HomeMy WebLinkAboutContracts & Agreements_9-2007_CCv0001.pdf Recorded in Official Records. County of San Bernardino 11/27/2007
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''-•-i-A LARRY WALKER SH AM
eal;evEiNARfri:41): Auditor/Controller - Recorder
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RecordingRequest by . ,t-
R Regular Mail
—
And When Recorded Mail to
Docit. 2007-0666627 Titles: 1 Pages: 49
Cit\ (Jerk 1II II 1111 I 1111 I Fees
Taxes
Other 0 00
0 00
C it\ of Redlands PAID
P 0 Box 3005
Redlands. CA 92373
QUIRED Space Abo\e This 1 inc For Recorder s Use
i -, 4 IV CODE
103
RANCHO PAC IEEE PROPERTIES LL( dba REDI ANDS AVIATION
1 EASE. AGREEMENT
REDLANDS MUNICIPAL AIRPORT
FARCE! NOS 1 2 and 3
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AIRPORT I FASF
RLDLANDS MUNIC IP AL AIRPORT
RL DL \NDS C ALIFORNI A
This Lease Agreement ( I ease ) is made and entered Into this 16th day of-October
2007 ( Effective Date '). k and between the C ih of Redlands. a municipal corporation ("'C its ),
and Rancho Pacific Properties. 1 l C dha Redlands Aviation ( l essee ) City and Lessee are
sometimes individually referred to herein as a Parts and. together as the Parties.
Section I. Property Leased C it\ herek leases to Lessee certain real property located at the
Redlands Municipal Airport ( Airport ) which is designated as Parcel nos. 1 2 and 3 on the map
labeled as Exhibit A. and which is more particularly described in Exhibit "B (the 'Leased
Premises ') Both Exhibits A and 'B are attached hereto and Inwrporated herein by this
reference.
Section 2. Term of Lease The term of this 1 ease shall commence on the Effective Date of
this I ease and shall end on the 31St da\ of December 2029 unless earlier terminated as provided
for herein. Lessee shall have the option of extending the term of this Lease for three (9) year
extensions from January 1 2030 to December 31 2038 from Januar\ 1 2039 to December 31
2048 and from Januar\ 1 2049 to December 31 20',8
Section 3. Non-Exclusive Rights Granted
Lessee shall use the I eased Premises for a fixed base operation, which shall
include the following non-exclusive rights
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(1) Conduct sales of neyy and used aircraft. aircraft parts (retail and
holesale). radio and electronic equipment. nay Igational and airman supplies and accessories.
(2) C onduct flight operations. including demonstrations of aircraft for sale
charter (with or without pilot) and flight training (prunarr and advanced)
(3) Perform maintenance, repairs and overhauls of all types of aircraft,
engines. instruments. radio and electronics gear
(4) Perform line service including fueling. lubrication and other servicing of
an aircraft. including militar\ into-plane contracts. and for those airline carriers which desire
such service, 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.
(5) Conduct sales of automotive fuel, lubricants and accessories to ramp
vehicles such as tugs, tractors. motorized ramps, baggage handling equipment, ground po\Yer
units. and space heaters, and make repairs on ground sery ice equipment.
(6) Operate a restaurant and conduct related retail sales,
(7) Tow disabled aircraft:
(8) Finance and insure aircraft•
(9) Construct and rent aircraft hangars and aircraft tie-down facilities and
buildings to house activities authorized by this Lease
(10) Impose reasonable charges upon Lessee s customers for the provision of
ser\ices described in this Section and
(11) Place and install advertising and other signs, prodded such signs compl\
yy ith C s Sign Code and all other applicable laY\s, and have been approved by City prior to
plaLement or installation
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B Lessee hereh\ agrees that the building on the Leased Premises comprising the
I obb} the adjoining outdoor patio and the airport securlh storage room located within such
building, which are more shown on Exhibit 'C attached hereto and made as part of this Lease
shall he available for use b\ C it\ and the public subject to the follow ing conditions:
(l) Use of the I oblw During the terns ofth►s Lease the Lobby shall be used as a
public airport lohb\ and patio and for an other related purposes deemed
appropriate b\ C it\
(2) Operations. Lessee shall be responsible for providing lock and key service for
the Lobb and opening and closing of the I obbw 365 days of the year 8.00a.m
to 5•00 p m Lessee shall also make the Lobb\ available for public meetings
City shall have access rights to the Lobb\ and the exclusive right to enter and exit
the storage room at all times during the term of this l ease for the proper operation
and maintenance ofthe Airport securih system
(3) Furnishings C ih shall furnish tables and chairs for the I ohby
(4) MaintenanLe The Parties shall shaft equall\ all expenses for the maintenance of
the air conditioning and heat pump hot water heater eater cooler and plumbing
of the Lobb' [ essee shall pros ide light bulbs for the perimeter of the Lobby
building and patio area. Lessee shall maintain thL temperature in the storage
room at all times at no greater than 7'. degrees fahrenheit and no less than 60
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decrees lahrenheit. C it\ shall pal for and provide. electricity and light bulbs tier
the Lobby and parvo area I1C it\ determines that new flooring for the Lobby is
required. the cost for the new flooring shall be shared equally by the Parties.
