11/10/86 Noyes LeaseKalispell City Airport Association
Drawer 1997
Kalispell, MT 59903
November 10, 1986
Elton Noyes
120 Looking East Drive
Somers, Montana 59932
ELTON NOYES -- HANGAR SPACE 1
Credit to lease for paving anus scaling
of job cost.
3011 square feet @ $1.03 = $3,193.00 less
$532.00 for total Credit of $2,661.00.
Adjustment as follows according to the terms
of the lease
Hangar - 66' x 44' = 2294 x 150 = 4356 square
feet.
Lease at .05� per square foot.
4356 x .05� = $217.80 per year.
Paving credit per lease $2,661.00 divided
by $217.80 results in a credit of 12 and
1/4 years.
This credit pays the lease 1985 thru 1996
leaving a partial payment due for 1997 of
$163.35.
The $217.80 annual lease payment will be
due January 1, 1998 and thruout the balance
of this lease or until a change in this 1Pase
is negotiated by either party or their
successors.
Sincerely,
H. Lee Tower
Chairman
HANGAR SITE LEASE
THIS AGREEMENT, made and entered into this Q3J day of March, 1954, by
and between Kalispell Airport Association, Inc., a Montana nonprofit
corporation, hereinafter referred to for ease of reference as "the
Association" and W. C. Simons and A. Elton Noyes 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;
1. The Association and the City do 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 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 five 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
Q
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 full within said 30 days notice period.
4. • This lease shall be in full force and effect for a term of 20
years from the date hereof 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 the 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 hercir, shall be conl7trued
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. : Tenant shall have an absolute unrioalified right to
assign this lease to any person or persons or legal entity so long as the
assignee assumes and becomes bound by the Tenants obligations under this
lease. Tenant may conditonally assign his rights under this lease as part of
financing arrangement so long as such conditional assignment does not purport
to be effective beyond the term of this lease.
6. Paying 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 ration: 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 an irrevocable 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.
g. Liability: Tenant shall hold the City and the Association harmless
from any liability claim of any kind or nature whatsoever arising out of the
I
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. RigU 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.
Attest:
( S / R
Secretary V
Attest:
City Clerk
By ' /1, /5--t—It-.L.
President
CITY OF KALISPELL
LM
Mayor
W
15/ 6. T(r--Qk/-ovrs
Tenant f
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