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HomeMy WebLinkAboutUkiah Aviation Services LP 2000-06-01c t±►E± ~ , ~ ;r cU c~ UK(AN, cAL!;:. LEASE AGREEMENT This Lease, made this.] st day of June 1. 20007 by and between the City of Ukiah, State of California, acting by and through its City Council, hereinafter referred to as "Lessor" and Ukiah Aviation Services LP, a for profit company, hereinafter referred to as "Lessee." RECITALS: 1. Lessor has the authority contained in Government Code Sections 37380 and 37395 and does determine that the use of certain property owned by the Lessor is not required for-its use at this time and is available for Lease, and 2. The use of said property by the Lessee would be and is beneficial for the citizens of the City of Ukiah_ LEASE 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 39,097 square feet of that certain parcel of property commonly referred to as "Ukiah Regional Airport, located at 1411 South State Street, City of Ukiah, Mendocino County, and more specifically described on the attached "Exhibit A" together with a right of access thereto. Lessee's purpose in leasing the premises is to construct and rent sixteen aircraft storage hangers and associated improvements as shown in Exhibit "C" of this a a Agreement. 2. TERM. UJ o_ ZZC The term of this Lease is for a period of forty (40) years commencing upon the date whereupon Lessee satisfies the following conditions: 2.1. Lessee obtaining all necessary site development and building permits. 2.2. Lessee has one hundred and twenty (180) days from the date of the City Council's adoption of this agreement to satisfy condition 2.1. D LL 0 C.) Ong GoUgIl FiIi U:Y.v~; Lt ty,k tl Jt I J UKIAH, CALIF. 3. RENT. As rent for the term hereby demised, Lessee agrees to pay to Lessor the sum of $782 per month for 39,097 square feet of improved building area. Lessor further agrees to pay an additional 5% of all gross revenue generated by Lessee resulting from the rental of hanger improvements completed on property as identified in Exhibit "C" of this lease. At the commencement of the second year and each subsequent year thereafter the rent for leased property shall increase by-the percentage change in the Consumer Price Index (CPI) during the preceding calender year (January to December) but not to exceed 5%. CPI means the index for all urban consumers (1982-1984 = 100), U.S. City average, all items, published by the United States Department of Labor, Bureau of Labor Statistics. In the event the CPI is discontinued or otherwise not available, "CPI" shall mean such comparable statistics on the purchasing power of the consumer dollar as is reasonably agreed on between the City and Lessee. The rent shall be due by the fifth day of each month and shall be considered delinquent, if not received by the Lessor's finance department by the tenth day of the month. Lessee shall pay Lessor interest on delinquent rent at the rate of 1.5% per month. The full monthly interest shall be due on the first day of each thirty day period after the rent becomes delinquent. 3.1 _ Lessee shall also pay any real property, possessory interest or personal property taxes, and assessments imposed on 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. Lessee hereby agrees to install all permanent improvements which shall become part of said property and title to said improvements shall be vested in the Lessor upon termination of the lease- 4.1. Lessee agrees that the leased premises shall exclusively be used for aviation purposes only. IIdIONIAI~lllldlll~l IIWIIIIIIIININIIIN~p :"a""'e, -2- C5~1l1jLV is 4; NYC i`. A, L. Y~J fiv J~i~l3~ U , CAuF. 4.2_ Improvements, excavations, removal of any trees, brush, grass or improvements and other modifications to the property shall be the sole responsibility of Lessee and shall be approved by Lessor prior to conducting work. Lessee shall prepare plans and specifications for said improvements including landscaping of the leased property and obtain approval prior to work on the leased premises. 4.3. Lessee agrees to keep the premises and all improvements in good repair and order, and to bear the full cost for maintenance of all improvements. 