(5) Janitorial Sery ices. Lessee shall provide janitorial services for the Lobby and
patio area. l essee shall also pro\ide gleaning equipment. Lleanmg supplies.
garbage receptacles and bags C leaning includes carpet. windows. chairs.
washrooms. patio entrances and trash removal C 1t1 shall provide toilet paper
and paper towels for the Lobby Lessee shall not provide janitorial services to the
storage room
(6) Alterations and Liens Lessee shall not make or permit any other person to make
any alterations to the Lobby without the prior written consent of City
Furthermore. an and all alterations, additions. improvements and fixtures. except
furniture and trade fixtures. made or placed in or on the Lobby by Lessee or ant
other person shall, on expiration or earlier termination of this Lease. become the
property ofC 1t1 and remain on the Premises C it\ shall have the option. however
on expiration or termination of this Lease. ofrequiring Lessee at Lessee s sok
cost and expense. to remol e ant or all suLh alterations. additions. improvements
or fixtures from the Lobb\
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C, Lessee shall. during the term of this L ease. make mailable to City the garage
located at the north end of the \\est T-Hangar on Parcel No 1 of the Leased Premises for the
purpose of storing emergenc\ \chicles.
D Activities other than those speLItiLall\ described in paragraphs A(1) through (1 I )
of this section are prohibited, and shall not be conducted b\ L essee \\ithout the prior written
consent of City Further notwithstanding an\ other pros ision of this section, Lessee shall not
erect. nor permit the erection of. any structure or object nor permit the growth of any tree on the
Leased Premises in violation of height restrictions governing the L eased Premises contained in
the Redlands Municipal Code. nor shall Lessee make use of the Leased Premises in any manner
which might interfere with the landing and taking off of aircraft from the Airport or otherwise
constitute a hazard.
Section 4 Compliance yy ith Law s.
A. Lessee shall, at Lessee s own cost and expense comply. with all statutes.
ordinances. regulations and requirements of all governmental entities. federal, state. county and
municipal relating to Lessee s use and occupancl ofthe Leased Premises. whether those statutes,
ordinances, regulations and requirements are now in force or are subsequently enacted. If am
license, permit or other goy ernmental authorization is required for use of occupancy of the
Leased Premises, Lessee shall procure and maintain such license, permit or authorization
throughout the term of this Lease f hejudgment of an\ court of competent jurisdiction. or the
admission by Lessee in a proceeding brought b\ any goy ernment agent\ that Lessee has
y iolated any such statute ordinance, regulation or requirement shall be conclusive as between
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C it\ and Lessee and shall constitute grounds for immediate termination of this Lease by City
provided, however that if an\ such \iolation is subject to cure by I essee Lessee shall have si\t\
(60) days from and after the Judgment or an\ admission b\ Lessee of a \iolation. whichever is
earlier in time, to effect a cure ofsuch \iolation If C it\ reasonabl\ determines that Lessee has
cured the violation within such si\t\ (60) da\s, no termination of this Lease shall occur as a
result of the judgment or the admission b\ Lessee of the violation
B Lessee assures that it will undertake an of irmativ e action program as required b\
14 C FR Part 152, Subpart F to insure that no person shall on the grounds of race, creed, color
national origin,or sex he excluded from participating in any employment activities covered in 14
CFR Part 152, Subpart E Lessee assures that no person shall be excluded on these grounds from
participating in or receiving the services or benefits of any program or activity covered by this
subpart. Lessee assures that it will require that its covered suborganizations provide assurances
to Lessee that they similar!. \\ill undertake affirmative action programs and that they will require
assurances from their suborganizations. as required b\ 14 C 1-R Part 152, Subpart E, to the same
effect.
Section 5 Federal A\ration Administration Regulations and Cit Reserved Rights. l essee
understands and agrees that C h\ accepting Federal aid for the de\clopment of the Airport.
agreed to comply with Federal \yiation Administration ( F \A ) regulations concerning
agreements, contracts, leases and other privileges giv en in connection with operation of the
\irport Such FAA Regulations are attached hereto as Exhibit D and are incorporated herein
b\ this reference Lessee has no responsibilit\ for the fulfillment of Sections 6a, 6b 6c, 7 8 �)
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10 11 13 14 or 15 of F\hibit 'C In addition to its rights under the FAA regulations, C it\
reser\es for itself the follow mg rights
A The right to further dei clop or impro\e the landing area of the Airport as
determined reasonable or necessary in C it s sole discretion, regardless of the desire or opinion
of I essee and without interference or hindrance by Lessee
B The right. but not being obligated to I essee to maintain and keep in repair
the landing area of the Airport and all publiLI's-owned facilities of the Airport. together with the
right to direct and control all activities of Lessee with regard to all publicly-owned facilities at
the Airport.
C The right to subordinate this Lease to the provisions and requirements of
any existing or future grant agreements between C it and the United States, or any existing or
future FAA regulations relative to the development. operation or maintenance of the Airport.
D The right of flight for the use and benefit of the public for the passage of
aircraft in the airspace above the Leased Premises. together with the right to cause 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 tier landing at. taking off from. or operation at the Airport.
Section 6 Termination ofAgreement
A. Lessee may terminate this I ease. without penalt by providing twelve
( 12) months prior written notice to C it During suLli nonilLation period. all terms of this l ease
shall remain in force.
