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HomeMy WebLinkAboutContracts & Agreements_2-1975_CCv0001.pdf AIM-ET LEASE AgRE-E-M-ENT CITY: REDLANDS MUNICIPAL AIRPORT P.O. Box 280 Redlands, CA 92373 TE14ANT: AERO TECH ACADEMY John L. Howell 1745 Sessum Drive Redlandst CA 92374 DOCUMENT NO. : EFFECTIVE DATE: 19196 STANDARD LEASE REV. 9/86 TABLE OF CONTENTS PcCdr } ITitlk kA-G-!Fl 1 PARTIES 2 PROPERTY LEASED 3 TER14S 4 LEASE FEES 5 ATTORNEY FEES - COLLECTION AGENCY FEES 6 PURPOSE OF LEASE 7 SECURITY DEPOSIT 8 INSURANCE REQUIREMENTS 9 HOLD AP ALE 10 TAXESt ASSESSMENTS, AND LICENSES 11 IMPROVEMENT 12 MAINTENANCE OF PREMISES 13 ASSIGNMENT AND SUBLETTING 14 INSPECTION OF PROPERTY 15 BUILDING DAMAGE PROVISIONS 16 CONDUCT OF EMPLOYEES 17 ERECTION OF SIGNS 18 AIRPORT DEVELOPMENT 19 RIGHT OF FLIGHT 20 NONINTERFERENCE WITH AIRCRAFT 21 FEDERAL AVIATION ADMINISTRATION REQUIREMENTS 22 CONDEMNATION CLAUSE 23 DEFAULT AND RIGHT TO TERMINATE 24 HOLDING OVER 25 RELOCATION OF PREMISES 26 LICENSES AND CERTIFICATIONS 27 TIME OF ESSENCE 28 PROVISIONS ARE COVENANTS AND CONDITIONS 29 CONSENT 30 EXHIBITS 31 LAW 32 CAPTIONS, TABLE OF CONTENTS AND COVER PAGE 33 NOTICES 34 NO PARTNERSHIP OR JOINT VENTURE 35 BINDING ON SUCCESSORS 36 SPECIAL LEASE TEP14S 37 ENTIRE AGREEMENT SIGNATURES EXHIBITS: "A" Locator Map "B" F.A.A. Requirements CITY OF RED DS REDLANDS MUNICIPAL AIRPORT STANDARD AIRPORT LEASE 1. PARTIES. it is hereby agreed by the CITY OF REDLANDS, hereinafter referred to as CITY, and Aero Tech Academy, herein referred to as TENANT, as follows: 2. PROPERTY LEASED. CITY in consideration of covenants and conditions herein set forth, hereby leases to TENANT and TENANT leases from CITY, in the condition existing at the inception of this lease, the following described premises: 111,10 isRedlands- Mgn -- aglialk o by JDat --f Ajga— in t - g- jg-ipaj Air ort as shown on Exhibit "All . � -JohLb ,-y 3 . TERMS. This lease shall commence on the lst day of October, 1986, and shall continue thereafter for a period of F_iftge-a (15) full calendar months. 4. LEASE FEES. A. TENANT shall pay to CITY as basic rent for the area leasedr to include heating and lighting: 1. For the first aix (6) full calendar months of the term of this lease, basic rent shall be the sum of Ek-y-e-n hundred jifly 11751,00)_, payable in advance on the first day of each month in equal monthly installments of -011a hundred tZ=ty-five e Dolla 00 S- _ --r a ja25-. 2. For the remaining nji-e (9) full calendar months of the term of this lease, basic rent shall be the sum of -0-n-Q thouB-Andtveed jan _Q X -qk0 0 ng t _ d _ Uy DDJ1gLa 111,11 _, 1, payable inO advance on the first day of each month in equal monthly installments of Qn-e h-un-dx�e t' DollarsD-ollAx--q 111aD,--0-0-1- B. TENANT acknowledges that late payment by TENANT to CITY of basic rent will cause CITY to incur costs not contemplated by this lease, the exact amount of such costs being extremely difficult and impracticable to fix. Such costs include, without limitation, processing, accounting and interest charges . Therefore, if any installment of basic rent is not received by the tenth day after the due date, -1- TENANT shall pay to CITY an additional Ten and N01100 Dollars ($10.00) as an administrative processing charge. The parties agree that this late charge represents a fair and reasonable estimate of the costs that CITY will incur by reason of late payment by TENANT. Acceptance of any late charge shall not constitute a waiver of TENANT's default with respect to the overdue amount, or prevent CITY from exercising any of the other rights and remedies available to CITY. Basic rent and commercial charges and fees not paid when due shall bear simple interest from date due at the rate of one and one-half percent (1- 1/2%) per month. C. Tenant 's checks shall be made payable to City of Redlands and submitted to : City of Redlands - Redlands Municipal Airport, P.O. Box 280, Redlands,, CA 92373. The document number noted above is the account number for this lease and must be noted on the front of the TENANT's checks. 5 . ATTORNEY FEES - COLLECTION AGENCY FEES In the event suit is instituted to collect any delinquent lease fees and collection is placed with an attorney, the TENANT shall pay all attorney fees, including necessary court costs and costs for all appeals . if the delinquent lease fees are placed with a collection agency instead of an attorney, TENANT shall pay the additional collection agency fee according to the collection agency' s fee schedule. In the event suit is instituted for breach of any other terms and conditions of this lease, the TENANT shall pay all attorney fees, including necessary court costs and costs for all appeals. Referral to an attorney or collection agency will not be made until the TENANT has been notified in writing that in the event his delinquent lease fees or breach of any other terms and conditions of this lease is not taken care of to the satisfaction of the CITY within the ten (10) days from the date of the letter giving such notice, the matter will be subject to said referral. 6. PURPOSE OF LEASE This lease is limited to the purpose of aircraft rental , new and used aircraft sales, aircraft charter and Air Taxi service, sale of pilot supplies, ground school and flight instruction. 7 . SECURITY DEPOSIT. Requirement for a security deposit equal- to -three months basic rent is waived in recognition of TENANT' s dependable operation during prior years at the Redlands Municipal Airport. 8. INSURANCE REQUIREMENTS. As a condition precedent to the effectiveness of this lease and in partial performance of the TENANT's obligations hereunder,, TENANT, at his own expense,, shall deliver to the CITY for approval , certificates or policies of insurance on the approved City of Redlands Insurance Certificate form, as evidence that the following types and amounts of insurance are in effect during the entire term of this lease: A. AIRCRAFT (Owned,, leased and/or Operated by TENANT) . (1) Bodily Injury Liability: One Million dollars ($1,000,000.00) combined single limit. (2) Property Damage: Included in above® B. LEASED PREMISES. ( 1) Bodily Injury Liability : Three Hundred Thousand dollars ($300,000.00) combined single limit. (2) Property Damage: Included in above. C. FIRE INSURANCE: Adequate to cover full cash value of TENANT' s personal property, TENANT ' s improvements and betterments located on leased premises. D. Worker's ' Compensation Insurance: In the event the TENANT hires any employees, TENANT shall provide a suitable policy of insurance in accordance with the provision of the California Labor Code in relation to Worker's Compensation Insurance. E. Fire Legal Liability: Adequate to cover full cash value of CITY's improvements. F. TENANT shall be required to inform CITY in writing of any change, expiration or renewal of any insurance policy or policies within Thirty (30) days of effective date of change. Further, each policy shall provide that same shall not be cancelled until a thirty (30) days written notice of cancellation has been mailed to the City of Redlands - Redlands Municipal Airport,, P.O. Box 280 ,, Redlands, CA 92373. G. All insurance required shall be maintained in force at all times by TENANT. Failure to maintain said insurance, due to expiration, cancellation, etc. , shall be cause for the CITY to give notice to immediately suspend all TENANT' s business activities at the airport. Failure to reinstate said insurance within thirty (30) days shall be cause for termination and forfeiture of this lease. H. All policies with respect to insurance coverage above, except the Worker's Compensation Insurance coverage, shall contain additional endorsements naming the Redlands Municipal Airport and the City of Redlands and its employees, agents, officials and volunteers as additional named insured with respect to any and all liabilities arising out of this agreement. -3- 9. HOLD HARMLESS. TENANT shall indemnify, defend and hold harmless the CITY,, its officers, agents and employees from and against any and all claims, demands, or loss or liability of any kind or nature which the CITY, its officers, agents and employees, or any of them may sustain or incur or which may be imposed upon them or any of them, for injury to or death of persons or damage to property caused by or con- tributed to by any act or ommission of the TENANT, its of- ficers, agents or employees , in the use of the premises described in said lease, including the use of the Redlands Municipal Airport and its facilities. 10 . TAXES, ASSESSMENTS, AND LICENSES. TENANT shall pay before delinquency any and all property taxes, assessments, fees, or charges, including possessory interest taxes, which may be levied or assessed upon any personal property, im- provements or fixtures installed or belonging to TENANT and located within the leased premises. TENANT shall also pay all license or permit fees necessary or required by law for the conduct of its operation and/or in accordance with Sec- tion 107 of the California Revenue and Taxation Code. TENANT recognizes and understands that this lease may create a possessory interest subject to property taxation and that the TENANT may be subject to the payment of property taxation and that the TENANT may be subject to the payment of property taxes levied on such interest. 11. IMPROVEMENT. TENANT may improve or modify the leased premises, but said improvement or modification shall be done as approved in writing by the CITY and must be done in con- formity with all City, State, and Fire Regulations applicable to said improvement. The cost of said improvement shall be borne by the TENANT. The TENANT shall conduct any improve- ment program in such a manner that no mechanic ' s lien or materialmen's lien shall be assessed or asserted, or purpor- tedly assessed or asserted, against the premises or any improvements thereon. If any such lien or claimed lien shall be asserted, TENANT shall indemnify, defend and hold harmless CITY, in accordance with Paragraph 9 of this lease agreement. The parties hereto agree that any facility con- structed or installed by TENANT hereunder shall be considered to be real property. 12. MAINTENANCE OF PREMISES. A. TENANT' s Obligation. TENANT agrees to maintain the premises in a neat, clean and orderly condition, and not to allow the use of said premises for any unlawful purpose. Maintenance by TENANT includes the following: Interior of leased premises and fixtures within leased area, including doors and windows. -4- B. CITY'S Obligation. Maintain access to leased property, taxiways, runways, roads and provide for maintenance of utility lines to leased premises. 13 . ASSIGNMENT AND SUBLETTING. A. TENANT shall not voluntarily assign or encumber its interest in this lease or in the premises, or any options contained in this lease, or sublease all or any part of the premises , or allow any other person or entity ( except TENANT's authorized representatives) to occupy or use all or any part of the premises , without first obtaining CITY ' s consent. Any assignment, encumbrance, or sublease without CITY ' s consent shall be voidable and, at CI Y ' s election shall constitute a default. No consent to any assignment, encumbrance, or sublease shall constitute a further waiver of the provisions of this paragraph. (1) If TENANT is a partnership, any withdrawal or change, whether voluntary or involuntary, or by operation of law, of any partner, or the dissolution of the partnership, shall be deemed a voluntary assignment. (2) If TENANT consists of more than one person, any purported assignment, whether voluntary or involuntary, or by operation of law, from one person to any other shall be deemed a voluntary assignment. (3 ) If TENANT is a corporation , any dissolution , merger, consolidation, or other reorganization of TENANT, or the sale or other transfer of the controlling percentage of the capital stock of TENANT , or the sale of at least fifty-one percent (51%) of the value of the assets of TENANT, shall be deemed a voluntary assignment . The phrase "controlling percentage" means the ownership of, and the right to vote, stock possessing at least fifty-one percent (51%) of the total combined voting power of all classes of TEA 's capital stock issued, outstanding, and entitled to vote for the election of directors. This paragraph shall not apply to corporations the stock of which is traded through an exchange or over the counter. B. TENANT immediately and irrevocably assigns to CITY, as security for TENANT's obligations under this lease, all rent from any subletting of all or a part of the premises as permitted by this lease , and CITY , as assignee and as attorney-in-fact for TENANT , or a receiver for TENANT appointed on CITY's application, may collect such rent and apply it toward TENANT's obligation under this lease; except that, until the occurence of an act of default by TENANT, TENANT shall have the right to collect such rent. -5- C. If TENANT requests CITY to consent to a proposed assignment or subletting, TENANT shall pay to CITY, whether or not consent is ultimately given , CITY ' s reasonable attorneys ' fees incurred in connection with each such request. D. No interest of TENANT in this lease shall be assign able by operation of law (including, without limitation, the transfer of this lease by testacy or intestacy) . Each of the following acts shall be considered an involuntary assignment: (1) If TENANT is or becomes bankrupt or insolvent, makes an assignment for the benefit of creditors , or institutes a proceeding under the Bankruptcy Act in which TENANT is the bankrupt; or, if TENANT is a partnership or consists of more than one person or entity, if a partner of the partnership or other person or entity is or becomes bankrupt or insolvent, or makes an assignment for the benefit of creditors; (2) If a writ of attachment or execution is levied on this lease, (3) If, in any proceeding or action to which TENANT is a party, a receiver is appointed with authority to take possession of the premises. P. An involuntary assignment shall constitute a default by TENANT and CITY shall have the right to elect to terminate this lease, in which case this lease shall not be treated as an a set of TENANT, unless the involuntary assignment is cured as follows: (1) If a writ of attachment or execution is levied on this lease, TENANT shall have ten (10) days in which to cause the attachment or execution to be removed. (2) If any involuntary proceeding in bankruptcy is brought against TENANT, or if a receiver is appointed, TENANT shall have sixty (60) days in which to have the involuntary proceeding dismissed or the receiver removed. (3) Except as provided in (1) and (2) above, TENANT shall have no right to cure any involuntary assignment. 14 . INSPECTION OF PROPERTY. CITY, or a duly authorized representative of the CITY, reserves the right to enter upon the leased property at any reasonable time for the purpose of inspecting the leased property for conformance to lease provisions. -6- 15 . BUILDING DAMAGE PROVISIONS. During the term of this lease any damage to or destruction of buildings or structures erected on the leased parcel, caused by TENANT's occupancy, shall be repaired and restored to the original condition prior to said damage or destruction, at TENANT ' s sole ex- pense, provided said damage does not exceed forty percent (40%) of the building or structure involved. Structures damaged in excess of forty percent (40%) caused by TENANT's occupancy shall be removed or repaired at the descretion of the CITY. Any structure to be removed shall be removed completely, including foundation, and the area brought to natural grade and leveled at the sole expense of the TENANT. No structure shall remain in a damaged condition for a period greater than ninety (90) days after damage occurred. 16. CONDUCT OF EMPLOYEES. TENANT shall be responsible for the conduct of their employees on the entire airport property, provided the presence of the employee on the air- port is related to his/her status as employee of the TENANT. 17 . ERECTION OF SIGNS. TENANT may erect signs on the leased premises or the structures on the leased premises, but erection or application of said signs shall be allowed only with the written permission of the CITY, and in conformity with CITY codes and ordinances with regard to erection of signs. 18. AIRPORT DEVELOPMENT. CITY, at its sole discretion and as designated by the CITY, shall determine and may from time to time change the routes of surface ingress and egress connecting the leased premises , but agrees to locate such routes as conveniently as may be done for TENANT, having in mind the reasonable requirements of CITY with respect to the operation of the airport. CITY also reserves the right to further develop or improve the airport as it sees fit, re- J_ gardless of the desires or views of the TENANT and without interference or hindrance. 