following:
1. The worth at the time of the award of any unpaid rent that had been earned at
the time of the termination, to be computed by allowing interest at the
maximum amount of interest permitted by law;
2. Any difference in the rent owed going forward less the rent from a new
tenant as multiplied by the number of months remaining on the term;
3. Any other amount necessary to reasonably compensate the City for all the
detriment proximately caused by Lessee's failure to perform obligations
under this Agreement, including brokerage commissions and advertising
expenses, expenses of remodeling the Premises for a new Lessee (whether
for the same or a different use), and any special concessions made to obtain a
new Lessee; and
4. Any other reasonable amounts, in addition to or in lieu of those listed above,
that may be permitted by applicable law.
B. Continuation of Lease in Effect: Upon the occurrence of a default that is not timely
cured by Lessee, the City shall have the remedy described in Civil Code section
1951.4, which provides that, when a Lessee has the right to sublet or assign (subject
only to reasonable limitations), the City may continue the lease in effect after the
Lessee's breach and abandonment and recover rent as it becomes due. Accordingly,
if the City does not elect to terminate this Agreement on account of any default by
Lessee, the City may enforce all of the City's rights and remedies under this
Agreement, including the right to recover all rent as it becomes due.
25. SURRENDER OF PREMISES. On the expiration, cancellation or termination of this
Agreement, Lessee shall surrender possession of the Premises to City, deliver all keys to any
locks on the Premises and make known to City the combination of any combination locks
on the Premises. Lessee shall reimburse City for any damage done to the Premises caused
by Lessee's use of the Premises or Lessee's actions or omissions other than normal wear
and tear within thirty (30) days of receiving invoice. Lessee shall remove all its personal
property on or before the date of expiration, cancellation or termination of the Agreement
26. ADMINISTRATION BY CITY. Whenever Lessee is required to secure the approval or
consent of the City pursuant to this Agreement, the City shall mean the Airports Manager.
When the Mayor is signatory to this Agreement, the Airports Manager, or the Airports
Manager's designee, shall have authority to execute any amendment to this Agreement
which does not decrease the amount of compensation allowable to City, or otherwise
substantially change the nature or scope of the agreement provided herein.
2'7. VOLUNTEER ASSISTANCE. Under no circumstances will Lessee use City employees
whom are on duty to perform work at the Premises. Under no circumstances will Lessee use
City employees whom are off duty to perform work at the :Premises if the nature of the work
is substantially similar to the employee's regular work duties for the City.
28. SIGNS. The size and location of signs, banners, flags, etc., advertising the activities of
Lessee and located off of the Airport shall be subject to the City's sign ordinance (Redding
Municipal Code Chapter 18.42.) The size and location of signs, banners, flags, etc., located
on the Premises or at the Airport shall be subject to any Airport policies or rules and receive
prior written approval of the Airports Manager
29. NOTICES. All notices, requests, demands and other communications hereunder shall be
deemed given only if in writing signed by an authorized representative of the sender and
personally delivered to the City or Lessee, or in lieu of such personal service, sent by United
States mail, registered or certified, return receipt requested, or delivered by facsimile, with a
hard copy mailed first class,postage prepaid; or when sent by a courier or an express service
guaranteeing overnight delivery to the receiving party, addressed to the respective parties as
follows;
TO THE CITY: TO LESSEE:
City of Redding Shasta Hangar, LLC
Attn.: Airports Manager Attn: Casey Ross, Manager
6751 Woodrum Circle, #200 3770 Flight Avenue
Redding, CA 96002 Redding, CA 96002
Either party may change its address for the purposes of this section by giving written notice
of such changes to the other party in the manner provided in this section.
30. BINDING ON HEIRS AND SUCCESSORS. This Agreement shall be binding on and
shall inure to the benefit of the heirs, executors, administrators, successors, and assigns of
the parties hereto, but nothing in this Section shall be construed as a consent by City to any
assignment of this Agreement or any interest in the Agreement by Lessee except as provided
in Section 13 of this Agreement.
31. ATTORNEY'S FEES. In any dispute between the City and Lessee, whether or not
resulting in litigation, the prevailing party shall be entitled to recover from the other party all
reasonable costs, including without limitation, reasonable attorney's fees. "Prevailing
party" shall include without limitation, a party who dismisses an action for specific
performance or for damages in exchange for sums allegedly due, performance for covenants
allegedly breached or consideration substantially equal to the relief sought in the action, or
which receives from the other party, in connection with any dispute, performance
substantially equivalent to any of these.
32. HEADINGS AND REFEI2ENCE AND WAIVEI2. The titles and headings in this
Agreement are inserted for convenience only and shall not constitute a part hereof. A
waiver of any party of any provision or a breach of this Agreement must be provided in
writing and shall not be construed as a waiver of any other provision or any succeeding
breach of the same or any other provisions herein.
N�on-Waiver. The City's acceptance of any partial payment of Rent or other sums due under
this Lease shall not constitute a waiver of any term, covenant, or condition of this Lease, nor
a waiver of the City's right to require strict compliance and full performance by Lessee.
N�o Accord and Satisfaction. No endorsement or statement on any check or accompanying
instrument, and no acceptance of any partial payment, shall be deemed an accord and
satisfaction. The City may accept any partial payment without prejudice to, and without
waiver of, the City's right to recover the balance of all amounts then due or thereafter
accruing, and to pursue any and all remedies available under this Lease and applicable law.
Preservation of Remedies. Without limiting the foregoing, the City's acceptance of any
partial payment shall not: (a) waive or cure any existing Default; (b) waive the City's right
to declare or maintain a Default; (c) waive or limit the City's right to demand and collect all
unpaid Rent and other charges when due; or (d) impair the City's right to enforce any other
provision of this Lease, including the right to serve notices, impose late charges, interest, or
other amounts as provided in this Lease, or to pursue any lawful remedy.
Conditional Application. Any partial payment accepted by the City may be applied by the
City, in the City's sole discretion, to any outstanding Rent or other amounts due under this
Lease and shall not be deemed acceptance of any proposed payment allocation or restriction
by Lessee. Any attempted conditional tender by Lessee is rejected in advance; any such
payment accepted by the City shall be accepted under protest and without agreeing to any
condition.
33. NO PARTY DEEMED DRAFTER. In the event of a dispute between any of the parties
hereto over the meaning of this Agreement, no party shall be deemed to have been the
drafter hereof, and the principle of law set forth in Civil Code §1654 that contracts are
construed against the drafter shall not apply.
34. CALIFORNIA LAW. This Agreement shall be deemed to have been entered into in
Redding, California. All questions regarding the validity, interpretation or performance of
any of its terms or of any rights or obligations of the parties to this Agreement shall be
governed by California law, and any action brought by either party to enforce any of the
terms of this Agreement shall be filed in the Shasta County Superior Court.
35. TIME OF ESSENCE. Time is of the essence of this Agreement and of each and every
provision therein.
36. ENTIRE AGREEMENT. This Agreement, which includes all exhibits attached hereto and
incorporated by reference herein, contains all the representations and the entire
understanding and agreement between the parties pertaining to the use of the Premises or
any other matters connected therewith. All correspondence, memoranda, or oral or written
agreements pertaining to the Premises or the parties hereto, which originated before the date
of this Agreement are null, void and no longer in force and with no effect, and are replaced
in total with this Agreement unless otherwise expressly stated in this Agreement.
37. MODIFICATION OF LEASE. This Agreement shall not be altered, amended, or
modified except by a writing signed by City and Lessee.
38. SEVERABILITY. If any portion of this Agreement or the application thereof to any
person or circumstance shall be invalid or unenforceable to any extent, the remainder of this
Agreement shall not be affected thereby and shall be enforced to the greatest extent
permitted by law.
39. AUTHORITY. Each of the undersigned signatories hereby represents and warrants that
they are authorized to execute this Facilities and Ground Lease on behalf of the respective
parties to this Agreement, that they have full right, power and lawful authority to undertake
all obligations as provided in this Agreement; and that the execution, performance and
delivery of this Agreement by said signatories has been fully authorized by all requisite
actions on the part of the respective parties to this Agreement.
40. DATE OF AGREEMENT. The date of this Agreement shall be the date it is signed by the
City.
IN WITNESS THEREOF, City and Lessee have executed this Agreement on the days and year set
forth below.
CTTY OF REDDI�NG
Dated: , 2026
By: 1VIike Littau,Mayor
Attest: Approved as to Form:
Christian Curtis
City Attorney
SHARLENE TIPTON, City Clerk By:
Shasta Hangar, LLC.
Dated: , 2026
By: Casey Ross, Manager
Attachments—Exhibit A, Prope�ty Description
Exhibit B, Legal Description
t.�raur�d Lease
Aair�hasta IFBt7
E 1 1T
LE��E L�E�CRIPTI�[V
All that cerkain property in the City t�f Redding, County of Shasta, State of California
being a parki�r� �f the Sautheast c�n�-quarter of Section 27, T�wnship 31 Na�h, R�nge
4 West, M.Q.M., more p�rticularfy described as fc,llc�ws:
EGI I G at the Sc�utheast corner of the Site A�ir Shasta, Rotcar and Wing
Description described within the GRaUND LEASE AGREEMENT with AlR iHASTA
RC�TC3R ANL7 WING, LLC dated 2-12-2UO2 filed as Agreement C-3873 in �he City of
Redding Cleck's t�ffice,
Thence frvm the POINT OF BE�INNING, South 89°57'S6'°W, 3�0.00 feet;
Thence South 0°02'04" East, 125.00 feet;
Thenc� South 89°57'�6" East, 24�5.00 feet;
Thence Nc�rth 0°�2'04'° West, 24�.00 feet;
Thenc� North 89°57'S6,� East, 95.00 feet;
Thence Nt�rth 0°t7�'U�"W�st, �00.00 feet;
Thence Narth 8�°57'S6" East, 300.�� feet,
Thence North 0°�2'04" West, 15Q.00 feet,
Thence North 89°57'S6° East, 150.�0 feet;
Thene� Nr�rth 0°Q2'04" West, 37�.0� feet to the POINT 4F SEGI NI G.
Contains an area af 3.75 acres, more c�r less.
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EN i �E i G �visi N EXHIBIT B
ITEM:
° 5° , '°° S50 AIR SHASTA F�0 LEASE
ATTAC N M E N T:
DWG. N0: DAIF.:
e� �xi�irzn SEP 2025
SITE
Air Shasta, Rotor and Wing
DESGRIF'TIOIV
Co encin;g at�he Section Co1-n�;r eammon ta Sections 22, ��,2� & 27,Township 31 Narth, Range
4 West,M.D;M.a,thence+�n and along the north line of said Section 27, 5.89°14'S6"W.,2QOO.00 fe�tto
a point on the eenterline of A.irport Road; thence on and alon� said centerline of Airport Roacl,
5.00°02'04"E.,600 feet ta a point of intersection with the extension of the property line co on to the
United States Cir�vemment (U.S.F S.) anci the City af Redding, with the centerline of Airpt�rt Rcaad�
thence on and alang said praperty ]ine, 5.39°56'tJ499E., 277:64 feet to the True Point of�e�inning
(P.4:B.) of this description; thence running the following bearings and distances, continuing on anci
alang saicl property line,5.39°56'0499E.,240.OQ feet9 thence leaving said prc�perty'line,S:SC!°0�'S6"W.,
143.00 feet; thence 5.89°14'S6"W,, 110a00 feet, thence N.13°1$'2�"E., 284.91 feet to the paint �f
be,�inning, cc�ntainin� 0."74� acres.