B C it may terminate this I ease upon the occurrence of any of the following
cy cuts
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(1) Filing of bankrupts\ proceedings h\ or against 1 essee
(2) Lessee Lontinucs to conduct actio it\ not authorized h\ this Lease. after
sixt\ (60) days prior written notice from C it\ to cease and desist such
aetiv►t\
(3) Lessee makes an general assignment for the benefit of creditors.
(4) Lessee s abandonment or discontinuance of operations at the Airport
(5) Lessee defaults in the payment of Rent or violates any of the terms or
conditions of this Lease. and the Rent is not paid or the violation is not
corrected within sixt\ (60) days after service of notice as provided in
Section 14 hereof
(6) Lessee s failure to perform. in an efficient. business-like manner so as to
promote good public relations. generate customer goodwill and reflect
credit on both C rt\ and Lessee. the follow ing minimum duties under this
Lease
(a) Provide aviation fuel service for aircraft, daily including
weekends and holidays. during normal operating hours. Normal operation
hours are defined as 8 00 a.m to -3 00 p m
(hl Pro\idc emergenc\ aviation fuel and emergency minimum
mechamcal repair ser\ices for aircraft outside of normal operating hours.
when reasonable to do so
(c1 Maintain the Leased Premises and improvements in good
condition and repair at its sole expense
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(7) Lessor for reasons be\and its control is prohibited by any Federal or
State regulator\ aeenc\ from operating, the property comprising the
Airport for aviation purposes
(8) Lessor in its sole discretion. determines to cease operating the propert\
comprising the Airport for aviation purposes
C In the e\ent of termination h\ C it\ for an\ of the reasons listed in
subsection 6B. hereof. C it\ shall ha\c the following rights
(I ) In accordance with C it\ s FAA Assurance no 16 (Exhibit D )
\\hich specifies 'if an arrangement is made for management or operation of the Airport by an\
agency or person other than the Sponsor [C it\ 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 co\cnants. City at its option
and if it is necessary and essential to provide aeronautical facilities neLessary for the operation of
the Airport, may operate Lessee s a\iation fuel service and normal aircraft tie-down and Tce
Hangar area. at no personal or financial liabilit\ to Lessee during such operation by City which
operation shall be for such limited period as is required to obtain on the Airport other fixed base
operation service. but in no e ent longer than twelve (12) months. The exercise of this right to
conduct Lessee s fixed base operation does not constitute a \\ai\er h\ City of any damages
arising from Lessee s failure to compl\ \\ith the terms of this L case All assets accruing from
C it\ s operation of the Leased Premises. \\hich include all rental payments due City under this
I ease less customary operating expenses. shall be credited h\ C it\ to Lessee s interest.
D
Termination of this L ease shall not relies e either Party of any liabilit\ or
indebtedness incurred to the other Part\ prior to such termination
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Section 7. Rent and Fuel Flow ace Payment
A. l'he annual rent ( Rent ) to he paid to C its h\ lessee shall be F ight\
Thousand Six Hundred Fort\ Nine Dollars and Eights Four Cents ($80 649 84). payable in tour
approximately equal. quartet-1\ installments on or before Mardi 31 .lune 30 September 30 and
December 31 of each year during the term of this Lease The first Rent installment shall he
prorated and shall be due and pa\able '.ithin ten ( 10) da\s of the Effective Date of this lease.
with successive installments due and pa\able on each subsequent September 30th December 31'
March 315t June 30th during the term of this Lease Rent shall be pa\able at the office of C its at
35 Cajon Street. Suite 15A Redlands. California. or at an other place as City from time to time
designates by written notice to Lessee
B if F essee exercises its right to extend the term of this Lease for 2029 -
2038. the Rent for such \Lars. and for an successive Lease term extensions, shall be increased
to an amount equal to eight\ percent (800/0) of the Fair market value of unimproved land at
airports comparable to City s Airport. zoned for airport use purposes, and of an acreage amount
equal to that of the Leased Premises In the event the Parties are unable to agree upon a fair
market value. City and Lessee. each. shall obtain an appraisal in connection with the
determination of fair market value ltter an exchange of such appraisals and further
negotiations, in the event the Parties remain unable to agree upon the fair market value, then C it's
and Lessee shall request the appraisers ‘‘,ho performed such appraisals to choose a third appraiser
to determine fair market aluL The third appraiser s determination of fair market value shall he
binding on the Parties.
