Billmayer to KAA/Improvement 1022ASSIGNMENT OF HANGAR LEASE
By a lease dated the 31 st day of March, 2006 (the "Lease") the City of Kalispell, the Assignor, as
Landlord leased to Jay Billmayer, tenant, for a term (the "Term") of one year, commencing on the
1 st day of April, 2006, certain premises (the "Premises") located at the Kalispell City Airport, in
Kalispell, Montana, and as further described as:
Improvement No. 1022 on Tract IF, located at the Kalispell City Airport in the
Northwest Quarter of the Northwest Quarter of Section 20, Township 28 North, Range
21 West, P.M.M., Flathead County, Montana together with the right of ingress and
egress for both vehicles and aircraft
The Assignor has agreed to assign the Lease to the Kalispell Airport Association, Inc., a Montana
corporation, as Assignee subject to the terms and conditions herein set out.
NOW THEREFORE THIS ASSIGNMENT WITNESSES that in consideration of the mutual
covenants and agreements herein contained and the sum of One Dollar ($1.00) paid, the receipt and
sufficiency of which hereby acknowledged, the parties hereby agree as follows:
Assignment as of and from April 1, 2018, the Assignor transfers, sets over and assigns the Lease, the
right to enter into a month to month lease and all privileges and appurtenances belonging thereto,
together with the unexpired residue of the Term, and the Premises and all benefits and advantages to
be derived therefrom, to the Assignee.
TO HAVE AND TO HOLD the same unto the Assignee, subject to the obligations of the Assignor
under the terms of the Lease and the observance and performance of the covenants and conditions in
the Lease to be observed and performed on the part of the Landlord. In the event of default by
Assignee of Master Lease, the Lease shall revert to Assignor.
CITY OF ISPELL
ID
By:
Do us I, City Mana er
STATE OF MONTANA )
) ss.
County of Flathead )
On this Z:2 day of March, 2018, before me, a Notary Public for the State of Montana,
personally appeared Doug Russell, City Manager of the City of Kalispell and proved to me to be the
person whose name is subscribed to the within instrument, and acknowledged to me that he executed
the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day
and year hereinabove first written.
��gPUNCKy�
ot"' 9sa
AIMEE BRUNCKHORBT
NOTARY PUBLIC for the
*
SEAL:
State of Montana
Residing at Lakeside, Montana
MY Commission Expires
December 4, 2020
NOTARY PUBLIC State of Montana
Printed Name:
Residing at:
My Commission expires:
AIRPORT HANGAR LEASE
This lease and Operating Agreement (the "Agreement") entered into as of the'Stday
of csc ti , 2006, by and between the City of Kalispell, a body politic and corporate created
by Montana State Statutes ("Lessor"), and Jay Billmayer of , Kalispell, Montana 59901,
("Lessee").
WITNESSETH:
WHEREAS, Lessor now owns, controls, and operates the Kalispell City Airport (the
"Airport") in the City Kalispell, County of Flathead, State of Montana;
WHEREAS, Lessee has sold its hangar facility, described below, to Lessor; and
WHEREAS, Lessor desires to continue to operate the hangar facility and Lessee is
qualified, ready, willing and able to manage the business of the hangar facility.
NOW, THEREFORE, in consideration of the premises and the mutual covenants
contained in this Agreement, the parties hereby agree as follows:
ARTICLE I
TERM
The term of this Agreement shall be for a period of one (1) years, commencing on the
day of , 2006, and continuing through the �- day of , 2007 (the
"Termination Dat "), unless earlier terminated under the provisions of this A eement.
ARTICLE U
LEASED PREMISES
Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, the following
premises, described as Improvement No. 1022 on Tract 1F in the Northwest Quarter of the
Northwest Quarter of Section 20, Township 28 North, Range 21 West, P.M.M., Flathead County,
Montana, together with the right of ingress and egress for both vehicles and aircraft.
ARTICLE III
RIGHTS AND OBLIGATIONS OF LESSEE
Required Services. Lessee is hereby granted a leasehold in the above -described premises, and
Lessee agrees to engage in the business of subletting the available hangar space in the facility and
generally managing the hangar facility to provide the Lessor with a reasonable return on its
investment. Lessee shall provide to Lessor, copies of all leasehold agreements and submit any
changes or new leases to the Lessor at the time it submits its lease payments to the Lessor.
