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AIRPORT HANGAR RENTAL AGREEMENT
This airport hangar rental agreement ("Agreement") is made and entered into this I st day of Octobei,
2017 ("Effective Date") by and between the City of Redlands, a municipal corporation ("City"), and
Richard Suhay ("Tenant") City and Tenant are sometimes individually referred to herein as a "Party"
and,together, as the "Parties "
1 PREMISES City hereby rents to Tenant, and Tenant hereby rents from City, that certain hangar
designated as Hangar No 5 the "Premises"), located at the Redlands Municipal Airport ("Airport"),
and more particularly described in Exhibit "A" attached hereto This Agreement for rental of the
Premises is for the principal purpose of the storage of Tenant's aircraft which is identified as 1973,
Starduster TOO SA300, Registration No N3 ODD for commercial aviation related business, and any
incidental aviation related uses associated therewith
2 TERM The term of this Agreement shall be month-to-month commencing on the Effective Date,
and in no event shall exceed three (3) years
3 CONSIDERATION
3 1 Monthly Rental Payments Tenant shall pay to City on or before the 15th day of each month
during the term of this Agreement as monthly rent, without deduction, setoff or demand, the sum of
six hundred-fifty (5650) A late fee shall be levied in the amount of ten percent (10%) of the amount
due for any amount not received by the date such rent is due Upon providing Tenant thirty (30) days'
prior written notice of the same, the rent may be increased by the City, no less than every two (2)
years, by the percentage increase in the Consumer Price Index, all urban consumers, Los Angeles-
Riverside-Orange Counties, during the term of this Agreement, on the anniversary date of the
Effective Date of the Agreement
3 2 Manner of Payment of Rent Monthly rent for any partial month shall be prorated at the rate
of 1130th of the monthly rent pet day The monthly rent and any applicable late charges payable by
Tenant hereunder shall be paid by Tenant without notice, demand or offset at the office of the Airport
Manager at the Airport, or at such other place as may from time to time be designated by City
3 3 Taxes and Assessments
3 3 1 Obligation to Pav Tenant is responsible for and shall pay all real and personal property
taxes (including any tax levied on a possessory interest, as defined in California Revenue and
Taxation Code Section 107 or successor statute, if applicable), general and special assessments,
and other charges of every description, levied on or assessed against the Premises, personal
property located on the land or improvements, the leasehold estate, or any subleasehold estate,
falling due during the term of this Agreement It shall be conclusively presumed that any aircraft
stored at the Premises pursuant to this Agreement shall be considered "habitually situated"
therein as that term is defined in Revenue and Taxation Code section 5362 Tenant shall make all
such payments directly to the assessing authority, before delinquency and before any fine,
interest of penalty shall become due of be imposed by operation of law foi their nonpayment
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3 3 2 Proration for Partial Year Any imposition of taxes referred to in Section 3 3 1 above
relating to a fiscal period of a taxing authority, a part of which period is included within the term
of this Agreement and a part of which is included in a period of time before the Effective Date or
after the termination of this Agreement, shall be paid by Tenant as above but shall be prorated
with City
3 3 3 Tenant's Right to Contest Tenant may contest the legal validity or amount of any taxes,
assessments or charges for which Tenant is responsible under this Agreement, and may institute
such proceedings as Tenant considers necessary If Tenant contests any such tax, assessment or
charge, Tenant may withhold or defer payment, or pay under protest, but shall protect City and
the Premises from any lien by adequate surety bond or other appropi late security
3 3 4 Proof of Compliance Upon the request of City, Tenant shall furnish to City receipts of
other appropriate evidence establishing payment of any applicable tax, assessment or charge
Tenant may comply with this requirement by retaining a tax service to notify City payment of
any applicable tax, assessment or charge
4 USE OF PREMISES
4 1 Use of Hangar The Premises shall be used and occupied by Tenant principally for the storage
of aircraft and related business or other aviation uses There must be at least one airworthy aircraft in
each hangar No other commercial activity of any kind whatsoever shall be conducted by Tenant in
