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AIRPORT HANGAR RENTAL AGREEMENT
This airport hangar rental agreement ("Agreement") is made and entered into this lst day of
February, 2017 ("Effective Date") by and between the City of Redlands, a municipal corporation
("City"), and Jim Fabian (c/o Oak Creek Inn) and Richard Suhay ("Tenants") City and Tenants are
sometimes individually referred to herein as a "Party" and,together, as the "Parties "
1 PREMISES City hereby rents to Tenants, and Tenants hereby rents from City, that certain hangar
designated as Hangar No 19 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 foi the principal purpose of the construction and storage of Tenants' aircraft which is
identified as a 2005 Rotor Way Exec 162F, for personal 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 Monthlv Rental Pavments Tenants 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 of demand, the sum of
seven hundred ($700) A late fee shall be levied in the amount of ten percent (10%) of the amount
due foi any amount not received by the date such rent is due Upon providing Tenants 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 Mannei of Pavment of Rent Monthly rent for any partial month shall be prorated at the rate
of 1/30th of the monthly rent per day The monthly rent and any applicable late charges payable by
Tenants hereundei shall be pard by Tenants without notice, demand or offset at the office of the
Airport Manage► at the Airport, or at such othei place as imay from time to time be designated by
City
3 3 Taxes and Assessments
3 3 1 Obliaation to Pav Tenants are responsible foi 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 othei charges of every description, levied on of assessed against the Premises,
personal property located on the land or improvements, the leasehold estate, of 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 Tenants
shall make all such payments directly to the assessing authority, before delinquency and before
any fine, interest of penalty shall become due or be imposed by operation of law fol 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 tern
of this Agreement and a part of which is included in a period of tune before the Effective Date or
after the termination of this Agreement, shall be pard by Tenants as above but shall be prorated
with City
3 3 3 Tenants' Right to Contest Tenants may contest the legal validity oz amount of any
taxes, assessments or charges for which Tenants are responsible under this Agreement, and may
institute such proceedings as Tenants considers necessary If Tenants contest any such tax,
assessment or charge, Tenants may withhold or defer payment, or pay under protest, but shall
protect City and the Premises from any lien by adequate surety bond or othee appropriate
security
3 3 4 Proof of Compliance Upon the request of City, Tenants shall furnish to City receipts or
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 Tenants principally for the
storage of aircraft and related business or other aviation uses There must be at least one airworthy
aircraft to each hangar or a project aircraft that will be airworthy within a timeframe agreed up by the
parties No other commercial activity of any kind whatsoever shall be conducted by Tenants in or
around the Premises Tenants of hangars without airworthy aircraft or that exceed the timeframe
agreed upon for completion of a project are subject to lease cancellation and eviction
Tenants shall not use the Premises for sleeping or temporary living quarters Tenants 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, Tenants 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 tear and improvements made by Tenants excepted
Tenants shall be liable far any and all damage to the Premises caused by Tenants' use, including,
without limitation, bent or broken interior walls, damage to unsealed floors due to fuel oil spillage, or
doors damaged due to Tenants' improper or negligent operation
4 2 Compliance with Laws In utilizing the Premises during the term of this Agreement, Tenants
shall comply with all applicable statutes, ordinances, rules and regulations established by any federal,
state,county or local government agency
4 3 Waste Drsoosal Tenants 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 Tenants 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
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reason Tenants shall cooperate with City to provide for the proper separation of waste to maximize
recycling
44 Hazardous Materials
(a) For the purpose of this Section 4 4, the teen "Hazardous Materials" includes, without
limitation, any flammable explosives, radioactive materials, hazardous materials, hazardous
wastes, hazardous or toxic substances, of 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 1 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 of public health of safety now in
effect of enacted after the Effective Date
(b) (a) Any Hazardous Materials brought upon, kept or used in of about the Premises or
the Airport by the Tenants, their agents, employees, contractors or invitees, shall be
