Draft Eagle AviationHANGAR SITE LEASE
THIS AGREEMENT, made and entered into this day of
January, 1991, by and between the City of Kalispell, a municipal
corporation, hereinafter "City" and Eagle Aviation, Inc. of
Kalispell, Montana, hereinafter referred to'as "Tenant".
W I T N E S S E T H:
WHEREAS, the City operates the Kalispell City Airport; and
WHEREAS, the City is empowered by Montana to lease airport
property for a term not to exceed twenty (20) years;
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 Nos. 2 and
3 to the Tenant for Tenant's exclusive use in the erection of a
hangar for the storage of one or more aircraft, fixed base
operations and for uses incidental to such business, including
the storage and sale of aviation fuel and supplies, 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 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: Two completed hangar facilities
exist upon said property. Any modifications or expansion plans
and Specifications 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 property the sum of fifteen and three
quarter cents ($0.1575) per square foot per year for the leased
area, which for purposes of this provision shall be 150% of the
actual square footage occupied by the completed structure.
Initially and for the term of this lease extending through
December 31, 1992, ground rent shall be the sum of One Thousand
Eight Hundred and Twenty Dollars ($1,820.00) per year. 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
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terminate this lease upon 30 days notice to the Tenant and to any
lienholder who has requested such notice unless said ground rent
is paid in full within said 30 days notice period.
4. Terms: This lease shall be in full ' force and effect
until January 1, 2007, unless sooner terminated by mutual
agreement of the parties or by under the specific provision
hereof. It is expressly agreed by the parties that upon
termination of this lease, unless a lease for a further term is
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 shall 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 or expanding the
area leased in consideration of increased ground rent.
5. Increase in Ground Rent: City at its option during the
term of this lease shall have the right to increase ground rent
by a sum not to exceed f ive cents
anniversary date of this Lease in the years 1993, 1998 and 2003.
6. 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 transferee 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.
7. Covenant to Continue Airport Operation: The City
covenants to continue the operation of the 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 close, for the above reasons, for general aviation
purposes, the City shall have the right to terminate this
Agreement upon giving 180 days notice to the Tenant. Tenant upon
termination of this lease shall have a reasonable time in which
to remove hangars and personal property from the land.
8. 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
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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 liabilities,.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.
9. 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.
10. 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.
11. Taxes: Tenant shall be responsible for all taxes
levied upon the structure erected hereunder and any equipment or
propekty located therein. The land is owned by the City and is
exempt from taxes, and the City agrees to maintain such tax
exempt status.
12. 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.
13. 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.
IN WITNESS WHEREOF, the parties have executed this lease as
of the day and year first above written.
ATTEST: CITY OF KALISPELL
Finance Director City Manager
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ATTEST: EAGLE AVIATION, INC.
President
County of Flathead
On this
undersigned,
appeared
the
ss
day of JI 1991, before me, the
a Notary Public for the State of Montana,
and
and
I
respectively, of Eagle Aviation, Inc., the corporation that
executed the foregoing instrument, and the persons who executed
said instrument on behalf of said corporation, and acknowledged
to me that such corporation executed the same.
IN WITNESS
my Notarial Seal
written.
personally
WHEREOF, I have hereunto set my hand and affixed
the day and year in this certificate first above
ss
County of Flathead
Notary Public, State of Montana
Residing at
My Commission expires
6n this _ day of 1 1991, before me, a
Notary Public in and for the State of Montana, personally
appeared Bruce Williams and Amy H. Robertson, known to me to be
the City Manager and Finance Director of the City of Kalispell, a
municipality, that executed the within instrument, and
acknowledged that such City Manager and Finance Director
respectively subscribed, sealed and delivered said instrument as
the free and voluntary act of said municipality, for the uses and
purposes therein set forth, and that they were duly authorized to
execute the same on behalf of said municipality.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed
my Notarial Seal, the day and year first above written.
Notary Public, State of Montana
Residing at Kalispell, Montana
My Commission Expires
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