Billmayer Hangar Site LeaseKALISPELL CITY AIRPORT
HANGAR SITE LEASE
THIS AGREEMENT, made and entered into this ZnZ�:day of 1934,
by and between Kalispell Airport Association, Inc. , a Montana nonprofit corporation,
hereinafter referred to for ease of reference as "the Association" and
of Kalispell, Montana,
a municipal corporation
hereinafter referred to as "Tenant" and the City of Kalispell,
hereinafter refe.-red to as the "City";
W I T N E S S E T H
WHEREAS, the Association operates the Kalispell City Airport under a lease
agreement with the City of Kalispell; and
WHEREAS, the Association 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
stora::,e and protection of aircraft based at said airport; and
WHEREAS, the City is limited by law to leases for _airport purposes not exceeding
20 years' duration;
NOW THEFEFORE, IT IS AGR .ED AS FOLLOWS:
1. The Associati-m and the City do here:.-y agree to lease the tract of iznd
described on Exhibit A hereto as Leaseei l-iangar Site No. r.o Tenant for
Tenant's exclusive use in the erectior, of a hangar for the storage of one or ;ore
aircraft and for uses incidental to suc`i storage; 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 t;e h;;ngar site and the runway. It is agreed by
the parties that a minimum taxiv,,ay p ce of 60 feet will be maintained between rows
of structures.
2. Architectural Cont?-(.,!: T-n ant agrees that prier- to the con-imen cement of
any construction, complete pions <+r d s peci ;c=tons fat- the prop{;sed construction
will be submitted to the Association for its ape..=nova; as to design, materials and
exterior finish, in order that reasonable ethnic harmony may be maintained by
the various structures that are =-,rected upon the airport property. The association
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 or condl'Jons that are not acceptable to the Tenant
shall give the Tenant the right to terminate this lease summarily.
3. Ground Rent:
Tenant agrees
to pad,, to the City for the use
and benefit
of the Association the sum of S�✓,�w
( 7 ) cents per- square foot per
year for
the leased area, which
for purposes- e`
this r)rovision shall be 1506, of
the actual,
square footac;e occupied
by the completed structure. Said rent�i! shah
bc- payable
without demand on or
before the ?nnivc::rsary
date of this ':{ease each
year. If
enant fails to pay said
ground rent V:,hen
due, the City or ti,e-%ssociation
shall
have the right to terminate this leas: upon 30 days notice to Tenant and to any
lienholder who has requested such, nolic.e unless said ground rent is :,)ard in furl
within said 30 days notice peAiac;, /D ,ffK_7q/6/ Z,
4. Terms: This lease shall be in full force and effect until�2^�j ZC�G>`f
unless sooner terminated by mutual agreement of the parties or by one o the
parties under the specific provisions hereof. In the event the lease of the Association
terminates prior to the termination date of this lease, this lease shall continue in
full force and effect so long as Tenant fully performs the Tenant's obligations
hereunder, and the City shall have all rights reserved to the Association herein
unless ther Association's lease is extended or renewed. 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.
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 Association and City stating the name and address of the
proposed buyer, assignee, or transferee. if the Association or 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 Association and 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 shalls be relieved from liability for rental payments
accruing thereon, and" the buyer, assignee, or transferee shall thereafter be liable.
Tenant may conditionally assign its rights under- this lease as part of a
financing arrangement so long as such conditional assignment does not purport to
be effective beyond the terms of the lease.
6. Paving Cost Recapture: Recognizing that a paved taxiway is necessary
for effective utilization of the hangar and that such a 24 foot wide taxiway will be
utilized by subsequent hangar projects, it is agreed that, upon presentation of
documented cost information, Tenant will be credited with a prorated portion of
taxiway construction costs toward future rent. The Association shall be responsible
to recapture such prorated portion in the negotiation of subsequent leases but small
be entitled to offset recaptured funds against the rent credit allowed.
7. Covenant as to Continued Airport Operation: The Association and the
City covenant to continue the operation of Kalispell City Airport as a general aviation
airport during the full term of this lease unless such operation becomes legally
impermissible as the result of restriction imposed by legal authority other than the
City or the Association. In the event that the Kalispell City Airport should be
closed to general aviation operations, the Association and the City grant 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 practicabie 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 improvement, at a price established
by a qualified professional appraiser-.
2.
8. Liability: Tenant shall hold the City aid the Association harmless from
any liability claim of any kind or nature whatsoever arising out of the erection of
the structure contemplated herein or the use of said structure by Tenant or Tenant's
invitees or licensees.
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 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.
12. Right to Cancel: This lease has been negotiated upon the representationPA
that the runway and taxiway will be resurfaced with good pavement by July 31, �"
1984. In the event such work is not accomplished by such date, Tenant shall have
the right to cancel and terminate this lease and any obligations arising hereunder
by written notice to the Association and the City delivered within 60 days thereafter.
IN WITNESS WHEREOF, the parties have executed this lease as of the day
and year first above vyritten .
ATTEST:
City let
KALISPELL AIRPORT ASSOCI `%TION, INC.
By
P esident
CITY OF KALISPELL
B y n, _,
Mayor Pr, 7----
enant
3.
Credi. i�
Unpaid Engineering Sorvincs
Cons truotion of AirporI Improvonentx ~ $ `830. l")6
Annual Lease Cost
Hangar - 32 X l8Z
Ront - 5,824 X l.5 X .@7 = 611.52' per, ycar,
Prcpaynent Discount
Ej�lymeni Schedule
October 1, 1384 - Dcoumbor 3|3O4
1885
188G
1887
1968
1989
1990
1991
1992
1993
lS84
--------ETC--------
20',04
Hpplied
Credit
1ZS5
Sl9.73
5iS73
S19.7S
3l97S
5l878
Sl97S
S1979
G1'.5F')
Lcasu
C
r
r
S�
s
In Ln Lr)
i
! I t i 1 I I I --'
-+
; a t C L:
C:i
G
J L!
c
!
L
L^
LZ n - m cnx - (z
7C
r"i
C
lt'
E
Ci
LL7
_
>
L
G
s:S
-,
Cy
LI
L L
�.
U O
LI
e
L
cn
s
L
Ci '-.
r:
c
E
1
M
X
J
1
U
!
c O
CI
X
^:
co
-+
c c
rj
c O
C
L^f
p
U
c
CO f• a'
tt1
•O L
L
G N
G
C
.+
Q
•-• L"I W r- CO, C') fD -+ r-d h- c!
•C
C c
c
c
Qi
jco
tb . c3 S co !i 1 Ln C2 n Gl
Ic
O
�Y
m
L
L M On ci m cl Ln ca CI Ln C)
1
S
>�
O
tU
c
P,
-a
L
c
Ui
�
O