Airport Lease Agreement/Kalispell Airport Assoc.AIRPORT LEASE AGREEMENT
THIS AGREEMENT made and entered into this lst day of July, 1980,
by and between THE CITY OF KALISPELL, a municipal corporation, herein-
after called."The City", and the KALISPELL AIRPORT ASSOCIATION, INC.,
a Montana non-profit corporation, hereinafter called "The Association":
W I T N E S S E T H :
1. In consideration of the sum of One Dollar per year, the City
hereby agrees to -lease to the Association and the Association agrees to
rent from the City the following premises:
The Kalispell City Airport, which is hereby defined
as consisting of the existing runway, and the addi-
tional land portrayed on Exhibit "A" hereto owned by
the City of Kalispell and contiguous to Kalispell
City Airport. Subject to the limitations set forth
in Paragraph 6 hereof.
2. This lease shall commence as of July 1, 1980, and shall con-
tinue in force and effect until December 31, 1999, unless sooner termin-
Led as provided herein. City shall have the right to terminate this
-Lease on 30 days written notice for delinquency in payment of rent or
iolation 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 without cause for such termination
upon approval of such termination by an affirmative vote of 75% 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 opposi-
tion to such termination to the said council at a public meeting prior
to such vote.
3. The Association shall use said leased premises for airport pur-
poses and except as provided herein shall have the sole and exclusive
control of the said premises to that end including the right to impose
charges, surcharges, fees and rents of every kind and nature as the Asso-
ciation shall in its sole discretion determine to be consistent with the
improvement and effective utilization of said premises; provided, how-
ever, that the City shall have the right to continue its assessment of
4 cents per gallon for aviation fuel sold to airport users and to change
the amount from time to time. The Association shall have the right to
fence the entire area of influence or any part thereof and provision to
be made for access directly from the National Guard Armory to the air-
port for National Guard purposes and except that unlimited access to the
airport shall be granted from the property purchased by L. E. Stockhill
and the property purchased by Myron K. Strand, and except that the City
shall have the right of ingress and egress for purposes of serving and
expending or improving its existing �..,ater and sewer facilities located
.i said property. It is further agreed between -the City and the Associ-
that no structure shall be placed on or in such proximity in any
water or sewer facilities located on said airport which shall in the sole
(liscroLion of the City be detrimental- to those facilities and with re-
�;pecL to that portion of the airport which borders Airport Road and U.S.
lligh%v,ay 93 that no bu-ilding or structure shall be placed closer than 25
feoL I.-)ack from the present right-of-way line extending along said roads.
4. It is further agreed between City and the Association that any
water or sewer utility extension which shall become necessary by virtue
of any sublease by the Association shall b-e at the expense of the Asso-
ciation or the sublessee and not of the City.
5. This lease shall not be assignable by the 'Association, but the
-'ssociation may sublet portions of the premises for uses directly con-
4ctedwit
the
activities af t&r, ob�ain- ling prior approval in writ=
Ong of"the City. []Pon such approval, the City shalk be bound by such
leases even t1loUgh this lease be terminated.
- 1 -
G. The following special provisions relate to the additional land
included in this lease and to land which was included in the previous
lease between these parties, but which is excluded from this lease.
(a) The area identified by red hash marks and
as "Area A", which primarily consists of
the area between the present ballfield and
the runway, will be maintained by the City
in conjunction with the maintenance of the
bal.lfield, but may be used by the Associ-
ation as an aircraft tie down area. No
improvements shall be erected by the Asso-
ciation on said tie down area.
(b) The area identified with green hash marks
and as "Area B", which is primarily the
area south of the Stockhill Aviation access
taxi way and west of the runway may be used
by the City for non -aviation purposes so
long as such use does not hinder aviation.
Such area will be available to the Associ-
ation for its exclusive use when necessary
as the airport facilities expand.
(c) Should the City elect to sell any of the
land between highway 93 and the runway or
any land included within this lease, it is
expressly agreed that the proceeds of any
such sale shall be placed in the Airport
Development fund of the City Treasurer and
shall be used exclusively for airport pur-
poses.
7. It is expressly agreed that City shall not be obligated to per-
form any maintenance or make any improvements to the premises. However,
the City and the Association may cooperate on such basis as from time to
time be agreed upon in making of improvements or performance of mainten-
ance. Any improvements made by the Association shall be the property of
the City. Improvements made by lessee's shall be governed by the terms
of the individual _leases.
8. 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 any
liability claim which may arise during the existence of this lease and
shall hold the City harmless therefrom and shall carry and maintain
reasonable liability insurance coverage with the City as a named in-
sured.
9. It is further agreed by and between the City and the Association
that each sublessee of the Association who shall be located on said air-
port in such a manner as to be ordinarily subject to City Special Assess-
ments shall pay such City special assessments as shall be levied against
the subleased property and each and every sublease of the Association
shill conLai.11 11t:is provision.
10. It is contemplated by the parties that the Association may from
time to time request the City to borrow funds from the Montana Aeronau-
tics Commission or other Federal or State agencies for the purpose of
improving or maintaining said airport and it is agreed that in the event
the Association requests that funds be borrowed for such purpose, thc,
rental to be paid under Lhi_s Agreement - lial_l be appropriately adjusted
ill ordc t- to pt ovidc� the revenue with o:li:i.ch Lo repay such loans or such
portion thereof as the City shall deem g propr.iate.