or around the Premises Tenants of hangars without airworthy aircraft are subject to lease
cancellation and eviction
Tenant shall not use the Premises for sleeping or temporary living quarters Tenant shall keep the
Premises clean and free of debris at all times and shall not do anything on the Premises that will
cause damage to the Premises or unreasonable annoyance to owners or occupants of adjacent
properties
Upon termination of this Agreement, Tenant shall immediately surrender possession of the Premises
and shall remove the Aircraft and all other property therefrom, leaving the Premises in the same
condition as when received, ordinary wear and teat and improvements made by Tenant excepted
Tenant shall be liable for any and all damage to the Premises caused by Tenant's use, including,
without limitation, bent or broken interior walls, damage to unsealed floors due to fuel oil spillage, or
doors damaged due to Tenant's improper or negligent operation
4 2 Compliance with Laws In utilizing the Premises during the term of this Agreement, Tenant
shall comply with all applicable statutes, ordinances, rules and regulations established by any federal,
state, county or local government agency
4 3 Waste Disposal Tenant shall dispose of all sewage and industrial waste in accordance with
all applicable regulations and laws of those governmental agencies having jurisdiction or authority
thereover Tenant shall ensure that all solid waste materials are placed in appropriate covered
containers designed for use with the type of waste involved, which shall remain covered, and locked,
and that such containers remain located on the Premises and not moved from their location for any
reason Tenant shall cooperate with City to provide foi the proper separation of waste to maximize
recycling
2
44 Hazardous Materials
(a) For the purpose of this Section 4 4, the term "Hazardous Materials" includes, without
limitation, any flammable explosives, radioactive materials, hazardous materials, hazardous
wastes, hazardous or toxic substances, or related materials defined in the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, as amended (42 U S C
§9601 et seq ), the Hazardous Materials Transportation Act, as amended (49 U S C § 180 I et
seq ),the Resource Conservation and Recovery Act of 1976, as amended (42 U S C §9601 et
seq ), Section 25117 of the California Health & Safety Code, Section 25316 of the California
Health & Safety Code, and in the regulations adopted and publications promulgated pursuant
to them, or any other federal, state or local environmental laws, ordinances, rules of
regulations concerning the environment, industrial hygiene or public health or safety now in
effect or enacted after the Effective Date
(b) (a) Any Hazardous Materials brought upon, kept of used in or about the Premises or
the Airport by Tenant, its agents, employees, contractors or invitees, shall be necessary or
useful to Tenant's business and shall be used, kept and stored in a manner that complies with
all laws, statutes, ordinances, rules, regulations, orders, requirements, and policies of any and
all governmental agencies and authorities applicable to any such Hazardous Materials
("Hazardous Materials Laws")
(c) If Tenant breaches the obligations stated in subparagraph (b) of this Section 4 4, or if
the presence of Hazardous Materials on the Premises results in contamination of the Premises
or the Airport, or if Hazardous Materials are otherwise discharged or released from the
Premises, then Tenant shall indemnify, defend and hold City harmless from and against any
and all claims, judgments, damages, penalties, fines, costs, liabilities and losses (including,
without limitation, diminution in value of the Airport, damages for the loss or restriction on
use of rentable or usable space or of any amenity of the Airport, damages arising from any
adverse impact on marketing of space in the Airport, and sums paid in settlement of claims,
attorneys' fees, consultant fees and expert fees) which arise during or after the term of this
Agreement as a result of such breach, contamination, discharge or release This
indemnification of City by Tenant includes, without limitation, costs incurred in connection
with any investigation of site conditions or any cleanup, remedial, removal or restoration
work required by any federal, state or local governmental agency or political subdivision
because of Hazardous Materials present in, on or under the Premises Without limiting the
foregoing, if the presence of any Hazardous Materials on the Premises results in any
contamination of the Airport, of otherwise results in the release or discharge on, undel or