19. RIGHT OF FLIGHT. There is hereby reserved to the CITY, its successors and assigns,, for the use and benefit of the public a right of flight for the passage of aircraft in the airspace above the surface of the premises hereby leased, together with the right to cause in said airspace such noise as may be inherent in the operation of aircraft, now known or hereafter used for navigation of or flight in the air, using said airspace for normal aircraft operations. 20 . NONINTERFERENCE WITH AIRCRAFT. TENANT by accepting this lease agreement expressly agrees for itself, its successors and assigns that it will not make use of the leased premises in any manner which might interfere with the landing and/or taking off of aircraft from Redlands Municipal Airport or otherwise constitute a hazard. In the event the aforesaid covenant is breached, the CITY reserves the right to enter upon the premises hereby leased and cause the abatement of such interference at the expense of the TENANT. -7- 21. FEDERAL AVIATION ADMINISTRATION REQUIREMENTS. TENANT agrees to conform to all applicable Federal, State and City Rules and Regulations and to further conform to lease pro- visions of the Federal Aviation Administration as shown on Exhibit "B" , attached hereto and made a part hereof. 22. CONDEMNATION CLAUSE. This lease shall be subordinate to the provisions and requirements of all existing or future agreements between the CITY and the United States relative to the development, operation or maintenance of the airport. If said premises or any part thereof are taken under the power of eminent domain, this lease shall terminate as to the part so taken as of the date the condemning authority takes possession thereof. In such event the rent shall be reduced in the proportion that the floor area taken bears to the total floor area prior to the taking . If more than twenty percent (20%) of the floor area of said premises or more than fifty percent (50%) of the area leased hereunder but not occupied by any building is taken by condemnation, only then may TENANT, at TENANT ' s option, terminate this lease as of the date of condemning authority taking posses- sion of said condemned portion by giving written notice of termination to CITY within ten (1 0) days after the condemning authority takes possession. If TENANT does not terminate this lease as hereinabove immediately provided, then the rent payable shall be reduced as set forth above. Any compensa- tion awarded as damages for the taking of said premises of the appurtenances thereto together with any severance damage shall be the sole property of the CITY, except to the extent that any award is made for trade fixtures or equipment of TENANT which are not part of said real property and except to the extent that TENANT may be paid for moving costs. Fair compensation will be given on TENANT's improvements. 23 . DEFAULT AND RIGHT TO TERMINATE. A. If there should be any default in payment by TENANT of the rental and/or percentage compensations provided herein, CITY may give TENANT written notice to pay within ten (10) days all sums due, owing and unpaid, and if such payment is then not made by TENANT within said ten (10) day period, this lease and the TENANT ' s rights hereunder shall at the option of the CITY forthwith be terminated and forfeited. B. If TENANT should fail to perform, keep or observe any of the terms , conditions or covenants as set forth in this lease, other than payments of rental and percentages as provided hereinabove, CITY may give written notice to correct such condition or cure such default; if such condition or default should continue for thirty (30) days after written notice of default, CITY may at its option elect to terminate this lease . Such election to terminate shall not be construed as a waiver of any claim the CITY may have against TENANT, consistent with such termination. -8- If, however, any default is of such nature that it cannot be physically remedied within thirty (30) days, and if TENANT shall have commenced the elimination of such default promptly after the receipt of such notice, and shall continuously and diligently proceed in good faith to eliminate such default, then the period for correction shall be extended for such length of time as is reasonably necessary to complete such correction. C. Upon any termination of this lease, TENANT covenants and agrees to surrender and to forfeit this lease, and deliver up the leased premises and property peaceably to the CITY immediately upon any such termination. If said tenant shall remain in possession of said leased premises ten (10) days after any termination of this lease, said TENANT shall be deemed guilty of an unlawful detention of the premises and shall be subject to eviction and removal , forcibly or otherwise, at any time thereafter, with or without process of law. In the event of the failure of TENANT to remove personal property, machinery or fixtures belonging to him from the leased premises within ten (10) days after any termination of this lease, CITY may remove such personal property and place the same in storage at the expense of TENANT and without liability to CITY for loss thereof. TENANT agrees to pay CITY on demand all expenses incurred in such removal, including court costs and attorney's fees and storage charges; or CITY may at its option and without notice sell all or any part of said personal property at public or private sale for such prices as CITY may obtain, and apply the proceeds of such sale upon any amounts due under this lease from TENANT and to any expense incidental to the removal and sale of said personal property, with the surplus, if any, being refunded to TENANT. D. The receipt by the CITY of any rent or of any other sum of money paid by TENANT after the termination and forfeiture of this lease for any reason, or after the giving by CITY of any notice to effect such termination, shall not reinstate, continue or extend the term of this lease, or destroy, or in any manner impair the efficacy of any such notice of termination as may have been given hereunder by CITY to the TENANT prior to the receipt of any such sum of money or other consideration, unless so agreed to in writing and signed by CITY. Neither acceptance of the keys nor any other act of the CITY or its agents or employees during the term of this lease shall be deemed to be an acceptance or a surrender of said leased premises, excepting an agreement in writing signed by the CITY agreeing to accept such surrender. -9- 24. HOLDING OVER. If the TENANT continues in possession of the leased property after the expiration of the term or after any termination of 'this lease prior to the expiration of the term, and if said occupancy is with the consent of the CITY, then TENANT shall be deemed to be holding the leased property on a month-to-month tenancy subject to all the provisions of this lease, and the monthly rent payable during such period of holding over shall be the same as the monthly rental most recently payable prior to the date such holding over was commenced. 25 . RELOCATION OF PREMISES. After TENANT ' s execution of this lease, CITY shall have the right, upon giving TENANT thirty (30) days notice in writing, to provide and furnish TENANT with space elsewhere in the building of approximately the same size as the premises, and to move and place TENANT in such new space at CITY's expense. In the event CITY moves TENANT to said new space then this lease and each and all of the terms and covenants and conditions thereof shall there- upon remain in full force and effect and be deemed applicable to such new space. Should TENANT refuse to permit CITY to move TE14ANT to such new space at the end of said thirty (3 0) day period, CITY shall have the right to cancel and terminate the within lease effective sixty (60) days after the date of the original notification by CITY. 26. LICENSES AND CERTIFICATIONS. TENANT agrees that he will acquire and maintain those FAA certifications and licenses required for carrying out the purpose of this lease. Failure to comply with this provision will constitute a default and right to terminate by CITY under Section 23 (b) of this lease. 27 . TIME OF ESSENCE . Time is of the essence of each provision of this lease which specifies a time within which performance is to occur . In the absence of any specified time for performance, performance may be made within a reasonable time. 28 . PROVISIONS ARE COVENANTS AND CONDITIONS. All pro- visions, whether covenants or conditions , on the part of either party shall be deemed to be both covenants and condi- tions. 29. CONSENT. Whenever consent or approval of either party is required, that party shall not unreasonably withhold such consent or approval. 30 . EXHIBITS. All exhibits referred to are attached to this lease and incorporated by reference. 31. LAW. This lease shall be construed and interpreted in accordance with the laws of the State of California. _10- 32 . CAPTIONS, TABLE OF CONTENTS AND COVER PAGE. The paragraph captions, table of contents and the cover page of this lease shall have no effect on its interpretation. 33. NOTICES. Any notice, demand, request, consent, approval, or communication that either party desires or is required to give to the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail . Any notice, demand, request, consent, approval, or communication that either party desires or is required to give to the other party shall be addressed to the other party at the address set forth below. Either party may change its address by notifying the other party of the change of address. Notice shall be deemed communicated two (2) CITY working days from the time of mailing if mailed as provided in this paragraph. CITY's address: City of Redlands Redlands Municipal Airport P.O. Box 280 Redlands, CA 92373 TENANT's address: AERO TECH ACADEMY John L. Hovell 1745 Sessum Drive Redlands, CA 92374 34. NO PARTNERSHIP OR JOINT VENTURE. It is expressly understood that by entering into this Lease, Lessor does not, in any way nor for any purpose, become a partner of Lessee or a joint venturer with Lessee. 35 . BINDING ON SUCCESSORS. This lease shall inure to the benefit of and be binding upon the successors and assigns of Lessor and upon the heirs, successors, administrators, execu tors and/or assigns of Lessee, and all of the provisions hereof shall be deemed covenants running with the leased premises. 36. SPECIAL LEASE TERMS. A. In addition to the rights and obligations set forth in Paragraph 23 above, DEFAULT AND RIGHT TO TERMINATE, TENANT understands and agrees that if TENANT is forty-five (45) days in arrears of monthly rent or other fee at any point in time or, in the course of any twelve consecutive months, is in arrears of monthly rent or other fee three (3) times, TENANT shall be in breach of this lease. Further, TENANT under- stands and agrees that, (i) if TENANT is in default for any _11- reason, other than failure to pay monthly rent or other fee, for forty-five (45 ) days after notice of such default, or (ii) if TENANT, in the course of any twelve (12) consecutive months, is given notice(s) of default three (3) times, TENANT shall be in breach of this lease. In the event of any such breach of this lease by TENANT, the CITY may terminate this lease and TENANT ' s and any lender ' s rights hereunder by giving thirty (30) days notice of termination. A breach of this lease as defined by this subpart may not be cured by TENANT or lender. Any failure on CITY's part to enforce its rights under this subpart shall not constitute a waiver of the right to terminate for future breaches of this subpart. B. CONTINUOUS BUSINESS. The TENANT covenants and agrees that, continuously and uninterruptedly, he will oper- ate and conduct within the premises those business activities noted in Paragraph 6 of this document, during normal business hours, except while premises are untenantable by reason of fire or other casualty, or unless Prevented from doing so by Act of God, governmental authority, or other matters beyond TENANT's control. Normal business hours are defined as 8:00 a.m. to 5 :00 p.m. , seven days per week to include holidays. Any changes in business hours or closures during holidays will be coordinated with, and approved in writing by, the Airport Manager. C. LICENSES AND CERTIFICATION. The TENANT will neither conduct any business activity nor offer any services without first obtaining, and maintaining in a current status at all times, any and all licensing and/or certification as may be required by applicable Federalr State, or local authorities. D. UNICOM OPERATION. Tenant shall operate the City- furnished UNICOM in accordance with paragraph 5 , br (8) , (f) , of the airport lease between the City of Redlands and Redlands Aviation Corporation, dated December 12, 1978 . Hours of operation shall coincide with the business hours identified in paragraph 34, B, above. 37 . ENTIRE AGREEMENT. This lease contains the entire agreement between the parties . All prior negotiations or stipulations concerning the subject matter of this Lease, and which preceded or accompanied the execution of this Lease are collectively and inclusively deemed to be superseded hereby; provided, however, that this Lease may in the future be altered by written agreement of the parties. -12- In WITNESS WHEREOFr the parties executed this agreement. TENANT: CITY 0� REDLANDS + AERO TECH ACADEMY By Mayor _ Jahn L. Hovell ATTEST: By...=� LORRIE POYZER Date City Clerk By Date October 7, 1986 APPROVED AS TO LEGAL FORM: By l Date r�: CITY OF REDLANDS i REDS-"PS.--MUM CC IPP.�tRFORI-=- %BE3Y Li f ExHiarr "A" LEASE PROVISIONS REQUIRED BY THE FEDERAL AVIATION ADMINISTRATION 1. The Lessee, for himself, his heirs, personal representatives, successors in interest, and assigns , as a part of the con- sideration hereof, does hereby covenant and agree "as a covenant running with the land" that in the event facilities are constructed, maintained, or otherwise operated on the said property described in this lease, for a purpose for which a DOT program or activity is extended or for another purpose involving the provision of similar services or benefits, the lessee shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, DOT, 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. 2 . The Lessee, or himself, his personal representative, succes- sors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree "as a,, covenant running with the land" that: (1) no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities, (2) that in the construction of any improvements on, over, or under such land and the furnishing of services thereon, no person on the grounds of, race, color, or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subject to discrimination, (3) that the Lessee shall use the premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Depart- ment 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 Regulation may be amended. 3 . That in the event of breach of any of the above nondiscrimi- nation covenants, Lessor shall have the right to terminate the lease, and to reenter and repossess said land and the faci- lities thereon, and hold the same as if said lease, had never been made or issued. This provision does not become effective until the procedures of 49 CFR Part 21 are allowed and com- pleted including expiration of appeal rights. 4 . Lessee shall furnish its accommodations and/or services on a fair, equal and not unjustly discriminatory basis to all users thereof and it shall charge fair, reasonable and not unjustly discriminatory prices for each unit or service; PROVIDED THAT the Lessee may be allowed to make reasonable and nondiscrimi- natory discounts , rebates or other similar type of price reductions to volume purchasers. Page 1 of 3 Exi-ijarr 5 . Non-compliance with Provision 4 above shall constitute a material breach thereof and in the event of such non-compli- ance and Lessor shall have the right to terminate this lease agreement, and the estate hereby created without liability therefore or at the election of the Lessor or the United States either or both said Governments shall have the right to judicially enforce Provisions. 6 . Lessee agrees that it shall insert the above five Provisions in any lease agreement, by which said Lessee grants a right or privilege to any person, firm or corporation to render accom- modations and/or services to the public on the premises herein leased. 7 . The Lessee assures that it will undertake an affirmative action program as required by 14 CFR Part 152, Subpart E, to insure that no person shall on the grounds of race, creed, color, national origin, or sex be excluded from participating in any employment activities covered in 14 CFR Part 152 , Subpart E. The Lessee assures that no person shall be ex- cluded on these grounds from participating in or receiving the services or benefits of any program or activity covered by this subpart. The Lessee assures that it will require that its covered suborganizations . provide assurances to the Lessor, that they similarly will undertake affirmative action programs and that they will require assurances from their suborgani- zations, as required by 14 CFR Part 152 , Subpart Er to the same effect. 