J.--------- N 89'14'S6" E 200Q.00` -��-�_ ��
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'L,� -
GROUND LEASE AGF�EEMENT
with
AIR SHASTA ROTOR AND WING, LLC
THIS GROLTND LEASE AGREEMENT is made by and between the City of Redding, a
municipal corporation("City"),and Air Shasta Rotor and Wing,LLC,a Limited Liability Company
("Lessee").
RECITALS
A. City is the owner of certain real property in the County of Shasta,State of California,
described and depicted on Exhibits"A" and "B,"which is attached and made a part of this Lease
Agreement(referred to in this Lease Agreement as the"Premises").
B. Lessee desires to lease and occupy that certain real property located at 3770 Flight
Avenue, Redding, CA, comprised of 1.69 acres,more or less, described and depicted on Exhibit
"A," for the purpose of conducting a full service fixed-base operation (FBO) and providing for
aircraft parking.
C. Lessee alsa desires to lease and occupy the 0.74 acre azea known as the Airport Road
Fuel Fazm as described and depicted on Exhibit"B"for the purpose of operating and maintaining
above-ground fuel storage tanks.
D. The word"Premises"as used in this Lease Agreement refers collectively to the areas
of tt�e Redding Municipal Airport referred to as Site"A"and Site`B." It is agreed by the parties that
the Prernises to be leased herein, and operated by Lessee as contemplated herein, conform to the
minimum standards of a full service fixed base operation as defined in Redding City Council Policy
No.302,Minimum Standards for Aeronautical Activity at Redding Municipal Airport. Lessee shall
be authorized to act as an FBO, as defined in Redding City Council Policy No. 302,provided that
Lessee strictly complies with all terms, covenants and conditions to be performed by Lessee under
this Lease Agreement, and Lessee complies with all other requirements of Council Policy No. .302
applicable to FBOs not otherwise specifically addressed by this Lease Agreement.
AGREEMENT
1. LEASE OF PREMISES. For and in consideration of the rents to be paid and
covenants to be performed by Lessee under this Agreement,City hereby agrees to lease the Premises
to Lessee, and Lessee agrees to lease the Premises from City, on the terrns and conditions set forth �
in this Agreement. Except as expressly otherwise provided in this Agreement, the "Premises" ,
includes the real property plus any appurtenances and easements described in Exhibits"A"and"B" �,
of this Agreement;,,exclusive of any;improvements now or hereafter located on the Premises, �
notwithstanding that any such improvements may or shall be construed as a�xed to and as
�
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Ground Lease Agreement-Air Shasta Rotor and Wing, LLC Page 2
constituting part of the described Premises, and without regazd to whether ownership of the
improvements is in the City or in the Lessee.
2. TERM.
A. Initial Term. T'he initial term of this Agreement shall be for a period of twenty-five
(25) years commencing February 5, 2002, and expiring on February 4, 2027.
B. Option. Lessee is given two (2) five-yeaz options to extend the term of this
Agreement on all the provisions contained in this Agreement, except for the description of the
Premises and the monthly rent,by giving notice of exercise of the option("Option Notice") to the
City at least six (6)months but not more than one(1} year before the expiration of the initial and
extended term. Provided that,ifLessee is in material default on the date of giving the option notice,
the option notice shall be totally ineffective unless cured by Lessee within thirty(30)days of the date
of the option notice; or,if the default cannot be cured within the thirty(30)day period,Lessee shall
have commenced and be diligently pursuing the cure within the thirty(30)day period. If Lessee is
in material default on the date the extended term is to commence, the extended term shall not
commence and this Agreement shall expire at the end of the initial term or any extended term.
l. As set out in Section 14,title to all the improvements on the Premises shall
vest in the City at the expiration of twenty-five (25) years from the commencement date of this
Agreement or earlier termination of this Agreement. 'Thus, any exercise by Lessee of the Qption to
extend this Agreement shall constitute an exercise of an option to enter into a new Agreement af the
Premises and any and all improvements existing or constructed on the Premises("New Premises").
2. The City shall have ninety(90)days after City receives the option notice in
which to inform the Lessee of the monthly rent for the New Premises during the extended term. City
shall establish such manthly rent by appointing a real estate appraiser with at least five (5) years'
full-time commercial appraisal experience including appraisal of properties utilized for aviation-
related purposes to render an opinion of the monthly rent of the New Premises. The annual rent for
the Premises shall be nine percent(9%) of the fair market value of the Premises as determined by
the appraiser,and this annual rent shall be divided by twelve(12)and the resulting quotient shall be
the monthly rent for the New Premises. The monthly rent for the New Premises shall be subject to
subsequent adjustment as provided in Section S.B. for Site"A" and Section 5. D. for Site"B."
As to an appraisal of the premises, the property to be appraised consists of the area
of ground subject to this Lease at the time of the appraisal, together with all building(s) and
improvements present thereon at the time of the appraisal. The New Premises are zoned "U"
ITNCLASSIFIED and are to be used for the purpose of use as an aircraft hangar,related affice space
and storage of aircraft. The most appropriate valuation method shall be utilized through application
of the direct sales comparison approach andlor the income approach. If the appraiser is unable to
calculate an appropriate valuation using one or both of the specified methods, then the appraiser
Ground Lease Agreement-Air Shasta Rotor and Wing, LLC Page 3
must in good faith specify the reasons why such methods were unsuitable. In utilizing the direct
sales comparison approach,the appraiser shall use sales(including all appropriate interests such as
fee simple,leasehold and lease fee)from(1)similarly zoned parcels; (2)similarly used;(3)located
� in similarly trafficked airports;and(4)which are located in similarly situated cities. In utilizing the
income approach,the appraiser shall use rental rates,operating expense ratios and capitalization rates
derived from: (1) similarly zoned parcels; (2) similarly used; (3) located in similarly trafficked
airports;and(4) which are located in similarly situated cities.
If the Lessee disagrees with the arnount of the monthly rent established by the City
for the extended term,then within ten(10)days of receipt of the notification of the intended monthly
rent,Lessee sha11 notify City of its disagreement. Lessee sha11, at its sole cost, appaint a real estate
appraiser with at least five (5) years' full-time commercial appraisal experience including the
appraisal of properties utilized for aviation-related purposes to render an opinion of the monthly rent
of the New Premises.
In the event that the difference between the manthly rent as established by City and
the monthly rent as deterrnined by Lessee is ten percent(10%)or less of the monthly rent established
by the City, the two appraisals sha11 be added together and their total dividecl by two; the resulting
quotient shall be the monthly rent during the extended term for the New Premises.
In the event that the difference between the monthly rent as established by the City
and the monthly rent as determined by Lessee is more than ten percent(10%) of the monthly rent
established by City,the City and Lessee shall agree on an arbitratar who meets the qualifications of
the appraisers hired by City and Lessee. If the parties fail to agree, either party may apply to the
presiding judge of the Superior Court of Shasta County for the selection of an arbitrator who meets
the qualifications stated in this Section. Each of the parties shali bear one half of the cost of
appointing the arbitrator and of paying the arbitrator's fee. The arbitrator,however selected, sha11
be a person who has not previously acted in any capacity for either party.
The arbitrator shall review each of the appraisals and hear any additional evidence
the parties may wish to present. The arbitrator shall adjudge the monthly rent for the New Premises
for the extended term based on the appraisals and evidence presented. The monthly rent adjudged
by the arbitrator shall not be more than the highest appraisal,nor less than the lowest.
Upon the determination ofthe monthly rent for the New Premises during the extended
tetm, City and Lessee shall execute an addendum to this Agreement setting forth the description of
the New Premises, showing title to all the improvements vested in City, and a statement of the
manthly rent during the extended term.
3. USE OF PREMISES.
A. Site "A" - Lessee shall use the Premises for the sole purpose of maintaining and
Ground Lease Agreement-Air Shasta Rotor and Wing, LLC Page 4
utilizing a hangar/office complex and for the purpose of aircraft parking. Use of Site "A" shall
include (1) aircraft charter service; (2) aircraft rental service; (3) aircraft flying inshvction; (4}
aircraft sales and service; (5) sale of aircraft parts and accessories; (6) sale of pilots' supplies; (7)
aircraft maintenance and repair; (8)gurchase and sale of aviation gasoline,jet fuel and lubricants;
(9)rental of hangar space and aircraft storage;and(10)office,storage and vehicle parking activities
related to the aforementioned activities in this paragraph. I.essee shall not use or permit the Premises
to be used far any other purposes without the prior written consent of the City.
B. Site"B"- Lessee shall use the area identified as Site"B" solely for the purpose of
operating and maintaining above-ground fuel storage tanks.
C. Lessee shall have the right,in common with other users of the Airport,to the general
use of all public Airport facilities and improvements which are not by right the exclusive use of other
users of the Airport, including all necessary landing area appurtenances including approach azeas,
runways,taxiways,aprons,aircraft and automobile parking areas,roadways,sidewalks,navigational
aids, lighting facilities, or other public facilities at the Airport.
r D. Lessee shail not engage in the sale or pravision of alcoholic beverages at the Premises
or Airport without the prior written consent of the City.
E. Prohibited Uses. Lessee may store iterns on the Prernises sa long as the primary use
of the Premises remains consistent with a full service fixed base operator(FB�). Lessee shall not
use or permit the Premises or any portion of the Premises to be improved, developed, used, or
occupied in any manner or for any purpose that is in any way in violation of any valid law,
ordinance,or regulation of any federal,state,county,or loca]governmental agency,bady,or entity.
Furthermore, Lessee shall not maintain, commit, or peimit the maintenance or commission of any
nuisance as now or hereafter defined by any statutory or decisional law applicable to the Premises
or any part of the Premises.
F. Acceptance of Condition of Premises"As Is". The Premises are let in its condition
as of the date hereof,without representation or warranty by City,subject to any state of facts which
an accurate survey or a physical inspection thereof might show,to all applicable legal requirements
and any violation of any legal requirernent which may exist as of the date hereof. Lessee has
examined and approved the Premises for all purposes of this Agreement. Lessee acknawledges that
any existing improvements and fixtures included in the Premises are in good condition and in good
working order, or that Lessee otherwise accepts the condition thereof.
4. PERMIT FOR COMMERCIAL ACTIVITIES. This Agreement shall also
constitute a Permit for Commercial Activities ("Permit"}, and the terms hereof shall constitute the
terms for a permit for commercial activities required by Redding Municipal Code Section 3.08.030.
The City Council of the City has determined that these comrnercial activities are compatible with
the use of the Airport,and that the best interests of the public and the City of Redding will be served
Ground Lease Agreement-Air Shasta Rotor and Wing, LLC Page 5
by approval of such commercial activities.A breach or default in the terms of this Agreement shatl
constitute a breach of the Pelmit.
5. RENT.
A. Site "A" Initial Term. The monthly rent to be paid by Lessee to the City under this
Agreement during the initial term of this Agreement, shall be the folIowing for Site"A":
1. The monthly rent to be paid by Lessee to the City for the first year of the initial
term (February 5, 2002, through February 4, 2003) shall be One Thousand Six Hundred Fifty Six
80/l 00 Dollars{$1,656.80).
