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