Lessee shall comply with all federal, state and local laws, rules and regulations which may apply
to the conduct of the business contemplated, including rules and regulations promulgated by
Lessor, and Lessee shall keep in effect and post in a prominent place all necessary and/or required
licenses or permits.
Lessee shall be responsible for the maintenance and repair of the Premises and shall keep and
maintain the Premises in good condition, order and repair, and shall surrender the same upon the
expiration of this Agreement, in the condition in which they are required to be kept, reasonable
wear and tear and damage by the elements not caused by Lessee's negligence excepted.
AIRPORT HANGAR LEASE - Page 1 of 7
ARTICLE IV
APPURTENANT PRIVILEGES
Use of Airport Facilities. Lessee shall be entitled, in common with others authorized, to the use
of all facilities and improvements of a public nature which now are or may hereafter be connected
with or appurtenant to the Airport, including the use of landing areas, runways, taxiways and
aircraft parking areas designated by Lessor.
ARTICLE V
PAYMENTS
A. Rent and Fees. In consideration of the rights and privileges granted by this Agreement, Lessee
agrees to pay to Lessor during the term of this Agreement the sum equal to fifty percent of all
rents due and owing but not less than $500.00 per month.
B. Payments. The rental payment specified above shall be paid no later than the 15`h day of each
month, the first payment, being prorated from the date of sale, being paid on the 15`h day of April,
2006.
C. Delinquency Charge. A delinquency charge of 5% per month shall be added to payments
required which are rendered more than ten (10) days delinquent.
D. Place of Payment. All payments due Lessor from Lessee shall be delivered to the City of
Kalispell at P.O. Box 1997, Kalispell, MT 59903-1997.
ARTICLE VI
UTILITIES
Lessee shall have the right to use the utility service facilities located on the Premises at
the commencement of the term of this Agreement. In the event Lessee fails to pay any utility
bills when due, Lessor may, at its option, pay the same and collect from Lessee the amounts so
disbursed, plus interest at the rate of 1% per month or fraction thereof.
ARTICLE VII
INSURANCE
A. Required Insurance. Lessee shall obtain and maintain continuously in effect at all times
during the term of this Agreement, at Lessee's sole expense, Aviation General Liability coverage
in the minimum amount of $1,000,000.00.
B. Notice. Lessor agrees to notify Lessee in writing as soon as practicable of any claim, demand
or action arising out of an occurrence covered hereunder of which Lessor has knowledge, and to
cooperate with Lessee in the investigation and defense thereof.
ARTICLE VIII
INDEMNIFICATION
To the extent not covered by insurance carried in favor of Lessor, Lessee shall keep and
hold harmless Lessor from and against any and all claims, demands, suits, judgments, costs and
expenses asserted by any person or persons, including agents or employees of Lessor or Lessee,
by reason of death or injury to persons or loss or damage to property, resulting from Lessee's
operations; or anything done or omitted by Lessee, under this Agreement except to the extent that
such claims, demands, suits, judgments, costs and expenses may be attributed to the acts or
omissions of Lessor or its agents or employees.
AIRPORT HANGAR LEASE - Page 2 of 7
ARTICLE IX
LESSEE AS INDEPENDENT CONTRACTOR
In conducting its business hereunder, Lessee acts as an independent contractor and not as
an agent of Lessor. The selection, retention, assignment, direction and payment of Lessee's
employees shall be the sole responsibility of Lessee, and Lessor shall not attempt to exercise any
control over the daily performance of duties by Lessee's employees.
ARTICLE X
ASSIGNMENT
This agreement, or any part thereof, may not be assigned, transferred or subleased by
Lessee, by process or operation of law or in any other manner whatsoever, without the prior
written consent of Lessor, which consent shall not be withheld unreasonably.
ARTICLE XI
NON-DISCRIMINATION
Notwithstanding any other or inconsistent provision of this Agreement, during the
performance of this Agreement, Lessee, for itself, its heirs, personal representatives, successors in
interest and assigns, as part of the consideration for this Agreement, does hereby covenant and
agree, as a covenant running with the land, that:
A. No person on the grounds of race, color, religion, sex, or national origin shall be
excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination
in; the use of the Premises.
