HomeMy WebLinkAboutContracts & Agreements_90-2008_CCv0001.pdf Recorded In Otllclal Records, County of San Bernardino //Uta/ZUUti
LARRY WALKER 3:33 PM
,familegiNARDI Auditor/Controller — Recorder RN
R Regular Mail
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AND WHEN RECORDED MAIL TO: Doc#: 2008—0311652 Titles: 1 Pages: 5
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CITY CLERK
CITY OF REDLANDS
PO BOX 3005
REDLANDS, CA 92373
FEES NOT REQUIRED
PER GOVERNMENT CODE
SECTION 6103
SPACE ABOVE THIS LINE FOR RECORDER'S USE
MEMORANDUM
OF
LEASE
This Memorandum of Lease is entered into this 17th day of June, 2008, by and between
the City of Redlands, a municipal corporation ("City") and Redlands Hangar Owners'
Association, Inc., a California corporation ("Lessee"). City and Lessee are individually referred
to herein as a "Party" and, together, as the "Parties."
1. City and Lessee entered into a certain Lease Agreement ("Lease") dated June 17,
2008 ("Effective Date"), for the purpose of leasing certain real property located at
City's Municipal Airport.
2. The term of the Lease commenced on the Effective Date and ends on the 30`}' day of
April, 2029, unless earlier terminated as provided for therein, Lessee has three
successive options for extending the term of the Lease for periods of ten (10)
additional years each, from May 1, 2029 to April 30, 2039, and from May 1, 2039 to
April 30. 2049, and for eight (8) additional years from May 1, 2049 to April 30, 2057,
respectively.
3. The property that is the subject of the Lease is described in Exhibit "1," attached
hereto.
4. This Memorandum of Lease is not intended to amend or modify, and shall not be
deemed or construed as amending or modifying, any of the terms, conditions or
DIM\AgreevRedlands Hangar Owners' Association Lease Agreement
M icro-word h h (18 Q:36 a.m..
provisions of the Lease. In the event of a conflict between the provisions of this
Memorandum of Lease and the provisions of the Lease, the provisions of the Lease
shall control. The Lease shall be binding upon and inure to the benefit of the Parties
and their respective heirs, successors, and assigns, subject to the provisions of the
Lease.
IN WITNESS WHEREOF, the Parties have executed this Memorandum of Lease as of
the day and year first above written.
CITY: LESSEE:
City of Redlands, Redlands Hangar Owners' Association
A municipal corporation
yeti
By: ve-2, By:
C -
Mayor, City of Redlands Name: it C. Pt
Title:
Attest as as to Mayor's signature: Attest as to Lessee's signature:
,e—t.
City9erk Name:
Title:
Date: June 17, 2008 Date:
DiN4 AuTee,Redlands Hangar Owners' Association Lease Agreement
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ACKNOWLEDGMENT
State of California
County of San Bernardino
on June 16, 2008 _before me, Janice McConnell, Notary Public
(insert name and title of the officer)
personally appeared Eric C. Paul
who proved to me on the basis of satisfactory evidence to be the person(,s4 whose name(%) is/efe*
subscribed to the within instrument and acknowledged to me that he/si /they executed the same in
his/ /their authorized capacity(ies), and that by his/hefltheir signature(s-'on the instrument the
person(,ai, or the entity upon behalf of which the person(s)--acted, executed the instru ment.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
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Aligi TV
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WITNESS my hand and official seal. 'ti =• 40tay P. kC .C1400rnia 8
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Signature Ct- 714t04)1111,11- (Seal)
ALL-PURPOSE ACKNOWLEDGMENT
STATE OF CALIFORNIA
COUNTY OF SAN BERNARDINO ) SS
CITY OF REDLANDS
By the authority granted under Chapter 4. Article 3, Section 1181, of the California Civil Code, and Chapter 2,
Division 3, Section 40814, of the California Government Code, on June 17. 2008, before me, Teresa Ballinger,
Assistant City Clerk, on behalf of Lorrie Poyzer, City Clerk of the City of Redlands, California, personally
appeared Jon Harrison, Mayor and Louie Poyzer, City Clerk who proved to me on the basis of satisfactory
evidence to be the person(s) whose name(s) is arc subscribed to the within instrument and acknowledged to me
that he/she/they executed the same in his authorized capacity(ies) and that by his/her/their signature(s)
on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is
true and correct.
WITNESS my hand and official seal.
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\\\\\ R E 0 LORRIE POYZER, CITY CLERK
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\‘‘ Teresa Ballinger, Assistant City Clerk
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CAPACITY CLAIMED BY SIGNER(S)
Individual(s) signing for oneself/themselves
1 1 Corporate Officer(s)
Title(s)
Company
Partner(s)
Partnership
Attorney-In-Fact
Principal(s)
1 Trustee(s)
Trust
{ x } Other
Title(s): Mayor and City Clerk
Entity Represented: City of Redlands, a municipal corporation
TII IS CERTIFICATE. MUST BE XI-JAC:I1ED TO 'IHE DOCUMENT DESCRIBED BELOW:
Title or Type of Document: Memorandum of Lease
Date of Document: June 17. 2008
Signer(s) Other Than Named Above: Redlands hangar Owners' Association by Eric C. Paul, President
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AIRPORT LEASE
REDLANDS MUNICIPAL AIRPORT
REDLANDS, CALIFORNIA
This Lease Agreement ("Lease") is made and entered into this 17'h day of June, 2008
(-Effective Date"), by and between the City of Redlands, a municipal corporation ("City") and
Redlands Hangar Owners' Association, Inc., a California corporation ("Lessee"). City and
Lessee are sometimes individually referred to herein as a "Party" and, together, as the"Parties."
