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Airport Lease AgreementAIRPORT 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- ated as provided herein. City shall have 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 without cause -for such termination upon approval of such termination by an affirmative vote of-75o 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 water and sewer facilities located on said property. It is further agreed between the City and the Associ- ation 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 discretion of the City be detrimental to those facilities and with re- 6. 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 ballfield, 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. i (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 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 v1980. ATTEST: Marjori Giermann, City Clerk i/ CITY OF KALISPELL, a municipal corporation, Norma E. Happ, Mayor i KALISPELL AIRPORT ASSOCIATION, INC. a corporation,. By Pres--' e�rtf '