Strand Aviation to KAA/Hangar Site A-12ASSIGNMENT OF HANGAR LEASE
By a lease dated the 1 st day of December, 2016 (the "Lease") the City of Kalispell, the Assignor, as
Landlord leased to Strand Aviation, Inc., tenant, for a term (the "Term") of one year, commencing
on the 23Td day of October 1, 2016, certain premises (the 'Premises") located at the Kalispell City
Airport, in Kalispell, Montana, and as further described as:
Improvements located on Hangar Site No. A-12, 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
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 KALISPELL
By: `?'T
Dougusse rty Manager
STATE OF MONTANA )
ss.
County of Flathead )
On this . Wlday 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.
~
AIMEE BRUNCKHORST
j 45aurcxyo
oTA& 9s
NOTARY PUBLIC for the
*; *
State of Montana
Residing at Lakeside, Montana
N: LSEAL...
My Commission Expires
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December 4, 2020
NO ARY PUBLIC State of Montana
Printed Name:
Residing at:
My Commission expires:
HANGAR SITE LEASE
THIS Lease, made and entered into this day of E3Yrer, 2016, by and between the
City of Kalispell, a municipal corporation, hereafter referred to as CITY, and Strand Aviation,
Inc., P.O. Box 987, Bremerton, WA, 98337, hereafter referred to as TENANT:
WITNESSETH:
WHEREAS, the CITY operates the Kalispell City Airport, and
WHEREAS, it is necessary for the CITY to collect a fair rent for the use of the airport property
and to generate revenues to support the maintenance and operations of the airport,
and
WHEREAS, the CITY is in the process of master planning the South Kalispell corridor and
determining the best use of the airport properties therein as well as determine the
operating model to be used to manage the property as a sustainable airport, and
WHEREAS, it is therefore in the best interest of the parties to, at this time, enter into a month
to month lease.
NOW, THEREFORE IT IS AGREED BETWEEN THE PARTIES HERETO AS FOLLOWS:
1. The City does hereby agree to lease to TENANT, and TENANT hires from City, those
certain premises located at the Kalispell City Airport, Kalispell, Montana, which are
specifically described as A-12, the description of which is attached to this Lease and by
this reference incorporated herein.
2. The term of this Lease shall be month to month, commencing on the 23rd day of
October, 2016. Either party may terminate said lease, for any reason, upon giving 30
days' notice to the other in writing. Additional time may be granted as may be reasonable
to the tenant to make the necessary accommodation to remove personal property from the
premises.
3. TENANT agrees to pay to the CITY for the use and benefit of the CITY the sum of $
0.215 (twenty one and one half cents) per square foot per year for the building area,
which for purposes of this provision shall be one hundred and fifty percent (150%) of the
actual square footage occupied by the hangar, [i.e. 1.5 X (60' X 80') = 7,200 square feet]
for the equivalent annual sum of $1,548.19, herein authorized, payable as follows:
Upon the commencement date, TENANT shall pay the pro-rata monthly portion of the
annual rent $129.00 due on the 231 day of each month but no later than the first day of
the next month, i.e. rent is payable in advance.
Strand Hangar Lease A-12 Page 1 of 7
In the event that this month to month lease continues for more than 12 months, the lease
payments shall increase 3% annually, from the previous year's payment.
The City Manager or his designee will be responsible for the collection of lease payments
and any collection charges for existing hangar and ground leases.
4. TENANT shall have the right, upon the termination of this Lease, unless a lease for a
further term is negotiated, to remove the hangar structure, but shall do so within 90 days
and shall leave the premises in a restored condition, except that any paving shall be left.
If TENANT does not remove said building within such allotted time, it shall then
become the property of CITY without further action on the part of the CITY.
TENANT shall use said property for the storage of light aircraft and other lawful
purposes necessarily incidental thereto and for no other purpose.
6. TENANT shall have the right and privilege of sale, assignment or transfer of this Lease
for the purpose defined in 15, hereof, upon written notice to the CITY stating the name
and address of the proposed buyer, assignee, or transferee.
a. If the CITY shall determine that said proposed buyer, assignee, or transferee is
objectionable, any such reasonable objection shall be stated in writing to the
TENANT within twenty (20) days after said notice.
b. The CITY shall not unreasonably withhold consent to sell, assign, or transfer this
Lease, but reserves the right to adjust the annual rental payments following
assignment.
C. After sale or assignment by TENANT of its interest here, TENANT shall be
relieved from liability for rental payments accruing thereon, and the buyer,
assignee, or transferee shall thereafter be liable.
d. Transferee under this paragraph shall only acquire the balance of the term of the
lease and shall be subject to all terms and conditions of this lease, including the
obligation to provide CITY with proof of insurance coverage as required by' 7.