Section 1. Property Leased. City hereby leases to Lessee that certain real property located
at the Redlands Municipal Airport ("Airport") which is designated as Parcel No. 4 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 incorporated herein by this
reference.
Section 2. Term of Lease. The term of this Lease shall commence on the Effective Date of
this Lease and shall end on the 30`" day of April, 2029, unless earlier terminated as provided for
herein. Lessee shall have three successive options for extending the term of this Lease for
periods of ten (10) additional years each, from May 1, 2029 to April 30. 2039, and from May 1,
2039 to April 30, 2049, and for eight (8) additional years from May 1, 2049 to April 30, 2057,
respectively.
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1- L)
Section 3. Non-Exclusive Rights Granted
A. Lessee shall use the Leased Premises for a fixed base operation which
shall include, but not be limited to, the following non-exclusive rights:
(1) Conduct sales of new and used aircraft, aircraft parts (retail and
wholesale), radio and electronic equipment, navigational and airman supplies and accessories;
(2) Conduct flight operations, including demonstrations of aircraft for sale,
charter(with or without pilot) and flight training(primary and advanced);
(3) Perform maintenance, repairs and overhauls of all types of aircraft,
engines, instrument radios and electronics gear;
(4) Perform line service, including fueling, lubrication and other servicing of
any aircraft, including military 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 power
units and space heaters, and to make repairs on ground service equipment;
(6) Operate a restaurant and conduct related retail sales, excluding the use of
vending machines;
DJM'Agre\RedIands Hangar owners' Association Lease Agreement
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(7) Tow disabled aircraft;
(8) Finance and insure aircraft;
(9) Fuel aircraft of Lessee, Lessee's customers and transients and to provide
into-plane fueling to airlines and military which desire such services;
(10) Construct and rent aircraft hangars and aircraft tie-down facilities and
buildings to house activities authorized by this Lease;
(11) Impose reasonable charges upon its customers for the provision of the
Services described in this Section; and
(12) Place and install advertising and other signs on the Leased Premises
provided such signs comply with the provisions of City's Sign Code and all other applicable
laws, and have been approved by City prior to placement or installation.
B. Unless determined by City to be reasonably related to Lessee's fixed base
operation, activities other than those specifically described in paragraphs (1)through (12) of this
Section are prohibited, and shall not be conducted by Lessee without the prior written consent of
City. Further, notwithstanding any other provision of this Section, Lessee shall not erect, nor
permit the erection ot', any structure or object nor permit the growth of any tree on the Leased
Premises in violation of height restrictions governing the Leased 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.
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D.INIAgreeRedlands Hangar Owners" Association Lease Agreement
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Section 4. Compliance with Laws. 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 occupancy of the Leased Premises,
whether those statutes, ordinances, regulations and requirements are now in force or are
subsequently enacted. If any license, permit or other governmental 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. Unless the public health, safety or welfare is
endangered thereby, Lessee shall be allowed reasonably adequate time (but not less than 60
days) to correct any compliance deficiencies or violations of statutes, ordinances, regulations or
requirements of any governmental entities, federal, state, county or municipal, relating to
Lessee's use and occupancy of the Leased Premises following notification by City or other
government agency with jurisdiction over said deficiency or violation, or to comply with any
new statutes, ordinances, regulations and requirements subsequently enacted. Lessee retains the
right to due process without prejudice regarding suspected violations of statutes, ordinances,
regulations and requirements of all governmental entities, federal, state, county and municipal.
Section 5. Federal Aviation Administration Regulations and City's Reserved Rights.
Lessee understands and agrees that City, by accepting Federal aid for the development of the
Airport, agreed to comply with Federal Aviation Administration ("FAA") regulations concerning
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DJM\Agree\Redlands Hangar OwnersAssociation Lease Agreement
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agreements, contracts, leases and other privileges given in connection with operation of the
Airport. Such FAA regulations are attached hereto as Exhibit "C" and are incorporated herein by
this reference. Lessee has no responsibility for the fulfillment of Sections 6a, 6b, 6c, 7, 8, 9, 10,
11, 13, 14 or 15 of Exhibit -C.- In addition to its rights under the FAA regulations, City reserves
for itself the following rights:
A. The right to further develop or improve the landing area of the Airport as
determined reasonable or necessary, in City's sole discretion, regardless of the desire or opinion
of Lessee and without interference or hindrance by Lessee.
B. The right, but not being obligated to 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 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 City 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 for landing at, taking off from, or operation at the Airport.