8 . The Lessor reserves the right, but shall not be obligated to the Lessee to maintain and keep in repair the landing area of the airport and all publicly-owned facilities of the airport, together with the right to direct and control all activities of the Lessee in this regard. 9 . This lease shall be subordinate to the provisions and re- quirements of any existing or future agreement between the Lessor and the United States, relative to the development, operation or maintenance of the airport. 10 . Lessee agrees to comply with the notification and review requirements covered in Part 77 of the Federal Aviation Regulations in the event of future construction of a 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. 11 . It is understood and agreed that nothing herein contained shall be construed to grant or authorize the granting of an exclusive right within the meaning of Section 308 of the Federal Aviation Act. Page 2 of 3 12 . There is hereby reserved to the Lessor , its successors and assigns, for the use and benefit of the public, a right of flight for the passage of aircraft in the airspace above the surface of the premises herein leased. This public right of flight shall include the right to cause in said airspace any noise inherent in the operation of any aircraft used for navigation or flight through the said airspace of landing at, taking off from or operation on Redlands Municipal Airport. 13 . The Lessee, by accepting this lease expressly agrees for itself, its successors and assigns that it will -not erect nor permit the erection of any structure or object nor permit the growth of any tree on the land leased hereunder above the mean sea level elevation of 1572 feet , except where expressly authorized to do so by Lessor . In the event the aforesaid covenants are breached, the Lessor reserves the right to enter upon the land leased, hereunder and to remove the offending structure or object and cut the offending tree, all of which shall be at the expense of the lessee. 14 . The Lessee, by accepting this lease, agrees for itself, its successors and assigns that it will not make use of the leased premises in any manner which might interfere with the landing and taking off of aircraft from Redlands Municipal Airport or otherwise constitute a hazard . In the event the aforesaid covenant is breached, the Lessor reserves the right to enter upon the premises hereby leased, and cause the abatement of such interference at the expense of the Lessee. 15 . This lease, and all the provisions thereof shall be subject to whatever right the United States Government now has or in the future may have or acquire, affecting the control, operation, regulation and taking over of said airport or the exclusive or non-exclusive use of the airport by the United States during the time of war or national emergency. Page 3 of 3 . .E REDLANDS AVIATION CORP . - CITY MASTER LEASE AGREE[IENT F . B . O . REDLANDS MUNICIPAL AIRPORT + Y AIRPORT LEASE REDLANDS MUNICIPAL AIRPORT REDLANDS , CALIFORNIA This indenture made and entered into between the City of Redlands , a municipal corporation, the Lessorhereinafter referred to as "City" , and Redlands Aviation Corp . , hereinafter referred to as the "Lessee" . WITNESSETH : 1 . Property Leased : That for and in consideration of the rents , covenants , agree- ments , and conditions herein set out to be faithfully paid, kept , and performed by Lessee , City hereby leases and lets to said Lessee certain portions of the Airport known as Redlands Municipal Airport shown on the map , which is attached to this airport lease as Exhibit "A" and incorporated as a part hereof. The portions leased are designated as Parcel #11 Parcel # 2 , and Parcel #3 . Legal descriptions of Parcels #1 , #2 , and #3 are contained in Exhibit "A- l" , attached hereto and incorporated as a part hereof. a. Exclusions from Above Leased Area The following areas shall be excluded from this lease : (1) Space for public parking for automobiles west side of Hangar #1 , including the site of Airport True Light . This space includes 12 , 464 sq. ft . of improved, land. Said area is shown on Exhibit "A" as Excluded Area #1 . (2) Commuter aircraft public loading area northwest of Public Parking Lot, consisting of 10 , 000 sq . ft . of improved. lands , shown on Exhibit "A" as Excluded Area # 21 . b. Easements . See Exhibit A- I for Legal Descriptions . (1) Lessee agrees to grant City , without cost , an 80 ' wide taxiway easement located generally west of the commuter aircraft public loading area and extending north to the existing active taxiway . Said easement , entitled Easement tl on Exhibit "A" , shall be used by commuter aircraft in entering and departing the commuter loading area . (2) Lessee further 9 agrees to rant to City, without cost , t, a 101 wide pedestrian easement extending from the Public Automobile I Parking Lot , to the Public Lobby. Said pedestrian easement entitled Easement #2 on Exhibit "All shall be used as pedestrian access from Public Auto Parking to the Public Lobby . - 2- (3) Lessee further agrees to grant to City, without cost , a 301 wide easement extending from Sessums Drive to the taxiway area. Said easement being the most easterly 30 ' of Parcel #2 . Said easement is for the use of vehicular and pedestrian use and designated as Eastement #3 on Exhibit "A" . Lessee further agrees to construct and maintain all improvements on said Easement 113 . C. Additional Leased Areas Upon the construction by the City of a separate Airport Terminal Building, the, Commuter Aircraft Public Loading Area, and Public Parking Area for automobiles , Excluded Areas listed in a, (1) and (2) above (less Airport True Light site) will be available to Lessee for Lease . When the Excluded Areas have been vacated by Lessor (City) and offered for lease in writing to Lessee , Lessee shall lease said Excluded Areas , within 30 days after receipt of such offer in accordance with the terms and conditions of this lease , and for the rent per square foot as follows : (1) Excluded Area IT' I on Exhibit "A" . . . 12 ,464 sq . ft . @ $0 . 03I.4 sq. ft. /yr. (2) Excluded Area # 2 on Exhibit "A" 10 ,000 sq. ft . @ $0 . 03I.4 sq. ft. /yr . NOTE : Above rates may be changed as required by the zl� provisions of paragraph 6 , c , herein (Adjustments of Lease Payments) . d. Term of Lease (1) TO HAVE. AND TO HOLD , Parcel # 1 and Parcel #3 of the demised premises including the use of all public runways , taxiways , and ramps in common with others , for the term of twenty years commencing on the 1st day of January , 1979 , and ending on the 31st day of December , 1998 unless sooner terminated as hereinafter provided, and subject to the conditions and covenants herein. (2) TO HAVE AND TO HOLD , Parcel 2 of the demised, premises , -including the use of all public runways , taxiways and ramps in common with others , for a term of twenty years commencing on the 1st day of January, 19179 , and ending on the 31st day of December, 1998 unless ter- minated by a six months advance written notice by the City to the. Lessee , - S- and subject to the conditions and covenants herein. e. Renewal Option Lessee shall have three successive options for extending this lease for periods of ten (10) additional. years each, for 1999- 2003 , 2009- 2013 , and 2019- 2023 respectively, as regards the leasing of Parcels I'll and #Y3. Until the City exercises its right to terminate the lease of Parcel #2 , this parcel , (# 2) will be included in the exercise of the renewal option by the Lessee . 2 . Non-Exclusive Rights Granted The use herein granted is for a fixed base operation by the Lessee and includes the following non-exclusive rights to the Operator . a. Sales of new and used aircraft , aircraft parts , retail and wholesale, radio and electronic equipment , navigational and airman supplies and accessories . b. Flight operations , including demonstrations of aircraft for sale , charter (with or without pilot) , and flight training (primary and advanced) . C. Maintenance, repair and overhaul of all types of aircraft , engines , instruments , radio and electronics gear. d. Line service , including fueling, lubrication and other servicing of any aircraft including military into-plane contracts and airline for those carriers which desire such services , a right to load and unload passengers and cargo and to transport passengers from transient aircraft parking areas to the terminal and other areas of the airport. e. Sales of automotive fuel , lubricants and accessories to ramp vehicles such as tugs , tractors , motorized ramps , baggage handling equipment , ground power units , space heaters , etc . ; a right to make repairs on ground service equipment . f. Motel- , restaurant, cocktail lounge , and related retail sales , excluding vending machines . Prior to approval of a cocktail lounge , a separate fee schedule will be negotiated by the Operator with City, on sale of alcoholic beverages . g . Towing disabled aircraft . h. Financing and insuring aircraft . -4- i. Loading and unloading aircraft in any lawful activity. j . Service Charges - - a right to assess reasonable charges and fees to customers for all these services . k. Fueling aircraft of Operator, Operator ' s customers and transients and to provide into-plane fueling to airlines and military which desire such services . 1 . Construction and rental of aircraft hangars and aircraft tie-down facilities and such buildings , to house activities authorized in paragraph 2a, b , c , h , herein. M. All advertising signs erected on the property will comply with City of Redlands Sign Ordinance , and must have City approval , in writing , prior to erection . n. Activities other than those specifically stated in para- graphs a through m, paragraph 2 , herein, will not be conducted or serviced by the Lessee without written advance approval by the City. 3 . Rights Not Granted The right to conduct the following activities , which are normally conducted in an airport terminal building is not granted to the Lessee : a. Vending machines of any kind. b . Passenger flight insurance . C. "U" Drive authmobile service . d. Taxicab service . e. Public automobile parking for which a charge is made . (Fixed Base Operator Customer Parking is not considered Public Parking) . f. Ticket counter space for any passenger travel by aircraft , except for aircraft charter service . g. Travel agency operations , including sale of tours by aircraft . h. Commuter airline operation, including scheduled air trans- portation of freight and mail , 4 . Federal Aviation Administration Regulations Agreed To It is mutually understood and agreed by the Lessee and City that the City of Redlands , in accepting Federal Aid for the development of the Redlands Municipal Airport , agreed in writing to FAA Regulations concerning any agreements , contracts , lease-,, , or other privileges given in connection with the Airport . 'These FAA Regulations are attached as Exhibit "B" and incorporated as a part hereof. The Lessee has no responsibility for the fulfillment of Sections 6a, 6b , 6c, 7 , 8 , 9 , 10 , 11 , 13 , 14 or IS of Exhibit 1113" . In addition to the FAA Regulations which the City agreed to in, Exhibit "B" , the City reserves for itself, the following rights : Aeronautical Uses a. The right to further develop or improve the landing area of the airport as may be found necessary in the City' s sole discretion, regardless of the desires or view of the Lessee and without interference or hindrance. b . The right , but not being obligated to the Lessee , to maintain and keep in repair the landing area of the airport and all publicly-owned facilities of the airport , together with the right to direct and control all activities of the Lessee with regard to all publicly-owned facilities . C. The right that this lease shall be subordinate to the provisions and requirements of any existing or future Grant Agreements between City and the United States of any existing or future Federal Aviation Administration Regulations relative to the development , operation or maintenance of the Airport . Non-Aeronautical Uses d. That there is hereby reserved to City, its successors and assigns , for the use and benefit of the public , a right of flight for the passage of aircraft in the airspace above the surface of the premises of the Lessee described in the "Property Leased" section, page 1 , herein together with the right to cause in said airspace such noise as may be inherent in the operation of aircraft , now known or hereafter used for navigation of or flight in the air , using said airspace of landing at , taking off from or operating on Redlands Municipal Airport . e . That the Lessee by accepting this Lease expressly agrees for itself, its successors and assigns that it i-,till not erect nor permit the erection of any structure or object nor permit the growth of any tree on the land described in the "Property Leased" section , page I , herein, in violation of Ordinance # 1281 - City of Redlands Height Zoning Ordinances . - 6- f. That the Lessee by accepting this lease, expressly agrees for itself, its successors and assigns , that it will not make use of his promises described in the "Property Leased" section, page 1 , herein , in any manner which might interfere with the landing and taking off of aircraft from Redlands Municipal Airport or otherwise constitute a hazard. In the event the aforesaid covenant is breached, City reserves the right to enter upon the Lessee ' s premises described in the "Property Leased" section, page 1 , herein, and cause the abatement of such inter- ference at the expense of the Lessee . S . Termination of Agreement a. The Lessee at any time after two years from the date of commencement hereof may terminate this Agreement without penalty , by notifying City, in writing , twelve (12) months prior to the termination date , as proposed by the Lessee . During the notification period of twelve (12) months , all terms of the lease will be in force . Should the City close the runway and the taxiway for public use , other than for limited periods necessitated by construc- tion or maintenance , then the obligations of the Lessee under Section six (6) shall be terminated . b. The City may terminate this Agreement in its entirety upon the occurrence of any of the following events : (1) Filing of bankruptcy proceedings by or against the Lessee. (2) Lessee conducts activity not authorized by the lease , subsequent to receipt of a thirty (30) days ' written notice from Lessor to cease and desist . (3) Lessee makes any general assignment for the benefit of creditors . (4) The abandonment or discontinuance of operations at the Airport by the Lessee . (5) Lessee fails to perform, keep and observe any and all terms of the -lease which are to be performed, kept and observed by him, unless prevented from doing -so by an act of God. (6) The Lessee defaults in payi,,ient of the lease payments , ,is specified herein , or violates any of the terms or conditions of the lease , and the lease payment is not paid or the violation is not corrected within sixty (60) days after service of notice as provided in paragraph 13, herein . (7) Violation or non-compliance by the Lessee of any of the provisions of Paragraph 4 , herein. (8) Occurrence of any act by the Lessee which results in his failure to perform the following minimum duties under this lease , which acts shall include : (a) Providing aviation fuel service for aircraft, daily , including weekends and holidays , during normal operating hours . Normal operating hours are defined as : 8 : 00 a.m. to 5 : 00 p .m . , or one (1) hour prior to sunset , whichever is later . Q Providing minimum mechanical repair services from 8 : 00 a.m. to 5 : 00 p .m. , Monday through Friday , excluding holidays . (c) Providing emergency aviation fuel and emergency minimum mechanical repair services for aircraft outside of normal operating hours , when reasonable to do so . (d) Providing services in (a) , (b) , and (c) above , in an efficient , business- like manner , so as to promote good public relations , generate customer goodwill , and reflect credit on both the City of Redlands and the Lessee . (e) Maintaining the leased premises and improvements in good condition and repair at his sole expense . (f) Providing UNICOM service for aircraft . City will furnish UNICOM equipment to Lessee without cost on a loan basis . Lessee agrees to operate UNICOM in accordance with FAA regulations , and assumes all liability in connection with UNICOM operation. UNICOM operating hours will be same as fuel service hours , as listed in (8) (a) above. All UNICOM equipment maintenance expenses in excess of a total of $75 . 