necessary or useful to Tenants' 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 Tenants 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, of if Hazardous Materials are otherwise discharged or released from the
Premises, then Tenants shall indemnify, defend and hold City harmless from and against any
and all claims, judgments, damages, penalties, fines, costs, liabilities and losses (includmg,
without limitation, diminution in value of the Airport, damages for the loss or restriction on
use of rentable or usable space of 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 of after the term of this
Agreement as a result of such breach, contamination, discharge of release This
indemnification of City by Tenants includes, without limitation, costs incurred in connection
with any investigation of site conditions or any cleanup, remedial, removal of restoration
work required by any federal, state or local governmental agency or political subdivision
because of Hazardous Materials present in, on o► 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, under of
from the Premises of Hazardous Materials, Tenants shall promptly take all actions at its sole
expense as are necessary to return the Airport to the condition existing prioi to the
introduction of any such Hazardous Matet ials to the Airport or to otherwise remove and/oi
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
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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
Upon the termination of this Agreement, Tenants 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 Signs Tenants shall not construct, install, maintain, nor allow upon the
Premises any billboards, signs, banners of like displays which may be placed in of upon any building
or structure in such manner as to be visible from the outside thereof, except with the prior wi itten
consent of City
4 6 Waste Nuisance Tenants shall not use the Premises in any manner that will constitute waste,
nuisance or unreasonable annoyance to owners or occupants of adjacent properties Tenants shall not
use the Premises for sleeping, washing clothes, cooking of the preparation of food, manufacture or
mixing of anything that might emit any odor of objectionable noises of lights onto adjacent
properties Tenants shall not do anything on the Premises that will cause damage to the Premises
4 7 Access Locks Kevs Combinations Tenants shall comply with all reasonable regulations
and directives of City regarding access to the Premises City may entei the Premises without
permission of, or supervision by, Tenants for inspection of emergency purposes (i e lure, burglary,
flooding, criminal activity, or other catastrophe) determined reasonably necessary by City or required
by law, including but not limited to five-yeas fire sprinkler inspections, maintenance work that
requires entrance by City, of any other reason to lawfully enter the Premises City shall subsequently
notify Tenants of any entry for emergency purposes and the reason fol the entry if the Tenants were
unable to supervise such entry City reserves the right to limit Tenants' access to the Airport of the
Premises, or both, due to any terrorist threat, civil unrest, any unsafe condition, of for the safety and
protection of persons and property City shall not be responsible for Tenants' inability to access the
Airport or the Premises due to events or acts beyond the control of City Tenants shall utilize City
furnished set of locks for securing the Premises if available If unavailable, Tenants shall furnish
City's Airport Manager with a duplicate set of keys of lock combination fol the locks securing the
Premises City shall secure keys and lock combinations from access or exposure by unauthorized
individuals and will notify Tenants immediately in the event of any compromise of keys and lock
combinations If utilizing City provided locks, the Tenants shall notify the City immediately in the
event of any compromise of keys and lock combinations The City shall only be liable to Tenants fol
damage resulting from gross negligence in accessing Premises
4 8 Reauests from Airport Manager Tenants shall cooperate with any reasonable request from
City's Ali-port Manager regarding use or operations at the Airport
5 MAINTENANCE, ALTERATIONS
5 1 As-Is Condition Tenants hereby acknowledges that neither City nor anyone acting for or on
behalf of City, has made any representation, warranty or promise to Tenants 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 of hazardous substances of 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
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by Tenant, and that Tenants shall rent the Premises on Tenants' own examination thereof, AND
THAT TENANTS ARE 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 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 Tenants may deem necessary Tenants hereby expressly
assumes the risk that adverse physical conditions and the full extent thereof, may not be revealed by
Tenants' inspections, reviews and studies of the Premises
5 2 Maintenance of Premises Throughout the term of this Agreement, Tenants shall, at Tenants'