4.4. Lessee shall acquire the necessary and required permits from the appropriate regulating body for the development proposed under this lease. 4.5. Lessee is responsible for the relocation, alteration, removal, construction, reconstruction of any municipal or private facilities, structures or utilities existing on leased premises which are presently in use or abandoned. 4.6. Lessee shall not only use or permit the leased premises to be used in full compliance with all applicable City, state or federal rules, regulations, statutes or ordinances- 4.7. Lessee shall not do or permit to be done on the Premises, nor bring or keep or permit to be brought or kept in the Premises, anything (a) which is prohibited by or in conflict with any law, ordinance or governmental rule, or (b) which is prohibited by the standard form of fire insurance policy or, (c) which will increase the existing rate of or affect fire or other insurance on the Building or its contents or cause a cancellation of any insurance policy covering the Building or any part of it or its contents. Lessee shall not use or store in the Premises any hazardous or toxic substances, with the sole exception of reasonably necessary substances that are kept in reasonably necessary quantities for normal business operations, provided that their use and storage are in accordance with applicable laws. Lessee shall not use or allow the Premises to be used for any unlawful purposes, nor shall Lessee cause, maintain, or permit any nuisance or waste on or about the Premises- -3- Page: 4 of 16 4.8_ Lessee shall be responsible for landscaping or landscape maintenance of the leased premises, and shall maintain the exterior of the improvements and the landscaping in a neat, weed free and healthy condition, in accordance with the approved plans. 4.8. Lessee shall furiush at its sole expense all utilities necessary for use sed 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 without the prior written consent of Lessor. The City Manager may consent to an assignment of the Lease on behalf of Lessor, if the assignment is to a lending institution and necessary for the Lessee to finance the construction of Lessor approved improvements on the leased premises. The City Manager may agree to commercially reasonable terms and conditions in connection with an assignment required for financing purposes. The City Council must approve all other assignments. Lessor shall not withhold approval unreasonably of Lessee's request to assign this Lease. Any assignee must meet all criteria duly adopted by Lessor for leasing said property for airport related uses and the assignment of the Lease must be consistent with the Airport Master Plan, adopted by Lessor. If any assignment occurs in violation of this paragraph, Lessor may terminate this Lease and recover possession of the leased premises, including any improvements located on the leased premises which, under the terms of this Lease, become the Lessor's property upon termination of the Lease. "Assignment" includes both voluntary assignments and assignments that occur involuntarily or by operation of law. 6. INDEMNWICATION AND INSURANCE. 4 6.1. 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 demised premises, any defective condition or faulty construction of the demised premises existing at the time of letting or arising thereafter and Lessee covenants and agrees to indemnify and save harmless said Lessor and -4- page: Is of 16 ~i l v ►i a .'JJE ,21 lG GONE EJkl6afr4, CAUF. its officers, agents and employees from and against any and all liability, loss, cost, or other obligation, including reasonable attorneys fee, on account of or arising out of any such injuries or losses however occurring. 6.2. 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. 6.3. Lessee shall maintain property loss insurance to protect against fire and other hazards with policy limits equal to the full replacement cost of the improvements. The insurer and coverage must be approved by Lessor. In the event of damage to any improvements on the leased premises, Lessor shall rebuild, repair or otherwise reinstate the damaged Improvements in a good and substantial manner according to applicable Uniform Code standards. The reconstruction required herein shall commence within ninety (90) days after the receipt of insurance funds paid for the purpose of reconstruction, and shall be pursued diligently to completion. 