2. Commencing at the beginning of the second annual term(February 5,2003)
and upon the commencernent of each additional twelve(12)month period thereafter, Lessee shall
pay to the City as the monthly rent, the sum of the then current monthly rent increased by tlu-ee
percent(3%).
B. Site"A"Extended Term. Commencing at the beginning of the second annual term
of the extended term(February 5,2028}and upon the commencement of each additional twelve(12)
month period thereafter,Lessee shall pay to the City as monthly rent for the New Premises,the sum
of the then current monthly rent as determined by the provisions of Section 2. B. 2. increased by
three percent(3%).
C. Site"B"Initial Term. The monthly rent to be paid by Lessee to the City under this
Agreement during the initial term of this Agreement, shall be the following for Site"B":
1. The monthly rent to be paid by Lessee to the Ciry for the first yeaz of the initial
term (February 5, 2002, through February 4, 2043) shall be Three Hundred Eighty Four 53/100
Dollars ($384.53).
2. Commencing at the beginning of the second annual term(February 5,2003)
and upon the cornmencement of each additionai twelve (l2) month period thereafter, Lessee shail
pay to the City as the monthly rent, the sum of the then current monthly rent increased by three
percent (3%).
D. Site"B"Extended Term. Commencing at the beginning of the second annual terrn
of the extended term(February 5,2028)and upon the commencement of each additional twelve(12)
month periad thereafter,Lessee shall pay to the City as monthly rent for the New Premises,the sum
af the then current monthly rent as determined by the provisions of Section 2. B. 2. increased by
three percent(3%).
Ground Lease Agreement-Air Shasta Rotor and Wing, LLC Page 6
E. Time and Place of Pa�in�Rent. Lessee shall pay to the City a11 rent for the Premises
and all other payments, if any,required by this Agreement,without deduction, set off,prior notice
ar demand on or before the first (1 s�day of month. All rent required under this Agreement shall be
paid to City, addressed to the City Treasurer, at 777 Cypress Avenue, P.O. Box 496Q71,Redding,
California, 96Q49-6071, ar any other place or places that the City may designate by written notice
to lessee. Payments not paid when due aze subject to late fees and penalty charges as shown in the
City's then current Schedule of Fees and Charges. Monthly rent for the first month or portion of it
shall be paid on the date the term commences. Rent for any partial month shall be prarated based
on a thirty{30)day rnonth.
6. PERFORMANCE BOND.
A. Lessee will post with the City Clerk of the City a performance bond or a letter of
credit in favor of the City in the amount of Twelve Thousand Dollars($12,000.00)to assure payment
under the terms of this Agreement. For the purpose of this Agreement,this is conshued to mean a
negotiable instrument issued by a National or State insurance company or bank doing business
within the State of ealifornia in a form acceptable ta the City. Cancellation of the performance bond
or letter of credit for whatever reason shall forthwith ternvnate this Agreement.
B. In addition to the performance bond and letter of credit, the City will accept a
Certificate of Deposit("CD")made out to the City. Such CD shall provide for the City's absolute
right to attach to the CD at any time during the Agreement term or any extensian thereof and sixty
(60) days after the expiration or termination of this Agreement in an amount up to and including
Twelve Thousand Dollars ($12,000.00} and shall effectuate the City's ability to do sarne. Any CD
contemplated by Lessee with respect to this Agreement must be received and deemed acceptable by
the City Attorney of the City.
C. Lessee shall fiunish the City with a copy of the performance bond,letter of credit or
CD. Lessee shall maintain and renew the performance bond, letter of credit or CD as necessary to
rernain in force throughout the term af this Agreement or any extension thereof and sixty(b0)days
after the expiration or termination of this Agreement.The performance bond,letter of credit or CD
may be called by the City upon expiratian of thirty{30}days after any fee required to be paid under
this Agreement becomes due and payable.
D. At the sole discretion of the City, a claim may be made by the City against the
performance bond, letter of credit or CD in the event of one of the following.
1. Failure on the part of Lessee to make timely payment af any amount due the
City under the teims and conditions of this Agreement;
2. Any damage to or loss of Airport praperty caused by Lessee, its officers,
employees, agents and invitees, or Lessee's activities pursuant to this Agreement;
Ground Lease Agreement-Air Shasta Rotor and Wing, LLC Page �
3. Failure to pay utility and other charges, if any;
4. Remaval and storage expenses incurred by the City if Lessee does not
promptly remove Lessee's property from the Premises within thirty(30}days after this Agreement
expires or is terminated; or
5. Costs incurred by the City at the time this Agreement is terminated if Lessee
fails to leave the Premises in satisfactory condition.
E. A claim made by the City against the performance bond,letter of credit or CD shall
not cure the default by Lessee. However,�at the City's sole discretion, if the City elects to make a
claim against the performance bond,letter of credit or CD,the City may,in writing,expressly waive
the default by Lessee.If the City makes a clairn against the performance bond,letter of credit or CD
and elects to waive the default by Lessee,Lessee shall restore the performance bond,letter of credit
or CD to the full amount of Twelve Thousand Dollazs($12,000.00)within fifteen(15)days of the
City's written waiver of the default.Lessee's failure to restore the performance bond,letter of credit
or CD as provided in this Section shall constitute a separate default of this Agreement.
7. AIRCRAFT FUEL FLOWAGE FEES,LANDING FEES,TRANSIENT RAMP
PARKING REVENUE.APRON AND VEHICLE PARKING AREA.
A. Fuel Flowa e Fees. In consideration of the privilege to conduct aircraft refueling on
the property,and not as rent,Lessee shall pay to City a fuel flowage fee calculated in cents and mils
per gallon, at the rate established for all refueling operations at the Redding Municipal Airport by
resolution of Redding's City Councii.The fuel flowage fee shall be paid on a monthly basis,no later
than the twentieth(20"')day of the month following the billing period,and shall be based upon the
number of gallons of aviation fuel purnped into aircraft at the Redding Municipal 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,however,that all refueling facilities at all times comply with all applicable safety
and environmental laws, standards, and regulations and the]aws governing hazardous materials as
defined in Section 21(A).
B. Landin Fees. Lessee shall pay to City on a monthlybasis,no tater than the twentieth
(20`h)day of the month following the billing period,landing fees as required by Redding Municipal
Code Section 3.04.03Q and as established by Redding's City Council by resolution.
C. Transient Ramp Parking Area. Lessee shall pay to City on a monthly basis,no later
than the twentieth(20`'')day of the month following th�billing period,an amount equal to fifty�50)
percent of the gross revenue derived from aircraft utilizing that portion of the public transient ramp
as designated by the Airports Manager.
Ground Lease Agreemenf-Air Shasta Rotor and Wing, LLC Page 8
D. Aireraft Apron and Vehicle Parking Area• Lessee shall have the 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. City
maintains no legal responsibility far the exclusive azeas.
8. TAXES AND UTILITIES. Lessee shall pay during the term of this Agreement,
without abatement, deduction, or offset, any and all real and personal property taxes, general and
special assessments,possessory interest taxes and other charges(including any increase caused by
a change in the tax rate or by a change in assessed valuation)of any description levied or assessed
during the term of this Agreement by any governmental agency or entity on or against the Premises,
any new or existing improvements lacated on the Premises,personal property located on or in the
Premises, ar on or in new or existing improvements and the leasehold estate created by this
Agreement.
A. Proration of First and Last Year Talces. Notwithstanding the other provisions of
Section 8 of this Agreement, all taxes, assessments, or other charges levied or assessed during the
tax yeazs in which the term of this Agreement commences and ends for which City is liable shall be
prorated between City and Lessee as of 12:01 a.m. on the date the term commences and on the date
the term ends,respectively, on the basis of tax years that commence on July 1 and end on June 30
of each year. City shall pay the taxes, assessments, or other charges for the year in which the term
of this Agreement commences and Lessee shall pramptly, on service of written request by City,
reimburse City for Lessee's share of those taxes, assessments, or other charges for which City may
be liable. Lessee shall pay the taxes, assessments, and other charges for the year in which this
Agreement is to end; and City shall promptly, on service of written request by Lessee, reimburse
Lessee for City's share of those taxes, assessments, and other chazges for which it may be liable.
B. Payment Before Delinquency. Any and all taxes and assessments and installrnents
of taxes and assessments required to be paid by Lessee under this Agreement shall be paid by Lessee
at least ten(10}days before each such tax, assessment,or installment of tax or assessment becomes
delinquent. Lessee shall deliver to City the official and ariginal receipt evidencing the payment of
any taxes, assessments, and other charges required under this Section.
C. Taxes Pavable in Installments. Should any special tax or assessment be levied on or
assessed against the Premises that may be either paid in full prior to a delinquency date within the
term of this Agreement or paid in instailments over a period either within or extending beyond this
Agreement,Lessee shall have the option of paying the special tax or assessment in installments.The
fact that the exercise of the aption to pay the tax or assessment in instaliments will cause the
Premises to be encumbered with bonds or will cause interest to accrue on the tax or assessment is
immaterial and shall not interfere with the free exercise of the option by Lessee. Should Lessee
exercise the option to pay any such tax or assessment in installments, Lessee shall be liable to pay
only those installments becoming due during the term of this Agreernent.
Ground Lease Agreemenf-Air Shasfa Rotor and Wing, LLC Page 9
D. Contest of Tax. Lessee shall have the right to contest,oppose,or obj ect to the amount
or validity of any tax,assessment,or other charge levied on or assessed against the Ptemises ar any
part of the Premises; provided, however, that the contest, opposition, ar objection must be filed
before the tax, assessment, or other charge at which it is directed becomes delinquent and that
written notice of the contest, opposition, or objection must be given to City at least ten (10) days
before the date the tax,assessment,or other charge becomes delinquent.Lessee shall be responsible
for and shall pay all costs and expenses in any contest or legal proceeding instituted by Lessee. In
no event shall City be subjected to any liability for costs or expenses connected to any contest by
Lessee, and Lessee agees to indemnify and hold City harmless from any such costs and expenses.
Furtherrnore,no such cantest,opposition,or objection shall be continued or maintained after the date
the tax, assessment, or other charge at which it is directed becomes delinquent unless Lessee has
either:
1. Paid the tax,assessment,or other chazge under protest prior to its becoming
delinquent;
2. Obtained and maintained a stay of all proceedings for enforcement and
collection of the taac,assessment,or other charge by posting a bond or other security required by law
for such a stay; or
3. Provided to City such further written assurances as City may require within
ten(10)days of City's written request.
E. Tax Returns and Statements. Lessee shall,as between City and Lessee,have the duty
of attending to, preparing, making, and filing any statement, return, report, or other instrument
required or permitted by law in connection with the determination, equalization, reduction, or
payment of any ta�ces,assessments,ar other charges that are or may be levied on or assessed against
the Premises,and new or existing improvements located on the Premises,personal property located
on or in the Premises or new or existing improvements and the leasehold estate created by this
Ageement.
F. Tax Hold-Harmless Clause. Lessee shall indemnify and hold City and the property
of City,including the Premises and any improvements now or hereafter located on the Premises,free
and harmless fram any liability, loss, or damage resulting from any taxes, assessments, or other
charges required by this Section to be paid by Lessee and from all interest,penalties,and other sums
impased thereon and from any sales or other proceedings to enforce collection of any such taxes,
assessments, or other charges.