7. TENANT shall hold harmless and indemnify the CITY from any and all liability claims
of any kind or nature, whatsoever, arising out of the erection or expansion of the building
upon the premises contemplated, herein, or the use of said premises by TENANT or
TENANT's invitees or licensees.
a. As evidence of TENANT's covenant herein, TENANT at TENANT expense
shall keep in force, during the term of this Lease, insurance, issued by an
insurance company, licensed to do business in Montana, protecting the CITY
against all liabilities, judgments, costs, damages and expenses which may accrue
Strand Hangar Lease A-12 Page 2 of 7
against, be charged to, or recovered from the CITY, by reason of damage to
property of, injury to or death of any person or persons on account of any matter
or thing which may .occur on the demised premises.
b. Policy or policies in the amount of Seven Hundred and Fifty Thousand Dollars
($750,000.00) with respect to any one person, and One Million and Five Hundred
Thousand Dollars ($1,500,000.00) with respect to any one occurrence shall be
held. Said insurance policy shall name the CITY, its officers, employees and
agents as additional named insureds, and shall not be canceled or materially
changed without at least thirty (30) days prior notice to the CITY, and shall be
subject to approval as to coverage by the CITY.
C. Proof of insurance coverage required by this Lease shall be provided by
TENANT to CITY at the time of execution of this agreement. CITY reserves
the right at any time during the primary lease term or any extension thereof, to
require TENANT to provide to CITY proof of continued insurance coverage.
d. Policy limits are subject to change in accordance with §2-9-108, MCA,
"Limitations on Governmental Liability for Damages in Tort." TENANT shall
file certificates of said insurance with the CITY, and said insurance shall be in
full force and effect, throughout the term of this Lease.
Failure or refusal by the TENANT to obtain or maintain said insurance as
required hereunder shall constitute a material breach of this Lease and, in such
event, CITY, in its sole discretion, may terminate this Lease without liability to
TENANT hereunder, or elect to obtain like coverage and the cost for such
coverage shall be paid by TENANT.
8. TENANT shall be responsible for acquiring whatever insurance TENANT deems
necessary to safeguard TENANT'S interest in the TENANT's building, herein
authorized, and personal property stored in said building, and TENANT expressly
covenants and agrees to assert no claim against CITY as a result of the loss or damage to
the building or personal property belonging to TENANT or anyone else resulting from
the action of any third party.
a. TENANT herein covenants and agrees to take whatever steps TENANT sees fit
to take in protecting TENANT'S property and persons from loss or damage as a
result of vandalism, malicious mischief, theft or kindred losses, and agrees to
assert no such claim against the CITY incident thereto.
b. All losses suffered by TENANT resulting from criminal activity or others shall be
reported to the police. The CITY assumes no responsibility for such losses.
9. In the event that soils or other material are found on the leased site that are "Hazardous or
Deleterious Substances" as defined by the Montana Comprehensive Environmental
Strand Hangar Lease A-12 Page 3 of 7
Cleanup and Responsibility Act, §75-10-701 et seq. MCA ("CECRA"), "Hazardous
Substances" as defined by the Comprehensive Environmental Response, Compensation
and Liability Act, 42 USC §9600, et seq. ("CERCLA"), "Hazardous Waste" as defined
by the Montana Hazardous Waste and Underground Storage Tank Act, §75-10-401 et
seq., MCA or the Solid Waste Disposal Act, as amended by the Resource Conservation
Recovery Act, 42 USC §6901 et seq., or which require special remediation or disposal or
disposal pursuant to any other applicable law, TENANT shall excavate, handle and
dispose of such soils or other material only in compliance with such statutes and
regulations.
a. In the event TENANT leaves any of the above described materials on the
property, the CITY may, at its option, have wastes properly disposed of and
assess the costs of removal, storage, transport and disposal to TENANT.
b. All Hazardous Materials must be appropriately labeled and stored.
In the event Hazardous Materials are spilled upon the property, it is the
responsibility of TENANT to have the spill cleaned up according to State and
Federal laws and regulations. In the event that drains or floor sumps are
contaminated, it will be the responsibility of TENANT to clean up those systems.
d. TENANT is aware that there are significant penalties for improperly disposing of
wastes or submitting false information, including the possibility of fine and
imprisonment for knowing violations. TENANT must comply with all state,
federal and local laws pertaining to the handling and storage of hazardous
materials.
10. No construction or installation of any underground fuel storage tank dispensing system
shall be allowed upon the premises.
11. Any utility services required by TENANT's building or for its use shall be obtained by
TENANT at TENANT's expense.
12. TENANT agrees that the building will be maintained in good order, repair and safe
condition and in compliance with the law. TENANT shall make any and all additions to,
or alterations or repairs in and about the land and/or improvements which may be
required and, in doing so, TENANT shall observe and comply with all existing or future
public laws, ordinances and regulations applicable to the land or public airport land upon
which the leased premises are located.