00 per fiscal year will be the responsibility of the City. Lessee agrees to return all loaned UNICOM equipment in good condition, considering normal wear and tear , to City upon City' s written request for same . Lessee agrees to accept transfer of UNICOM Station License from City to Lessee upon effective date of this lease . Lessee further agrees to transfer UNT COM Station License from Lessee to City at any time upon City ' s written request . c. In the event of termination by the Lessor for any of the reasons listed in paragraph 5 , b , I thru 8 , City shall have the follow- ing rights : (1) In accordance with City ' s Assurance #16 to Federal Aviation Administration (Exhibit "B" herein) , which specifies "If an arrangement is made for management or operation of the airport by any agency or person other than the Sponsor , (City of Redlands) or an employee of the Sponsor, the Sponsor will reserve sufficient rights and authority to insure that the airport will be operated and maintained in accordance with the Act , the Regulations , and these covenants" the City, at its option, if it is necessary and essential to provide aeronautical facilities necessary for the operation of the Redlands Municipal Airport , may operate Lessee ' s aviation fuel service and normal aircraft tie-down and Tee Hangar area, at no personal or finan- cial liability to Lessee during such operation by the City, which opera- tion shall only be for such limited period as is required to obtain on the airport other Fixed, Base Operation Service , but in no event longer than twelve (12) months . The exercise of this right to conduct the Lessee ' s Fixed Base operation does not constitute a waiver by the City of anv contract damages arising from Lessee ' s failure to keep the terms of this lease. All assets accruing from the City ' s operation of the leased premises , less customary operating expenses , which will include all rental payments due the City Linder this lease , shall be credited by the City to the Lessee ' s interest . d. Termination shall not relieve either party of any liability or indebtedness incurred prior to the termination of the lease . 6 . Lease Payments a. The following annual rental will be paid to the City by Lessee commencing on January 1 , 1979 . Rentals for additional land, sometimes referred to as "excluded areas" herein, leased in accordance with the provisions of paragraph 1 , c , hereof, shall be paid in addition to all of the base rentals as follows : (1) Parcel. a) 431 , 405 sq . ft . of unimproved land @ )0 . 0257/sq- ft . /yr. = $11 , 081 . 11 b) Large Hangar No . I - 5670 -sq. ft . @ $0 . 04S/sq. ft . pvlo . $2SS . ISP40 . 3 , 061 . 80 c) Old Lobby - 776 sq . ft . @ $0 . 04S sq . ft . /mo . = $34 . 92/mo . 419 . 04 d,) Existing Patio - 4002 sq . ft . @ $0 . 0257/sq . ft . /yr . = 102 . 8S e) Improved land - 0 sq. ft . @ $0 . 514/sq. ft . /yr. = 0 Annual Total for Parcel I = $14 , 670 . 80/yr . (2) Parcel # 2 a) 162 , 320 sq . ft . of unimproved land @ $0 . 0257/sq . ft . /yr. $ 4 , 171 . 62 b) Improved Land - 0 sq . ft . @ $0 . 514/sq . ft . /yr . = 0 Annual Total for Parcel 2 = $ 4 , 171 . 62 (3) Parcel #3 a) 154 , 633 sq. ft . of unimproved land @ $0 . 0257/sq. ft . /yr . = $ 3 , 974 . 07 Annual Total for Parcels Q , # 2 , and Y3 = $22 , 816 . 49 Less : Special Annual Incentive Credit for providing a public lobby (See paragraph 8 , e , Lease , herein) . This special annual incentive credit is from date of lease until January 1 , 1983 , with option by City to renew. $ S , 897 . 00 Net Annual Rent for 6 , (1) , (2) , and (3) above , less Incentive Credit = $16 , 919 . 49 (4) For Fuel Flowage : - $0 . 02/gallon for each gallon of fuel delivered to Lessee ' s premises described in "Property Leased" section, page 1 , herein . All maintenance of fuel Pumps and storage tanks will be paid for by Lessee . Lessee is responsible for any required replacement or expansion of existing fuel storage facilities on his leasehold. This fuel flowage payment is payable in addition to the total rental amount , which includes Items a, ( 1) , (2) , and (3) , herein. - lo- b. Alternative rental exclusive of 6 (3) after January 1 , 1981 . Commencing on January 1 , 1981 , rents for the use of the premises described in paragraph 6, a, (1 ) Parcel No . I , a h , c , d , e ; 6 , a, (2) Parcel 2 , a , 1) , and Parcel No. 3 shall be the greater of either of the following amounts : (1) One-half of one percent (1/2% ) of the Lessee ' s gross receipts from his business activities under said lease including gross receipts of all sub- lessees , or ; (2) The annual land rental payments stated in paragraph 6 , al herein , provided that the rent specified in 6 , a, (3) "For Fuel Flowage" herein , shall be paid in addition to the greater of the amounts payable under the alternative rentals established in paragraph 6 , b , above . Fuel sales described in paragraph 6 , a , (3) above , are excluded in computing gross business upon which the 112% is paid City . Also excluded in comput- ing gross business under 6 (b) (1) are the receipts of those leasing tie- down space , etc. - -- and in particular does not include Mission Aviation Fellowship receipts from contributions , etc . if it leases a hangar, nor its "sales" of aircraft and parts to affiliated organizations . The "gross receipts" for this purpose should be only those from activities listed in Section Two (2) conducted with unrelated parties . See paragraph 10 , herein, for reports required . C. Adiustment of Lease Payments . (1) Commencing on January 1 , 1979 , and each five years thereafter, the schedule of lease payments listed in paragraph 6 , (1) , (2) , and (3) above , shall be adjusted in proportion to the increases or decreases in the indices of (1) , the If. S . Bureau of Labor Statistics for Hourly Wage Rates of all workers in manufacturing and (2) all. Commodity Wholesale Prices . The indices in (1) and (2) shall be averaged arithmeti- cally for the last available twelve (12) months indices . Initial adjust- ment made on January 1 , 1984 shall be based on the increase or decrease in these two indices from the month of January, 1979 to the average of both indices for the calendar year of 1983 . (2) If, during time of war or national emergency , the United States Government shall require for military uses , all or such portions of the premises that a reasonable amount of reconstruction of the premises will not permit the Lessee ' s practical continued occupancy , the provisions of this lease insofar as they are rendered impossible of fulfillment by reason of the. United States Government ' .,; use or uses of the promises shall be suspended for the duration of - II- such II-such aovornmontal use or uses . It is further agreed between the res- pective parties hereto that during any such time of war or national emergency, the City shall. have the right to enter into and execute an agreement with the United States Government for such military use without terminating or otherwise effecting this lease agreement , but rather with the effect of suspending any provisions under said agreement insofar as they are inconsistent with those contained in the agreement of the City with the government . Any such period of suspension of operation of the aforesaid lease will be added to and shall extend the lease term as aforesaid , and no lease payments shall be paid during the period of suspended operations . if, by reason of any Act of Congress , Presidential, Executive Order, Regulation of Federal Aviation Administration, or during time of war or declared national emergency , the right of the citizenry at large to engage in private flying activities is prohibited absolutely or temporarily suspended , the amount of rental due and covenanted to be paid by the Lessee hereunder to the City under any provision of this paragraph 6 shall be reduced to a reasonable rental in view of such circumstances as may from time to time be agreed to by the respective parties hereto ; or in the event the parties hereunder are unable to agree upon a reasonable rental, as aforesaid, then as may be determined by compulsory arbitration as described in paragraph 6 , (3) below. (3) Any question, dispute , controversy, or misunderstand- ing arising under or in connection with this paragraph 6 , shall, be determined by three arbitrators to be appointed for the purpose as follows : " (a) Within five ( S) days after notice by either party to the other requesting arbitration, one arbitrator shall be appointed by each party . Notice of such appointment , when made , shall be given by each party to the other . " (1)) The two arbitrators shall, forthwith choose a third arbitrator to act with them. if they fail to select a third arbitrator within ton (10) days of their appointment , 12 upon application of either party , the third arbitrator shall promptly be appointed by the then presiding Judge of the Superior Court Of the State of California in and for the County of San Bernardino , acting in his individual and not official capacity. The party making such application to such judge shall give the other Z� party to this lease five (S) days ' notice of his application. The arbitrators shall proceed with due dispatch. The decision of any two of the three arbitrators shall be binding , final and conclusive on the parties to this lease . Such decision shall be in, writing and delivered to the parties , and shall be in such form that a judgment may be entered on, the decision in the Superior Court of the State of California in and for the County of San Bernardino . " (d) If either party fails to appoint an arbitrator as provided by this paragraph, then such arbitrator not so appointed shall be appointed as provided in subparagraph (b) . The expense of any such arbitration shall be borne as the arbitrators direct." 7 . Insurance a. Lessee shall indemnify and save harmless the City, its officers , agents , and employees , from and against any and all claims , demands , loss or liability of any kind or nature which City , its officers , agents and employees , or any of them, may sustain or incur or which may 1, be imposed upon them or any of them, for injury to or death of any persons or damage to any property in the use of the premises described in the "Property Leased" section , page 1 , herein . b . As a condition precedent to the effectiveness of the lease and in partial performance of the Lessees obligations hereunder , the Lessee shall obtain and maintain in full force and effect during the term of this agreement , a policy or policies of- Liability insurance in carriers and in form satisfactory to City with minimum limits of $300 , 000/500 , 000 Bodily Injury , and $100 , 000 Property Damage insurance . In addition to automobile , premises and operations coverage, pol']'-cv(ies) shall also cover Contractual and Products Liability . Lessee shall cause to be attached to all of said policies of insurance an endorse- ment reciting the first Paragraph of this section . C. The policy shall further provide that the same shall not be cancelled. or coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City. d. Lessee shall , coincidentally with the, execution of the lease , deliver an acceptable Certificate of Insurance on the approved City of Redlands Insurance Certificate Form and certified or photostatic copy of said policies of insurance to City . 0. The procuring of such policies of insurance shall not be construed to be a limitation upon the Lessee ' s liability, or as a full performance on its part of the indemnification provisions of this lease . Lessee ' s obligation being, notwithstanding said policies of insurance , for the full and total, amount of any damage , injury or loss caused by negligence or neglect connected with its operation under this lease . f. Lessee shall have Workmen' s Compensation coverage , as required by State of California law . 8 . Construction on and, IN'lodification and Maintenance of Premises Leased: a.eased- a. Construction : (1) Parcel #1 and Parcel # 3 : (a) Lessee may construct , modify , repair or improve Parcel itl and Parcel #3 of its leased premises at any time during the term of the lease in conformance with established and customary standards of fixed base operations development , zoning ordinances , sign ordinances , and building codes of the City of Redlands and the terms of this lease . (21) Parcel (a) City agrees to give Lessee , free of charge , the existing 301 x 220 ' aircraft shade hangar in return for the refurbishing of the large hangar No . I referred to in paragraph 6 , a, (1) b and shown on Lxhibit "A" as hangar ' I . 'rho refurbishing shall be completed per Exhibit "C" . The total- cost of the refurbishing shall be borne bar the Lessee and be per plans submitted to and approved by the City . The City Shall issue a no fee permit to Lessee for said refurbish- ing. efurbish- ing) . - 14- The work to be done on Hangar No . I shall include , but not be limited to : 1. Remove exterior bottom board from all sides to provide a minimum of 6" break between wood and the ground. 2 . Replace a1.1 window screens and broken windows . 3. Repair and paint the exterior corrugated metal siding and wood siding front and back of hangar above the lowest part of the domed roof. 4 . Cover the entire exterior below the lowest part of the dome roofline with aluminum siding of duality equal to or better than used on the new lobby building . S . Remove galvanized metal siding from sliding front doors and replace with aluminum siding and repair door guides . 6:_. Refurbish toilet facilities . 7. Remove roofing from the domes portion of the hangar and replace with new roofing. Repair as necessary the remainder of the roof. 8 . Bring all electric wiring up to present- code standards . Any of the above may be waived or altered based upon plans approved by the City. Lessee shall comply with the schedule of improve- ments as shown on Exhibit "C" unless schedule modification is approved by City. (b) Lessee agrees to improve said 30 ' x 2201 aircraft shade hangar by adding metal siding to both ends . Individual stalls need not be constructed nor are doors required to be provided, but these may be provided at the option of the Lessee . Metal siding will be of a quality and color equal to that used in the construction of the Lessee ' s Tee Hangars . (c) Lessee may modify , repair , or improve Parcel ## 2 of its leased premises at any time during which said parcel is under lease , except that no buildings , except the existing shelter hangar referred to in paragraph 8 , a, (2) (b) above will be constructed. (d) Lessee agrees to provide a paved public automobile parking lot , to accommodate twenty (20) cars , on the south side of Parcel #2 . Lessee will construct a six foot (6 ' ) chain-link fence , with appropriate pedestrian gate , enclosing said automobile parking lot on the east , north and west sides , connecting with the City chain- link fencing on the south . There cv_ill be no charge for automobile parking in this lot, provided the vehicle is not parked in excess of three (3) days. Lessee agrees to enlarge paved parking area as demand dictates. b. Approval of Construction or Modification: Each proposal for construction on, or modification of, the leased premises must have prior written approval of City. c. Existing Underground Fuel Storage : The existing underground fuel storage tanks remain the property of City, but are leased by Lessee; however, City retains right to charge the fuel supplier a rental fee for use of any City- owned fuel storage tanks . Gasoline storage tank maintenance and replacement are the responsibility of the Lessee. d. Building Maintenance : All building maintenance, either on City-owned buildings or those owned by the Lessee, on the leased property, is the responsi- bility of the Lessee . e. Public Lobby and Patio: Lessee agrees to provide, without cost, a Public Lobby and Patio for City use, to qualify for an incentive credit offered by the City (see paragraph 6, herein) . This facility will be located as shown on Exhibit "A" . The Lobby will be 50 ' x 50 ' , plus a paved and covered Patio, 50' x 30' , adjacent to the Lobby on the north. The Lobby and Patio will be built to City specifications and include public restrooms , air conditioning equipment, and insulation. The City will be responsible for the cost of electricity consumed by the - 16- public Lobby and Patio facility . The Lobby and Patio facility will be provided the City until January 1 , 1983. The City is hereby granted an option to require the Lessee to provide the Lobby and Patio facility for an additional five (5) years subsequent to January 1 , 1983 , or any lesser portion thereof. In the event of the City exercising this option, the Lessee will he provided the Special Annual incentive Credit by the City for the period equal to that of the option extension (see paragraph 6 , herein) . This option by the City is automatically terminated upon termination of this Master Lease Agreement . f. Hangar Construction : All hangars constructed by Lessee will have the following minimums : (1) Fully enclosed , metal Pascoe TH2 construction or equal , including a solid separate compartment for each aircraft , except hangars constructed at the specific request of an individual rentor on the basis of a long term lease . Special hangars for larger aircraft will conform to Pascoe TI-12 construction quality. (2) 4" concrete bases throughout the building. (3) One flouresceflt light fixture per individual aircraft space . (4) 2" asphaltic concrete apron around the two long sides of hangar and the side nearest the active taxiway . Asphaltic concrete pavement shall completely cover area between the two adjacent hangars , and will extend a minimum of 5tl feet from the long side of all hangars . (5) Baked-On color on outside walls . (Anodized aluminum walls are also acceptable) . -17- (6) Comply with all City of Redlands Building Codes . (7) Provide adequate electric conduit area for each hangar building for future electric service expansion. (8) All utilities will be placed underground. (9) Electric heat and light for any hangar space rented as office or shop space. (10) Provision for the minimum requirement of 25 lb . dry chemical type fire extinguisher for hangar buildings as prescribed by the Fire Chief of the City of Redlands . Extinguisher will be mounted on outside of building in a breakglass cabinet. 