HomeMy WebLinkAboutJahnke, Gordon 2003-02-152LC) 9
LEASE AGREEMENT
This Lease, made this 15th day of February 15 2003, by and between the City of Ukiah, State of
California, acting by and through its City Council, hereinafter referred to as "Lessor" and Gordon Jahnke,
hereinafter referred to as "Lessee."
RECITALS:
1. Lessor has the authority contained in Government Code 37380, 37389 and 37395 to lease
municipal and airport property.
2. Under Government Code section 37389 the Lessor has the authority to lease airport
property for a term not to exceed fifty (50) years for the construction and maintenance of hangars and
related purposes.
3. Lessee intends to lease airport property and a hangar from Lessor to maintain an airplane
storage hangar.
AGREEMENT
1. LEASE.
The parties hereto agree that on the terms and conditions hereinafter expressed, Lessor does
hereby let to Lessee and Lessee does hereby hire from Lessor the real property and improved hangar
located at the Ukiah Municipal Airport, known as "the leased premises."
2. TERM.
The term of this lease shall commence on the date indicated above, and shall continue in effect for
a period of five (5) years, expiring at midnight on December 31, 2007.
3. RENT.
3.1 Amount. As rent for the term hereby demised, Lessee agrees to pay to Lessorthe sum
of $650 per month for the use of said property. At the commencement of the second year and each
subsequent year thereafter, the rent shall be increased at the rate equal to the Consumer Price Index,
however, not to be less than 2% but not to exceed 5%.
3.2 When due; late fees and interest. Rent shall be due on the fifth (5th) day of each
month and shall be considered delinquent if not received by the Lessor's Finance Department located at
300 Seminary Avenue in Ukiah by 5:00 p.m. on the tenth (10th) day of the month. Lessee shall pay a late
fee of $50, if the payment is delinquent. In addition, Lessor may charge Lessee interest on the unpaid
portion of the delinquent payment until paid in full as provided in Ukiah City Code section 2051.
3.3 Payment of taxes and assessments. Lessee shall also pay any real property,
possessory interest or personal property taxes, and assessments imposed o.n the leased premises,
property located on or affixed to the lease premises or as a result of the lease, use or ownership of the
leased premises.
4. USE AND IMPROVEMENTS.
4.1 Condition of the leased premises. Lessee hereby agrees to accept the use of the
leased premised in "AS IS" condition, understanding that Lessor makes no representations as to the
condition of the premises or its suitability for the uses contemplated by Lessee. Lessee assumes the
obligation at its own expense to remove and properly dispose of any toxic or hazardous substances that
may exist on the premises, if such substances are found to exist on the premises and must be removed in
order for Lessee to make use of the leased premises. Lessee represents that it has made a thorough in-
spection of the premises and has undertaken to repair or adequately warn of any conditions on the
premises that might constitute a hazard or danger to persons using or present on the leased premises.
4.2 Use of Hangar. Lessee shall use the leased premises exclusively for the storage of
aircraft and related purposes. If Lessee fails to use the Leased Premises for such purposes for a period of
ninety (90) days, the lease shall terminate and Lessee shall restore possession to Lessor. Lessee shall
keep the hangar neat and orderly, and clear of all cans, rags, boxes, excess aircraft parts, and other items.
Lessee shall not interfere with the use of the airport by others and shall not maintain or allow a nuisance
on the Premises.
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Improvements and modifications. Within year one of this agreement Lessee agrees to
complete the following improvements to the hanger and surrounding leased premises: provide fully
automated landscaping on the entire west side of the leased premises at a minimum depth of six feet from
the building and four feet from the back of the curb of the frontage road; provide paved surface to the
approval of the City Engineer to the west extending from the westerly boundary of the building landscape to
the easterly edge of the landscape at the curb of the frontage road and the full width (north to south) of the
hanger. Should Lessee fail to complete said improvements within the specified timeline rent forthe leased
premises shall be increased by $150 per month and shall be retroactively effective to February 15, 2003.
Lessee shall not initiate any improvements or alterations to the leased premises without the prior written
approval of Lessor through its City Manager or his or her designee.
4.3 Lessee shall not make structural changes to the exterior of the storage hangar or
change its use in such a way that requires a sewer connection, or the extension of other utilities, without
the prior written approval of Lessor through its City Manager or his or her designee.
4.4 Maintenance and repair. Lessee agrees to keep the premises and all improvements in
good repair and order and to bear the full cost for all maintenance and repair of the leased premises and all
Lessee installed improvements.
4.5 Storage or use of toxic or hazardous substances. Lessee shall not dispose or permit
the disposal of hazardous or toxic substances on the leased premises. If any hazardous or toxic
substances are disposed of or released on the leased premises during the term of this lease, Lessee shall
assume the entire obligation to clean up any such substances and shall fully indemnify, defend and hold
harmless the Lessor and its officers, agents and employees from any claim, damage, loss, liability, cost or
expense of any nature whatsoever arising out of the release or disposition on the leased premises of any
toxic or hazardous substance.
4.6 Permits. Lessee shall acquire any necessary or required permits from the appropriate
regulating body for the use of the leased premises.
