Helicopter ServicesKALISPELL CITY AIRPORT
HANGAR SITE LEASE
THIS AGREEMENT, made and entered into this ,,2 3 day of
1988, by and between the City of Kalispell, a municipal
corporation, hereinafter referred to for ease of reference as "the
City" and HELICOPTER SERVICES, 2244 S. 1640 W., Woods Cross, Utah
84087, hereinafter referred to as "Tenant":
W I T N E S S E T H:
WHEREAS, the City operates the Kalispell City Airport;
WHEREAS, the City desires, in order to provide a source of
income for airport maintenance and to increase the utilization of
said airport, to lease tracts of land to various tenants in order
that the tenants may erect structures for the storage and protection
of aircraft based at said airport; and
WHEREAS, the City is limited to law to leases for airport purposes
not exceeding 20 years' duration;
NOW THEREFORE, IT IS AGREED AS FOLLOWS:
1. The City does hereby agree to lease the tract of land
described on Exhibit A hereto as Leased Hangar Site No. to
Tenant for Tenant's exclusive use in the erection of a hangar for the
storage of one or more aircraft, for operation of a helicopter business,
and for uses incidental to such business; together with an easement
effective during the term of this lease for vehicular access to and
from said hangar site and for airplane taxiway to and from the hangar
site and the runway. It is agreed by the parties that a minimum
taxiway space of 60 feet will be maintained between rows of structures.
2. Architectural Control: A completed hangar facility exists
upon this property. Any modifications or expansion plans and specifi-
cations for the proposed construction will be submitted to the City
for its approval as to design, materials and exterior finish, in
order that reasonable aesthetic harmony may be maintained by the
various structures that are erected upon the airport property. The
City may approve, conditionally approve, or reject said plans within
30 days of submission. A failure to take action within 30 days will
be deemed conclusively to mean approval. A rejection or the imposition
of conditions that are not acceptable to the Tenant shall give the
Tenant the right to terminate this lease summarily.
3. Ground Rent: Tenant agrees to pay to the City for the use
and benefit of the City the sum of $0.1575 (fifteen and 3/4) cents
per square foot per year for the projected building area, which for
purposes of this provision shall be the actual square footage occupied
by the completed structure. Said rental shall be payable without
demand on or before the anniversary date of this lease each year. If
Tenant fails to pay said ground rent when due, the City shall have
the right to terminate this lease upon 30 days notice to Tenant and
to any lienholder who has requested such notice unless said ground
rent is paid in full within 30 days notice period.
4. Terms: Tids lease shall be in full force and effect until
January 1, 2008, unless sooner terminated by mutual agreement of the
parties or by one of the parties under the specific provisions hereof.
It is expressly agreed by the parties that upon the termination of
this lease, unless a lease for a further term be negotiated, Tenant
shall have the right to remove the hangar structure, but shall do so
within 120 days and shall leave the premises in a restored condition
except that paving will be left. Nothing herein shall be construed
as preventing the parties hereto from negotiating for a modification
of the lease at any time with a view to extending the term in
consideration of an increased ground rent, so long as the remaining
term is not greater than twenty years at any time. The ground rent
will be reviewed and is subject to modification by the City on five
vear intervals.
5. Assignment: Tenant shall have the right and privilege of
sale, assignment or transfer of this lease for the purposes defined
in Section 1., hereof, upon written notice to the City stating the
name and address of the proposed buyer, assignee, or'transferee. if
the City shall determine that said proposed buyer, assignee, or trans-
feree is objectionable, any such reasonable objection shall be stated
in writing to the Tenant within twenty (20) days after said notice.
The City shall not unreasonably withhold consent to sell, assign, or
transfer this lease. After sale or assignment by the Tenant of its
interests herein, the Tenant shall be relieved from liability for
rental payments accruing thereon, and the buyer, assignee, or transferee
shall thereafter be liable.
6. Covenant as to Continued Airport Operation: The City covenants
to continue the operation of Kalispell City Airport as a general
aviation airport during the full term of this lease unless such
operation becomes financially infeasible or legally impermissible.
In the event that the Kalispell City Airport should be closed to
general aviation operations, the City grants to Tenant a right of
first refusal to purchase the site which is the subject of this lease
together with an easement providing reasonable ingress and egress
therefrom for a price which shall be established by the City Council
on the basis of an appraisal of the site, but not the improvements,
by a qualified professional appraiser, provided, however, that in the
event it is not practicable for the City of Kalispell to sell the
site herein leased, to the Tenant, the City at its option may elect
to purchase the improvements placed upon the site, less taxiway improve-
ment, at a price established by a qualified professional appraiser.
7. Liability: Tenant shall hold the City harmless from any
liability claim of any kind or nature whatsoever arising out of the
erection of the structure upon the premises contemplated herein or
the use of said premises by Tenant or Tenant's invitees or licensees.
As evidence of the Tenants covenant, herein to hold the City harmless
from liability claims, the Tenant, at his expense, shall keep in
force, during the term of this lease, insurance, issued by a responsible
insurance company in a form acceptable to the City Attorney of the
City of Kalispell, for the protection of the City against all liabil-
ities, judgments, costs, damages and expenses which may accrue against,
be charged to or recovered from the City, by reason of damage to
property of, injury to or death of any person or persons on account
of any matter or thing which may occur on the demised premises.
Policy or policies in the amount of one million dollars ($1,000,000)
with respect to any one person, and one million dollars ($1,000,000)
with respect to any one accident or disaster, and one.hundred thousand
dollars ($100,000) with respect to property damage. Said insurance
shall be carried with an insurance company duly authorized to do
business in the State of Montana, and a certificate showing that said
insurance, as provided above, is in full force shall be furnished to
the City of Kalispell, Drawer 1997, Kalispell, Montana, throughout
the term of this lease.
8. Utility Services: Any utility services required by Tenant's
structure or the use and occupation thereof shall be obtained by
Tenant at Tenant's expense.
9. Maintenance: Tenant agrees that upon completion the structure
will be maintained in good condition at all times, reasonable wear
and tear excepted, at the expense of Tenant.
10. Taxes: Tenant shall be responsible for all taxes levied
upon the structure erected hereunder and any equipment or property
located therein. The land is owned by the City and is exempt from
taxes, and the City agrees to maintain such tax exempt status.
11. City Airport Assessments: Tenant shall be responsible to
pay to the City reasonable assessments made against all users of the
Kalispell City Airport including but not limited to tie down fees,
FBO fees and gasoline fees.
12. Right to Cancel: Tenant shall have the right to cancel, and
terminate this lease and any obligations arising hereunder by written
notice to the City delivered within 60 days hereafter.
IN WITNESS WHEREOF, the parties have executed this lease as of
the day and year first above written.
ATTEST: CITY OF KALISPELL
Clerk -Treasurer 7yor
ATTEST:
HELICOPTER SERVICES
Preside
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