9- Dispositaan of Buildings Constructed: (1) Upon termination of the initial period of this lease or termination of the renewal period of this lease, or termination of the lease by Lessee under paragraph 5., a, herein, all structures cons- tructed by the Lessee, including foundations , will be removed from the leased premises by the Lessee at Lessee ' s expense without cost to City. City has the option to purchase any or all buildings constructed by the Lessee at the termination or expiration of this lease, if a satisfactory price can be negotiated by the City and the Lessee. h. Utilities : (1) Unless otherwise expressly stated herein, Lessee agrees to pay for all utilities , including disposal and sewer rental fees used on or by the leased premises . - 18- i . Inspection by City : (1) Lessee agrees to permit City to enter upon and inspect all leased premises at all reasonable times . j . Maintenance and Appearance of Leased Premises : (1) Lessee agrees to maintain the leased premises and improvements in good condition and presentable appearance at all times at his expense. 9 . Subcontracting Rights : a. The Lessee shall have the right to subcontract portions of activities under the terms of the lease , provided such agreements meet the requirements of this lease , meet the City' s requirements concerning financial responsibility, and have advance approval in writ- ing, by City. Lessee shall notify the City, in writing , of any proposed subcontract, or such subcontract shall be null and void. City approval of such contracts shall not be unreasonably withheld. 10 . Payments , ReportsandVerifications : a. Lease and fuel flowage payments will be made every three months by the Lessee , without being billed by City. Payments will be made not later than the 20th day following the end of each three months of the term of this lease . Commencing January 1 , 1979 , said quarterly lease payments will continue to be made . Any required supplemental_ paymentsbased on gross receipts will be made annually no later than April ISth following the close of each calendar year under this lease . b. Beginning January 1 , 1979 , and continuing throughout the remaining life of the lease , the Lessee shall , no later than April 15th following the close of the calendar year , submit to City a verified statement stating that gross receipts statement from sales of all goods and services including gross receipts of all, sub- leases for the calendar year are identical to those reported to the Bureau of Internal Revenue and showing amounts of fuel sales which are excepted from gross receipts . First gross receipts statement is due , under this provision, on or before April IS , 1980 . C. A copy of all bulk delivery -invoices of petroleum products delivered to the Lessee ' s premises described in the "Property Leased" section, page 1 , herein, shall accompany each quarterly fuel flowage Payment to City. - 19- d. City shall have the right to inspect the Lessee ' s books , including books of all sub- lessees, at all reasonable times to verify all statements of income , accountings , and invoices required to be made by this agreement . 11 . Taxes : a. Lessee agrees to pay all taxes imposed or assessed upon his leased premises located at Redlands Municipal Airport. 12 . General : a. It is understood and agreed that each and all the terms of this lease are subject to the regulations and provisions of law applicable to the operation of Redlands Municipal Airport as a Federal Aid Airport Project . If any provision of this lease is invalid, the other provisions of the lease which are valid shall remain in effect , and the lease will be renegotiated to comply with the requirements of the applicable laws and regulations . b. The Lessee agrees to observe and obey during the term of this lease all laws , rules and regulations promulgated and enforces by the City of Redlands , California, and by any other proper authority having jurisdiction over the conduct of operations at the Redlands Municipal Airport. The fee schedule listed in paragraph 6 herein, is not considered as coming under the purview of this paragraph. Any fee changes will be made by separately negotiated agreements between the Lessee and the City. C. The City of Redlands shall have complete dominion over the premises described in the "Property Leased" section, page 1 , herein during the term of this lease for the purpose of and. to the extent necessary to maintain law, order, and safety , and has the authority and right to deny access to the Redlands Municipal Airport by any person who fails to conform in all respects to this lease. 13. Notices : a , It is agreed that any notice to be given or served upon Redlands Aviation Corp . , the Lessee , shall be sufficient if sent by registered mail , postage prepaid, and any notice to be given or served upon City shall be sufficient if sent by registered mail , postage pre- paid , addressed to Director of Aviation, City of Redlands , P. 0. Box 280 , Redlands , California , Zip ("ode 02373 . - 2(1- 14 . 2(114 . AssiOiR( ntwaf- Lease ;_Successors and A signs : a. Assignment of Lease Lessee shall have the right to assign this lease subject to Assignee meeting the City's requirement-, concerning financial res- ponsibility, and the City granting advance written approval . Any assignment of this lease will require that the Assignee he subject to all conditions , items , and provisions of the lease. City approval of such lease assignments shall not be unreasonably withheld . h. Successors and Assigns fly this lease , the Lessee hinds itself, trustees , repre- sentatives , and all successors and assigns in interest . The Lessee guarantees the performance of any and all covenants and conditions contained in this agreement , and upon the failure of any successor in interest to so perform, lessee agrees to complete such covenants , conditions and requirements of this agreement . IS , Recording of Lease : a. Lessee agrees to the recording of this lease. This lease hecomes effective January 1 , 1979. This lease supersedes Airport Lease elated January 1 , 1975, between the City of Redlands and Louis A. Stolp , which is cancelled effective January 1 , 1979 . Execctted at Redlands , California on this 12th clay of ❑erembeY , 197.8---. CITY Of- REDLANDS (Lessor) ATT IiST: I BY - Mayor Oddie J. Ata rt ine r. E Cit­v7lerk r STATE OF C91,1F0RN1 k San Bernardino SS. a' COL A'1Y OF _. -__---_--- _-- _ �sna�co On----December I4r_197-8 _ ---- before me_ � C° the undersi_ned. a Vtarc Puldic in and for said counts and State. II personally appeared - Kenneth B. Simmelin1C FOR NOTARY SEAL OR STAMP N - - - known to me to be the Pre-ident, and - aPaul -G: Fogal- -- known to me to he o rporation that exe,uted the within Instrument. know,;i t" Inc r„ he the per-om who exrcuted the o within hi trunient on h h di >f hr ��n�x,r�ttion tllereiu named, and .rcknowledged to me tl -ir If ,artoratiof) etecuted the Within � OF�`�talSEh1 J n�trrtmen[ ptcr.uant to it, a resohttion of its hoard ofI �`1 4 dire<-tor<. Y f'y tret tit „�;t r es!jai 2 t.199J - er :r - 21- Encls . Areas Leased and areas Excluded. . . . . . Exhibit "A" Legal Descriptions of Leased Land . . . . . . . Exhibit "A- 1" City of Redlands Assurances to Federal Aviation Administration . . . . . . . . Exhibit "B'' Schedule of Improvements . . . . . . . . . . . Exhibit "n Exhibit .-1 to Lease Redlands Municipal Air car-t Legal escri tion of Parcel #1 Land Leased. All that portion of the East half of the East °half of Section 13, T. 1` S. , R. 3 W. , San Bernardino Base Meridian in the City o Redlands, County of San Bernardino, State of California, described as follows. Beginning at the Northeast corner of the Southeast 1/4 of said Section 3, thence North along the East line of said Section. 13 to the intersection with a Eine parallel 'with. and 17 feet (measured at right angles) north of said North line of the Southeast 114 of Section 13 to the True Point of Beginning; thence 'West along last said parallel line to the intersection with a line parallel with and 935 feet (mea- red at right angles)s West of said East. line of the East half of the u g East half of Sectiod 13; thence South along last said parallel line to the intersection with a line parallel with and 440 feet (measured at right angles) So th of said North line of the Southeast 1/4 of Section 13; thence East along last said parallel line, 380 feet to the begin- ning of----a- tangent c irve concave Southwesterly and having a radius of 320 feet; thence Eris_' rly and Southerly along said curve through a central angle of ,33° 33 ' 2 " an arc distance of 157.42 feet to the beginning of a reverse curve concave Northeasterly and having a radius of 280 feet; thence Southerly and Easterly along Inst said curve through a central, angle of 330 33' 26" an arc distanceof 163 . 99 feet to ap tangency oint of tan with a line parallel with and 54°0 feet (measured -l- I at right angles) South of said North line of the Southeast 1/4 of Section 13; thence East along last said parallel line to' the inter- section with said East line of Section 13; thence North along last said East line to the True Point of Beginning. Excepting therefrom that portion described as follows : Beginning at the Northeast corner of the Northeast 1/4 of the Southeast 1/4 of said Section 13; thence West along the North line of said Northeast 1/4 of the Southeast 1/4 of Section 13 to the intersec- tion with a line parallel with and 600 feet (measured at right angles) West of the East line of said Northeast 1/4 of the Southeast 1/4 of Section 13; thence South along last said parallel line to the inter- section with a line parallel with and 40 feet (measured at right angles) South of said North line of the Northeast 1/4 of the Southeast 1/4 of Section 13 to the True Point of Beginning; thence East along last said parallel line to the intersection with a line parallel with and 500 feet (measured at right angles) West of said East line of the Northeast 1/4 of the Southeast 1/4 of Section 13; , thence South along last said parallel line to the intersection with a line parallel with and 140 feet (measured at right angles) South of said North line of the North- east 1/4 of the Southeast 1/4 of Section 13; thence West along last said parallel line to the intersection with a line parallel with and 600 feet (measured at right angles) West of said East line of the Northeast- 1/4 of the Southeast 1/4 of Section 13; thence North along last said parallel line to the True Point of Beginning. -2- And also excepting therefrom, that portion described as follows: Beginning at the Northeast corner of the Northeast 1/4 of the Southeast 1/4 of said Section 13, thence West along the North line of said Northeast 1/4 of the Southeast 1/4 of Section 13 to the intersec- tion witha line parallel with and 534.04 'feet (Measured at right angles) West of the East line of said 'Northeast 1/4 of the Southeast 1/4 of Section 13; thence South along 'last said parallel line to the intersection with' a line parallel with and 242 feet ( ease ed at right angles) South of said North line of the Northeast 1/4 of the Southeast 1/4 of Section 13 to the True Point of Beginning, thence East along last said :parallel li Southeast 1/4 of Section 13; thence South along last said parallel line to the intersection with a line parallel with and 440 feet (measured at right angles) South of said North line of the Northeast 1/4 of the Southeast 1/4 of Section 13; thence West along last said parallel line to the intersection with a line parallel with and 534. 04 feet (measured at right angles) West of said East line of the North- east 1/4 of the Southeast 1/4 of Section 13 ; thence North along last parallel line to the True Point of Beginning. And the City of Redlands shall retain an Easement therefrom described as follows : Beginning at the Northeast corner of the Northeast 1/4 of the Southeast 1/4 of said Section 13; thence West along the North line of said Northeast 1/4 of the Southeast 1/4 of Section 13 to the intersec- tion with a line parallel with and 600 feet (measured at right angles) West of the East line of said Northeast 1/4 of the Southeast 1/4 of Section 13 to the True Point of Beginning; thence South along last said parallel line to the intersection with a line parallel with and 140 feet (measured at right angles) South of said North line of the Northeast 1/4 of the Southeast 1/4 of Section 13 ; thence West along last said parallel line to the intersection with a line parallel with and 680 feet West of said East line of the Northeast 1/4 of the Southeast 1/4 of Section 13; thence North along last said parallel line to said North line of the Northeast 1/4 of the Southeast 1/4 of Section 13 ; thence East along last said North line to the True Point of Beginning. -4- _31 And also, the City of Redlands shall retain an ase ent there-- fron described a , Be inning .at the Northeast corner of the Northeast 1/4 of the Southeast 1/4 cif said Section 13 thence Westalong the Forth line of said Northeast 1/4 of the Southeast 1/4 of Section 13 to the intersection with a line parallel with and 550 feet (measured >at right angles) West of the East line of said Northeast 1/4 of the Southeast 1/4 of Section 13; thence South along last said parallel line to the intersection-with a line parallel with and 1401 feat. (measured at right angles) South of said North line of the northeast 1/4 of the Southeast 1/4 of Section 13 to the True Paint of Beginning'; thence East along last said parallel line to the intersection witha line parallel with and 5401 feet (measured at right angles) West of said East line of the Northeast 1/4 of the Southeast 1/4 of Section 13; thence South along Last said parallel line to the intersection witha line parallel with and 242---feet -(measured at right angles) South of said North line of the Northeas�t- 1/4 of the Southeast 1/4 of Section 13; thence East along last said parallel line to the 'intersection'with a line parallel with and 534.04 'feet (measured at right angles) West of said East line of the- Northeast- 1/4 of the Southeast 1/4' of Section 13; thence South along last said parallel line to the 'intersection with a line parallel with and 252 feet South of said Forth line of the Northeast 1/4 of the Southeast 1/4 of Section 13, thence gest along last said parallel line to the intersection with a line parallel with and 550 feet (measured -5 at right angles) West of said East line of the Northeast 1/4 of the Southeast 1/4 of Section 13; thence North along last said parallel line to the True Point of Beginning. _6_ Le al Description of Parcel #2. Land Leased: All that portion of the East half of Section 13, T. 1 S. , R. 3 W. s, San Bernardino Base and Meridian, in the City of Redlands, County of San Bernardino, State of California, described as follows : Beginning at the Northeast corner of the Southeast 1/4 of said Section 13; thence West along the North line of said Southeast 1/4 of Section 13 to the intersection with a line parallel with and 1660. 00 feet (measured at right angles) West of the East line of said East half of Section 13 ; thence North along last said parallel line to the intersection with a line parallel with and 17. 