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Airport Association Lease 03/66-12/85AI::PO:T LEASE AGRI;r�';rNT `I 'IIS AGR!_� 11?.'1E:� T , made and entered into this -clay of :arch, 19661 by and between THE CITY OF KALISPI:LL, a I`Iuaicipal Corporation, hereinafter called `llie City, and the KALISPELL AIRPORT ASSOCIATION, INC., a Corporation, hereinafter called The Association: 1d I T N L S S E T ii: In the consideration of the sum of One Dollar :per year, the Citv hereby agrees to lease to the association and the Association agrees to rent from the City the following premises: The property known as the Kali spell City Airport includin; all buildings located thereon and the land recently acquired for runway extension. This lease shall commerce as of March !,' 1966 and shall continue in force and effect until December 31, 1985 unless sooner terminated as provided herein. City shall 'nave the right to terminate this lease on 30 days written notice for delinquency in payment of rent or violation of any covenant herein contained unless such delinquency or violation be corrected within said 30- day ?period. , City may terminate this lease on 90 days written notice ivithout cause for such termination upon approval of such termination by an affirmative vote of 75 0. of the members of the city council of the City of Kalispell, :Montana, provided that the Association shall have the right to state its case in oDi)osition to such termination to the said council prior to such vote. It is understood and alroed uetween the City and Association that this lease shall be limited in sco-�)e to the land used for run- wav 3urnoses including that land recently acquired for runway Is 1 ,31 i as that land needed for 1T1;-)rovc e nt of the rtnwav as proposes: until such time as 'no -bresent lease betwreen the City a.,.,S:no-Line Tree Co;,ipa:iy, a corporation, shall be terminated. i hereafter t:lis lease shall a -)ply to all of the above described ,rc_-)c-rty. Subject to the aforesaid existing lease, the Association s:lall use said leased premises for airport )urposes and except as »roi,ided horcin shill have the sole and exclusive control of the S3.id p2'Cl?liSeS to ti23i CI?d L: l idin., the r]_ritt t0 lIRpOSe charges, surcharges, fees and rents of every kind and nature as the Association shall in its sole discretion determine to be consistent with the irinrovem-ent and effective utilization of said premises. The Association shall have the right to fence the entire area or any part thereof and to control access thereto in all respects except t hat provision snail be nade for access directly from the national Guard Armory to the airport for national guard purposes and except that unlimited access to the airport shall be granted from the property purchased by L. E. Stockhill for construction of an aviation maintenance and storage facility, and except that the City shall have the right to continue tie oil mixing operation conducted north of the hanger buildings or move said operation to a different and more acceptable site and except that the City shall have the right of ingress and egress for purposes of serving and expanding or improving its existing water and sewer facilities located on said property. It is further agreed between the City and the Association that no structure shall be ?laced on or in such proximity to any water or se.%,er facilities located on said . airport which shall in the sole descretion Of the City be c=etri ental to those facilities and with respect to that laortion of the airport which borders Airport Road and U. S. 1Ji(,ht:Tav No. 93 tl no bui ldin.(, or structure s .a, 11. be placed closer th...un 2 J feet b2C:< from the nreSent rif;ht-of -war line Cxtendinc; along" said roads. It is f urt'".er a ;reed cetc,:een Cit�r and the Association that a _ j' ;�"` r orc� T,rCT U1 111 �y G'?: .^.i1S 1 Oil Ci 2ICi1 shall become i1LCCSSary V-rtaG cf a.nv sublease iJV the Association Shall be borne by the Assoc:iat- Lon or til: sublessee and not by the City. � 71'1-:ws lease shall not he assi "male; by the Association but the .at:on ;ia, ri'-1)1Ot ?JOrt10nS O:L. file )reliiSCS for uses dil'LCt1V aviation acti.Vl"ilos c :{:ter o'EJi:ain n4? prior ai)proval T:. 1cr;t0L ti-.0 Cit,', City expressly reserves tlic ri;ht to lease or sell as much o'' t .e land of said airport which extends between the U. S. I i-',, av No. 93 right-of-way and the proposed site of the new land- in,- stri-) as lon(; as said lease or sale does not hinder aviation ane s Io:m as said lease or sale is not made to any person or ,)arty for a::y purilose directl-\r related to aviation. (11owever., City stipulates that it shall place all funds derived from sale or lease of Ii ghway frontage as herein provided in a s;aecial fund desig- nuted as the Airport I alr aroveient Fund which fund shall be used only for the pur-oose of maintaining and i�proving the airport. It is expressly agreed that City shall not be obligated to perform anv r.,iaintenance or make any improvements to the premises. However, City and Association may cooperate on such basis as from tii'le to time be agreed upon in the making of improvements or nerfor lance of maintenance. Unless otherwise mutually agreed upon by the parties and unless other satisfactory arrangements can be made between the City and the Association, the Association agrees to hold the City harmless from an,., liability claim which may arise during the existance of this lease and sl.a ll hold the City har:-iless there- fro;:z. in addi lion, the Association and any sublessee thereof shall maintain 'Fire insurance on any a.i2d all buildin s no.11 existin,; or to be placed o,1 the airport .)remises. it is' 1t:r lG' -.geed by 5.'..nd betwe-.en the City ?nu the Associ-a io-a .,at each su')l ssee of the Assoc7_atlon who shall be locatzd on said uir;or.t in such a r <�nner as to i o or-'i1laLrily subiect to Citv Special :.rsess,:er.ts shawl oatr suc':l City, s-n—cial assessments as shall i;e l l'y ' a1.nSt the subl i; asc rrorl�^,rty anti cash and every sublease" O t :,ssoci,atl.on Stall con-"ain t�,Js nrovision. l: it is a. ­reed that- at no tir^e during the existance of s wst shz ll r.-.y jet airi)lmnes I)c al- lowed to use said airport, As. ::ci.ation a(rr es the t it shall. restrict the use of said jet a ` r 10S. r -3- It is cont-:,mlatecll by the parties that the Association may fro.:i tir:e to timo request the City to borrow funds from the Alontana Aeronautics Cor.;.ission or other Federal or State a envies for the nurnose of immrovint- or maintaining said airport and it is agreed th<:t in Vie event the Association requests that funds be borrowed for such purpose, the rental to be paid under this agreement shall be appropriatei;� adjusted in order to provide revenue with which to repay such loans or suci. portion thereof as the City shall deer. ap;)ropriate. IN 1,ITNESS 7:11-11EREOF the -oarties hereto have hereunto set their hands this °`day of March, 1966. CITY Or KALISPELL, a il-Iunicinal Corporation, -� Mayor ATTEST: r -, ' i� ry�;f-'lerh KALISPELL AIRPORT ASSOCIATION, INC., a Corporation, - a _ ! ' Pres i—dent ATiL7i,, j i ---,Secretary i