from the Premises of Hazardous Materials, Tenant shall promptly take all actions at its sole
expense as are necessary to return the Airport to the condition existing pi for to the
introduction of any such Hazardous Materials to the Airport of to otherwise remove and/or
abate the release or discharged Hazardous Materials, provided that City's approval of such
actions shall first be obtained, which approval shall not be unreasonably withheld so long as
such actions would not potentially have any material adverse long-term or short-term effect
on the Airport, will not unreasonably interfere with the use and enjoyment of other portions
of the Airport, and will be performed in accordance with all Hazardous Materials Laws
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Upon the termination of this Agreement, Tenant shall surrender the Premises to City free of
any and all Hazardous Materials and in compliance with all Hazardous Materials Laws This
indemnification shall survive the termination or expiration of this Agreement
4 5 Billboards and Suns Tenant shall not construct, install, maintain, nor allow upon the
Premises any billboards, signs, banners or like displays which may be placed in or upon any building
or structure in such manner as to be visible from the outside thereof, except with the prior written
consent of City
4 6 Waste Nuisance Tenant shall not use the Premises in any manner that will constitute waste,
nuisance or unreasonable annoyance to owners or occupants of adjacent properties Tenant shall not
use the Premises for sleeping, washing clothes, cooking or the preparation of food, manufacture or
mixing of anything that might emit any odor or objectionable noises or lights onto adjacent
properties Tenant shall not do anything on the Premises that will cause damage to the Premises
4 7 Access Locks Kevs Combinations Tenant shall comply with all reasonable regulations and
directives of City regarding access to the Premises City may enter the Premises without permission
of, or supervision by, Tenant for inspection or emergency purposes (i e lire, burglary, flooding,
criminal activity, or other catastrophe) determined reasonably necessary by City or required by law,
including but not limited to five-year fire sprinkler inspections, maintenance work that requires
entrance by City, or any other reason to lawfully enter the Premises City shall subsequently notify
Tenant of any entry for emergency purposes and the reason for the entry if the Tenant was unable to
supervise such entry City reserves the right to limit Tenant's access to the Airport or the Premises, or
both, due to any terrorist threat, civil unrest, any unsafe condition, or for the safety and protection of
persons and property City shall not be responsible for Tenant's inability to access the Airport or the
Premises due to events or acts beyond the control of City Tenant shall utilize City furnished set of
locks for securing the Premises if available If unavailable, Tenant shall furnish City's Airport
Manager with a duplicate set of keys or lock combination for the locks securing the Premises City
shall secure keys and lock combinations from access or exposure by unauthorized individuals and
will notify Tenant immediately in the event of any compromise of keys and lock combinations If
utilizing City provided locks, the Tenant shall notify the City immediately in the event of any
compromise of keys and lock combinations The City shall only be liable to Tenant for damage
resulting from gross negligence in accessing Premises
4 8 Reauests from Airport Manaaer Tenant shall cooperate with any reasonable request from
City's Airport Manager regarding use or operations at the Airport
5 MAINTENANCE ALTERATIONS
5 1 As-Is Condition Tenant hereby acknowledges that neither City nor anyone acting for or on
behalf of City, has made any representation, warranty or promise to Tenant concerning the physical
aspects or condition of the Premises or improvements, the feasibility, desirability of convertibility of
the Premises into any particular use, the conditions of the soil, ground water, or surface waters or the
presence or absence of any toxic waste or hazardous substances or material, and that by entering into
this Agreement has not relied on any representation, statement or warranty of City, or anyone acting
for or on behalf of City, and that all matters concerning the Premises shall be independently verified
by Tenant, and that Tenant shall rent the Premises on Tenant's own examination thereof, AND
THAT TENANT IS LEASING THE PREMISES IN "AS IS" PHYSICAL CONDITION AND "AS
IS" STATE OF REPAIR Tenant hereby waives and City hereby disclaims all warranties of any or