00 feet (measured at right angles) North of said North line of the Southeast 1/4 of Section 13 to the True Point of Beginning; thence East along last said parallel line to the intersection with a line parallel with and 935 . 00 feet (measured at right angles) West of said East line of the East half of Section 13; thence South along last said parallel line to the inter- section with a line parallel with and 440.00 feet (measured at right angles) South of said North line of the Southeast 1/4 of Section 13; thence West along last said parallel line to the intersection with a line parallel with and 1225 . 00 feet (measured at right angles) West of said East line of the East half of Section► 13 ; thence North along last said parallel line to the intersection with a line parallel with and 83.00 feet (measured at right angles) south of said North line of the Southeast 1/4 of Section 13 ; thence West along last said parallel line to the intersection with a line parallel with and 1660. 00 feet (measured at right angles) West of the said East line of the East half of Section 13; thence North along last said parallel line to the True Point of Beginning. Excepting therefrom, to the City of Redlands , a 30 foot wide easement for vehicular and pedestrian ingress and egress to taxiway described as follows : All that portion of the East Halt of Section 13; T. I S. , R. 3 W. , San Bernardino Base and Meridian, in the City of Redlands, County of San Bernardino, State of California, described as follows: Beginning attheNortheast corner of the Southeast 1/4 of said Section 13; thence West along the North line of said Southeast 1/4 of Section 13 to the intersection with a line parallel with and 965 ti feet (measured at right angles) West of the East line of said East half of Section 13; thence North along last said parallel line to the intersection with a line parallel with and 17 feet (measured at right angles) North of said North line of the Southeast 1/4 of Section 13 to the True Point of Beginning. Thence East along last said parallel line to the intersection with a line parallel with and 935 feet (measured at right angles) West of said East line of the East half of Section 13; thence South along last said parallel line to the intersection with a line parallel with and 440 feet (measured at right angles) South of said North line of the Southeast 1/4 of Section 13 ; thence West along last said para- llel line to the intersection with a line parallel with and 965 feet -2- (measured at right angles) West of said East line of the East half of Section 13; thence North along last said parallel line 457 feet to the True Point of Beginning. -3- Legal Description of Parcel #3, Land Leased That portion of the ,Borth 1 /2 of the Southeast 114 of Section 13 , Township 1 South , Range 3 West , San Bernardino Base and Meridian, according to GaVei'Ilinent Survey described as follows : Beginning at they Southeast corner of said Section 13 as shown on Parcel Map No . 11.24 recorded in Roos: 12 of Parcel Maps , Page 14 ill the Office of the County Recorder , County of San Bernardino, State of California ; thence North along the East line of said Section 13, 2197 . 92 feet ; thence South 891 541 37" I'�est , 1557 . 05 feet to the 'Prue Point of Beginning, last said point heing the beginning of a tangent curve concave to the Northeast and having a radius of 280. 00 feet ; thence Northwest- erly along said curve through a central angle of 2I ° 34 ' 21" an arc distance of I05 . 42 feet , a radial at said point hears North 210 28 ' 58" East ; thence North 0° 05 , 23" west , 337. 39 feet ; thence Northeasterly at right angles to last said line, 435. 00 feet ; thence Southeasterly at right angles to last said line 351. 00 feet ; thence Southwesterly at right angles to last said line to the 'true Point of Beginning. d ^ SetZ"x2"KAI* wfnaitI , Set RK. nail~ �xs.oa' ses's4'as'w _ 9�sao' sss'3a'as"w 0 EXCLUDED A"�MA T wZ ..- set f.2 Rub C MO. i ago& mil Se+;<2r Hub w�nail ^ OPRn 7'Hangar a "�_ .- pARCEL. _ 5atnnit�� 'g EA5EMR1tT#1 g Exist pa+ia - ►+,Qo2 sc� fr. f �_—___.._ � PARCEL :�� ©id lobby--_7"TG., 5e�f4._. EASEMENT'�8 } $: � Hariget*'t-5,6?0 Sg.4+ G� •�.__� `�;�.•�'� EXCLUDED AR ..1 = ' s SCA f"zz f lff! 1. PARCEL 3 OF LEASE ( 164,633 sg, ft PARCEL 01 OF LEASE- ( 431140-5s� ff � . Im W- �. PARCEL z OF LEASE C IG2,320 s ff. EXCLUDED AREA *A C Izo 464 sq. ff � ® EXCLUDED AREA 2 C 10,000 sy. : ) EASEMENT 4 1 TO CITY FOR AIRCRAFT ACCESS TO TAXtWAY EASEMENT 2 TO CITY PEDESTRiAat ACCESS PROM AU`I'D PAt'�KIWO TA PUBLIC LOBBY. __.EASEMENT *3 TO CITY ._.,VEHICULAR .AND PF-r)E'.STRIAW-ACCESS .70-_TAXIWAY ® ..::. . PUBLIC LOBBY ANDPATIO_:�:rt..... ���:M,:w.:_.: .:_�. Exhibit "B" City of Redlands (Sponsor) Assurances to the Federal Aviation Administration in connection with Project Application dated Septem- ber 25, 1973, for Grant Agreement No. 7-06-0195-02 . In order to furnish the assurances required by the Act and Regulations the Sponsor hereby covenants and agrees with the United States as follows: 1. These covenants shall become effective upon acceptance by the Sponsor of an offer of Federal aid for the Project or any portion thereof, made by the F.A.A. and shall constitute a part of the Grant Agreement thus formed. These covenants shall remain in full force and effect throughout the useful life of the facilities developed under this Project, but in any event not to exceed twenty (20) years from the date of said acceptance of an offer of Federal aid for the Project . However, these limitations on the duration of the covenants do not apply to the covenant against exclusive rights . Any breach of these covenants on the part of the Sponsor may result in the suspension or termination of, or refusal to grant Federal assistance under F.A.A. administered programs, or such other action which may be necessary to enforce the rights of the United States under this agreement . 2. The Sponsor will operate the Airport as such for the use and benefit of the public. In furtherance of this covenant (bud without limiting its general applicability and effect) , the Sponsor specifically agrees that it will keep the Airport open to all types , kinds, and classes of aeronautical use on fair and reasonable terms without discrimination between such types , kinds , and classes . Provided: That the Sponsor may establish such fair, equal, and not unjustly discriminatory conditions to be met by all users of the Air- port as may be necessary for the safe and efficient operation of the Airport; And Provided Further, That the Sponsor may prohibit or limit any given type, kind, or class of aeronautical use of the Airport if such action is necessary for the safe operation of the Airport or necessary to serve the civil aviation needs of the public . 3. The Sponsor - a. Will not grant or permit any exclusive right forbidden by Section 308(a) of the Federal Aviation Act of ' 1958 (49 U. S. C. 1349 (a) ) at the Airport, or at any other airport now owned or controlled by it; b. Agrees that, in furtherance of the policy of the F.A.A. under this covenant, unless authorized by the Administrator, it will not, either directly or indirectly, grant or permit any person, firm or corporation the exclusive right at the Airport, or at any other airport now owned or controlled by it, to conduct any aeronautical activities, including, but not limited to charter flights, pilot training, aircraft rental and sightseeing aerial photography, crop dusting, mrial advertising and surveying, air carrier operations , aircraft sales and services , sale of aviation petroleum products whether or not conducted in conjunction with other aeronautical -2- activity, repair and maintenance of aircraft, sale of aircraft parts , and any other activities which because of their direct relationship tothe operation of aircraft can be regarded as an aeronautical activity. c. Agrees that it will terminate any existing exclusive right to engage in the sale of , gasoline or oil, or both, granted before July 17, 1962, at such an airport, at the earliest renewal, cancellation, or expiration date applicable to the agreement that established the exclusive right; and d. Agrees that it will terminate any other exclusive right to conduct an aeronautical activity now existing at such an airport before the grant of any assistance under the Airport and Airway Development Act. 4. The Sponsor agrees that it will operate the Airport for the use and benefit of the public , on fair and reasonable terms , and with- out discrimination. `in furtherance of the covenant (but without limiting its general applicability and effect) , the Sponsor specifically covenants and agrees: a. That in its operation and the operation of all facilities on the Airport, neither it nor any person or organization occupying space or facilities thereon will discriminate against any person or class of persons by reason of race, color, creed, or national origin in the use of any of the facilities provided for the public on the Airport. b. That in any agreement, contract, lease, or other arrange- ment, under which a right or privilege at the Airport is granted to -3- any person, firm or corporation to conduct or engage in any aero- nautical activity for furnishing services to the public at the Airport, the Sponsor will insert and enforce provisions requiring the Contractor. (1) to furnish said service on a fair, equal, and not unjustly discriminatory basis to all users thereof, and (2) to charge, fair, reasonable, and not unjustly dis- criminatory prices for each unit or service; Provided, That the contractor may be allowed to make reasonable and nondiscriminatory discounts, rebates, or other similar types of price reductions to volume purchasers. c. That it will not exercise or grant any right or privi- lege which would operate to prevent any person, firm or corporation operating aircraft on the Airport from performing any services on its own aircraft with its own employees (including, but not limited to maintenance and repair) that it may choose to perform. d. In the event the Sponsor itself exercises any of the rights and privileges referred to in subsection b, the services involved will be provided on the same conditions as would apply to the furnishing of such services by contractors or concessionaires of the Sponsor under the provisions of such subsection b. 5. Nothing contained herein shall be construed to prohibit the granting or exercise of an exclusive right for the furnishing of non- aviation products and supplies or any service of a non-aeronautical service at the airport . -4 6. The Sponsor will operate and maintain in a safe and service- able condition, the Airport and all facilities thereon and connected therewith which are necessary to serve the aeronautical users of the Airport other than facilities owned or controlled by the United States , and will not permit any activity thereon which would interfere with its use for airport purposes : Provided, That nothing contained herein shall be construed to require that the Airport be operated for aero- nautical uses during temporary periods when snow, flood, or other climatic conditions interfere with such operation and maintenance : And Provided Further, That nothing herein shall be construed as requir- ing the maintenance, repair, restoration or replacement of any structure or facility which is substantially damaged or destroyed due to an act of God or other condition or circumstance beyond the control of the Sponsor. In furtherance of this covenant, the Sponsor will have in effect at all times, arrangements for: a. Operating the Airport ' s aeronautical facilities whenever required. b. Promptly marking and lighting hazards resulting from airport conditions, including temporary conditions , and c. Promptly notifying airmen of any condition affecting aeronautical use of the Airport. 7. insofar as it is within its power and reasonable, the Sponsor will, either by the acquisition and retention of easements or other interests in or rights for the use of land or airspace or by the adoption and enforcement of zoning regulations , prevent the construction -5- erection, alteration, or growth of any structure , tree or other object in the approach areas of the runways of the Airport, which would constitute an obstruction to air navigation according to the criteria or standards prescribed in Section 77 . 23, as applied to Section 77.25, Part 77 of the Federal Aviation Regulations. In addi- tion, the Sponsor will not erect or permit the erection of any permanent structure or facility which would interfere materially with the use, operation, or future development of the Airport in any portion .of a runway approach area in which the Sponsor has acquired, or here- after acquires, property interests permitting it to so control the use made of the surface of the land. 8. insofar as it is within its power and reasonable, the Sponsor will, either by the acquisition and retention of easements or other interests in or rights for the use of land or airspace or by the adop- tion and enforcement of zoning regulations , take action to restrict the use of land adjacent to or in the immediate vicinity of the Airport to activities and purposes compatible w,-th normal airport operations including landing and takeoff of aircraft . 9. The Sponsor will keep up to date at all times an airport layout plan of the Airport showing (1) the boundaires of the Airport and all proposed additions thereto, together with the boundaries of all offsite areas owned or controlled by the Sponsor for airport pur- poses , and proposed additions thereto; (2) the location and nature of all existing and proposed airport facilities and structures (such as runways, taxiways , aprons , terminal buildings , hangars and roads) , -6- -D, including, all proposed extensions and reductions of existing and proposed non-aviation areas and of all existing improvements thereon. Such airport layout plan and each amendment, revision, or modification thereof, shall be subject to the approval of the F.A.A. which approval shall be evidenced by the signature of a duly authorized representative of the F.A.A. on the face of the airport layout plan. The Sponsor will not make or permit the making of any changes or alterations in the Airport or any of its facilities other than in conformity with the Airport Layout plan as so approved by the F.A.A. if such changes or alterations might adversely affect the safety, utility, or efficiency of the Airport. 10. All facilities of the Airport developed with Federal aid and all those useable for the landing and taking off of aircraft,, will be available to the United States at all times , without charge , for use by government aircraft in common with other aircraft, except that if the use by government aircraft is substantial, a reasonable share , proportional to such use, of the cost of operating and maintaining facilities so used, may be charged. Unless otherwise determined by the F.A.A. , or otherwise agreed to by the Sponsor and the using agency, substantial use of an airport by government aircraft will be considered to exist when operations of such aircraft are in excess of those which, in the opinion of the F.A.A. would unduly interfere with use of the landing area by other authorized aircraft, or during any calendar month that: a. Five (5) or more government aircraft are regularly based at the airport or on land adjacent thereto; or b. The total number of movements (counting each landing as a movement and each takeoff as a movement) of government aircraft is 300 or more, or the gross accumulative weight of government aircraft using the Airport (the total movements of government aircraft multi- plied by gross certified weights of such aircraft) is in excess of five million pounds . 11. Whenever so requested by the F.A.A. , the Sponsor will furnish without cost to the Federal Government, for construction, operation, and maintenance of facilities for air traffic control activities , or weather reporting activities and communication activities , related to air traffic control, such areas of land or water, or estate therein, or rights in buildings of the Sponsor as the F.A.A. may consider neces- sary or desirable for construction at Federal expense of space or facilities for such purposes . The approximate amounts of areas and the nature of the property interests and/or rights so required will be set forth in the Grant Agreement relating to the project. Such areas or any portion thereof will be made available as provided herein with- in 4 months after receipt of written request from the F.A.A. 12. The Airport operator or owner will maintain a fee and rental structure for the facilities and services being provided the airport users which will make the Airport as self-sustaining as possible under the circumstances existing at the Airport , taking into account such factors as the volume of traffic and economy of collection. 