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C The Rent shall he increased e\er\ ti\e \ears from and after the Effective
Date of this Lease. and through an\ extensions hereof h\ an amount equal to the percentage
increase in the Consumer Price Index. All Urban Consumers (I os \ngeles - Riverside - Orange
C ounty) for each such the v ear period
D In addition to the Rent described in this section Lessee shall pay to Lessor
the sum of $0 02/gallon for each gallon of fuel delivered to the Leased Premises. The Fuel
Flo\\age payment shall he made at the same tines as Rent payments are made A copy of all
hulk delivery invoices of petroleum products delivered to the Leased Premises shall accompan\
each quarterly fuel flowage payment to C it\ Lessee shall he responsible for all maintenance of
fuel pumps and storage tanks on the I eased Premises. and for an\ required replacement or
expansion of existing fuel storage facilities
E City shall have the right to inspect Lessee s books. including books of all
sub-lessees, at all reasonable time to vent\ all statements of income, accountings and invoices
required to be made by this Lease
F If h\ reason of an\ 1ct of Congress. Presidential Executive Order
Regulation of Federal A\iation Administration. or during tune of \var or declared national
emergency the right of the citizenr\ at large to engage in private living activities is prohibited
absolutely or temporarily suspended. the amount of Rent to he paid h\ I essee shall be reduced to
a reasonable rental in vie\\ of such circumstances as ma\ from time to time be agreed to b\ the
Parties or in the event the Parties hereunder are unable to agree upon a reasonable rental. then as
ma‘ be determined by arbitration
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G Should C it\ Llose the run\\a\ and the taxiway for public use. other than
for limited periods necessitated b\ construction or nuntenanLe. then the obligation of Lessee to
pa\ Rent to City shall be terminated
H If during time of war or national emergency the United States
(Jo\ernment shall require for militar\ uses all or such portions of the Leased Premises that a
reasonable amount of reconstruction of the I eased Premises will not permit the Lessee s
practical continued occupanc\ the pros isions of this Lease, insofar as they are rendered
impossible of fulfillment b\ reason of the united States Government s use of the Leased
Premises. shall be suspended for the duration of such governmental use During any such time
of war or national emergency, City shall have the right to enter into and execute an agreement
with the United States Government for such militar\ use without terminating or otherwise
affecting this Lease, but rather with the effect of suspending an\ provisions of this Lease insofar
as they are inconsistent \\ith those contained in the agreement of City with the United States
government. Any such period of suspension of operation of this Lease shall be added to and
shall extend the term of this Lease, and no Rent shall he paid during the period of suspended
operations.
Section 8. Indemnity Lessee shall defend uldemnif\ and hold C ity and the propert\ of
C it\ including the Leased Premises and impro\ements no\\ or hereafter on the Leased Premises.
free and harmless from an and all habilit\ claims, loss. damages or expenses resulting from
Lessee s occupation and use of the I eased Premises. speLificall\ minding, without limitation.
an\ liability claim, loss, damage or expense arising h\ reason of.
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A The death or InjurN of am person mLludmg I essee or any person who is
an employee or agent of I essee or b\ reason of the damage to or destruction of any property
including property owned b\ Lessee or b\ am person ho is an employ ee or agent of Lessee.
from any cause whatever while that person or property is in or on the 1_eased Premises or in an\
\\a\ connected with the 1 eased Premises or \\Ith an\ of the Impro\ements or personal propert\
on the leased Premises,
B The death or Incur\ of am person. including I essee or any person who is
an employee or agent of Lessee or b\ reason of the damage to or destruction of any property
Including property owned b\ Lessee or an person who is an employee or agent of Lessee.
caused or allegedly caused b\ either (I) the condition of the Leased Premises or the
improvements on the Leased Premises or (2) some act or omission on the Leased Premises of
Lessee or any person in. on or about the Leased Premises \\ith the permission and consent of
Lessee,
C An work performed on the Leased Premises or materials furnished to the
Leased Premises at the instance or request of Lessee or an person or entity acting for or on
behalf of Lessee or
D I essee s failure to perform ank provision of this Lease or to comply with
an\ requirement of law or an\ requirement imposed on 1 essee or the Leased Premises by an)
dul\ authorized governmental agene\ or political sill-xi]\ision
Section 9 Insurance
A Insurance Lessee shall at I essee s omn cost and expense.
proLure and maintain during the term of this I ease a broad Corm Lomprehensive coverage polio\
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of public. liability insurance issued b\ an insurance company licensed b\ the State of California
insuring Lessee and City against loss or llabilit caused by or connected \\ith Lessee s
occupation and use of the Leased Premises under this l ease in amounts not less than Two
million dollars($2,000 000) for Incur\ to or death of one person and, subject to that limitation for
the injury or death of one person. of not less than Five million dollars (Sri 000 000) for inuun to
or death of two or more persons as a result of any one accident or incident. and Two million
dollars ($2.000 000) for damage to or destruction of an\ propert\ Such insurance shall be
primary with respect to C it\ and non contributing to any insurance or self-insurance maintained
by City
B A\iation Liability Insurance including A\nation Products and Completed
Operations. Hanger Keepers Legal Liability Insurance Ay iation Llabillt\ & Products &
Completed Operation co\erages shall have limits of F ive Million Dollars ($5 000 000) CSL
Because Lessee assumes care. custod\ and control of aircraft stored in hangers, City requires
Hanger Keepers Legal Llabillt\ in an amount of Two Million Dollars ($2.000 000), or if stored
aircraft is in excess of this limit, an amount equal to the ay erage value of all said stored aircraft.
C Fire and C asualt\ Insurance Lessee shall at Lessee s own cost and
expense at all times during the term of this Lease, keep all impro\ements on the Leased
Premises insured for their full replacement value h\ insurance companies authorized to do
business in the State of C alifornia against loss or destruction b\ tiro and the perils commonly
covered under the standard extended co\erage endorsement to tire insurance policies in San
Bernardino County California
D Automobile Llabillt\ lnsuranLe l essee shall at the Lessee s own cost and
expense at all time during the term of this Lease keep in effect a automobile Liability InsuranLe
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coverage with limits of One Million Dollars ($1 000 000) C SL for all owned and non-owned
automobiles.