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kind of description, including, without limitation, those of fitness for particular purpose,
tenantability, habitability and use Tenant hereby expressly waives any and all claims for damages or
for rescission or cancellation of the Agreement because of any representations made by City or by
any agent of City Tenant acknowledges that it has had sufficient time to conduct all inspections,
reviews and studies of the Premises that Tenant may deem necessary Tenant hereby expressly
assumes the risk that adverse physical conditions and the full extent thereof, may not be revealed by
Tenant's inspections, reviews and studies of the Premises
5 2 Maintenance of Premises Throughout the term of this Agreement, Tenant shall, at Tenant's
sole cost and expense, maintain the Premises in first class condition and repair, provided, however,
that City shall maintain the structural components of the hangar, including doors and door
mechanisms Tenant hereby waives the provisions of California Civil Code Sections 1941 and 1942
with respect to City's obligations for tenantability of the Premises and Tenant's right to make repairs
5 3 Alterations Tenant shall not make any alterations to the Premises without City's prior written
consent Any alterations made shall remain on and be surrendered at the expiration or sooner
termination of the Agreement, provided, however, that City may, at City's sole election, demand the
removal from the Premises of all fixtures and improvements or of certain fixtures or improvements or
both as specified in the notice provided for below A demand to take effect at the normal expiration
of the term shall be effected by notice given at least thirty (30) days before the expiration date A
demand to take effect on any other termination of the Agreement shall be effected by notice given in
or concurrently with notice of such termination of within sixty (60) days after such termination
Tenant shall comply with the notice before the expiration date for normal termination, and within
thirty(30) days after the notice for other terminations
5 4 Utilities Except for electrical services which shall be provided by City, Tenant shall be
responsible for the payment of all costs for utility services to the Premises City shall not be liable for
the failure to provide electrical services if it is prohibited from doing so by events or actions beyond
its control
6 PROHIBITION AGAINST ASSIGNMENT AND SUBLETING Tenant shall not assign or
transfer, whether voluntarily, involuntarily or by operation of law, its interest in this Agreement or
any part hereof No such assignment or transfer shall be valid or binding An attempted assignment
or transfer shall be grounds for City's termination of this Agreement As used in this Section 6, the
term "assignment" shall include a "more than 25% change in ownership of Tenant " A "more than
25% change in ownership of Tenant" shall mean, if Tenant is a corporation, the transfer of more than
25% of the voting stock of Tenant, or if Tenant is a general partnership, the transfer of the right to
share in more than 25% of the profits of such partnership, or, if Tenant is a limited partnership a
transfer of more than 25% of the voting rights of the general partner thereof to individuals or entities
which were not theretofore general partners of Tenant In addition, the parking of aircraft not owned
of under exclusively lease by Tenant in the Premises shall constitute a sublease for purpose of this
Article
7 INDEMNITY
7 1 Indemnitv Tenant shall indemnify, hold harmless and defend City, its elected officials,
officers and employees, from and against any and all actions, claims, damages, disabilities or
expenses including, without limitation, attorneys' fees (including fees for use of in-house counsel by
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a Party), witness costs and court costs that may be asserted by any person or entity, including Tenant,
at ising out of or in connection with any of the following circumstances
7 1 1 Use of Premises Use of the Premises of Airport in any manner by Tenant, its agents,
employees, invitees, subtenants, licenses and contractors, and the agents, employees, patrons,
contractors and invitees of Tenants and subtenants, including any use of the Premises or the
Airport not allowed under this Agreement
7 12 Breach by Tenant Any breach by Tenant of the terms, covenants or conditions herein
contained
7 1 3 Other Activities Any other activities of Tenant, its agents, employees and subtenants
whether or not there is concurrent negligence on the part of City, but excluding liability due to
the sole active negligence or sole willful misconduct of City This indemnification obligation is