B. In the construction of any improvement on, over or under the Premises, and the
furnishing of services therein or thereon, no person on the grounds of race, color, religion, sex or
national origin shall be excluded from participation in, denied the benefit of, or otherwise be
subjected to discrimination;
C. Lessee shall use the Premises in compliance with all other requirements imposed by
pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A,
Office of the Secretary, Part 21, Nondiscrimination in Federally Assisted Programs of the
Department of Transportation -Effectuation of Title VI of the Civil Rights Act of 1964, and as
said regulations may be amended.
D. In the event of breach of any of the above non-discrimination covenants, Lessor shall
have the right to terminate this Agreement and to reenter and repossess the Premises and hold the
same as if said Agreement had never been made or issued. This provision does not become
effective until the procedures of 49 CFR Part 21 have been followed and completed, including
expiration of appeal rights.
ARTICLE XII
REQUIREMENTS OF THE UNITED STATES
This Agreement shall be subject and subordinate to the provisions of any existing or
future agreement between Lessor and the United States, or any agency thereof, relative to the
operation or maintenance of the Airport, the execution of which has been or may be required as a
condition precedent to the expenditure of federal funds for the development or operation of the
Airport provided, however, that Lessor shall, to the extent permitted by law, use its best efforts to
cause any such agreements to include provisions protecting and preserving the rights of Lessee in
and to the Premises, and to compensation for the taking thereof, interference therewith and
AIRPORT HANGAR LEASE - Page 3 of 7
damage thereto, caused by such agreement or by actions of Lessor or the United States pursuant
thereto.
ARTICLE XIII
DEFAULT AND TERMINATION
A. Termination by Lessee. This Agreement shall be subject to termination by Lessee in the event
of anyone or more of the following events:
1. The abandonment of the Airport as an airport or airfield for any type, class or category
of aircraft.
2. The default by Lessor in the performance of any of the terms, covenants or conditions
of this Agreement, and the failure of Lessor to remedy, or undertake to remedy, to Lessee's
satisfaction, such default for a period of thirty (30) days after receipt of notice from Lessee to
remedy the same.
3. Damage to or destruction of all or a material part of the Premises or Airport facilities
necessary to the operation of Lessee's business.
4. The lawful assumption by the United States, or any authorized agency thereof, of the
operation, control or use of the Airport, or any substantial part or parts thereof, in such a manner
as to restrict substantially Lessee from conducting business operations for a period in excess of
ninety (90) days.
B. Termination by Lessor. This Agreement shall be subject to termination by Lessor in the event
of anyone or more of the following events:
1. The default by Lessee in the performance of any of the terms, covenants or conditions
of this Agreement, and the failure of Lessee to remedy, or undertake to remedy, to Lessor's
satisfaction, such default for a period of thirty (30) days after receipt of notice from Lessor to
remedy the same.
2. Lessee files a voluntary petition in bankruptcy, including a reorganization plan, makes
a general or other assignment for the benefit of creditors, is adjudicated as bankrupt or if a
receiver is appointed for the property or affairs of Lessee and such receivership is not vacated
within thirty (30) days after the appointment of such receiver.
C. Exercise. Exercise of the rights of termination set forth in Paragraphs A and B, above, shall be
by notice to the other party within thirty (30) days following the event giving rise to the
termination.
D. Removal of Property. Upon termination of this Agreement for any reason, Lessee, at its sole
expense, shall remove from the Premises all signs, trade fixtures, furnishings, personal property
equipment and materials which Lessee was permitted to install or maintain under the rights
granted herein. If Lessee shall fail to do so within thirty (30) days, then Lessor may effect such
removal or restoration at Lessee's expense, and Lessee agrees to pay Lessor such expense
promptly upon receipt of a proper invoice therefore.
E. Causes of Breach; Waiver.
1. Neither party shall be held to be in breach of this Agreement because of any failure to
perform any of its obligations hereunder if said failure is due to any cause for which it is not
responsible and over which it has no control; provided, however, that the foregoing provision
AIRPORT HANGAR LEASE - Page 4 of 7
shall not apply to failures by Lessee to pay fees, rents or over charges to Lessor.