E I essee shall v ithin ten ( 10) da\s atter the F lfecti\e Date of this Lease
and promptly thereafter\\hen an\ such polio is replaced. rewritten or renewed. deliver to Cit\ a
true and correct copy of each insurance polic\ required h\ this Lease or a certificate executed b\
the insurance company or companies or their authorized agent e\idenLinw that policy or policies
F Each insurance polic\ required under this Lease shall contain a provision
that it cannot be modified or cancelled for an\ reason unless at least thirt\ (30) days prior written
notice of the modification or cancellation is given to C it\ in the manner required by this Lease
for service of notices on Cit\ b\ Lessee
G Except for Worker s Compensation Insurance. City shall be named as an
additional insured under such policies of insurance and such insurance shall be primary and non-
contributing to any insurance or self insurance maintained h\ Cit\ I essee shall be required to
inform City in writing of an\ change. expiration or renewal of an\ insurance policy within thirt\
(30) days of the effective date of change Further each polic\ shall provide that the same shall
not he cancelled or modified until a thirt\ (30) da\ written notice has been mailed to the City of
Redlands, Attention Airport Manager ,5 C aloe Street. Suite Redlands. California 92373
H The procuring of such policies of insurance shall not he construed to be a
limitation upon Lessee s liabilit\ or as lull performance on I essec s part of the indemnification
pro\isions of this Lease I essec s obligation being. not ithstanding such policies of insurance.
responsible for the full and total amount of an\ damage inlur\ or loss caused by negligence
connected with Lessee s operations under this I easy
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I The insurance required to he pro\ ided b\ l essee b\ this section shall be
subject to annual review and re\ision h\ Cit\ s Risk Management Department, and Lessee shall
promptly comply with an\ suLh revisions requested h\ Cit\
Section 10 Construction of'Impro\ements and Maintenance of Leased Premises.
A. I.essee shall maintain the Leased Premises in good condition and
presentable appearance at all times at Lessee s expense Lessee ma\ construct, modify repair or
improve the Leased Premises at any time during the term of this Lease in conformance with
established and customary standards of fixed base operations. zoning ordinances, sign
ordinances, and building codes ofCit\ and the terms of this Lease provided, however that
Lessee shall not construct. or permit the construction of. any building within the northerly 150
feet and the easterly 75 feet of Parcel no 2 Fath proposal by Lessee for construction on. or
modification of. the Leased Premises shall have prior written appro\al by City All building
maintenance on the Leased Premises shall be the responsibility of Lessee
B Gasoline storage tank maintenance and replacement shall be the
responsibility of Lessee
C Upon an termination of this Lease except pursuant to Section 6B(8)
hereof all structures constructed h\ I essee including foundations, shall he removed from the
I eased Premises by Lessee at I essee s sole expense Notwithstanding the foregoing, City shall
hay c the option to purchase an\ or all of the structures on the I eased Premises at the termination
of this Lease. if a mutual[\ agreeable price for such structures is negotiated by City and Lessee
In the event of termination of this I ease pursuant to Section 6[3(8) hereof Lessor shall pay to
I essee the then-existing fair market \alue of Lessee s interest in this Lease and all structures and
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improvements owned by Lessee on the properl\ that is the subject of this Lease. Fair market
alue shall be determined h\ an appraiser mutuall\ agreed upon h\ I essor and Lessee If Lessor
and l_ essee cannot agree upon an appraiser then both l essor and I essee shall each select an
appraiser and such appraisers shall select a third appraiser \\ho shall then determine fair market
\alue
D Lessee shall be responsible for the installation of all utilities necessary to
sere the Leased Premises, including ‘Yater lines and fire h\drants that may be required. and
shall pay for all utilities used on. or b\ the Leased Premises.
E Lessee shall permit C it\ to enter upon and inspect the Leased Premises at
all reasonable times.
Section 11 Subcontracting Rights Lessee shall have the right to subcontract activities
permitted under the terms of this l ease provided suLh subcontracts satisfy, the requirements of
this I ease, including Cit s requirements concerning insurance and financial responsibility and
have prior written approval h\ Cit\ Lessee shall notif\ C it\ in writing, of any proposed
subcontract. or such subcontract shall he null and void Cit\ appro\al of such contracts shall not
he unreasonably withheld.
Section 12 Taxes
A Lessee shall pa\ during the term of this Lease \\'thou!abatement,
deduction or offset. any and all real and personal propert\ taxes. general and special assessments.
and other charges (including an\ inLrease caused h\ a change in the tax rate or by a change in
assessed valuation) of an\ description le\'ed or assessed during the term of this Lease by any
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goy eminent agency or emits on or against the I eased Premises. the improvements located on the
L eased Premises, personal property loLated on the Leased Premises, and the leasehold interest
created by this Lease Lessee achnoss ledges and agrees that. in accordance with California
Rey enue and Taxation Code section 107 6 that the l eased Premises may be subject to property
taxation and that Lessee may be deemed to have a possessors interest in the Leased Premises and
may he subject to the pas meat of property taxes les ied on such interest.
B Lessee shall defend. ►ndemnifi and hold C its harmless from and against
ans liability, loss or damage resulting from any taxes. assessments or other charges required hs
this Section to be paid b\ I essce and from all interest. penalties and other sums imposed thereon,
and from any sales or other proceeding to enforce collection of ans such taxes, assessments or
other charges.