G. Utilities. Lessee shall pay or cause to be paid,and hold City and the property of City
including the Premises free and harmless from, all chazges for the furnishing af gas, water,
electricity, telephone service, and other public utilities to the Premises during the term of this
Agreement and for the removal of garbage and rubbish from the Premises during the term of this
Ground Lease Agreement-Air Shasta Rotor and Wing, LLC Page 10
Agreement.
H. Payment b�Citv. Should Lessee fail to pay within the time specified in this Section
any taxes, assessments, or other charges required by this Section to be paid by Lessee, City may,
without notice to or demand on Lessee,pay,discharge,or adjust that tax,assessment,or other charge
for the benefit of Lessee. In that event,Lessee shall promptly on written demand of City reirnburse
City for the full amount paid by City in paying, discharging, or adjusting that tax, assessment, or
other charge together with interest therean at the then-maximum legal rate from the date of payment
by City untit the date of repayment by Lessee.If this Section does not sgecify the time within which
Lessee must pay any charge required by this Section,Lessee sha11 pay that charge before it becomes
delinquent.
9. NO EXCLUSIVE USE. Nothing contained in this Agreement shall be construed
as entitling Lessee to the exclusive use of any services, facilities,or property rights of any nature at
the Airport, except the use of the Premises for the purpose and approved use set forth in this
Agreement.
10. MECHANIC'S LIENS. Lessee shall keep the Premises free from any liens arising
out of any work performed, materials furnished, or obligations incurred by Lessee.
11. WASTE;QUIET CONDUCT. Lessee shall not commit or suffer to be committed
any waste upon the Premises, or any nuisance or other act or thing which may disturb the quiet
. enjoyment of any ather occupant of or user of the Airport or the City's adjaining property.
12. LESSEE'S SECURITY. Lessee shall completely secure the Premises during non-
operating hours. Lessee shall pay any fines imposed upon the City by the Federal Aviation
Administration ("FAA"} for violations of security caused by actions of Lessee or its agents,
emplayees,or invitees. Lessee shall pay such fine within thirty(30)days of written notice from the
City of the obligation to pay the fine.Failure to comply with the provisions of this Section is grounds
for termination of this Agreement by the City.
13. RULES AND REGULATIONS• COMPLIANCE WITH LAWS. Lessee sha11,
at Lessee's sole cost and expense, comply with all of the requirements of all city,county,state and
federal authorities now in force, or which may hereafter be in force, pertaining to Lessee's
possession and use of the Premises, and shall faithfully observe in the use of the Premises a11 city
and county ordinances and state and federal statutes and regulations, now in force or which may
hereafter be in force. Lessee's possession and use of the Premises shall conform to all Airport rules
and regulations and local building and fire codes.
14. UWNERSHIP OF IMPROVEMENTS. Title to all existing improvements,
including the hangar/affice camplex and fuel farm, shall be owned by Lessee until expiration of
twenty-five(25)years from the commencement date of this Agreement or earlier termination of this
Ground Lease Agreemenf-Air Shasta Rotor and Wing, LLC Page 19
Agreement. All improvements, including the hangar/office camplex, fuel farm, and existing
improvements,on the premises at the expiratian af the term or earlier termination of this Agreement
shatl,without compensation to Lessee,then automatically and without any act of Lessee or any third
party become City's property. Lessee shall surrender the improvements to City at the expiration of
the term or earlier termination of this Agreement,free and clear of all liens and encumbrances,other
than those, if any, permitted under this Agreement or otherwise created or consented to by City.
Lessee agrees to execute, acknowledge, and deliver to City any instrument requested by City as
necessary in Lessee's opinion to perfect City's right,title,and interest to the improvements and the
premises.
Lessee shall have the right to remove such personal property,machinery, and equipment as
may be removed without threat to the structural integrity of any building or unprovement. If damage
results from the remaval of atny such items, Lessee shall repair such damage at its sole expense.
15. ENCUMBRANCE OF LEASEHOLD ESTATE
A. Lessee's Ri�ht to Encurnber Upon Prior Written Consent. Lessee may, at any time
and from time to time during the term of this Agreement, encumber to any institutional lender
regulated by state or federal authority(referred to in this Agreement as a"Lender"),by deed of trust
or mortgage or other security instrument, all of Lessee's interest under this Agreement and the
Ieasehold estate hereby created in Lessee (referred to in this Agreement as a "Leasehold
Encumbrance"}for any purpose or purposes only upon the prior written consertt of City. However,
no Leasehold Encumbrance incurred by Lessee pursuant to this 5ection shall, and Lessee shall not
have power to incur any encumbrance that shall,constitute in any way a lien or encumbrance on the
City's fee interest in the Premises. Any Leasehold Encumbrance shall be subject to a11 covenants,
conditions,and restrictions set forth in this Agreement and to all rights and interests of City,except
as is otherwise provided in this Agreement. Lessee shall give City prior written notice of any
proposed Leasehold Encumbrance, together with a copy of the deed of trust, mortgage, or other
security interest evidencing the Leasehold Encumbrance.
B. Notice to and Service on Lender. City shall mail to any Lender who has given City
written notice of its name and address, a duplicate copy of any and all notices City may from time
to time give to or serve on Lessee pursuant to or relating to this Agreement,including but not limited
to any notice of default, notice of terrnination, or notice regazding any matter on which City may
predicate or claim a default. Any notices or other cornmunications permitted by this or any ather
Section of this Agreement or by law to be served on or given to Lender by City sha11 be deemed duly
served on or given to Lender when deposited in the United States mail, first-class postage prepaid,
addressed to Lender at the last mailing address for Lender furnished in writing by the Lender to City.
C. Ri�,ht of Lender to Realize on Securit.y. A Lender with a Leasehold Encumbrance
shall have the right at any time during the term of this Agreement and the existence of the
encumbrance to:
Ground Lease Agreement-Air Shasta Rotor and Wing,LLC Page 12
1. Do any act or thi.ng required of Lessee under this Agreement, and any such
act or thing done and perforrned by Lender shall be as effective to prevent a forfeiture of Lessee's
rights under this Agreement as if done by Lessee;
2 Realize on the security afforded by the leasehold estate by foreclosure
proceedings, accepting an assignment in lieu of foreclosure, or other remedy afforded in law or in
equity or by the security instrument evidencing the Leasehold Encumbrance (referred to in this
Agreement as"the Security Instrument") and to:
a. Transfer, convey,or assign the title of Lessee to the leasehold estate
created by this Agreement to any purchaser at any foreclosure sa1e, whether the foreclosure sale is
conducted pursuant to court order or pursuant to a power of sale contained in the Security
Instrument, or to an assignee pursuant to an assignment in lieu of foreclosure; and
b. Acquire and succeed to the interest of Lessee under this Agreement
by virtue of any foreclosure sale,whether the foreclosure sale is conducted pursuant to a court order
or pursuant to a power of sale cantained in the Security Instcument,or by virtue of an assignment in
lieu of foreclasure.
Lender shall give City notice of any action taken pursuant to this Section by written
notice to City not less than ten(10)days from the date of such action.
D. Right of Lender to Cure Defaults. For as long as there is in effect any Leasehold
Encumbrance,before City may terminate this Agreement because of any default under or breach of
this Agreement by Lessee,City must give written notice of the default or breach to Lender and afford
Lender the opportunity after service of the notice to:
1. Cure the breach or default within ten(10) days after expiratian of the time
period granted to the Lessee under this Agreement for curing a default,when the default can be cured
by the payment of money to Cityo ur some other person;
2. Cure the breach or default within five (5) days after expiration of the time
period granted to the Lessee under this Agreement for curing a default,when the breach or default
must be cured by something other than the payment of money and can be cured within that time;or
Cure the breach or default in any reasonable time that maybe required when something other
than money is required to cure the breach or default and cannot be performed within five(5) days
afler expiration of the time period granted to the Lessee under this Agreement for curing a default,
provided that acts to cure the breach or default are commenced within that time period after service
of notice of default on Lender by City and are thereafter diligently cantinued by Lender. For the
purposes of this Section, "reasonable time" means twenty (20) days unless otherwise agreed in
writing by City.
Ground Lease Agreement-Air Shasta Rotor and Wing, LLC Page 13
E. Assi�unent With Consent on Foreclosure. A transfer of the Lessee's leasehold
interest under this Agreement to any of the following shall require the prior written consent of City:
1. A purchaser at a foreclasure sale of the Leasehald Encumbrance,whether the
foreclosure sale is conducted pursuant to court order or pursuant to a pawer of sale in the instrument
creating the encumbrance,provided the Lender under the Leasehald Encumbrance gives City written
notice of the transfer,including the name and address af the purchaser and the efFective date of the
transfer;
2. An assignee ofthe leasehold estate of Lessee pursuant to an assignment in lieu
of foreclosure,provided the Lender under the Leasehold Encurnbrance gives City written notice of
the transfer,including the name and address of the assignee and the effective date of the assignment;
or
3. A purchaser or assignee of the purchaser at a foreclosure sale ofthe LeasehoId
Encumbrance or of the assignee of the leasehold estate of Lessee acquired pursuant to an assignment
in lieu of foreclosure, provided the purchaser or assignee delivers to City its written agreement to
be bound by all of the provisions of this Agreement.
F. New Lease to Lender. Notwithstanding any other provision of this Agreement,
should this Agreement ternunate because of any default under or breach of this Agreement by
Lessee, City agrees to enter into a new Agreement for the Premises with the Lender under a
Leasehold Encumbrance, as Lessee, provided:
1. A written request for the new lease is served on City by Lender within three
(3)days after service on Lender of the notice described in Section 15 (B)of this Lease Agreement.
2. The new lease is for a term ending on the same date the term of this Lease
Agreement would have ended had this Lease Agreement not been terminated, provides for the
payment of rent at the same rate that would have been payable under this Lease Agreement during
the remaining term of this Lease had this Lease Agreement not been temunated, and contains the
same terms,covenants,conditions,and provisions as are contained in this Lease Agreement(except
those that have already been fulfilled or are no longer applicable}.
3. L�ender,on execution of the new lease by City,shall pay any and all sums that
would at the time of the execution of the new lease be due under this Lease Agreement but for its
termination and shall otherwise fully remedy,or agree in writing to remedy,any other defaults under
or breaches af this Lease Agreement committed by Lessee that can be remedied.
4. Lender, on execution of the new lease, shall pay all reasonable costs and
expenses, including attarneys' fees and court costs, incuned in terminating this Lease Agreement,
Ground Lease Agreement-Air Shasta Rotor and Wing, LLC Page 14
recovering possession af the Premises from Lessee or the representative of Lessee,and preparing the
new lease.
5. The new lease shall be subject to a11 existing subleases between Lessee and
sublessees, provided that for any sublease, the sublessees agrees in writing to attorn to Lender(or
its assignee).
6. The new lease shall be assignable by Lender and any assignee of Lender upon
the prior written consent of City.
G. Cit�'s Ri�,ht to Discharge Leasehold Encumbrance. Notwithstanding the provisions
of Sections 15 (C) and 15 (F)for a period of thirty(3Q)days from the date that City receives notice
of foreclosure of a I.,easehold Encumbrance, the City shall have the first option of assuming or
discharging said lien created thereby at its actual face value,and according to the terms thereof,and
thereupon terminate this Lease Agreement and all interest in it or relet the Premises as it sees fit.