2. The waiver of any breach, violation or default in or with respect to the performance or
observance of the covenants and conditions contained herein shall not be taken to constitute a
waiver of any such subsequent breach, violation or default in or with respect to the same or any
other covenant or condition hereof.
ARTICLE XIV
ARBITRATION
Except as provided in Paragraph I of Article V of this Agreement, all claims or disputes
arising out of or relating to this Agreement shall be settled by arbitration in accordance with the
Commercial Arbitration Rules of the American Arbitration Association then obtaining. Notice of
the demand for arbitration shall be filed in writing with the other party to the Agreement and with
the American Arbitration Association and shall be made within a reasonable time after the claim
or dispute has arisen. The award rendered by the arbitrators shall be final, and judgment may be
entered upon it in accordance with applicable law in any court having jurisdiction thereof.
Except by written consent of the person or entity sought to be joined, no arbitration
arising out of or relating to the Agreement shall include, by consolidation, joinder or in any other
manner, any person or entity not a party to the Agreement, unless it is shown at the time the
demand for arbitration is filed that (1) such person or entity is substantially involved in a common
question of fact or law; (2) the presence of such person or entity is required if complete relief is
to be accorded in the arbitration; and (3) the interest or responsibility of such person or entity in
the matter is not insubstantial.
The agreement of the parties to arbitrate claims and disputes shall be specifically
enforceable under the prevailing arbitration law.
Pending final decision of the arbitrator or arbitrators, the parties shall proceed diligently
with the performance of their obligations under this Agreement.
ARTICLE XV
MISCELLANEOUS PROVISIONS
A. Entire Agreement. This Agreement constitutes the entire understanding between the parties,
and as of its effective date supersedes all prior or independent agreements between the parties
covering the subject matter hereof. Any change of modification hereof must be in writing signed
by both parties.
B. Severability. If a provision hereof shall be finally declared void or illegal by any court or
administrative agency having jurisdiction, the entire Agreement shall not be void, but the
remaining provisions shall continue in effect as nearly as possible in accordance with the original
intent of the parties.
C. Notice. Any notice given by one party to the other in connection with this Agreement shall be
in writing and shall be sent by registered mail, return receipt requested, with postage and
registration fees prepaid:
1. If to Lessor, addressed to:
City Manager
P.O. Box 1997
Kalispell, MT 59903-1977
AIRPORT HANGAR LEASE - Page 5 of 7
2. If to Lessee, addressed to:
Jay Billmayer
Z�i\ (lore— occ'—>k
Kalispell, MT 59901
Notices shall be deemed to have been received on the date of receipt as shown on the
return receipt.
D. Headings. The headings used in this Agreement are intended for convenience of reference
only and do not define or limit the scope or meaning of any provision of this Agreement.
E. Governing Law. This Agreement is to be construed in accordance with the laws of the State
of Montana.
F. Subsequent Lease Documents. The Lessee will provide the City of Kalispell Airport Manager
a photocopy of each negotiated lease for each separate unit as the leases are signed.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and
year first above written.
LESSOR:
/CITY OF KALISPELL
� r�
Ja es H. Patrick, City Manager
LESSEE:
yJaB;iflmayer
AIRPORT HANGAR LEASE - Page 6 of 7
STATE OF MONTANA )
) ss.
County of Flathead )
On this:' L day of , 2006, before me, a Notary Public for the State of
Montana, personally appeared James H. Patrick, City Manager of the City of Kalispell and
proved to me to be the person whose name is subscribed to the within instrument, and
acknowledged to me that he executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
day and year hereinabove first written.
e`d'ttttta►����
0TAR14
., SEAL
STATE OF MONTANA )
) ss.
County of Flathead )
a�,�
NOTARY PUBLIC State of Montana
Residing at: ,_(-\ _
My Commission expires:
On this —�ay of '0gXcjr-,, 2006, before me, a Notary Public for the State of
Montana, personally appeared Jay Billmayer, proved to me to be the person whose name is
subscribed to the within instrument, and acknowledged to me that he executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
day and year hereinabove first written.
NOTARY PUBLIC State of Montana
Residing at: l�s t\�
My Commission expir s
AIRPORT HANGAR LEASE - Page 2 of 7