Section 13 General
A. Each and all of the terms and conditions of this Lease are subject to the
regulations and provisions of law applicable to the operation of the lirport as a Federal Aid
Airport Project. If any provision of this Lease is deemed invalid. the other provisions of this
Lease which are valid shall remain in effect. and this I ease shall he renegotiated to comply ss ith
the requirements of the applicable lases and regulations.
B During the term of this Lease Lessee shall comply with all laws, rules and
regulations promulgated and enforced hs C its and bs any other authority having jurisdiction
os er the conduct of operations at theAirport
C C its shall have complete dominion over the 1 eased Premises during the
term of this Lease for thy. purpose of and to the extent necessary to maintain law, order and
L 1 i)IM •Nfree RMA Lease A ir.in,I I l)
4 I 7 •):<. am
salet\ and shall have the authority and right to den\ access to the Airport by any person V1,ho
fails to conform in all respects to this Lease
Section 14 Notices
All notices shall be giv en in writing b\ personal delis ery or by United States mail
Notices, sent by mail should be addressed as follows
City City of Redlands
\ttention Airport Manager
PO Bo\ 3005
Redlands. C A 92373
Lessee. Rancho Pacific Properties. LLC dba
Redlands Aviation
1745 Sessums Drive. Suite 170
Redlands. C A 92374
When so addressed. such notices shall be deemed given upon deposit in the United States Mail
Changes may be made in the names and addresses of the person to who notices and payments are
to be given by giving notice pursuant to this section
Section 15 Assignment of Lease, Successors and Assigns
A. Lessee shall have the right to assign this Lease subject to the assignee meeting
City s requirements concerning financial responsibility and City granting advance written
approval Any assignment of this Lease shall require that the assignee be subject to all
conditions, items and pros isions of this Lease C it\ appro\al of such assignments shall not he
unreasonably withheld
B By this Lease. Lessee binds itself and its representatives and all successors and
assigns in interest. Lessee guarantees the performance ofan\ and all covenants and conditions
contained in this Lease, and upon the failure of am successor in interest to so perform, Lessee
shall complete such covenants. conditions and requirements of this I ease
yl Agree,RMA Lease A mreenr:nt 20
1")-21 am
C In the event an\ action is commenced to enforce or Interpret any term or condition
of this Lease the prevailing part\ in such action. in addition to its Losts and other relief, shall be
entitled to the recovery of its reasonable attorne\s tees. InLludinrg tees for use of in-house
counsel of a Party
[) This Lease constitutes the entire agreement between C its and Lessee respecting
the I eased Premises. the leasing of the Leased Premises to [essee the construction and
operation of the Redlands \irport described in this Lease. and the Lease terms set forth in this
Lease and correctly sets forth the obligations of its and Lessee to each other as of its date
An agreements or representations respecting the Leased Premises that are not expressly set
forth in this Lease are null and void
E This Lease shall be governed b\ and construed in accordance with the laws of the
State of California.
Section 16 No Partnership or Joint Venture Nothing in this Lease shall be construed to
render C ity in any way or for ans purpose, a partner joint venturer or associate in any
relationship with Lessee. other than that of C it\ and Lessee. nor shall this Lease be construed to
authorize either Party to act as agent for the other
Section 17 Partial Insalidit\ If an\ pros ision of this Lease is held b\ a court of competent
_purisdietion to be either in\alld. sold or unenforceable the remaining pros isions of this Lease
shall remain in full force and effect unimpaired b\ the holding
Section 18 Time of Essence Time is evpressl\ dei fared to he of thL essence of this Lease
I \ I_U\i''\,ree,RMLA Lease A.Lreemc m 21
1, .2. atm
Section 19 Memorandum of Lease for Recording C it. shall record this Lease or the
memorandum or short form of this I ease which describes the Parties. sets forth a description
of the Leased Premises, specifies the term of this 1 ease. and incorporates this Lease by reference
in a form substantially as set forth m F\hibit F attached hereto
Section 20 Headings Any captions or headings follow mg a section. subsection, paragraph
and preceding the operative text thereof shall be for convenience of reference only and shall not
in any way control or affect the scope intent, meaning, construction. interpretation or effect
thereof
Section 21 Definitions of Da. Day or days means calendar daY or days. except as
otherwise expressly qualified herein as 'business days
Section 22 Actions orCit\ in its Governmental Capacith Nothing herein shall be interpreted
as limiting the rights and obligations of itx in its governmental or regulatory capacity including
land use and permitting actions
I l -\ DIM'\.!reeeRMA Lease A_ceeincnl l )
--
Section 23. Further Assurances. EaL.11 Part\ shall excLute and delis er any instruments, and
perform any acts as may he necessar\ or reasonahl\ requested h\ the other Party in order to gis e
tull effect to this Lease
\ecuted at Redlands, California on this 16thda\ of October 2007
C 1TA' OF REM_ ANDS
13\
Mayor Jon Harrison
TIEST
)
_
Cit\ Clerk Rancho Pacific Properties, LLC
dba Redlands Aviation
LESSEE
Name Adkit,
Title _AAA
AvreeRMA Lease Agr, 1,
tc23 am
L-PURPOSE ACKNOWLFDGNIENT
SI NIT OF CALIFORNIA
OUNT1. OF SAN BERN 1RDINO ) SS
( Ii ) OF REDLANDS
B\ the authority granted under Chapter 4 Article Section 1181 of the C alifornia Civil Code and
hapter 2 Division 3 Section 40814 of the ( alifornia (los eminent C ode, on October 17 2007
before me Teresa Ballinger Assistant C ity Clerk, on behalf of 1 orrie Poyzer, City Clerk of the City
of Redlands, California, personally appeared Jon flamson, Mayor and Lome Poyzer City
Clerk \ personally known to me - or - ; pros ed to me on the basis of satisfactory evidence to
tk. the persons whose names are subscribed to the ss ithin instrument and acknowledged to me that
the\ executed the same in thur authorized capacities and that by their signatures on the instrument
the persons, or the entity upon behalf of which the persons acted, executed the instrument.