7. DEFAULT AND TERMINATION. 7.1. Events of Default. The following events shall constitute events of default under this Lease (each an "Event of Default"): (a) A default by Lessee in the payment when due of any rent or other sum payable under this Lease and the continuation of this default for fourteen (14) or more days after notice of default from Lessor; (b) A default by Lessee in the performance of any of the terms, covenants, agreements, or conditions in this Lease, other than a default by Lessee in the payment when due of any rent or other sum payable under this Lease, and the continuation of the default beyond ten (10) days after notice by Lessor or, if the default is curable and would require more than ten (10) days to remedy, beyond the time reasonably necessary for cure, II~~IIIIIIIBI~91~INm111~1811111NIIIINR Page: 16 a`d~d uF,~r UKIAW, CALIF. (c) The bankruptcy or insolvency of Lessee, a transfer by Lessee in fraud of creditors, an assignment by Lessee for the benefit of creditors, or the commencement of proceedings of any kind by or against Lessee under the Federal Bankruptcy Act or under any other insolvency, bankruptcy, or reorganization; (d) The appointment of a receiver for a substantial part of Lessee's assets; (e) The abandonment of the Premises; and (f) The levy upon this Lease or any estate of Lessee under this Lease-by attachment or execution and the failure to have the attachment or execution vacated within thirty (30) days. 7.2 Termination upon Default. On occurrence of any Event of Default by lessee, Lessor may, in addition to any other rights and remedies given here or by law, terminate this Lease and exercise remedies relating to it without further notice or demand in accordance with the following provisions: (a) So long as the Event of Default remains uncured, Lessor shall have the right to give notice of termination to Lessee, and on the date specified in this notice, this Lease shall terminate. (b) If this Lease is terminated, Lessor may, by judicial process, reenter the Premises, remove all persons and property, and repossess and enjoy the Premises, all without prejudice to other remedies that Lessor may have because of Lessee's default or the termination. (c) If this Lease is terminated, Lessor shall have all ofthe rights and remedies of a landlord provided by Civil Code § 1951.2, in addition to any other rights and remedies Lessor may have. The damages which lessor may recover shall include, without limitation, (i) the worth at the time of award of the unpaid rent which had been earned at the time of termination; (ii) the worth at the time of the award of the amount by which the unpaid rent which would have been earned after termination until the time of the award exceeds the amount of the rental loss that Lessee proves could have been reasonably avoided; (iii) the worth at the time of award computed by discounting the -6- 2 600-10381 urfwa, cAUR amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent (1%) of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of rental loss that Lessee proves could be reasonably avoided, (iv) all reasonable costs incurred by Lessor in restoring the Premises to good order and condition to relet the Premises; and (vi) all reasonable costs, including without limitation, any brokerage commission incurred by lessor in reletting the Premises. 7.3 Continuation after Default. Even though Lessee has breached this lease and abandoned the Premises, this Lease shall continue in effect for so long as Lessor does not terminate Lessee's right to possession, and Lessor may enforce all rights and remedies under this Lease, including the right to recover the rental as it becomes due under this Lease. Acts of maintenance or preservation, efforts to relet the Premises, or the appointment of a receiver upon initiative of Lessor to protect Lessor's interest under this Lease shall not constitute a termination of Lessee's right to possession. 