H. No Merger of Leasehold and Fee Estates. For as long as any Leasehold Encumbrance
is in existence,there shall be no merger of the leasehold estate created by this Lease Agreement and
the fee estate of City in the Premises merely because both estates have been acquired or become
vested in the same person or entity, unless the Lender otherwise consents in writing.
I. Lender as Assignee of Lease. No Lender under any Leasehold Encumbrance shall
be liable to City as an assignee of this Lease Ageement unless and until Lender acquires all rights
of Lessee under this Lease Agreement through foreclosure,an assignment in lieu of foreclasure,or
as a result of sorne other action or remedy provided by law ar by the instrument creating the
Leasehold Encumbrance.
J. Lender as Includin S� ubsequent Security Holders. Except for purposes of Section
15 (G), the term "Lender" as used in this Lease Agreement shall mean not only the institutional
lender that loaned money to Lessee and is named as beneficiary, mortgagee, secured party, or
security holder in the Security Instrument creating any Leasehald Encumbrance, but also all
subsequent purchasers or assignees of the leasehold interest secured by the Leasehold Encumbrance.
K. Two or More Lenders. In the event two or rnore Lenders each exercise their rights
under this Lease Agreement and there is a conflict that renders it impossible to comply with all
requests of the Lenders,the Lender whose Leasehold Encumbrance would have senior priority in the
event of a foreclosure shall prevail.
16. MAINTENANCE AND RESTORATION.
A. Maintenance b LY essee.At all times during the term of this Lease Agreement,Lessee
shall,at Lessee's own cost and expense,keep and maintain the Premises, all improvements,and all
Ground Lease Agreement-Air Shasta Rotor and Wing, LLC Page 15
appurtenances(including landscaped and parking areas)now or hereafter on the Premises,in gaod
order and repair, and in a safe and clean condition.
B. Requirernents of Gov+ern�nentat A encies. At all times during the term of this Lease
Agreement, Lessee, at Lessee's own cost and expense, shall:
1. Make all alterations,additions,or repairs to the premises or the improvements
on the Premises required by any valid law,ordinance,statute,order,or regulations now or hereafter
made or issued by any federal state, county, local, or other governmental agency or entity;
2. Observe and comply with atl valid laws, ordinances, statutes, orders, and
regulations now or hereafter made or issued respecting the Premises or the improvements on the
Premises by any federal, state, county, local, or other governmental agency or entity;
3. Contest if Lessee, in Lessee's sole discretion, desires by appropriate legal
proceedings brought in good faith and diligently prosecuted in the name af Lessee,or in the names
of Lessee and City when appropriate or required,and when authorized in writing by City Council,
the validity or applica.bility to the Premises of any law,ordinance,statute,order, or regulation now
or hereafter made or issued by any federal, state, county, local, or other governmental agency or
entity;provided, however,that any such contest or proceeding,though maintained in the names of
Lessee and City, shall be without cost to City, and City shall protect the Premises and City from
Lessee's failure to observe or comply during the contest with the contested iaw, ordinance,statute,
order, or regulation;
4. Indernnify and hold City and the property of City,including the Premises,free
and harmless from any and all liability,loss,damages,fines,penalties,claims,and actions resulting
from Lessee's failure to comply with and perform the requirements of this Section.
C. Lessee's Duty to Restore Premises. If at any time during the Initial Term of this
Lease Agreement, any improvements now or hereafter on the Premises are destroyed in whole or in
part by fire,theft,the elements,or any other cause not the fault of City,this Lease Agreement shall
continue in full force and effect and Lessee, at Lessee's own cost and expense, shall repair and
restore the damaged improvement(s). Any restoration by Lessee shall comply with original plans
for the improvements, except as may be modified by Lessee to comply with the terms of any
sublease of the improvements, or except as may be atherwise modified by Lessee and approved in
writing by City. The work of repair and restoration shall be cornmenced by Lessee within thirty(30)
days after the damage or destruction occurs and shall be completed with due diligence not later than
one hundred eighty(180)days after the work is commenced. In all other respects,the work of repair
and restoration shall be done in accordance with the requirements for original construction work on
the premises. Lessee's obligation for restoration described in this Section shall exist whether or not
funds are available from insurance proceeds.
Ground Lease Agreement-Air Shasta Rotor and Wing, LLC Page 16
D. Ontion to Terminate Lease for Destruction. Notwithstanding Section 16 (C)of this
Lease Agreement, Lessee shall have the right to terminate this Lease Agreement if, during the last
five (5) years of the Initial Term of this Lease Agreement, the improvements are damaged or
destroyed by a casualty for which Lessee is not required under this lease to carry insurance and the
cost to repair or restore the damages or destroyed improvements exceeds fifly percent(SQ%}of the
fair market value af the improvements immediately prior to the damage or destruction.
E. Annlication of Insurance Proceeds. Any and all fire or other insurance proceeds that
become payable at any time during the term of this Lease Agreement because of damage to or
destruction or any improvements on the Premises shall be paid to Lessee and applied by Lessee
toward the cost of repairing and restoring the damageci or destroyed improvements in the manner
required by Section 16 (C) of this Lease Agreement, or, if this Lease Agreement is terminated
pursuant to Section 16(D),paid by Lessee to City less a deduction for any remaining un-amortized
value Lessee has in the imprvvements. For purposes of this Section, Lessee's "remaining un-
amortized value" sha11 be the full replacement value insurance proceeds required by Section 20
multiplied by a factor the numerator of which is the remaining life of the Initial Term of this Lease
Agreement and the denominator of which is the Initial Term of this Lease Agreement.
17. ALTERATIONS. Lessee sha11 not make or cause to be made any alterations or
irnprovements to the Premises, including modifications or alterarions of the Premises' electrical
installations or equipment,without first securing the written consent of the Airports Manager. The
Airports Manager may impose restrictions upon any proposed alterations or improvements.All such
alterations or improvements shall comply with Airport Policy and a11 applicable building,zoning and
fire codes.
Any alterations or additions approved by City shall be constructed at the sole expense
of Lessee, and title to a11 new alterations and additions on the Premises shali vest in the City at the
expiration of twenty-five(25)years from the commencement date of this Lease Agreement or earlier
termination of this Lease Agreement pursuant to Section 14.
18. RIGHT TU INSPECT. The City and its authorized officers, agents, employees,
volunteers, contractors, subcontractors and other representarives shall have the right to inspect the
Premises for any purpose, including,but not limited to, the following:
A. To inspect the Premises at reasonable intervals during regulaz business hours with
twenty-four(24)hours prior notice to determine whether Lessee has complied with or is complying
with the promises, terms, covenants and conditions of this Agreement;
B. For emergency purposes; and
C. In the exercise of the City's police power.
Ground Lease Agreement-Air Shasta Rofor and Wing, LLC Page 1 T
D. To inspect the premises, on an annual basis, to detemune whether the Premises
comply with the Uniform Fire Code. Lessee agrees to annually schedule an inspec�ion with City of
Redding's Fire Department personnel and to provide access to the Premises during the inspection
period specified by the Fire Departinent.
No inspection by or on behalf of the City of the Premises shall cause or constitute a
termination of this Agreement,or be deemed to constitute an interference with Lessee's possession
or use thereof.
19. INDEMNITY. Lessee shall indemnify and defend the City, its officers, officials,
employees, agents and volunteers,against and hold them hannless from any and all claims,losses,
damages,and liability for darnages,including attorneys' fees and other costs of defense incurred by
the City, whether for damage to or loss of property or injury to or death of person(s), including
properties of the City and injury to or death of the City's officers, officials, employees, agents and
volunteers, arising out of or resulting from Lessee's possession or use of the Premises or activities
hereunder or from the actions of Lessee's officers, employees, agents and invitees, unless such
damage,loss, injury or death is caused by the sole negligence of the City.
20. INSURANCE. At all times during the term of this Lease,the Lessee shall procure
and maintain frorn an insurance company authorized to do business in the State of California
insurance against claims for injuries to persans or damages to property which may arise from or in
connection with the Lessee's operations and use of the leased premises. The cost of such insurance
shall be born by Lessee.
A. Minimurn Scope of Insurance. Subject to policy terms, conditions, lirnitations and
exclusions, coverage shatl be at least as broad as:
l. Airport General Liability, far bodily injury, personal injury and property
damages,covering no less than all operations of the Lessee,including,but not limited to,premises-
operations,products and completed operations,contractual liability,independent contractors,broad
form property damage (including completed operations), explasion, collapse and underground
hazards (if applicable),personal injury and fueling, defueling and refueling operations.
2. AircraftJhelicopter Liability,in respect of all aircraf�lhelicopter owned,leased,
hired, borrowed or operated, including passengers and non-passengers, and including contractual
liability coverage.
3. Hangarkeepers Liability,in an amount adequate to cover the replacement cost
of any non-owned property in its care, custody, and control. Lessee may obtain an exemption from
this requirement should Lessee not take care,custody and control of any non-owned aircraft. Lessee
shall provide the Risk Manager with a letter stating that Lessee does not take care, custody and
control of any non-owned aircraft; provided, however, that should Lessee take care, custody and
Ground Lease Agreement•Air Shasta Rotor and Wing, LLC Page 18
control of any non-owned aircraft in the future, Lessee shall forthwith comply with the insurance
requiremerzts set forth.
4. Automobile Liability, combined single limits per accident, applicable to all
owned, non-owned, and hired vehicles utilized on the leased premises or the airpart apron.
5. Pollution Liability,for sudden and non-sudden pollution conditions resulting
from the use of above-graund storage tanks andlor hazardous materials or substances that may be
stored on airport premises. Coverage shall apply to bodily injury,property damage, including the
loss of use of damaged property or of property that has not been physically injured or destroyed,
cleanup costs,and defense costs,including costs and expenses incurred in the investigation,defense,
and settlement of claims.
6. Liquor Liability, in the event of the sale of alcoholic beverages.
7. Workers'Compensation insurance as required by the State of California and
Employer's Liability insurance. The workers'compensation insurance policy shall contain a waiver
of subrogation in favor of the City, its officers, officials, agents, employees, and volunteers.
8. Property Insurance against all risks of loss to any owned struchues or
facilities, including any tenant improvements,betterments, and contents at full replacement value.
Lessee further agrees that in the event of any loss or partial or cornplete destruction of those tenant
improvements, betterrnents, and contents, any proceeds of insurance received by Lessee shall be
utilized in the replacement, reconstruction, or repair of the damaged ar destroyed improvements,
betterments, and contents. T'he property insurance policy shall contain a waiver of subrogation in
favor of City, its officers,officials, agents, employees and volunteers.
B. Minirnum Limits of Insurance. Limits shall be no less than:
l. Airport General Liability: $1,000,000 per occurrence/$2,000,000
aggregate combined single limits
2. Aircraf�IHelicopter: $1,000,000 each occurrence, with a sublimit
per passenger of no less than$100,000.
3. Hangarkeepers Liability: Nat less than $250,000 per aircraft and
$500,000 per occunence.
4. Automobile Liability: $1,Q00,000 combined single limits per
accident for bodily injury, including death,
and property damage
Ground Lease Agreement-Air Shasta Rotor and Wing, LLC Page 19
5. Pollution Liability: $1,000,000 per lossl$1,000,000 annual
aggregate
6. Liquor Liability: $1,000,000 per occurrence
?. Workers Compensation/
Employer's Liability: $1,000,000 per accident for bodily injury or
disease
8. Property Insurance: Full replacement cost with no coinsurance
penalty provision
C. Deductibles and Self-Insurance Retentians. Anydeductibles or self-insured retentions
must be declared to and approved by the City.