13. The Sponsor will furnish the F.A.A. with such annual or spe- cial airport financial and operational reports as may be reasonably z � requested. Such reports may be submitted on forms furnished by the F.A.A. or may be submitted in such manner as the Sponsor elects so long as the essential data are furnished. The Airport and all airport records and documents affecting the Airport, including deeds , leases, operation and use agreements, regulations and other instru- ments, will be made available for inspection and audit by the Secretary and the Comptroller General of the United States , or their duly authorized representatives , upon reasonable request. The Sponsor will furnish to the F.A.A. or to the General Accounting Office, upon request, a true copy of any such document . 14. All project accounts and records will be kept in accordance with a standard system of accounting if so prescribed by the Secretary. 15. If at any time it is determined by the F.-A.A. that there is any outstanding right or claim of right in or to the Airport property, other than those set forth in Part II of the City of Redlands Project Application for Project #7-06-0195-02, paragraphs 7 (a) , 7 (b) , and 7 (c) , the existence of which creates an undue risk of interference with the operation of the Airport or the performance of the covenants of this Part, the Sponsor will acquire, extinguish, or modify such right or claim of right in a manner acceptable to the F.A.A. 16. The Sponsor will not enter into any transaction which would operate to deprive it of any of the rights and powers necessary to perform any or all of the covenants made herein, unless by Such tran- saction, the obligation to perform all such covenants is assumed by another public agency found by the F.A.A. to be eligible under the Act and Regulations to assume such obligations and having the power, authority, and financial resources to carry out all such obligations . If an arrangement is made for management or operation of the Airport by any agency or person other than the Sponsor or any employee of the Sponsor, the Sponsor will reserve sufficient rights and authority to insure that the Airport will be operated and maintained in accordance with the Act, the Regulations and these covenants . 17. Unless the context otherwise requires , all terms used in these covenants which are defined in the Act and the Regulations shall have the meanings assigned to them therein. i ........ EXHIBIT C SCHEDULE FOR IMPROVEMENTS TO REDLANDS AIRPORT PROPERTIES I . New roofing on city-owned hangar--by November 1 , 1978 $ 6 ,000 2 . Add metal siding to ends of shade hangars and fascia to roof--by January 31 , 1979 11000 3 . Replace rotted boards and paint city-owned hangar , electrical wiring to code , repair windows and screens-- by January 31 , 1979 2 ,000 4 . Grade southeast corner of leased property to level of aircraft parking and surface with oiled gravel or other temporary surface , aircraft tie-downs and fence . Move five or six aircraft to this area from front of public lobby to allow for transient parking--by March 31 , 1979 10 ,000 5 . Secure landscape design for frontage along Sessums Drive and complete landscaping . Cost of design and landscaping not to exceed $4 ,000--by April 30 , 1979 4 ,000 6 . Enclose exterior of three partially completed metal buildings--by May 31 , 1979 30 ,000 7 . Upgrade exterior of city-owned hangar with stucco o metal wall sheathing . New metal covers on hangar doors and Mansard roof or other styling devices to improve appearance of shed roof--by June 30 , 1980 10 ,000 8 . Install retaining wall along east end of leased property , next to hangars , along extension of Wabash Avenue--by September 30 , 1980 . ( Temporary repairs to avoid further erosion will be made early in 1979 . ) 12 , 000 $75 ,000 CITY MANAGER On motion of Councilman Martinez, seconded by Council- Grant man Roth, Council unanimously accepted a grant deed Deed from Charles C. Parker, et al, for the right-of-way on Sunset Drive and Wabash Avenue. An additional appropriation from the Park Acquisition Fund to purchase 9.2 acres of a producing orange grove Funds on the north side of Brookside Avenue, east of Terra- Park Land cina, for park purposes was unanimously approved on motion of Councilman Martinez, seconded by Councilman Riordan. An additional appropriation in the amount of $1,127 . 91 from the General Fund to pay an outstanding bill from June, 1978, which was never received by the City, to the Employment Development Department was approved on motion of Councilman Gorman, seconded by Councilman Riordan, by the following roll call vote: Funds AYES: Councilmembers Gorman, Riordan, Martinez; Employment Mayor DeMirjyn Office NOES: Councilmember Roth ABSENT: None The City had been using Revenue Sharing Funds to pay some of the expense of the Employment Office which is located on Brookside Avenue. An additional appropriation for approximately $17 ,000.00 Funds for the Water Department to purchase a 3/4 ton pickup truck with special truck bed and hydraulic water valve Water operator equipment for the implementation of a water Department valve exercising program to insure the proper operation Truck of valves throughout the water system during emergency conditions was unanimously approved on motion of Council- man Riordan, seconded by Councilman Roth. On motion of Councilman Gorman, seconded by Councilman Outside Riordan, an outside the city sewer connection to a Sewer building owned by Calvary Chapel, located at the south- Connection west corner of Alabama Street and San Bernardino Avenue, was unanimously approved. In order to comply with current Federal regulations and provide for an affirmat'--'�-ve action program and other non- Airport discriminatory actions, Council unanimously approved the Lease first airport lease amendment with Redlands Mutual Enter- Amendments prises and Redlands Aviation Corporation and authorized the Mayor to sign on behalf of the City on motion of Councilman Martinez, seconded by Councilman Riordan. Page eight - August 19, 1980 NEW BUSINESS Resolution No. 3800, a resolution of the City Council Resolution establishing a salary schedule and compensation plan No. 3800 for City employees which implements the salary increases approved previously by the Council for all city Salary employees, was unanimously adopted on motion of Council- man Roth, seconded by Councilman Riordan. Resolution Resolution No. 3801, a resolution of the City Council No. 3801 declaring the intention to vacate a portion of a certain alley and setting the public hearing on this alley vaca- Intent to tion for December 1, 1981, at 7 : 00 P.M. , was unanimously Vacate adopted on motion of Councilman Roth, seconded by Alley Councilman Gorman. CITY MANAGER On motion of Councilman Martinez, seconded by Councilman Holidays Riordan, the calendar of employee holidays for 1982 was unanimously adopted. Bid Call The City Clerk was unanimously authorized to advertise for bids for a two year contract commencing January 1, Weed 1982, for weed abatement and waste removal under the Abatement direction of the Fire Department on motion of Councilman Contract Riordan, seconded by Councilman Martinez. Bid Call The City Clerk was unanimously authorized to advertise for bids for slurry sealing various streets within the Slurry City and the Redlands Plaza Parking Lot on motion of Sealing Councilman Riordan, seconded by Councilman Martinez. On motion of Councilman Riordan, seconded by Councilman Agreement Martinez, Council unanimously authorized the Mayor and City Clerk to execute an agreement with the Southern Pacific Transportation Company in order for San Bernar- .Dan Timoteo Canyon Road dino County to install a 12-inch water main in San Water Main Timoteo Canyon Road for their new solid waste disposal site. The County will pay all fees and charges to the railroad company. The Mayor was unanimously authorized to sign on behalf of Airport /the City Amendment No. 1 to the Airport Master Lease Agreement with Redlands Aviation Corporation regarding Lease Z Amendment the use of Lease Parcel No. 2 at Redlands Municipal Airport on motion of Councilman Riordan, seconded by Councilman Martinez . Page five - November 17, 1981 COMMISSION RECOMMENDATIONS P12x�in �Coni�mission Council p.action oPlanning Com- mission recomirendations will be found on attached sheets. Recreation Commission - Councilman Riordan reported that the Commission expressed regret at Bud Shirtclif'f' s resignation. Also, that the members axe attempting to restructure the department, COMMUNICATIONS Council acknowledged receipt of the certification from William H. Clinton, Registrar of Voters, of election results for the City of Redlands Special Municipal Election held on November 7, 1978, showing the follow- ing results : Yes No Election Ballot Measure R: initiative ordinance 9172 4303 Results to Moderate Growth within the Citv of Redlands. Ballot Measure S : Development of 200 Additional Units Of Senior Citizen 9291 3333 Housing. Ballot Measure B : County Sponsored Low Rent Housing 9090 3571 NEW BUSINESS Resolution Resolution No. 3546, a resolution of the City Council No. 3546 establishing polic, criteriia for removal of lands from within the Agricultural Preserve and rescinding Resolu- Agricultural tion No. 3376, was adopted by A-Y'E votes of all present, Preserve on motion of Councilman EIII.-Lott, seconded by Councilman Removal DeMirjyn. Councilman Riordan stressed the importance of Iter 5 - Fencing in Agricultural Lcultural Preserves . Can motion of Councilman DeMirjVn, seconded by Council- il - man Elliott, Council approved by AYE votes of all 4 present, the sale of: tree to Mi- e Airport Master Lease ss-ion Aviat-jion Fellowship as recomirtended by the Airport Airport Advisory Board, and authorized the Mayor to sign on Master behalf of the City. Said lease will be modified to include the reauested changes by Mission Avaiation Lease Fellowship as follows : Sale 1 . The lease be for a 20 vear Period beginning January 1 1979. (The current lease is for a 20-year period -beginning Januar--,7 1 , _197/ 5) Page five - November 21, 1978 UNFINISHED BUSINESS Airport Council returned a proposed airport lease amendment to staff for Lease their determination as to whether it reflected an adequate return Amendments to the City. An amendment was developed and approved by the Airport Advisory Board with this provision, and additional changes in rental increase determination, additional insurance and a specified development schedule were incorporated. Scott Showler, 1519 West Cypress Avenue, expressed concern that this amendment would be a detriment to the users of the airport. Bob Dotson, 132 Anita Court, San Bernardino County Airport Commissioner, told Council that their policy is to issue 25-year leases. John Shone, representing Aerodynamics, the lessee of Parcel No. 4, told Council if they were going to establish rent control, they also needed to establish profit guarantees. Airport Manager Phil Lock responded to questions. On motion of Councilmember DeMirjyn, seconded by Councilmember Larsen, Council unanimously authorized the amendments to the Master Lease Agreements to Parcel No. 4 and Parcel No. 5 at the Redlands Municipal Airport in accordance with the recommendations of the Airport Advisory Board. NEW BUSINESS A proposal for an amendment to the Mobilehome Rent Stabilization Ordinance from Karl Billings and Dick Bessire was withdrawn from the agenda and referred to the Rent Review Board. Ordinance Ordinance No. 1969, an ordinance of the City Council of the City No. 1.969 of Redlands establishing penalties for violation of the Uniform Fire Code, vesting enforcement authority in- designated officers Infraction and authorizing issuance of infraction citations, was read by title Citation only by City Clerk Poyzer, and on motion of Councilmember Program DeMirjyn, seconded by Councilmember Johnson, further reading of the ordinance text was unanimously waived. Ordinance No. 1969 was introduced with unanimous Council approval and laid over under the rules with second reading scheduled for October 21, 1986, on motion of Councilmember DeMirjyn, seconded by Councilmember Larsen. Appointments On motion of Councilmember Larsen, seconded by Councilmember Wormser, the following individuals were appointed to the Relocation Relocation Appeals Board: Max S. Kreston, Steven D. Bell, and Appeals Board Joe J. Ballandi. Lease An Airport Lease Agreement with Aero Tech Academy for Agreement operation of an aeronautical flight school and associated activity Redlands at the Redlands Municipal Airport was approved and the Mayor Municipal and City Clerk authorized to sign on behalf of the City on Airport motion of Councilmember Johnson, seconded by Councilmember DeMirjyn. October 7, 1986 Page eight - REDLANDS AVIATION CORPORATION - CITY MASTER LEASE AGREEMENT F.B.O. REDLANDS MUNICIPAL AIRPORT LEASE AMENDMENT NO . 1 Paragraph 8a(2) (c) on page 14 of the Master Lease Agreement shall be amended as follows : The entire paragraph shall be deleted and replaced with the following paragraph: "Lessee may modify, repair , or improve Parcel number 2 of its leased premises at any time during which said parcel is under lease , and Lessee shall improve the existing shelter hangar referred to in paragraph 8a(2) (b) as provided therein. Notwithstanding the Master Plan approved by the City Council on October 6 , 1981 , Lessee shall not permit the construction of any build- ing within the northerly 150 feet and the easterly 75 feet of Parcel number 2 to provide for a future fire, crash and rescue station. " Executed at Redlands , California, on this 7th day of January 1982 . CITY OF REDLAND (Lessor) LL May of C * f dlands ATTEST : I ty k REDLANDS _AVIATION CO RATIO ,�11A A JOW1 resident APPROVED FOR FORM: Secret #6—y Attor ey r �Tre �ej� FIRST AMENDMENT to AIRPORT LEASE between _ CITY OF REDL ANDS } and REDLANDS AVIATION CORPORATION This lease entered into on December 121 1978 between the City of Redlands, a municipal corporation, the lessor, and Redlands tVifx 4,`n Corporation, hereinafter referred to as the "lessee ," is hereby amended to add the following : The lessee assures that it will undertake an affirmative action program as required by 14 CFR Part 152 , Subpart E, to insure that no person shall on the grounds of race , creed, color, national origin, or sex be excluded from participating in any employment activities covered in 14 CFR Part 152 , Subpart E . The lessee assures that no person shall be excluded on these grounds from par- ticipating in or receiving the services or benefits of any program or activity covered by this subpart . The lessee assures that it will require that its covered suborganizations provide assurances to the lessee that they similarly will undertake affirmative action pro- grams and that they will require assurances from their suborganizations , as required by 14 CFR Part 152 , Subpart E, to the same effect . Executed at Redlands , California on this 19th day of August , 1980 . .r'f .+.q .,. ATTEST: s � ity C1er ; Chart's . I e34ryn 'iia r _", REDL: NDS AVIATION CO ORATION APPROVED FOR FORM: Kennet I3, Simmelink, President sl Edward F. Taylor City —kttorney n Paul C jogal , Secretary-Treasurer PZEDLANDS AVIATION CORPORATION - CITY OF REDLANDS MASTER LEASE AGREEM1Wr REDLANDS MUNICIPAZL ?AIRPORT LEASE AMENDMWr NO. 2 The MASTER LEASE AGUa2v=, effective January 1; 1979, beir-4een the City of R-adlands, I lur--einafter called "Clty", and Redlands N.,iation Corporation, hereinafter called "L:?ssee", is hereby ammided as follows: Paragraph 1. Property Leased: ADD New Paragraph 1. a. (3) "Transient Aircraft Overflow Parking Area North- east of Parcel #1, consisting of 10,600 sq. ft. of improved lands, shown on Exhibit "A" as Excluded Area U." Paragraph 1. c. Additional Leased Areas. CHANGE first sentence to read: "Upon the construction by the City of a separate Airport Terminal Building, the Commuter Aircraft Public Loading Area, Public parking area for automobiles and Ex- cluded Areas listed in a. (1) , (2) and (3) above (less Airport True Light site) will be available to Lessee for Lease if so desired." Paragraph 1. c. Additional Leased Areas. CHANGE second sentence to read: "When the Excluded Areas have been vacated by Lessor (City) and offered for lease in writing to Lessee, Lessee, if so desired, may lease said Excluded Areas, within 30 days after receipt of such offer in accordance with the terms and conditions of this lease, and for the rent per square foot as follows:" ADD New Paragraph 1. c. (3) "Excluded Area 1273 on Exhibit "A'• . . . . . . . 