not limited in any way by any limitation on the amount or type of damages or compensation
payable by or for Tenant or its agents under workers' compensation acts, disability benefit acts or
other employee benefit acts
8 TERMINATION AND EXPIRATION
8 1 Termination for Tenant's Default If Tenant fails to pay rent or any other sums to be paid by
Tenant hereunder, Tenant shall have thirty (30) days after written notice is given Tenant to cure the
default If any default by Tenant shall continue uncured following notice of default as required by
this Agreement, City shall have the right to immediately terminate this Agreement in addition to all
other rights and remedies provided by law or equity to which City may resort cumulatively of in the
alternative
8 2 Tenant's Dutv to Surrender At the expiration or earlier termination of the term of The
Agreement, Tenant shall surrender to City in as good condition and repair as of the Effective Date,
the possession of the Premises If Tenant fails to surrender the Premises at the expiration of sooner
termination of this Agreement, Tenant shall defend and indemnify City from all liability and expense
resulting from the delay or failure to surrender, including, without limitation, claims made by any
succeeding tenant or Tenant or resulting from Tenant's failure to surrender
8 3 Holding Over If Tenant shall continue to occupy or possess the Premises after the
termination of this Agreement without the consent of City, then unless City and Tenant have
otherwise agreed in wi iting, Tenant shall be a tenant on a month-to-month basis All the terms,
provision and conditions of this Agreement shall apply to this month-to-month tenancy except those
terms, provisions and conditions pertaining to the term, and except that the monthly rent shall be
immediately adjusted upward upon the expiration or termination of this Agreement to equal three
hundred percent (300%) of the monthly rent foi the Premises in effect under this Agreement during
the month which includes the day immediately prior to the date of the expiration or termination of
this Agreement This month-to-month tenancy may be terminated by City of Tenant upon thirty (30)
days' prior notice to the non-terminating Party In the event Tenant fails to surrendei the Premises
upon such termination or expiration, Tenant shall defend, indemnify and hold City harmless against
all loss, liability, cost or expense resulting from of arising out of Tenant's failure to surrender the
Premises, including, without limitation, any amounts required to be paid to any lessee or prospective
lessee who was to have occupied the Premises after said termination of expiration and any related
attorneys' fees and brokerage commissions Notwithstanding the foregoing, no termination of this
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Agreement shall release Tenant from any liability or obligation hereunder, whether of indemnity or
otherwise, resulting from any acts, omissions or events happening prior to the date of termination, or
date of surrender if it be later
9 NOTICES Any notice required or permitted to be given under this Agreement shall be in writing
Delivery of such written notice shall be conclusively taken and sufficiently given after deposit in the
United States Mail, addressed as follows
City Airport Manager Tenant
City of Redlands Richard Suhay
35 Cajon Street, Suite 222 (Physical Address) 329 East South Avenue
P O Box 3005 (Mailing Address) Redlands, CA 92373
Redlands, CA 92373
Any Party may at any time change its address for notice by giving written notice of such change to
the other Party in the manner provided in this paragraph
10 INSURANCE Upon the Effective Date of this Agreement, Tenant shall provide City with a
Certificate of Insurance that evidences $1 Million Dollars Combined Single Limit coverage and
recognizes the City as an Additional Insured on the policy, specific to the aircraft stored within the
Premises In the event Tenant replaces such aircraft with a replacement aircraft during the term of
this Agreement, Tenant shall provide City with a revised Certificate of Insurance for such
replacement aircraft within ten (10) days of the same If any endorsements or policy forms are cited
on the Certificate of Insurance, a copy of those cited documents must be included as part of the
submission
A new Certificate of Insurance shall be issued to the City upon either renewal or replacement of the
coverage by either the Tenant or theiE Broker acting as their Agent
The City maintains the right to modify these insurance requirements as approved by City Council
throughout the duration of this agreement, by providing Tenant notice within thirty (30) days of such