D. Other Insurance Provisians. As applicable, the airport liability, aircraft liability,
hangarkeepers, automobile liability, pollution and liquor liability palicies aze to contain or be
endorsed to contain the following provisions:
1. The City, its officers, officials, employees, agents and volunteers are to be
covered as insureds as respects: liability arising out of work performed by or
on behalf of the Lessee; products and completed operations of the Lessee;
premises owned, occupied or used by the Lessee; or automobiles owned,
leased, hired or borrowed by the Lessee. The coverage shall contain no
special limitations of the scope of protection afforded to the City,its officers,
officials, employees, agents or volunteers.
2. Lessee's insurance coverage shall be prirnary insurance as respects the City,
its o�cers, officials, employees, agents or volunteers but only as respects
claims arising from the sole negligence of the Lessee. Any insurance or self-
insurance maintained by the City,its officers,officials,employees,agents or
volunteers shall be excess of the Lessee's insurance and shall not contribute
with it.
3. Coverage shall state that Lessee's insurance shall apply separately to each
insured against whom claim is made or suit is brought, except with respect
to the limits of the insurer's liability.
4. Each insurance policy required by this clause shall be endorsed to state that
coverage shall not be canceled except after thirty (30) days' prior written
notice has been given to the City.
,
Ground Lease Agreemenf-Air Shasta Rotor and Wing, LLC Page 20
5. The Certificate Holder shall be the City of Redding, 777 Cypress Avenue,
Redding CA 96001.
E. Sublessee Insurance. Insurance required of sublessees af the Lessee,if any,shall be
approved by the City of Redding.
F. Acceptability of Insurers. Insurance is to be placed with insurers with a curre�nt A.M.
Best's rating of no less than A-:VII.
G. Verification of Covera�e. Lessee shall furnish the City with certificates of insurance
and ariginal endorsements effecting coverage required by this clause and,thereafter,when any such
policy is replaced,rewritten,or renewed. The endorsements are to be signed by a person authorized
by that insurer to bind coverage on its behalf. I,essee sha11 provide a certified copy of any and all
of the required policies within thirty(30) days of request by the City.
H. Review of Insurance CoveraQe. All insurance requirements identified in this
Agreement shall be re-evaluated every five(5)years for appropriate coverage. After each evaluation,
Lessee is obligated to provide such insurance coverages and amounts as the City many require.
21. HAZARDOUS MATERIALS.
A. Hazazdous substances or materials include, but are not limited to:
l. Substances which are flammable, explosive, corrosive,radioactive,toxic;
2. Any material or substances defined as hazardous substances, hazardous
materials, toxic substances, or hazardous wastes in the Comprehensive Environmental Response,
Compensation and LiabilityAct of 1980(42 U.S.C.Sections 9601,et seq.),the Hazardous Materials
Transportation Act(49 U.S.C.Sections 18Q1 et seq.), the Resource Conservation and Recovery Act
(42 U.S.C. Sections 6901 et seq.), the Hazazdous Waste Control Act (California Health& Safety
Code Sections 25100 et seq.),and the Hazardous Substance Account Act(California Health&Safety
Code Sections 2530Q et seq.),the California Hazardaus Waste Management Act(California Health
&Safety Code Sections 25170.l,et seq.,California Health and Safety Code Section 25280,et seq.,
(Underground Storage of Hazardous Waste Management Act), California Health and Safety Code
Section 2550,et seq.(Hazardous Materials Release Response Plans and Inventory),or the Califomia
Porter-Cologne Water Quality Control Act,Water Code Section 13000,et seq., and all amendments
to these laws, and regulations adopted or publications prornulgated pursuant to these laws;
3. Those asbestos-containing materials defined and described in Environmental
Protection Agency Report No. 56/5-85-024 (June 1985) whether or not friable, or any related or
successor report,or other applicable government regulations defining or describing such materials;
Ground Lease Agreement-Air Shasta Rotor and Wing, LLC Page 21
4. Pesticides as defined by Section 136(u)of FIFRA(7 U.S.C. Section 136)as
may be present in soil or groundwater;
5. "Hazardous wastes"as defined in Section 25117 of the California Health and
Safety Code, or as a chemical that is known to the State of California "to cause cancer or
reproductive taxicity" under the Safe Drinking Water and Toxic Enforcement Action of 1986,
California Health and Safety Code Sections 25249.5, et seq.; and
6. Hazardous materials, substances or waste, or toxic materials, substances or
waste as those terms or similar terms are defined by any other federal,state or local law or regulation
or orders.
B. Except as otherwise permitted in this Lease Agreernent,Lessee shall not use,create,
store or allow any hazazdous substances or materials on the Premises. Fuel stored in a motor vehicle,
aircraft or other mechanical device powered by an internal combustion or turbine engine for the
exclusive use in the mechanical device and household products necessary for routine cleaning and
maintenance of the Premises may be kept on the Premises in quantities reasonable for current needs.
Breach of any of these covenants, terms and conditions shall give City the right to immediately
terminate this Lease Agreement. Lessee shall be responsible at Lessee's sole expense and obligation
for the legal removal and disposal of hazardous materials or substances introduced to the Premises
during the term of the Lease Agreement and for any cleanup and decontamination of the Premises
due to the presence of any hazardous materials on the Premises during the term of this Lease
Agreement. The standazd for cleanup and decontamination shall be as established by the
governmental agency or agencies which have jurisdiction over the hazardous materials or substances
which are the subject of the cleanup or decantamination.Lessee shall give all natices required by law
to the governmental agency or agencies which have jurisdiction over the hazardous materials or
substances which are present or introduced on the Premises by whatever means and without
consideration to whether or not Lessee was responsible for such introduction. A copy of such notice
shall be provided to City as provided by Section 29 of this Lease Agreement.
C. This Section shall notbe construed to prohibit orprevent Lessee frorn storing aviation
fuels at Site "B,"or from properly transporting aviation fuels to and from the Premises consistent
with the Lessee's permitted activities for aviation fuel sales,or from keeping/storin�lparking aircraft
with on-board fuel tanks co�ntaining aviation fuels on tt�e Premises,provided that Lessee complies
with all government regulatory requirements and Redding Airport policies pertaining to proper and
safe storage, handling, transport, containment, and dispensing of aviation fuels. The permission
granted herein to Lessee with regard to aviation fuels is strictly limited to that conduct expressly
described,and is not to be interpreted as a waiver by City of Lessee's liability/responsibility or City's
rights to full contractual indemnity from Lessee for breach of any other covenant or condition of this
Section.
Ground Lease Agreement-Air Shasta Rotor and Wing, LLC Page 22
D. Lessee agrees to indemnify,protect,hold harmless, and defend the City,its elected
officials,officers,employees,agents and volunteers from and against any and all liability,including
without limitation,(a)all foreseeable and unforeseeable consequential damages,directlyor indirectly
arising from the use, generation, storage, or disposal of hazardous materials by Lessee and(b)the
cost of any required or necessary repair,cleanup,or detoxification and the preparation of any clasure
or other required plans, to the full extent that such liability is attributable, directly or indirectly,to
the presence or use, generation, storage, release, threatened release, or disposal of hazardous
materials by Lessee,its officers, employees,agents and/or invitees on the Premises or Airport after
the beginning of the term of this Lease Agreement.
E. Lessee releases the Ciry from any and all claims Lessee may have against the City of
whatever kind or nature resulring from or in any way connected with the environmental condition
of the Premises, including any and all claims Lessee may have against the City under the
Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended
("CERCLA"),or any other federal,state,or local law,whether statutory or common law,ordinance,
or regulation pertaining to the release of hazazdous materials into the environment from or at the
Premises. Lessee expressly waives the benefits of Civil Code Section 1542, which provides as
follows:
A general release does not extend to claims which the creditor does not know or
expect to exist in his favor at the time of executing the release, which if known by
him must have materially affected his settlement with the debtor.
F. Upon expiration or earlier termination of this Lease Agreement, Lessee shall, at the
request of the City, remove from the Premises and properly dispose of any hazardous materials -
including aviation fuels - and containers, tanks, or other receptacles holding or contaminated by
hazardous materials,regardless of whether the presence of same was permitted during the term of
this Lease Agreement,and in a manner that complies with all governmental regulatory requirernents
for disposal thereof, at Lessee's sote cost and expense.
G. Lessee's obligations under this Section shall survive termination or expiration of this
Lease Agreement.
22. FEDERAL REQUIREMENTS. To comply with FAA requirements, Lessee, its
representatives,successors and assigns,as part of the consideration hereof,does hereby covenant and
agree:
A. That in the event facilities are constructed,maintained,or otherwise operated on the
Premises described in this Lease Agreement for a purpose for which a DOT program or activity is
extended or for another purpose involving the provision of similar services or benefits,Lessee shall
maintain and operate such facilities and services in compliance with all other requirements imposed
pursuant to Title 49,Code of Federal Regulations,DOT,Subtitle A,Office af the Secretary,Part 21,
Ground Lease Agreement-Air Shasta Rotor and Wing, LLC Page 23
Nondiscrimination in Federally-Assisted Programs of the Department of Transportation -
Effectuation af Title VI of the Civil Rights Act of 1964, and as the Regulations may be amended.
B. That:(1)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 use of
the 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 fram participation in,denied the benefits of,or otherwise be subject ta discrimination,(3}
that Lessee shall occupy and use the Premises in compliance with all other requirements imposed
by or pursuant to Title 49,Code of Federal Regulations,Departrnent of Transportation, Subtitle A,
Office of the Secretary, Part 21, Nondiscrirnination in Federally-Assisted Programs of the
Department of Transportation-Effectuation of Title VI of the Civil Rights Act of 1964, and as the
Regulations may be amended.
C. That in the event ofbreach of any ofthe above nondiscrimination covenants,the City
shall have the right to terminate this Lease Agreement and to reenter and repossess the land and the
facilities thereon,and hotd the same as if this Lease Agreement had never been made or issued. This
provision does not become effective until the procedures of 49 CFR Part 21 are followed and
cornpleted including expiration of appeal rights.
D. That Lessee shall furnish its accommodations and/or services on a fair,equal and not
unjustly discriminatory basis to all users thereof and it shall charge fair,reasonable and not unjustly
discriminatory prices for each unit or service; provided, that Lessee may be allowed to make
reasonable and nondiscriminatory discounts, rebates or other similar type of price reductions to
volume purchasers.
E. That non-compliance with subdivision D above shall constitute a material breach
thereof and in the event of such non-compiiance the City shall have the right to terminate this Lease
Agreement and the tenancy hereby created without liability therefore or at the election of t.he City
or the United States either or both said Governments shall have the right to judicially enforce
Provisions.
F. That Lessee shall insert the above five provisions,subdivisions A through E,in any
agreement, cantract, etc., by which Lessee grants a right or privilege to any person, firrn ar
corporation to render accommodations and/or services to the public on the Premises herein leased.
G. The Lessee for himself,tus heirs,personal representatives,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 an the
said property described in this Lease Agreement for a purpose for which a DOT program or activity
is extended or for another purpose involving the provision of similar services or beneftts,the Lessee
shall maintain and operate such facilities and services in compliance with all other requirements
Ground Lease Agreement-Air Shasta Rotor and Wing, LLC Page 24
imposed pursuant to 49 CFR Part 21, Nondiscrimination in Federal Assisted Programs of the
Department of Transportation, as said Regulations may be amended.