4.7 Compliance with laws. Lessee shall insure that no alcoholic beverages are possessed
or consumed on the leased premises at any time. Lessee shall not use or permit the leased premises to
be used except in full compliance with all rules, regulations, laws or ordinances of the City of Ukiah and the
State of California, and the Federal Government.
4.8 Utilities. Lessee shall furnish at its sole expense all utilities necessary for use of the
leased premises, including, but not limited to, water, sewer service, electricity, natural gas, and garbage
collection.
5. ASSIGNMENT.
Lessee will not assign this Lease or any interest therein and will not let or sublet the said premises
or any part thereof without the written consent of the Lessor. Lessor may terminate this lease and recover
possession of the lease premises, including any improvements which become the property of the Lessor
upon termination of the lease, if any assignment occurs in violation of the terms of this paragraph.
"Assignment" includes both voluntary assignments and assignments that occur involuntarily or by operation
of law.
6. INDEMNIFICATIONS AND INSURANCE.
6.1 Indemnification. Lessor shall not be liable for and is free from the cost of any damages
for personal injury or property damage resulting from the use made by Lessee of the leased premises, any
defective condition or faulty construction of the leased premises existing at the time of letting or arising
thereafter and Lessee covenants and agrees to indemnify and save harmless said Lessor and its officers,
agents and employees from and against any and all claims, liability, loss, cost, or other obligation, including
reasonable attorneys' fees, on account of or arising out of Lessee's use of the leased premises.
6.2 Liability insurance. Lessee covenants and agrees during the life of this Lease at
Lessee's sole expense to comply with the requirements of Exhibit B, Insurance Requirements for Lessees
(No Auto Risks) attached hereto and incorporated herein by reference.
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7. TERMINATION.
Failure to pay rent, when due, or to comply with any other provision of this lease shall constitute a
material breach of the lease and furnish grounds for termination of this lease. Any action taken or suffered
by Lessee as a debtor under any insolvency or bankruptcy laws, including the filing of a voluntary or
involuntary petition in the United States bankruptcy court, any assignment for the benefit of creditors orthe
appointment of a receiver shall constitute a breach of this lease. In such event, Lessor shall have the right
to terminate this lease and retake possession of the lease premises and any improvements which upon
termination of the lease become of the property of Lessor.
Lessor or Lessee shall have the right to terminate this Lease on ninety (90) days' prior notice of
termination.
If Lessee has not breached the lease at the time the lease terminates and Lessor determines to
relet the premises to non-governmental persons or entities for hangar purposes, Lessee shall have a right
of first refusal to relet the Premises on the same terms and conditions the Lessor offers to such other
persons or entities, if Lessee notifies Lessor that it wishes to exercise such right within ten (10) days of the
date it is notified by Lessor that Lessor intends to relet the Premises.
8. HOLDING OVER.
Holding over by the Lessee after the termination of this lease shall not constitute a renewal or
extension thereof or give the Lessee any rights hereunder or in or to the leased premises.
9. INSPECTION.
The Lessor and its authorized representatives shall have the right, at any reasonable time during
the term of this lease, to enter upon the leased premises, or any part thereof, to inspect the same and all
buildings and other improvements erected and placed thereon.
10. ATTORNEY'S FEES.
In any legal action to enforce any of the terms of this Lease the prevailing party shall pay the other
party its reasonable costs and attorneys' fees.
11. TIME OF ESSENCE.
Time is of the essence of this agreement.
12. WAIVER.
City's waiver of any default in Lessee's performance of any condition of this Lease, including the
obligation to pay rent, shall not constitute a waiver of remedies available for a subsequent breach of the
same or a different condition of this Lease. Acceptance of subsequent rental payments from Lessee or its
assignees shall not constitute a waiver of the failure of Lessee to pay rent or obtain prior approval to an
assignment of this Lease.
13. NOTICES.
Any written notice required hereby shall be deemed given and received when personally served or
placed in the United States mail, with proper first class postage prepaid, and addressed as follows:
TO LESSEE: TO CITY:
Gordon Jahnke City Manager
c/o Whistler Management, Inc. Ukiah Civic Center
4001 Cox Schrader Road 300 Seminary Avenue
Ukiah, CA 95482 Ukiah, CA 95482
14. PARAGRAPH HEADINGS.
Paragraph headings are included for the convenience of the parties and are not intended to define
or limit the scope of this Lease.
15. PREVIOUS AGREEMENTS.
Any and all existing statements or agreements, whether oral or written, or renewals thereof,
between the parties hereto, covering the same subject matter, are hereby canceled and superseded bythe
terms of this Lease, and such prior agreements, statements or understandings shall have no further force
or effect.
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16. DUPLICATE ORIGINALS.
This Lease may be executed in one or more duplicate originals bearing the original signature of
both parties and when so executed any such duplicate original shall be admissible as proof of the
existence and terms of this Lease.
Entered on the date first written above.
ATTEST:
CITY OF UKIAH:
City Clerk LESSEE:
By:
R 1 2003
CITY F UKIA
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