Potts/Heckel Hangar Site LeaseKALISPELL CITY AIRPORT
HANGAR SITE LEASE
THIS AGREEMENT, made and entered into this /:!� day of XIC_ , 198�1
by and between Kalispell Airpoyl Association, Inc., a Montana nonpro it corporation,
herei after referred -to for eaF,E o"eference a, "the Association" and
/� L--
of Kalispell, Montana, hereinafter referred to as "Tenant" and the City of Kalispell,
a municipal corporation, hereinafter referred 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
storage 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;
I. The Association and the City do hereby agree to lease the tract of land
described on Exhibit A hereto as Leased Hangar Site No. j to Tenant for
Tenant's exclusive use in the erection of a hangar for the storage of one or more
aircraft and for uses incidental to such 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 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: Tenant agrees that prior to the commencement of
any construction, complete plans and specifications for the proposed construction
will be submitted to the Association 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 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 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 Association the sum of _Se_,-e1_1 (.07) cents 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. 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 or the Association 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 furl
within said 30 days notice period.
4. Terms: This lease shall be in full force and effect until / 4L.
unless sooner terminated by mutual agreement of the parties "or by one of 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 I . , 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 unrLvasonably 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 conditionaiiy 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 shall
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 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 improvement, at a price established
by a qualified professional aooraiser.
2.
8. Liability: Tenant shall hold the City and 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.
II. 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 representation
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 Written.
KALISPELL AIRPORT ASSOCIATION, INC.
By /'-
resident
CITY OF KALISPELL
�2cl
Mayor
ATTEST:
City Clerk
.c�Ll
Tenant
KE