The Lessee for himself,his personal representatives, successors in interest, and assigns, as
a part of the consideration hereof, daes hereby covenant and agree as a covenant running with the
land that: (1} no person on the grounds of race, color, or national origin shall be excluded from
participation in,denied the benefits of,ar be otherwise subjected ta 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 af race, color,or national origin shall be
excluded fram participation in,denied the benefits of,or otherwise be subjected to discrimination;
and(3}that the Lessee shall use the premises in compliance with all ather requirements imposed by
or pursuant to 49 CFR Part 21,Nondiscrimination in Federally Assisted Programs of the Departrnent
of Transportation, and as said Regulations may be amended.
H. That the City reserves the right to further develop or improve the landing area of the
airport as it sees fit,regardless of the desires or view of Lessee and without interference or hindrance.
I. That the City reserves the right,but shall nat be obligated to Lessee to maintain and
keep in repair the landing azea of the airport and all publicly-owned facilities of the airport,together
with the right to direct and control all activities of Lessee in this regard.
J. That this Lease sha11 be subordinate to the pravisions and requirernents of any
existing or future agreement between the City and the United States relative to the development,
operation or maintenance of the airport.
K. That there is hereby reserved to the City, its successors and assigns, for the use and
benefit of the public, a right of flight for the passage of aircraft in the airspace above the surface af
the Premises herein leased. This public right of flight shall include the right to cause in said airspace
any noise inhere�nt in the operation of any aircraft used for navigation or flight through the said
airspace or landing at, taking off from or operation on the Redding Municipal Airport.
L. That Lessee agrees to comply with the notification and review requirements covered
in Part �7 of the Federal Aviation Regulations in the event future construction of a building is
ptanned for the Premises,or in the event of any planned modification or alteration of any present or
future building or structure situated on the Premises.
M. That Lessee,its officers,administrators,representatives,successors and assigns will
not erect nor permit the erection of any structure or object, nor permit the growth of any tree or
vegetation on the Premises above ground level elevation of eighty (80) feet. In the event the
aforesaid covenants are breached, the City reserves the right to enter upon the Premises and to
remove the offending structure or object and cut the offending tree or vegetation, ail of which shall
be at the expense of Lessee.
Ground Lease Agreement-Air Shasta Rotor and Wing, LLC Page 25
N. That Lessee,its officers,administrators, representatives,successors and assigns will
not make use of the Premises in any manner which might interfere with the landing and taking off
of aircraft from Redding Municipal Airport or otherwise constitute a hazard. In the event the
aforesaid covenant is breached,the City reserves the right to enter upon the Premises and cause the
abatement of such interference at the expense of Lessee.
O. It is understood and agreed that nothing herein contained shall be construed to grant
or authorize the granting of an exclusive right within the meaning of Section 308a of the Federal
Aviation Act of 1958 (49 U.S.C. § 1349a).
P. That this Lease and all the provisions hereof shall be subject to whatever right the
United States Government now has or in the future may have or acquire, affecting the control,
operation, regulation and taking over of the Redding Municipal Airport or the exclusive or non-
exclusive use of the airport by the United States during the time of war or national emergency.
23. ASSIGNMENT. Lessee shall not voluntarily assign,encumber,or sublet its interest
in this Lease Agreement or in the Premises,or allow any other person or entity(except its authorized
representatives)to occupy or use any or all part(s)of the Premises,without first obtaining the City's
prior written consent. Any assignment or encumbrance without the City's consent shall be voidable
and,at the sole election of the City,shall constitute a default of this Lease Agreement. No consent
to any assignment or encumbrance shall constitute a further waiver of the provisions of this Section.
24. INVOLLTNTARY ASSIGNMENT. No interest of Lessee in this Lease Agreement
shall be assignable by operation of law.Each of the following acts shall be considered an involuntary
assignment:
A. If Lessee is or becomes bankrupt (whether voluntary or involuntary) or insolvent,
makes an assignment for the benefit of creditors,or institutes a proceeding under the Bankruptcy Act
in which Lessee is the bankrupt; or, if Lessee is a partnership or consists of more than one person
or entity,if any partner of the partnership,or other person or entity,is or becomes bankrupt(whether
voluntary or involuntary) or insolvent,or makes an assignment for the benefit of creditors;
B. If a writ of attachment or executian is levied on this Agreement;
C. If,in any proceeding or action to which Lessee is a party,a receiver is appointed with
authority to take possession of the Premises; or
D. The abandonment or discontinuance of any operation at the Airport by Lessee,or the
failure to conduct any service, operation or activity permitted by this Agreement. If this condition
exists for a period of fifteen(15)days without the prior written consent of the City,it will constitute
an abandonment of the land, facility or location, and this Agreement and the Permit shall become
null and void.
Ground Lease Agreement-Air Shasta Rotor and Wing, LLC Page 26
An involuntary assignment shall constitute a default by Lessee, and the City shall have the
right to elect to terminate this Agreement. In no event shall this Agreement be deemed or treated as
an asset of Lessee.
25. DEFAULT AND REMEDIES.
A. Lessee's Default. The occurrence of any of the following shall constitute a default
by Lessee under this Lease Agreement:
1. Lessee's failure to pay when due any rent required to be paid under this Lease
Agreement if the failure continues for three(3)days after written notice of the failure from City to
Lessee;
2. Lessee's failure to provide any instrument or assurance as required by this
Lease Ageement if the failure continues for ten(10)days after written notice of the failure from City
to Lessee;
3. Lessee's failure to perform any other obligation under this Lease Agreement
if the failure continues for thirty (30) days after written notice of the failure frorn City to Lessee,
except in those instances where the cure would require more than thiriy (30) days and Lessee is
diligently seeking to cure the default,then the time shall be a reasonable period of time for the given
circumstances;
4. Failure to maintain current licenses, if any, required for the permitted
operation.
S. , Intentionally supplying the City with false or misleading information or
rnisrepresenting any material fact on docurnents or in statements to or before the City and its
employees, or the intentional failure to make full disclosure on a financial statement, statement of
gross sales, or other required documer►ts
6. To the extent permitted by law:
a. A general assignment by Lessee or any guarantor of the Lease
Agreement for the benefit of creditors;
b. The filing by or against Lessee, or any guarantor, of any proceeding
under an insolvency or bankruptcy law, unless (in the case of an involuntary proceeding) the
proceeding is dismissed within sixty(60} days;
c. The appointment of a trustee or receiver to take possession of all or
Ground Lease Agreement-Air Shasta Rotor and Wing, LLC Page 27
substantially all the assets of Lessee ar any guarantor,unless possession is unconditionally restored
to Lessee or that guarantor within thirty(30)days and the trusteeship or receivership is dissolved;
d. Any execution or other judicially authorized seizure of ali or
substantially a11 the assets of Lessee lacated on the Premises, or of Lessee's interest in this Lease
Agreement,unless that seizure is discharged within thirty(30) days; or
1. The committing of waste on the Premises if such waste continues or is
allowed to remain for thirty(30}days after written notice of the waste from City to Lessee,except
in those instances where the cure would require more than thirty(30)days and Lessee is diligently
seeking to cure the default, then the time shall be a reasonable period of time for the given
circumstances.
; B.. Citv's Remedies on Lessee's Default.On the occurrence of a default by Lessee,City
shall have the right to pursue any one or more of the remedies set forth in Sections 25(C)and 25(D)
in addition to any other remedies now or later available to Ciry at law or in equity. These remedies
are not exclusive but cumulative.
r'C. ; Terrnination of Lease. Upon the occurrence of a default that is not timely cured by
Lessee,City may terminate this Lease Agreement and recover possession of the Premises.Once City
has terminated this Lease Agreement, Lessee sha11 immediately surrender the Premises to City. In
addition to any other remedy available to City,as set out in Section 14,title to all the improvements
on the Premises shall vest in City at the expiration of twenty-five(25)years from the commencement
date of this Lease Agreement or earlier termination of this Lease Agreement.On termination of this
Lease Agreement, City may recover from Lessee all of the following:
1. The worth at the time of the award of any unpaid rent that had been earned
at the time of the termination, to be computed by allowing interest at the maximum amount of
interest permitted by law;
2. The worth at the time of the award of the amount by which the unpaid rent
that would have been earned between the time of the termination and the time af the award exceeds
the amount of unpaid rent that Lessee proves could reasonably have been avoided, to be computed
by allowing interest at the maximum amount of interest permitted by law;
3. The worth at the time of the award of the amount by which the unpaid rent
for the balance of the Lease Agreement term after the time of the award exceeds the amount of
unpaid rent that Lessee proves could reasonably have been avoided,to be computed by discounting
that amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of the
award plus one percent(1%);
4. Any other amount necessary to compensate City for all the detriment
Ground Lease Agreement-Air Shasta Rofor and Wing, LLC Page 28
proximately caused by Lessee's failure to perfarm abligations under this Lease Agreement,including
brokerage comrnissions and advertising expenses, expenses of remodeling the Premises for a new
Lessee(whether for the same or a different use),and any special concessions made to obtain a new
Lessee; and
5. Any other amounts, in addition to or in lieu of those listed above,that may
be permitted by applicable law.
' D. `' Continuation of Lease in Effect. Upon the occurrence of a default that is not timely
cured by Lessee,City shall have the remedy described in Civil Code 5ection 1951.4,which provides
that,when a Lessee has the right to sublet or assign(subject only to reasonable limitations),the City
may continue the lease in effect after the Lessee's breach and abandonment and recover rent as it
becomes due. Accordingly, if City does not elect to terminate this Lease Agreement on account of
any default by Lessee, City may enforce all of City's rights and remedies under this Lease
Agreement, including the right to recover all rent as it becomes due.
E. Form of Payment After Default. If Lessee fails to pay any amount due under this
Lease Agreement within three(3)days after the due date or if Lessee draws a check on an account
with insufficient funds, City shall have the right to require that any subsequent amounts paid by
Lessee to City under this Lease Agreement (to cure a default or otherwise)be paid in the form of
cash, money order, cashier's or certified check drawn on an insritution acceptable to City, or other
form approved by City despite any prior practice of accepting payments in a different form.
F. Efforts To Relet. For purposes of this Section 25, Lessee's right to possession shall
not be considered to have been terminated by City's efforts ta relet the Premises,by City's acts of
maintenance or preservation with respect to the Premises,or by appointment of a receiver to protect
City's interests under this Lease Agreement. This list is merely illustrative of acts that may be
performed by City without terminating Lessee's right to possession.
G. Acce�tance of Rent Without Waiving Rights. Under Section 37, City may accept
Lessee's payments without waiving any rights under this Lease Agreernent,including rights under
a previousiy served notice of default. If City accepts payments after serving a notice of default,City
may nevertheless commence and pursue an action to enforce rights and remedies under the
previously served notice of default without giving Lessee any further notice ar demand.
H. Lessee's Remedies on Citv's Default. Lessee waives any right to terminate this Lease
Agreement and to vacate the Premises on City's default under this Lease Agreement. Lessee's sole
remedy on City's default is an action for damages or injunctive or declaratory relief.
26. ADMINISTRA.TION BY CITY. Whenever Lessee is required to secure the
approval ar consent of the City pursuant to this Agreement, the City shall mean the Airports
Manager.