TENANT shall maintain an area of ten (10) feet from the exterior walls of the hangar or
of the median point between hangars if there is less than twenty (20) feet between
hangars, free from brush and weeds. If TENANT fails to keep and maintain the leased
premises and improvements as required hereunder, CITY may in its discretion following
Strand Hangar Lease A-12 Page 4 of 7
written notice undertake to do or have done such and any expenses incurred by CITY
shall be paid by TENANT.
TENANT shall not store personal property, equipment of any kind, or vehicles, outside
of the hangar.
13. 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.
14. TENANT shall comply with all State and Federal laws and regulations and with the
Operating Regulations of the City of Kalispell. CITY shall have the right, through its
agents or employees, for reasonable ingress and egress to inspect premises to ascertain
that the terms of this Lease are being adhered to.
15. Notices to CITY shall be sent by certified mail, postage prepaid to City Manager, City of
Kalispell, P.O. Box 1997, Kalispell, MT 59903-1997, and notices to TENANT shall be
sent by certified mail, postage prepaid to:
Dwayne Strand
PO Box 987
Bremerton, WA 98337
16. CITY reserves the right to further develop or improve, or not develop or improve, the
landing area of the airport as it sees fit, regardless of the desires or view of the TENANT,
and without interference or hindrance.
17. This Lease shall be subordinate to the provisions and requirements of any existing or
future Lease between the CITY and the United States, relative to the development,
operation or maintenance of the airport.
18. TENANT agrees to comply with the notification and review requirements covered by
Part 77 of the Federal Aviation Regulations in the event any future structure or building
is planned for the leased premises, or In the event of any planned modification or
alteration of any present or future building or structure situated on the leased premises.
19. It is mutually agreed and understood that if TENANT should fail to make the monthly
lease payments as described above, or fail to perform any condition or covenant or
condition of this Lease or fail to maintain the leased premises in a manner satisfactory to
the CITY, and such condition or conditions exist for more than thirty (30) days after
written notice is given to the TENANT, CITY may then terminate and end this Lease
and re-enter and retake possession of the premises. All buildings and improvements
placed on the premises shall thereupon revert to the CITY.
Strand Hangar Lease A-12 Page 5 of 7
20. It is mutually agreed that this Lease shall inure to the benefit of and be binding upon the
respective parties, their heirs, successors and assigns. It is further agreed that time is of
the essence of this Lease.
21. Any change or modification of this Lease, in order to be effective, must be in writing and
signed by the respective parties.
22. In the event either party to this Lease shall be required to bring an action against the other
party to enforce this Lease, or any portion thereof, the prevailing party shall be entitled to
reasonable attorney's fees and cost therefore in addition to any damages that might be
awarded.
23. Tenant will abide by all rules and regulations established by the City of Kalispell for the
City Airport.
IN WITNESS WHEREOF, said CITY has caused this Lease to be signed on its behalf by
the City Manager of said CITY and said TENANT has executed this Lease this [ day of
Qrl-obe�, 2016.
CITY OF KALISPELL
t�
By:
Dou Ru ell, City Manager
STRAND AVIATION INC. - TENANT
By: 4!t==— .' x"IL
Myron Strand, President,
by his attorney in fact, Dwayne Strand
Strand Hangar Lease A-12 Page 6 of 7
STATE OF MONTANA
ss
County of Flathead
On this I day of __a ) 1--)L?-.K , 2016, before me, a Notary Public in and for
the State of Montana, personally appeared Doug Russell, known to me to be the person whose
name is subscribed to the foregoing instrument, and acknowledged to me that he executed the
same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal,
the day and year first above written.
N AIMEE BRUNCKNORST`,� /a
° NOTARY PUBLIC for tty
fateof M°Man Notary Public, State of Montana
SEAL Rack" at Lakeside, Montana
' e My Commissim Expirm Printed
naive oa M December 4, 2016
SEAL Residing at
My Commission expires
STATE OF WASHINGTON
ss
County of Kitsap
On this / day of VLVV , 2016, before me, a Notary Public in and for
the State of Washington, personally appeared Dwayne Strand_proved to me to be the person
whose name is subscribed to the foregoing instrument and attorney in fact for Myron Strand,
President of Strand Aviation, Inc., a Montana corporation, and acknowledged to me that he
executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal,
the day and year first above written.
Name:
s►+ RfflWTEW L0
N"yr PkAhe, Sties at Wnhnow
my cvmdsow E*ws
N weffft r 1, 2M
SEAL
Notary Public, Sta&,df Wkli6gton
Printed ,Lt1 . !- ---"
Residing' - I at
Strand Hangar Lease A-12 Page 7 of 7
My Commission expires
Strand Hangar Lease A-12 Page 8 of 7