7.4 Other Relief. The remedies provided in this Lease are in addition to any other remedies available to Lessor at law, by statue, or otherwise. 7.5 Right of Lessor- to Cure Defaults. Agreements and provisions to be performed by Lessee under this Lease shall be at Lessee's sole cost and without abatement of rental, except as specifically provided in this Lease_ If Lessee (a) fails to pay any sum of money, other than rental, required under this Lease, or (b) fails to perform any other act under this Lease, and this failure continues for ten (10) days after notice of the failure by Lessor, or a longer period as may be allowed under this Lease, Lessor may, without waiving or releasing Lessee from any obligations of Lessee, make payment or perform other acts required by this lease on Lessee's behalf. All sums paid by lessor and all necessary incidental costs shall be payable to Lessor on demand and shall constitute additional rental under this Lease. -7 IIN~II~I~INnN111InI~flB11MIpVM '=w'~". 16 a !I,0 k) 1) hi" I j ,ilHN1110M10 { oul,. UKIAW, CALIF. 8. ATTORNEY'S FEES. In the event of any legal action arising out of this Lease, the prevailing party shall recover its attorney's fees and costs resulting from such action. 9. TIME OF ESSENCE. Time is of the essence of this agreement. 10. 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. 11. NOTICES. Any written notice required hereby shall be deemed sufficient when placed in the United States mail, postage prepaid and addressed as follows: TO LESSEE: TO CITY: Ukiah Aviation Services LP City Manager P.O_ Box 563 Ukiah Civic Center Lakeport, CA 95453 300 Seminary Avenue Ukiah, CA 95482 12. RECORDING AND BINDING EFFECT This Lease may be recorded and shall be binding upon and inure to the benefit of any successor to or purchaser of either party's interest. 13. 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. 111~1i 11~1~ 1~111~1(IIII IIII iillli i~~,~ 111'Ifli lt~~ Page: 9 of 16 AF l~-I Z ~ i.:Jf L( 9!li l1 a OUR UKIAH, GAUF. 14. PREVIOUS AGREErvIENTS. Any and all existing statement or agreements, whether oral or written, or renewals thereof, between the parties hereto, covering the same subject matter, are hereby canceled and superseded by the terms of this Lease, and such prior agreements, statements or understandings shall have no filrther force or effect- 15. 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. CITY OF UKIAH ATTEST: ' Lessee I~Iarie Ulvilla, City Clerk ldhWecn12.t1Lt Taylor.agr iuuw~uNniiM 11111111111111111111111111111111 IN Page: 10 of 16 -9- RIM 90H UKIAH, CALIF. 4-May-00 EXHIBIT `A' Parcel A Being a portion of the lands of City of Ukiah as recorded in document number 1999-05298, Official Records, Mendocino County, Ca., and the lands of City of Ukiah as recorded in document number 152-347, Old Books, Mendocino County, Ca_, and being more particularly described as follows: Commencing at a found 2" galvanized pipe at the northerly comer of the lands of City of Ukiah as described in document number 1999-05298, Mendocino County, Ca. Said pipe is also shown on the Record of Survey of a portion of Lot 73, of the Yokayo Rancho, filed in Map Case 2, Drawer 43, at Page 8, Mendocino County Records; thence from said Point of Commencement, along the common boundary of said lands of City of Ukiah as recorded in -document number 1999-05298 and said lands of City of Ukiah as recorded in document number 152-347, South 8320'07" West 22.60 feet to a point on said common boundary; thence leaving said common boundary, North 11°32'36° West 9.33 feet to the Point of Beginning of the parcel of land to be herein described; thence from said POINT OF BEGINNING, South 11°32'36" East 45.00 feet; thence South 78127'24" West 400.17 feet thence North 11 032'36 West 45.00 feet; thence North 78027'24" East 400.17 feet to the Point of Beginning of the herinabove described parcel of land. Containing 0.41 Acres of land, more or less. Parcel B Being a portion of the lands of of ekaia and ~C°g are particularly described as follows: Official Records, Mendocino County, Commencing