/ \A/ITNESS MN hand and official seal.
\own,
0\‘ E 2/,
4,\ 0
.• A /1, ",„_ LORRIF POYZER, CITY CLERK
2_•• 0 /44,-oseopi
=
•
* 1888 *
-1 •••••••••• S1-9
Teresa Ballinger Assistant City Clerk
(909)798-7531
CAPACITY CLAIMED BY SIGNER(S)
{ I Individual(s) signing for oneself/themselves
t ) Corporate Officer(s)
Title(s)
Company
I Partner(s)
Partnership
I Attorney-In-Fact
Principal(s)
I I Trustee(s)
Trust
x } Other
Title(s) Mayor and C its Clerk
Entity Represented ( its of Redlands. a municipal corporation
I
Fl ( F RTIFICATE MUST BE I NC FIE D TO fl IL DOC UMENT DESCRIBED BELO\\
ItIL or Type of Document. Rana() PaciliL Properties, LI C dha Redlands Aviation - Lease
\greLment
Date of Document: October 16 2007
sq..ner(:,) Other Than Named kbos L Raikho PaL I liL Properties I LC dba Redlands Aviation bs
Bill Angel Manager
ACKNOWLEDGMENT
State of California
County of 3 PoN.i BE2NA.4 AIO
On n- before me, ST AV-1
PA5A64, Norm Bulk- personally, appeared
At• I personalh known to me (CIF pro\ed to me
on the basis of sanstactor\ evidence)to be the person(1-)whose name(s) is/asubscribed to the within Instrument
and acknowledged to me that he4,44e4l.reN executed the same in his,i+emI ew authorized capacit(Icsi and that b‘
his/4er thrtr sI omaturet-tet on the instrument the person or the entity upon behalf of which the personh-s+acted,
executed the Instrument
WITNESS m\ Anand and official seal.
.:�`� STAHI A. HASAN
U.'` AVCOMM. #169027
(Signature) e�� ' '-.�;NOTARYPUBUC CALIFORNIA
` ,- iCOMM.EXPIRES OCT COUNTY20110 0
Y
Encls Areas Leased and \reas \eluded Exhibit A
Legal DesLriptions of Leased Land Exhibit B
Lobby patio and storage room identified Exhibit 'C.
City of Redlands assurances to Federal \A ration administration Exhibit D
Memorandum of Lease Exhibit F
I A DJ1f Auee‘RisLA Lease Agr enirnt 24
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4 PARCEL I'y` 3 OF LEASE - ( 154,433 s4. ft )
ri 3 = il
Lcri z* PARCEL *1 OF LEASE. ( 431,405 sj ft )
rmaa� sr
1� .o M PARCEL * 2 OF LEASE ( 162,320 sr�. f} )
F-----1 EXCLUDED AREA 'I' r` ( 12, 464 sq. ft
1111111111 11111 EXCLUDED AREA sF,Z ""( 10,000 s9• fl-.