10,600 sq. ft. @ $0.0514 sq. ft./yr." ADD New Paragraph .1. c. (4) "Lessee shall manage the transient aircraft park- ing spaces in Excluded Areas #2 & #3 and shall retain any revenue received for air- craft parking fees. Lessee shall be responsible for maintenance of said areas." Paragraph 7. Insurance DE= Paragraph 7. b. in its entirety. ADD New Paragraph 7. b. "As a condition precedent to the effectiveness of the lease and in partial performance of the Lessee's obligations hereunder, the Lessee shall obtain and maintain in full force and effect during the term of this agreement, a policy or Policies of Liability Insurance with carriers and in form satisfactory to City with minimum limits of $1,000,000 Single Limit Liability and Property Damage insurance. In addition, Lessee shall maintain policies covering automobile, hanger keepers, contractural and products liability and fire protection in amounts to be determined by Lessee and acceptable to City. All policies shall carry endorsements reciting the indemnity and save harmless provisions contained in Paragraph 7. a. above." DELETE Paragraph 7. d. in its entirety. ADD New Paragraph 7. d. "Lessee shall provide City with written evidence of all policies carried as required by this agreement and shall update said evidence as the respective policies are renewed or changed." Paragraph 8. Construction on and modification and Maintenance of Premises Leased: Paragraph 8. e. Public Lobby and Patio: RE-NUMBER first two paragraphs: "8. e. (1)" and 'T. e. (2)" respectively. ADD New Paragraph 8. e. (3) . "Control of the Lobby and Patio facility will be extended for a one (1) year term beginning 1 January 1990 and terminating 31 De- cember 1990. The City shall have the option to extend control of the facility for an additional one (1) year commencing 1 January 1991. City shall advise Lessee in writing at least ninety (90) days in advance of the 1 January 1991 date of their in- tent to exercise this option. Lessee shall be provided the Special Annual Incentive Credit ($5,897) by the City as specified in Paragraph 6. Lease Payments, herein. Paragraph 12. General ADD New Paragraph 12. d. UNICOM operation "Lessee shall provide and train UNICOM operators to conform to all appli- cable Federal Regulations. City shall subsidize personnel costs for said UNICOM operators to insure quality, well trained individuals are available to provide the desired level of competency and safety desired at the Redlands Municipal Airport. UNICOM operators shall be employees of Redlands Aviation Corporation and shall not be identified as employees of the City of Redlands nor shall they be eligible for any of the benefits or priviledges accorded City employees. Subsidy shall consist of payment of $9,600/year ($800/month) semi-annually to Lessee upon receipt of invoice. Subsidy shall remain in force until the full operation of the UNICOM shall revert to City as specified in Paragraph 8. f. herein." This Amendment No. 2 is effective 1 January 1990. Executed at Redlands, California, on this ep 4 day Of _1411ARIC-H 1 1990. CITY OF REDLANDS rt j ' ,:. m4yor o ~the', aft f fiL&dlarids ATTEST: Cit k, City i c?Y1C3s RE DLANDS AVIATION CORPORATION . rh Title REDLANDS AVIATION CORPORATION - CITY OF REDLANDS MASTER LEASE AGREEMENT REDLANDS MUNICIPAL AIRPORT LEASE AMENDMENT NO. 3 The MASTER LEASE AGREEMENT, effective January 1, 1979, as amended by AMENDMENT NO. 2, effective January 1, 1990, between the City of Redlands, hereinafter called "City, " and Redlands Aviation Corporation, hereinafter called "Lessee, " is hereby further amended as follows: Paragraph 8. Construction on and Modification and Maintenance of Premises Leased: Paragraph 8.e. Public Lobby and Patio: DELETE Paragraph 8.e. (3) in its entirety. ADD New Paragraph 8.e. (3) "Control of the Lobby and Patio facility will be extended for a period of eighteen (18) months beginning January 1, 1992, and terminating June 30, 1993 . The City shall have the option to extend control of the facility for an additional one (1) year commencing July 1, 1993. City shall advise Lessee in writing at least ninety (90) days in advance of the July 1, 1993 , date of their intent to exercise this option. The Special Annual Incentive Credit provided to Lessee by City ($5, 897. 00) , as specified in Paragraph 6. Lease Payments, herein, shall be adjusted as indicated in Paragraph 8.e. (4) below. " ADD New Paragraph 8.e. (4) "City shall lease to Lessee the Airport Manager's Office in the lobby facility (approximately 240 sq. ft. ) for the period indicated in Paragraph 8.e. (3) above at the rate of $1, 080/year. Said lease fee will be deducted from the annual incentive credit provided by the City. The adjusted incentive credit shall equal $4 , 817/year. In the event Citv intends to again occupy the Manager's Office, it shall advise Lessee of this intent, in writing, sixty (60) days in advance of said occupancy. When the office is again occupied by the City, the Special Annual Incentive Credit amount shall return to $5,897 . 00. This annual credit will be adjusted to reflect a charge of $90. 00/month for the period during which Lessee was in possession of the office. " ADD New Paragraph 8 .e. (5) "Lessee agrees to furnish janitorial service to the lobby facility as follows: 1. Vacuum all carpeted areas. 2. Empty all trash/waste receptacles. 3. Clean and service restrooms. 4. Sweep/mop uncarpeted areas. LEASE AMENDMENT NO. 3 PAGE 2 5. Remove cobwebs. Above services shall be as appropriate to maintain cleanliness. 6. Wash windows, inside and out. 7. Sweep patio and hose area. 8. Empty outside trash receptacles. Above services shall be weekly or as appropriate. 9. Wax uncarpeted areas once a month or as appropriate. 10. Steam clean carpets monthly or more often as appropriate. Lessee is to furnish supplies and equipment as necessary with exception of toilet tissue and paper towels, to be provided by City. " Lessee agrees to furnish the above services for the term specified in Paragraph 8.e. (3) above, to include option period if elected by City. City will reimburse Lessee in the amount of $1, 500/year (125. 00/month) upon receipt of billing by Lessee. Payment shall be in semi-annual amounts of $750. 00. In event of unsatisfactory performance of janitorial services, City reserves the right to cancel all or any portion of the above services by giving thirty (30) days written notice. This AMENDMENT NO. 3 is effective January 1, 1992. Executed at Redlands, California, on this 17th day of December 1991. CITY OF REDLANDS yy Mayor of hCity Redlands ATTEST: erk, of Redlands REDLANDS AVIATION CORPORATION By Tfi;Eie: �1' REDLANDS AVIATION CORPORATION-CITY OF REDLANDS MASTER LEASE AGREEMENT REDLANDS MUNICIPAL AIRPORT Lease Amendment No.4 The MASTER LEASE AGREEMENT,effective January 1, 1979,as amended by AMENDMENT NO.3,effective January 1, 1992,between the City of Redlands, hereinafter called"City", and Red- lands Aviation Corporation, hereinafter called "Lessee,"is hereby further amended as follows. Paragraph 8. Construction on and Modification and Maintenance of Premises Leased: Adlud new paragraph 8.k. Emergency Vehicle Parking Garage: "Lessee shall lease to City the garage at the north end of the west T-Hangar on Parcel No. 1 for the purposes of storing the emergency vehicle. The lease period shall commence on October 7, 1992 and terminate June 30, 1993. The City shall have the option to extend the lease for an additional one(1) year commencing July 1, 1993. City shall advise Lessee in writing at least ninety(90)days in advance of July 1, 1993 of their intent to exercise this option. The City shall be charged$75.00 per month or $900.00 per year for this lease. The lease charge shall be paid semi-annually in advance." This AMENDMENT NO.4 is effective October 7, 1992. Executed at Redlands,California,on this bthday of October 11992. CITY OF RED"N_ S e. .......7 A/ J/1 Ma y(?,r Attest: City Clek, City of R , lalllds REDLANDS AVIATION CORPORATION By: 'LL11 Title: L'_, REDLANDS AVIATION CORPORATION - CITY OF REDLANDS MASTER LEASE AGREEMENT REDLANDS MUNICIPAL AIRPORT Lease Amendment No. 5 The MASTER LEASE AGREEMENT, effective January 1, 1979, as amended by AMENDMENT NO. 4, effective October 7, 1992, between the City of Redlands, hereinafter called "City", and Redlands Aviation Corporation, hereinafter called "Lessee", is hereby further amended as follows. Paragraph 2. Non-Exclusive Rights Granted Amend paragraph 2.f. to read as follows: "Motel, restaurant, cocktail lounge, and related retail sales, includingi vending machines. Prior to approval of a cocktail lounge, a separate fee schedule will be negotiated by the Operator with City, on sale of alcoholic beverages. Paragraph 3. Rights Not Granted Delete paragraph 3.a. in its entirety and reletter all remaining paragraphs consecutively beginning with the letter "a". Paragraph 3.a., to be deleted reads, "Vending machines of all kinds." This AMENDMENT NO. 5 is effective October 21, 1997 Executed in Redlands, California, on the 21st day of October 1997. CITY OF REDLANDS y: ayor Attest: Dep,dty City Clerk REDLANDS AVIATION CORPORATION By: Title: -3- and subject to the conditions and covenants herein. e. Renewal Option Lessee shall have three successive options for extending this lease for periods of ten (10) additional years each, for 1999- 2008 , 2009- 2018 , and 2019- 2028 respectively, as regards the leasing of Parcels #1 and #3. Until the City exercises its right to terminate the lease of Parcel #2, this parcel , (#2) will be included in the exercise of the renewal option by the Lessee . 2 . Non-Exclusive Rights Granted The use herein granted is for a fixed base operation by the Lessee and includes the following non-exclusive rights to the Operator . a. Sales of new and used aircraft , aircraft parts , retail and wholesale, radio and electronic equipment , navigational and airman . supplies and accessories . b. Flight operations , including demonstrations of aircraft for sale , charter (with or without pilot) , and flight training (primary and advanced) . c. Maintenance , repair and overhaul of all types of aircraft , engines , instruments , radio and electronics gear. d. Line service , including fueling , lubrication and other servicing of any aircraft including military into-plane contracts and airline for those carriers which desire such services , a right to load and unload passengers and cargo and to transport passengers from transient aircraft parking areas to the terminal and other areas of the airport. e. Sales of automotive fuel , lubricants and accessories to ramp vehicles such as tugs , tractors , motorized ramps , baggage handling equipment , ground power units , space heaters , etc . ; a right to make repairs on ground service equipment . f. Motel , restaurant , cocktail lounge , and related retail sales , excludiM vending machines . Prior to approval of a cocktail I lounge , a separate fee schedule will be negotiated by the Operator with City, on sale of alcoholic beverages . g. Towing disabled aircraft . h. Financing and insuring aircraft . -4- i. Loading and unloading aircraft in any lawful activity. j . Service Charges -- a right to assess reasonable charges CP and fees to customers for all these services . k. Fueling aircraft of Operator, Operator' s customers and transients and to provide into-plane fueling to airlines and military which desire. such service-s . 1. Construction and rental of aircraft hangars and aircraft tie-down facilities and such buildings , to house activities authorized in paragraph 2a, b , c, h, herein. m. All advertising signs erected on the property will comply with city of Redlands Sign ordinance , and must have City approval , in C> writing, prior to erection. n. Activities other than those specifically stated in para- graphs a through m, paragraph 2 , herein, will not be conducted or serviced by the Lessee without written advance approval by the City. 3. Rights Not Granted The right to conduct the following activities , which are norma: conducted in an airport terminal building is not granted to the Lessee : Ta. Vending machines of any kind. __j b. Passenger flight insurance . C. "U" Drive authmobile service . d. Taxicab service. e. Public automobile parking for which a charge is made . (Fixed Base Operator Customer Parking is. not considered Public Parking) . f. Ticket counter space for any passenger travel by aircraft , except for aircraft charter service . .g. Travel agency operations , including sale of tours by aircraft . h. Commuter airline operation, including scheduled air trans - portation of freight and mail . 4 . Federal Aviation Administration Regulations Agreed T It is mutually understood and agreed by the Lessee and City, that the City of Redlands , in accepting Federal Aid for the development of the Redlands Municipal Airport , agreed in writing to FAA Regulations concerning any agreements ) contracts , leases , or other privileges given I in connection with the Airport. These FAA Regulations are attached as VENDING MACHINE LOCATION AGREEMENT This document is a location agreement between BROOKSIDE DAIRY, Route 2, Box 67, Redlands, California, hereinafter called the "Operator" and CITY OF REDLANDS, hereinafter called the ,Concessionaire" . Concessionaire agrees to allow Operator to install on his premises located at Redlands Airport, Mentone, Cali- fornia, and Operator agrees to install the following vending machines: I Candy Vendor (minimum of eight choices} 1 Cigarette Vendor (minimum of eleven choices) I Beverage Vendor (minimum Of two soft drinks plus milk and chocolate) I Fresh Brew Coffee Vendor (including. hot chocolate) Machines will be generally matching in regard to color and appearance. The Coffee Vendor, Beverage Vendor an Cigarette vendor will be equipped to accept a combination of nickels, dimes or quarters; the Candy Vendor will be equippe to accept a combination of nickels and dimes. Operator agrees to service and keep in good operas ing condition the above machines. Operator further agrees ?_ maintain a sufficient stock of saleable merchandise in above machines at all times. This shall be at no cost to Concessi aire. Stocking of saleable merchandise will be no less fre- quent than once every three days. Concessionaire has the right of approval of sell-ir prices of merchandise offered for sale. Concessionaire agrees to supply Operator with the necessary floor space for the operation of these machines ai further agrees to supply all necessary utilities for the operation of these machines at no cost to the Operator. Concessionaire agrees to use reasonable means vo protect said vendinc: machines Er=o van6z;1isr: , tneft�, or abu This is, however, at no liability to the Co operator zo enter said premises at such times during normal business hours of restock, and maintain said Operator to properly service, resc vending machines. operator agrees to install such additional vending machines as sales volume may indicate. Such additional 11 be at the discretion of the Operato: machine installation sha but with the approval of the Concessionaire. Concessionaire agrees I- ' f another vendor should in- stall additional vending machines in the above location the Operator has immediate permission to remove his (the Operator' vending machines. Concessionaire agrees that said vending machines are and shall remain the property of Operator and that Con- cessionaire shall not Permit said vending machines to be re- moved from his premises by anyone other than the operator. operator offers and Concessionaire accepts the following commissions on gross sales which are payable to Concessionaire not later than ten days after the end of each calendar month. Candy 10% Beverage 10% Coffee 10% Exceeding $75-00 1. 15% Exceeding $100.00 Cigarettes .03 cents per package It is understood and agreed that the schedule of commission payments is based on the present Federal, State, and City Excise Taxes and License Fees and also upon the cost of merchandise sold through said vending machines. In the event of a change in the cost of merchandise sold throug said machines, which change shall exceed 15% of cost of saic merchandise, or should taxes or license fees increase, and should these increased costs not be reflected in the retail selling price, then the schedule of commission payments pro- vided herein shall be adjusted to reflect such change on a mutually acceptable basis but, in any event, such change sh, reflect actual changes in the costs. This agreement shall remain in force for a period of one year from the date hereof, unless cancelled by the giving of written notice at least thirty (30) days prior tc -2- the termination date. This agreement is deemed to be auto- matically renewed from year to year thereafter upon the same terms and conditions set forth herein. This agreement is assignable by the Concessionaire. witness aur hands and seal this day Of 1967. BROOKSIDE WIRY CITY OF REDL2:NDS By By E . Mer itt, Jr. Dennis Martin City Manager Rt. 2, Box 67 Redlands City Hall Redlands, California Redlands, California MEN 0011 INNI