Ground Lease Agreement-Air Shasta Rofor and Wing,LLC Page 29
27. VULUNTEER ASSISTANCE. Under no circumstances will Lessee use City
employees whom aze on duty to perform work at the Premises.Under no circumstances will Lessee
use City employees whom are off duty to perform work at the Premises if the nature of the work is
substantially simitar to the employee's regular work duties for the City.
28 SIGNS. The size and location of signs located off the Airport advertising the
activities of Lessee shall be subject to the City's sign ordinance(Redding Municipal Code Chapter
18.90.) The size and location of signs located on the Premises or at the Airport shall be subject to
the prior written approval and control of the Airports Manager.
29. NUTICES. Any notices required to be given under this A,greement shatl be in
writing and shall be deemed properly delivered, given or served when personally delivered to the
City or Lessee,or in lieu of such personal service,sent by United States mail,registered or certified,
return receipt requested, addressed as follows:
TO THE CITY: TO THE LESSEE:
City of�2edding Air Shasta Rotor and Wing, LLC
Attn.: Airports Manager Attn: David Eversan
777 Cypress Avenue 3770 Fiight Avenue
P.O. Box 496071 Redding, California 96002
Redding, California 96049-6071
In the event of personai service,notice shall be deemed given when personally served. In the
event of service by mail, notice shall be deemed to have been given seventy-two (72) hours after
deposit of same in the United States mail post box in the State af Califomia, postage prepaid,
addressed as set forth above, or upon the date of the signed return receipt, whichever is sooner.
Either party may change its address for the purposes of this Section by giving written notice of such
change to the other party in the manner provided in this Section.
30. NO PARTNERSHIP OR JOINT VENTURE. Nothing in this Agreement shall be
construed to render the City in any way or for any purpose a partner,joint venturer, or associate in
any relationship with Lessee other than that of City and Lessee,nor shall this Lease Agreement be
construed to authorize either to act as agent for the other.
31. FURCE MA.TEURE. Except as otherwise expressly provided in this Lease
Agreement,if the performance af any act required by this Lease Agreement ta be perfarmed by either
City ar Lessee is prevented or delayed by reason of any act of God, strike, lockout, labor trouble,
inability to secure materials, or any other cause(except financial inability)not the fault of the party
required to perform the act, the time for performance of the act witl be extended for a period
equivalent to the period of delay and performance of the act during the period of delay will be
Ground Lease Agreement-Air Shasta Rotor and Wing, LLC Page 30
excused. However, nothing contained in this Section shall excuse the prompt payment af rent by
Lessee as required by this Lease Agreement or the performance of any act rendered difficult or
impossible solely because of the financial condition of the party required to perform the act.
32. BINDING ON HEIRS AND SUCCESSORS. This Lease Agreement shall be
binding on and shall inure to the benefit of the heirs, executors, administrators, successors, and
assigns of the parties hereto,but nothing in this Section shall be construed as a consent by City to
any assignment of this Lease Agreement or any interest in the Agreement by Lessee except as
provided in Sections 23 and 24 of this Agreement.
33. PARTIAL INVAI.IDITY. If any provision of this Agreement is held by a court of
competent jurisdiction to be either invalid,void,or unenforceable,the remaining provisions of this
Agreement shall remain in full force and effect unimpaired by the halding.
34. ATTORNEY'S F'EE5. In any dispute between the City and Lessee,whether or not
resulting in litigation, the prevailing party shail be entitled to recover from the other party all
reasonable costs,including without limitation,reasonable attorney's fees. "Prevailing part}�'shall
include without limitation,a party who dismisses an action for specific performance or for damages
in exchange for sums allegedly due,performance for covenants allegedly breached or consideration
substantially equal to the relief saught in the action, or which receives from the other party, in
connection with any dispute,performance substantially equivalent to any of these.
35. HEADINGS REFERENCE AND JOINT AND SEVERAL LIABILITY. The
titles and headings of the various Sections of this Agreement are intended solely for convenience of
reference and are not intended to explain,modify or place any constructian on any of the provisions
of this Agreement. Masculine and feminine, or neutral gender and the singular and the plural
number shall each be considered to include the other whenever the context so requires. If either
party consists of more than one person, each such person shall be jointly and severally liable.
36. NO PARTY DEEMED DRAFTER. In the event of a dispute between any of the
parties hereto over the meaning of this Agreement,no party shall be deemed to have been the drafter
hereof, and the principle of law that contracts are construed against the drafter shall not apply.
37. NO WAIVER No waiver of any provision of this Agreement shall be implied by
any failure of City to enforce any remedy for the violatian of that provision, even if that violation
continues or is repeated.Any waiver by City of any provision of this Agreement must be in writing.
Such written waiver shall affect only the provision specified and only for the time and in the manner
stated in the writing.
38. LEGAL ADVICE. Lessee and City each represent and warrant to the other the
following:they have carefully read this Lease Agreement,and in signing this Lease Ageement,they
do so with full knowledge of any right(s)which they may have;they have received independent legal
Ground Lease Agreement-Air Shasta Rotor and Wing, LLC Page 31
advice from their respective counsel as to the matters set forth in this Lease Agreement, or have
knowingly chosen not ta consult legal counsel as ta the matters set forth in this Lease Agreement;
and , they have freely signed this Lease Agreement without any reliance upon any agreement,
pramise, statement or representation by or on behalf of any of the other parties,or their respective
agent,employees or attomeys,except as specifically set forth in this Agreernent,and without duress
or coercion, whether economic or otherwise.
39. NO REPRESENTATION REGARDING LEGAL EFFECT. No representation,
warranty or recommendation is made by City or its elected officials,officers,employees,attorneys
or agents regarding the legal sufficiency,legal effect,ar ta�c consequences of this Lease Agreement
or transaction.
40. ACCEPTANCE AND APPLICATION OF PAYMENT•NOT ACCORD AND
SATISFACTION. No receipt by City of a lesser payment than the rent required under this Lease
Agreement shall be considered to be other than on account of the earliest amount due, and no
endorsement or statement on any check or letter accompanying a payment or check shall be
considered an accord and satisfaction. City may accept checks or payments without prejudice to
City's right to recover all amounts due and pursue all other remedies provided for in this Lease
Agreement.
City's receipt of monies from Lessee after giving notice to Lessee terminating this Lease
Agreement shall in no way reinstate, continue, or extend the Lease Agreement term or affect the
termination notice given by City before the receipt of those monies.After serving notice terminating
this Lease Agreement, filing an action,or abtaining final judgment for possessian of the Premises,
City may receive and collect any rent due,and the payment of that rent shall not waive or affect such
prior notice, action, or judgment.
41. TIME OF ESSENCE. Time is expressly declared to be of the essence of this
Agreement.
42. CALIFURNIA LAW. T'his Agreement shall be governed by and construed in
accordance with the laws of the State of California.
43. ENTIRE AGREEMENT. This Agreement, which includes all exhibits attached
hereto and incorporated by reference herein, contains all the representations and the entire
understanding and agreement between the parties pertaining to the use of the Premises or any other
matters connected therewith. All correspondence, memoranda, or oral or written agreements
pertaining to the Premises or the parties hereto,which onginated before the date of this Agreement
are null,void and no longer in force and with no effect,and are replaced in total with this Agreement
unless atherwise expressly stated in this Agreement. This Agreernent shall nat be altered,amended,
or modified except by a writing signed by the Ciry and Lessee.
Ground Lease Agreement-Air Shasta Rotor and Wing, LLC Page 32
44. DATE OF AGREEMENT. The date of this Agreement sha11 be that date that it
shall have been signed by the City.
CITY: CITY OF REDDING
D Z.- B : ��-'� �
Dated: �i J Z y
PAT KIGHT, or
ATTEST.• FORM APPROVED:
.
CONNIE ST OH�rIAYE , i �lerk DA E. TRANBERG,Assistant ity ttorney
CON7'ENT APPR+�VED:
G D F. KERSTEN}_Support Services Director
LESSEE: AIR SHASTA ROTOR AND WING,LLC
/ � � ' /�
. � j'` �
Dated: i i �- y �' By:�' �✓,t/ �-�-�-
` DAVID EVERSON
SITE A
Air Shasta, Rotar and Wing
DESCRIPTIDN
Commencing at the Section Corner common to Sections 22,23, 26 & 27,Township 31 North, Ra.nge
4 West,M.D.M.;thence an and along the nQrth line of said Section 27,5.89°14'S6"W.,2000.00 feet to
a point on the centerline of Airport Road; thence on and along said centerline of Airport Road,
S.0{}°02'04"E.,39�9.68 feet to a point of intersection with the centerline of Flight Avenue;thence on
and along said centerline of Flight Avenue,N.89°5?'S6"E., 1 Q65.41 feet to a point of intersection with
the centerline of Taxiway "A"; thence on and along said centerline of Taxiway"A",N.00°03'S6"E.,
259.68 feet;thence,leaving said centerline of Taxiway"A", 5.89°57'S6"W.,214 feet,more or less,to
the True Point of Beginning (P.Q.B.}of this description; thence running the following bearings and
distances,N.00°02'44"W.,250 feet;thence N.89°57'S6"E., I50.00 feet;thence 5.00°02'U4"E.,370.00
feet, thence 5.89°57'S6"W., 300 feet; thence N.00°02'04"W., 120 feet; thence N.89°57'S6"E., 150
feet to the point of beginning, containing 1.69 acres, more or less.
T31N, R , MDM
S.89'14'S6"W. 2000.00' GG �3
2� 26
� 5.00'02'04"E. 370.Qfl'
Q
N.89'ST5E'E. 150.00' Q
O -
�
�Y N.00'02'04"W. 250.00' �
X
i— oo N.89'S7'S6�'E. 150.00' '%� �
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� � L�
� � I N.00'0�'04"W. 120.00' �
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� I � % S.89'S7'S6"W.
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� o LEA�E I E 1.C9 A�. �'�' ,,;,.'%�% .. � �
i� S.Sg'S7'56"W. 300.00' � �
�� o �� P.O.B. o �
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�" F L I G H T A V E N U E
( OLD AIRPORT ENTRANCE RQAD
N.89`57'S6"E. 1065.41 '
EXHIBIT A
SITE B
Air Shasta,Rotor and Wing
DESCRfPT10N
Cornmencing at the Section Corner common to Sections 22,23, 26&27,Township 31 North,Range
4 West,M.D.M.;thence on and along the north line of said Section 27,5.89°14'Sb"W.,2Q00.00 feet to
a point on the centerline of Airport Road; thence on and alang said centerline of Airport Road,
5.00°Q2'04"E.,600 feet to a point of intersection with the extension of tbe property line common to the
United States Government {U.S.F.S.) and the City of Redding, with the centerline of Aiiport Road;
thence on and along said property line, S.39°55'04"E., 277.64 feet to the True Point of Beginning
(P.O.B.} af this description; thence running the following bearings and distances, cantinuing on and
along said property line,S.39°56'04"E.,240.0(}feet;thence leaving said property line,S.50°03'S6"W.,
143.00 feet; thence 5.89°14'S6"W., 110.Ot? feet, thence N.13°l8'28"E., 284.91 feet to the point of
beginning, containing 0.74 acres.
N 84'14'S6'" E 2000_00' =�� ��
-�— i
SECTION LINE �� ��
0
0
0
� 47.03 AC.
U.S.A. NO SCALE
44 �S 14
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EXH��IT B