at a found 2" galvanized pipe at the northerly comer of the lands of City of Ukiah as described in document number 1999-05298, Mendocino County, Ca. Said pipe is also shown on the Record of Survey of a portion of Lot 73, of the Yokayo Rancho, filed in Map Case 2, drawer 43, at page 8, Mendocino County Records; thence from said Point of Commencement along the common boundary of said lands of City of Ukiah as recorded in document number 1999-05298 and said lands of City of Ukiah as recorded in document number 152-347, South 8320'07" West 22.60 feet to a point on said common boundary; thence leaving said common boundary South 11 032'36' East 98.67 feet to the Point of Beginning of the parcel of land to be herein described; thence from said POINT OF BEGINNING, South11°32'36" East 51.50 feet; thence South 78°27'24" West 409.53 feet; thence North 11 °32'36° West 51.50 feet; thence North 78°27'24" East 409.50 feet to the Point of Beginning of the herinabove described parcel of land. Containing 0.48 Acres of land, more or less. Basis of Bearings: Record of Survey of a Portion of Lot 73, of the Yokayo Rancho, filed in Map Case 2, Drawer 43, at Page 8, Mendocino County Records. 111111111 Hill 1111111111111111111111111111111 ill 1111111111111111 Page: 11 of 16 . n,,.tf-I IuI~ 4 1 -iFn Nn. Dutton Ave., Ste. 150 • Santa Rasa, CA 95401 • (707) 542-6268 4-May-00 End of Description This description was prepared by or under the direction of Ralph H. Thomas, PLS 4760 4 - ~ L = t - _ . ,~.1 am of ,s ~:R1,= CINQUINI & PASSARINO, INC. • 1360 No. Dutton Ave., Ste. 150 • Santa Rosa, CA 95401 + (707) 542-6268 ~11111 IIIIII!'dIiIIIIIINII =:~"";°~„s _ EXHIBIT B N TO-1-5 F' ~p P.Q.B. P.C.C_ 9.33' N ~}3► rJ ijtiR ~C iL!'dUGGi GG FNO 2" GALV. _35-67' PARCEL B Ur~tb~,F. IRON PIPE ` / J~ft1'32'36` yy N_t t'32 36_ P_ 45.00' 53.00 -W - N _Fi 3236^ PARCEL A f 1 51.50, = f6 1 J1 ~ 1 ! f !n I ~ f f° f 1 f f f 1 l f f1 LANDS OF 1 f f' I CITY OF UKIAH DN 152-347 RFCURD O SURVEY C~ f I P&TION OF I_OT 731 f /fC) G' YO RANCHO f M 2, DW 43, PG f MEND~CINO COUNTY RE ORDS 1 ~ f f 1t ~ !1 f1 f LANDS OF f I f f CITY OF UKIAH f f f f DN 99-05298 f f 01 f;, 1 1 Pf Q ° f 1 fD f ~ f P f° 1 n U ¢ f,``' f o ~ ~'n hf ~ )L 1 I ~I Q f" a o f ~ I 1 zf 1~ Cry ~ Q ~1 z c nl a ° N BASIS OF BEARINGS: 1 f fz ~f PORTION OF LOT 73. YOKAYO z1 RANCHO, MC 2, DW 43. PG 8 j N 1 1 1 I MENDOCINO COUNTY RECORDS ~0 1 f f f! / ~ 1 1 1 f co f f f f f ~ ~ f f f o ! 1 i f 1 f r1 ~ t 1 ! ft z~ f f f ~ f 1 1 f f 1 f 1 1 1 f f1 1 f f11 1 ~L/N-~3-.036`0x~ 111 45 f f a ° 1 _r 3z 36' W QUIt7I 8e PASSAPMO. INC. 0Mwt4 8Y: PCS WEET: 1 OF 1 LAND Sxmvxyn4r- J08 NAME: ~ Al}T HANG R t7e~ tsw Ouam SCALE: I ~ 50 J08 f : 4546-'00 a BOUPmiU2Y Sanea Roos Co. 9540t 41 ,5L 9411W OF Imincs am uKLA14, cAUrp. EXHIBIT "C' - Construction Exhibits Tenant will construct the following improvements: A_ Plans and City's Approval. Tenant shall obtain written approval of all plans for-buildings, grading, paving, drainage, utilities,- landscaping, or other improvenents by the director before construction may be commenced. All construction of improvements must conform with the approved -plans and shall =be constructed or installed irraccordance with all applicable statues, ordinances,-building codes, and rules and regulations of city, and other_ authority that may have jurisdiction over the premises and Tenant's-operations, _ including; but not limited to the Fire and Paramedic District or the Federal. Aviation Administration. Tenant is solely responsible fdr`determining and obtaining all necessary permits and approvals, and for paying any and-all fees required, for-the construction. "The director's-approval of Tenant's plans and specifications does not constitute a representation or warranty as to its conformity. B. Construction Schedule_ Tenant must begin the construction of the improvements within 12 months after the-commencement date of the. lease, and shall complete the. construction within 24 months from the commencement date for each Phase. C_ Delay of Construction' Upon Tenant's written request -to-the director, the dates. in this section may. be extended by written approval of the director. This may include time lost as a result of work stoppages, strikes, shortages of material, or acts of God, provided the time lost is entirely-beyond Tenant's control. The-rent must be paid during any delay. D. Inspection and Acceptance. Tenant shall obtain building permits and approvals required.