change, or upon renewal of the terms of the lease
I I SECURITY REOUIREMENTS Lessee shall take any and all measures to ensure security on the
Lease Premises in compliance with FAA regulations, Transportation Security Administration
regulations, and Airport Rules and Regulations, if any
12 MISCELLANEOUS PROVISIONS
12 1 Joint and Several Obligations If Tenant consists of more than one person, the obligation of
all such persons is joint and several
12 2 Captions The captions of this Agreement are for convenience and case of reference only
and do not define, limit, augment or describe the scope, content or intent of this Agreement
12 3 Successors Subject to the provisions of this Agreement on assignment and subletting, each
and all of the covenants and conditions of this Agreement shall be binding on and shall inure to the
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benefit of the heirs, successors, executors, administrators, assigns and personal representatives of the
respective Parties
12 4 Broker's Commissions Expenses Tenant and City mutually covenant that no brokers have
been or will be used with respect to this Agreement In the event any broker or finder perfects a claim
for a commission or finder's fee based upon any such contract, dealings or communications,the Party
through whom the broker or finder makes a successful claim shall be responsible fol said
commission or fee and all costs and any expenses (including reasonable attorneys' fees) incurred by
the other Party in defending against the same
12 5 Applicable Law and Forum This Agreement shall be construed and interpreted according to
California law and any action to enforce the terms of this Agreement or foi the breach thereof shall
be brought and tried in the County of San Bernardino
12 6 Covenants and Conditions All provisions of this Agreement whether covenants or
conditions, on the part of Tenant shall be deemed to be both covenants and conditions and such
covenants shall survive termination
12 7 Time of Essence Time is and shall be of the essence of this Agreement and of each and
every provision contained in this Agreement
12 S No Discrimination Tenant shall comply with all applicable federal, state and local laws,
rules and regulations relating to non-discrimination in employment and services because of race,
color, ancestry, national origin, religion, sex, marital status, age, medical condition and handicap
12 9 No Third Partv Beneficiaries Nothing contained in this Agreement shall be construed to
create and the parties do not intend to create any rights in third parties
12 10 Construction of Lease Severabilitv To the extent allowed by law, the terms, covenants,
conditions, provisions and Leases in this Agreement shall be construed and given effect in a manner
that avoids any violation of statute, regulation or law City and Tenant covenant and agree that in the
event any term, covenant, condition, provision or Lease in this Agreement is held to be invalid or
void by court of competent jurisdiction, the invalidity of any such term, covenant condition,
provision of Lease shall in no way affect any other term covenant, condition provision or Lease in
this Agreement
12 11 Relattonshin The Parties intend by this Agreement to establish the relationship of City and
Tenant only, and do not intend to create a partnership,point venture,Joint enterprise, or any business
relationship other than that of City and Tenant
12 12 Force Maicure Neither the City nor Tenant shall be deemed in violation of this Agreement
if it is prevented from performing any of the obligations hereunder by reason of embargoes,
shortages of material, acts of God, acts of the public enemy, acts of superior governmental authority,
weather conditions, floods, riots, rebellions, sabotage, or any other circumstances for which it is not
responsible or which are not within its control, and the time foi performance automatically shall be
extended by the period the patty is prevented from performing its obligations hereunder During time
of war or national emergency, Lessor shall have the right to lease the landing area or any part thereof
to the United States Government for military use, and if such lease is executed, the provisions of this
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Agreement insofar as they are inconsistent with the provisions of the lease to the United States
Government, shall be suspended
IN WITNESS WHEREOF, the parties to this Agreement have duly executed this Agreement on the
date set forth above
CITY OF REDLANDS TENANT
NAME OF COMPANY/PERSON
Chris Boatman, Director Richard Suhay t77�
ATTEST
Ce
J e Donaldson, City Clerk
9
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