riA EASEMENT 4 I TO CITY FOR AIRCRAFT ACCESS TO TAXIWAY
hk. N EASEMENT *2 TO CITY PEDESTRIAN AGGKSS FROM AUTO PARK iI►I6 TO PUBLIC LOBBY
.r:«.,it\s:14666,
.. __EASE M E NT .3 TO CITY _ VEHICULAR AND PEDESTRIAN_ACCESS_'O' TAXIWAY _
-----
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rExhibit '1.6' to Lease Redlands Munici •al Air ,ort
Le.al Descri •tion of Parcel #1 Land Leased
portion of the East half of the East half of Section 13 ,
All that p
T. 1 S ,
R. 3 W. , San Bernardino Base & Meridian in the City of
ands County of San Bernardino , State of California , described
Redl ,
as follows :
inning at the Northeast corner of the Southeast 1/4 of said
Be g
Section 13 , thence North along the East line of said Section 13 to
the intersection with a line parallel with and 17 feet (measured at
les) north of said North line of the Southeast 1/4 of Section
right an g
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-
sured at right angles) West of said East line of the East half 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
les) South of said North line of the Southeast 1/4 of Section
right an$
13 thence East along last said parallel line, 380 feet to the begin-
' of a tangent curve concave Southwesterly and having a radius of
ning
320 feet , thence Easterly and Southerly along said curve through a
central angle of 33° 33 ' 26" an arc distance of 187.42 feet to the
in of a reverse curve concave Northeasterly and having a radius
beg�.nn g
of 280 feet ; thence Southerly and Easterly along last said curve
through
a central angle of 33° 33 ' 26" an arc distance of 163 99 feet
enc with a line parallel with and 540 feet (measured
: to a point of tan 8 Y
-1-
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 Southe ''st 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 with a 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 (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 465 54 feet 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 389 feet (measured
at right angles) South of said North line of the Northeast 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 454 . 54 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 400 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 496 04 feet (measured
at right angles) West of said East line of the Northeast 1/4 of the
-3-
L-`
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-
And also, the City of Redlands shall retain an Easement there-
from described as
e inning at the Northeast corner of the Northeast 1/4 of the
Bs
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
intersection with a line parallel with and 550 feet (measured at right
West of the East line of said Northeast 1/4 of the Southeast
angles)
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 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 540 feet (measured at right angles) West of said East line of the
4 of the Southeast 1/4 of Section 13 , thence South along
Northeast 1/
last said parallel line to the intersection with a line parallel with
and 242 feet (measured at right angles) South of said North line of
ortheast 1/4 of the Southeast 1/4 of Section T3 ; thence East
the N aralle
last said parallel line to the intersection with a line p
alon g
with and 534 04 feet (measured at right angles) West of said East lin
theast 1/4 of the Southeast 1/4 of Section 13 , thence South
of the Norara 11e
along
last said parallel line to the intersection with a line p
t South of said North line of the Northeast 1/4 of th
with and 252 fee arallel lir
ast 1/4 of Section 13 , thence West along last said p
SouChe measured
to the intersection with a line parallel with and 550 feet
-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-
Legal Description of Parcel I2 , Land Leased
All that portion of the East half of Section 13 , T. 1 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 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
11,
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
-1-
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 Half of Section 13 ; T 1 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 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 965
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-
)3
Legal Description of Parcel N3 , Land Leased
That portion of the North 1/2 of the Southeast 1/4 of Section
13, Township 1 South , Range 3 West , San Bernardino Base and
Meridian, according to Government Survey described as follows
Beginning at the Southeast corner of said Section 13 as
shown on Parcel Map No 1124 recorded in Book 12 of Parcel Maps ,
Page 14 in 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 89° 54 ' 37"
West , 1557 05 feet to the True Point of Beginning , last said
point being 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 21 ° 34 ' 21" an
arc distance of 105 42 feet , a radial at said point bears North
21 ° 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
357 00 feet , thence Southwesterly at right angles to last said
line to the True Point of Beginning
'
Redlands Municipal Airport Lobby
P
Covered Patio
Lobby
Redlands N
r!/.
�o 8G2 S.F.
Aviation
Office
SOLE (2c3 S.F.)
= !0'
13,
/2'
`;' Storage Room
Bathrooms
195 s. ) I
501
EXHIBIT 'C '
T T G
Exhibit 'D'
City of Redlands (Sponsor) Assurances to the Federal Aviation Administration in
connection with Project Application dated September 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 (but not 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 Airport as may be
-1-
Exhibit 'D'
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, aerial advertising
and surveying, air carrier operations, aircraft sales and services, sale of aviation
petroleum products whether or not conducted in conjunction with other
aeronautical activity, repair and maintenance of aircraft, sale of aircraft parts, and
any other activities which because of their direct relationship to the operation of
aircraft can be regarded as an aeronautical activity;
c. Agrees that it will terminate any existing exclusive right to
engage in the lsale 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
_-,_
Exhibit `D'
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 without 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 arrangement,
under which a right or privilege at the Airport is granted to any person, firm, or
corporation to conduct or engage in any aeronautical activity for furnishing
services to the public at the Airport, the Sponsor will insert and enforce
provisions requiring the contractor.
i to furnish said service on a fair, equal, and not unjustly
discriminatory basis to all users thereof, and
ii to charge, fair, reasonable, and not unjustly discriminatory
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
-3-
Exhibit 'D'
c. That it will not exercise or grant any right or privilege 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 that 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.
6 The Sponsor will operate and maintain in a safe and serviceable
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
aeronautical 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 requiring the maintenance, repair,
restoration, or replacement of any structure or facility which is substantially
-4-
Exhibit D'
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, erection, alteration, of growth of any
structures, 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 addition, 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
hereafter acquires, property interests permitting it to so control the use made of
the surface of the land
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Exhibit 'D'
8 Insofar as it is within its power and reasonable, the Sponsor will,
either by the acquisition and retention of easements or other interest in or rights
for the use of land or airspace or by the adoption 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 with 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 boundaries of the Airport and all proposed
additions thereto, together with the boundaries of all offsite areas owned or
controlled by the Sponsor for airport purposes, 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), 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
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Exhibit 'D'
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 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
the 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 multiplied 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 necessary or desirable for construction at Federal expense of
space or facilities for such purposes The approximate amounts of areas and the
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Exhibit D'
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 within 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 special
airport financial and operational reports as may be reasonably 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 instruments, 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
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Exhibit 'D'
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 the 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 transaction, the obligation to perform all
such covenants is assumed by another public agency funded 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
_9_
Exhibit 'D'
I Christine Smith certify under penalty of perjury that this document has been
recreated in its entirety and is a true and correct version of its original
Christine Smith
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