- 2 -
11. This lease supersedes the previous lease dated March 14,
1966, which is hereby terminated.
IN WITNESS WHEREOF the parties hereto have hereunto set their
hands this'. day of j,_ L,,,/�ry 1980.
ATTEST:
Marjort Giermann, City Clerk
A`1' T E I':
Lc_.
2ce�-,'��re tary
J/.
/ f
-- , oc =
CITY OF KALISPELL,
a municipal corporation,
Norma E. Happ, Mayor-�-7
KALISPELL AIRPORT ASSOCIATION, INC.
a corporation,
By
Prds- derYt
- 3 -
i
Ap
CM22M
a
I
KALISPELL CITY AIRPORT
HANGAR SITE LEASE
THIS AGREEMENT, made and entered into this ,7_ 3 day of
1988, by and between the City of Kal ispel I , a municipal
corporation, hereinafter referred to for ease of reference as "the
City" and HELICOPTER SERVICES, 2244 S. 1640 W., Woods Cross, Utah
84087, hereinafter referred to as "Tenant":
W I T N E S S E T H:
WHEREAS, the City operates the Kalispell City Airport;
WHEREAS, the City 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
aircraft based at said airport; and
WHEREAS, the City is limited to law to leases for airport purposes
not exceeding 20 years' duration;
NOW THEREFORE, IT IS AGREED AS FOLLOWS:
1. The City does hereby agree to lease the tract of land
described on Exhibit A hereto as Leased Hangar Site No. AIR to
Tenant for Tenant's exclusive use in the erection of a hangar for the
storage of one or more aircraft, for operation of a helicopter business,
and for uses incidental to such business; 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: A completed hangar facility exists
pon this property. Any modifications or expansion plans and specifi-
cations for the proposed construction will be submitted to the City
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
City 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
"enant the right to terminate this lease summarily.
3. Ground Rent: Tenant agrees to pay to the City for the use
A benefit of the City the sum of $0.1575 (fifteen and 3/4) cents
er square foot per year for the projected building area, which for
purposes of this provision shall be 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 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 30 days notice period.
4. Terms: This lease shall be in full force and effect until
January 1, 2008, unless sooner terminated by mutual agreement of the
parties or by one of the parties under the specific provisions hereof.
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
ceps that paving will be left. Nothing herein shall be construed
s preventing the parties hereto from negotiating for a modification
yof 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. The ground rent
will be reviewed and is subject to modification by the City on five
year intervals.
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 City stating the
name and address of the proposed buyer, assignee, or transferee. If
the City shall determine that said proposed buyer, assignee, or trans-
feree is objectionable, any such reasonable objection shall be stated
in writing to the Tenant within twenty (20) days after said notice.
The City shall not unreasonably withhold cony-nt to sell, assign, or
transfer this lease. After sale or assignment by the Tenant of its
iterests herein, the Tenant shall be relieved from liability for
`ental payments accruing thereon, and the buyer, assignee, or transferee
shall thereafter be liable.
6. Covenant as to Continued Airport Operation: The City covenants
to continue the operation of Kalispell City Airport as a general
aviation airport during the full term of this lease unless such
operation becomes financially infeasible or legally impermissible.
In the event that the Kalispell City Airport should be closed to
general aviation operations, 1-he City grants to Tenant a right of
first refusal to purchase the site which is the subject of this lease
ogether 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,
a qualified professional appraiser, provided, however, that in the
lent 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 improve-
ment, at a price established by a qualified professional appraiser.
7. Liability: Tenant shall hold the City harmless from any
liability claim of any kind or nature whatsoever arising out of the
erection of the structure upon the premises contemplated herein or
the use of said premises by Tenant or Tenant's invitees or licensees.
As evidence of the Tenants covenant, herein to hold the City harmless
from liability claims, the Tenant, at his expense, shall keep in
force, during the term of this lease, insurance, issued by a responsible
insurance company in a form acceptable to the City Attorney of the
City of Kalispell, for the protection of the City against all liabil-
ities, judgments, costs, damages and expenses which may accrue against,
he charged to or recovered from the City, by reason of damage to
operty of, injury to or death of any person or persons on account
f any matter or thing which may occur on the demised premises.
Policy or policies in the amount of one million dollars ($1,000,000)
with respect to any one person, and one million dollars ($1,000,000)
with respect to any one accident or disaster, and one hundred thousand
dollars ($100,000) with respect to property damage. Said insurance
shall be carried with an insurance company duly authorized to do
business in the State of Montana, and a certificate showing that said
insurance, as provided above, is in full force shall be furnished to
the City of Kalispell, Drawer 1997, Kalispell, Montana, throughout
the term of this lease.
8. 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.
9. Maintenance: Tenant agrees that upon completion the structure
ill be maintained in good condition at all times, reasonable wear
and tear excepted, at the expense of Tenant.
10. 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.
11. City Airport Assessments: Tenant shall be responsible to
pay to the City reasonable assessments made against all users of the
Kalispell City Airport including but not limited to tie down fees,
'..wFBO fees and gasoline fees.
12. Right to Cancel: Tenant shall have the right to cancel and
rminate this lease and any obligations arising hereunder by written
notice to the City delivered within 60 days hereafter.
IN WITNESS WHEREOF, the parties have executed this lease as of
the day and year first above written.
ATTEST: CITY OF KALISPELL
zw
Clerk -Treasurer yor
ATTEST:
HELICOPTER SERVICES
I 4Ltj
Preside t