* All improvements- including, but not limited to, buildings, site preparation, sub-grade: preparation, paving, drainage, and overall &-velopment of die premises, shall be subject to inspection, testing, and acceptance in accordance with applicable law. E. Engineering. Tenant must set the-necessary boundary stakes on the premises and shall provide any surveys required for the design of the area paving. The director must furnish Tenant with control information. required for ground and pavement elevations, specifications for earthwork, pavement, and drainage. Any material deviation from the approved plans and specification must have prior approval by the director and any required governmental agency. F. Utilities. Upon the prior written approval by the director, Tenant must install' other utilities on the premises at its own cost and expense, including all R11 M=191filiff 2000-1®4 - AIT J{ *sifina 4U~ TV UKIA14, c%L.1F. connection, inspection, and service fees. All utilities must be installed underground, unless agreed to in writing by die director and waived by the planning commission. The City may negotiate with Tenant for the oversizing or extension of utilities to serve other parcels. G. Paving and Concrete. Tenant must construct-the pavement for the aircraft movement areas and the concrete hangar floors to accommodate the heaviest _~ircrn-31 expected to operate in the area, or fully loaded fuel trucks, whichever is of greater weight, with a minimum expected pavement life of no less than 20 years. Any roadway access must be in accordance with city standards for comparable construction- H. Notice of-Non-Responsibility.- City intends -to- post and to rfcord a notice of city non-responsibility within.3.days of execution ofIhis agreement. A copy of the notice shall be retained by the director following recordation at the City Recorder's Office. I: Finish Site Grading. Tenant shall perform,. at Tenant's expense, all finish grading -of the premises.: City will furnish, if available, native material. J. Frontage Clearances. Tenant must construct the improvements so that all frontages and clearance of the improvements are in compliance .with city standards and so they do not encroach upon the building restriction line shown on the ALP. K_ Construction of Public Restrooms. Tenant shall at its sole expense construct publicly accessible restrooms in a location to be approved by the Director IIpItlIIRIN~IN~WI~IINNWA~I~NII ~';;':f 16 UKIAf I, CALIF. ACKNOWLEDGMENT State of California ) ) ss. County of Mendocino ) On June 29, 2000, before me, Karen Yoast, Notary Public, personally appeared Gregg S. Taylor. 1 P, ❑ personally known to me OR proved to me on the basis of satisfactory evidence to capacity(ies), and that by his/her/their signatures on the instrument the person(s), or the entity upon behalf of which the KAREN YOAST person(s) acted, executed the instrument. 'Comm. # 1209930 'sue NOTARY PUBLIC CALIFORNIA Mendocino County unty ~ WITNESS my hand and official seal. My Comm. Expires Feb. 6, 2003 "t rl P OPTIONAL Though Statute does not require the Notary to fill in the data below, doing so may prove valuable to persons relying on the document. DESCRIPTION OF ATTACHED DOCUMENT Title or Type of Document: Lease Agreement Document Date: 6/1/2000 Number of Pages: Signer(s) Other Than Named Above: Candace Horsley, Ukiah City Manager CAPACITY CLAIMED BY SIGNER: Signer's Name: Gregg S. Taylor ❑ Individual ❑ Corporate Officer(s) Title(s) ❑ Partner - ❑ Limited ❑ General ❑ Attomey-in-Fact ❑ Trustee(s) ❑ Guardian ❑ Other: CAPACITY CLAIMED BY SIGNER: Signer's Name: ❑ Individual ❑ Corporate Officer(s) Title(s) ❑ Partner ❑ Limited ❑ General ❑ Attomey-in-Fact ❑ Trustee(s) ❑ Guardian ❑ Other: SIGNER IS REPRESENTING: Person(s) or Entity(ies)C C J Ukiah Aviation Services LP 1 SIGNER IS REPRESENTING: i._;i Person(s) or Entity(ies)_ is .,,a:,,.