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 Tenants hereby waives the provisions of California Civil Code Sections 1941 and 1942
with respect to City's obligations for tenantability of the Premises and Tenants' right to make repairs
5 3 Alterations Tenants 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, howevei, 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 tennination of the Agreement shall be effected by notice given in
or concurrently with notice of such termination or within sixty (60) days after such termination
Tenants shall comply with the notice before the expiration date far normal termination, and within
thirty(3 0)days after the notice for other terminations
5 4 Utilities Except for electrical services which shall be provided by City, Tenants 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 of actions beyond
its control
6 PROHIBITION AGAINST ASSIGNMENT AND SUBLETING Tenants shall not assign of
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 of binding An attempted assignment
of 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 Tenants " A "more than
25% change in ownership of Tenants" shall mean, if Tenants are a corporation, the transfer of more
than 25% of the voting stock of Tenants, or if Tenants are a general partnership, the transfer of the
right to share in more than 25% of the profits of such partnership, or, if Tenants are 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 Tenants In addition, the
parking of aircraft not owned or under exclusively lease by Tenants in the Premises shall constitute a
sublease for purpose of this Article
7 INDEMNITY
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Premises, including, without limitation, any amounts required to be paid to any lessee of 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
Agreement shall release Tenants from any liability of 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 undei this Agreement shall be in wi iting
Delivery of such written notice shall be conclusively taken and sufficiently given after deposit in the
United States Mail,addressed as follows
City Airport Managei
Tenants
City of Redlands
35 Cajon Street, Suite 222(Physical Address) Jim Fabian (c/o Oak Creek Inn)
P O Box 3005 (Mailing Address) 550 S State College Blvd
Redlands, CA 92373 Fullerton, CA 92831
Richard Suhay
329 East South Avenue
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, Tenants 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 Tenants replaces such aircraft with a replacement aircraft during the term of
this Agreement, Tenants shall provide City with a revised Certificate of Insurance for such
replacement aircraft within ten (10) days of the same If any endorsements of 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 eithei renewal or replacement of the
coverage by either the Tenants or their Brokei acting as then Agent
The City maintains the right to modify these insurance requirements as approved by City Council
throughout the duration of this agreement, by providing Tenants 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 I Joint and Several Obhaations If Tenants consists of more than one person, the obligation of
all such persons is joint and several
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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 for
performance automatically shall be extended by the period the party 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 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 TENANTS
NAME OF COMPANY/PERSON
_ /_ Bull
Chris Boatman, Director Jim ian(c/o Oak Creek Inn)
ATTEST NAME OF COMPANY/PERSON
CQ'L4/-� "ell at.�
J e Donaldson, City Clerk Richard Suhay
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1625 1641 Hangar Lease
Exhibit A
1
a 2!59AOsgtt 1 633 to Hangar l9 $ Hangar25 a
1-5 2,21 J.04s q f 1 2.214 A0 x qH
Pi"t'a
18.20' Leung.
�. Han9ar7 19.19'
a 1,196.00sgft 35.27' 36 27'
18.20'
�i
18.18' I: Hangarl3
Han9ar7n ry 1,109.00sgh a Hangar 20 Hangar 26 m
1,910,40s9n 1,738.0054H 1.776.0c"Ir1
19.20' m
Hingis 18.19'
.28'
1,1e8.01,198.00.0 $ 3628' 36,26'
18.24'
m
18,19' n; Hanger 15 ,
n 5,100.P6agH a Hangar 21 Hangar27
Hangar3 h; 1,737AOxgH 1,T7e.Q8sgH
1,97eA0zgn 18.2D' m r a
Hangar9 18.19'
1'188.00s4H ry o
40,28' 1.820• 38.27' .. 36.27'
18.19' Hangar 15 �9'
N 1,f89.00zgft y
Hmg.r22 Hangar 2a
Hangar 1.737A0agH 1,739.00sgH '?
1,929AOsgtt 1820' hr Th'u mop was pradurad h,-Cry al n.A.—
o Gecars ON bk—bh,9yst
Hangarl0 1$:18' Th
cey In.artws ar.,rps mw wa rant'°r
a 1,168.00sgtt M� �ilxc�pens,hxlry lar Ma Nla,a,ann�rAnuN.a
1820' G Th data e—dm aen.r.[.uh,map a dynurx
7627' 38.27' u s_mer.mtd ne Nlorrramn shown rw+r
4028 i rmayrmlb the meat nxr.nt_
18.19' Hangar l5 N
m ry 1,1e9.0Q art
Hangar23 � Hangar 29 � WE
Hangars 1820' g °<! 1,737,00.gf 1,738,00agtt
v 1,929,00sgft {°� 18.19' S
s" Hangar 11 F
sd 1,188A0agH ry Scale
7820' 36.27'
_402$ 6
1$.19' a En Han9ar 17
1,139.00agn `;(�eL�CZ71Cf5
O
Hangar 24
18.20' rod Hangar 1 r 1,717.OgH
r<
1HagaIQ
Hangars 599.44sgtt 772.40sgtt
Hn9ar 12 . '
1,92eA0gH 1.q'r 1,1e7.0
h' ---
H - s AOn'7YttrWore:x"
m
16.2T 36.27June 23,2017
4028' 18.19' 36.38' ----
-"— -- M1446HangwLease.mxd