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1),IM,Agree,Redlands Hangar Owners' Association Lease Agreement
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Section 6. Termination of Agreement
A. Lessee may terminate this Lease, without penalty, by providing twelve
(12) months prior written notice to City. During such notification period, all terms of this Lease
shall remain in force.
B. City may terminate this Lease upon the occurrence of any of the following
events:
(1) Filing of bankruptcy proceedings by or against Lessee.
(2) Lessee continues to conduct activity not authorized by this Lease,
subsequent to thirty (30) days' prior written notice from City to cease and
desist such activity.
(3) Lessee makes any general assignment for the benefit of creditors.
(4) Lessee's abandonment or discontinuance of operations at the
Airport.
(5) Following thirty (30) days' prior written notice by City, Lessee
fails to perform, keep and observe any and all terms and conditions of this
Lease which are to be performed, kept and observed by it, unless
prevented from doing so by an act of God.
(6) 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 sixty (60) days' prior written notice from City.
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(7) Following thirty(30) days' prior written notice by City,occurrence
of any act by Lessee, which results in Lessee's failure to perform its
obligations under this Lease, which include maintaining the Leased
Premises in good condition and repair at Lessee's sole expense.
(8) Should City close the runway and the taxiway for public use, other
than for limited periods necessitated by construction or maintenance, then
the obligations of Lessee under Section 7 hereof shall be terminated.
C. In the event of termination by City for any of the reasons listed in
Subsection 6 B,hereof, City shall have the following rights:
(1) In accordance with City's FAA Assurance No. 16(Exhibit"C"),
which specifies "If an arrangement is made for management or operation of the Airport by any
agency or person other than the Sponsor [City], 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" City, at its option
and if it is necessary and essential to provide aeronautical facilities necessary for the operation of
the Airport,may operate Lessee's aviation fuel service and normal aircraft tie-down and Hangar
area, at no personal or financial liability 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 event longer than twelve(12)months, The exercise of this right to
conduct Lessee's operation does not constitute a waiver by City of any damages arising from
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c—c„„
Lessee's failure to comply with the terms of this Lease. All assets accruing from City's
operation of the Leased Premises, which include all rental payments due City under this Lease,
shall be credited by City to Lessee's interest.
D. Termination of this Lease shall not relieve either Party of any liability or
indebtedness incurred to the other Party prior to such termination.
Section 7. Rent
A. The annual rent ("Rent") to be paid to City by Lessee shall be Nineteen
Thousand Seventy-Eight Dollars and Ninety-Five Cents (S19,078.95), payable in four
approximately equal, quarterly installments. The first installment shall be due and payable on
June 30, 2008, with successive installments due and payable on each subsequent September 30,
December 30 and March 31 during the term of this Lease. Rent shall be payable at the office of
City at 35 Cajon Street, Suite 222, Redlands, California, or at any other place as City from time
to time designates by written notice to Lessee.
B. If Lessee exercises its right to extend the term of this Lease for 2029 -
2039, the Rent for such years, and for any successive Lease term extensions, shall be increased
to an amount equal to eighty percent (80%) of the fair market value of unimproved land at
airports comparable to City's Airport, zoned for airport use purposes, of an acreage amount equal
to 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
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market value. After an exchange of such appraisals and further negotiations, in the event the
Parties remain unable to agree upon the fair market value, then City and Lessee shall request the
appraisers who performed such appraisals to choose a third appraiser to determine fair market
value. The third appraiser's determination of fair market value shall be binding on the Parties.
C. The Rent shall be increased every five years from and after the Effective
Date of this Lease, and through any Lease term extensions, by an amount equal to the percentage
increase in the Consumer Price Index, All Urban Consumers (Los Angeles - Riverside - Orange
County), for each such five year period.
D. 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 Rent to be paid by Lessee shall be reduced to
a reasonable rental in view of such circumstances as may from time to time be agreed to by the
Parties; or in the event the Parties hereunder are unable to agree upon a reasonable rental, then as
may be determined by arbitration.
Section 8. Indemnity. Lessee shall defend, indemnify and hold City and the property of
City, including the Leased Premises and improvements now or hereafter on the Leased Premises,
free and harmless from any and all liability, claims, loss, damages or expenses resulting from
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Lessee's occupation and use of the Leased Premises, specifically including, without limitation,
any liability, claim, loss, damage or expense arising by reason of:
A. The death or injury of any person, including Lessee or any person who is
an employee or agent of Lessee or by reason of the damage to or destruction of any property,
including property owned by Lessee or by any person who is an employee or agent of Lessee,
from any cause whatever while that person or property is in or on the Leased Premises or in any
way connected with the Leased Premises or with any of the improvements or personal property
on the Leased Premises;
B. The death or injury of any person, including Lessee or any person who is
an employee or agent of Lessee or by reason of the damage to or destruction of any property,
including property owned by Lessee or any person who is an employee or agent of Lessee,
caused or allegedly caused by either (1) 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 with the permission and consent of
Lessee;
C. Any work performed on the Leased Premises or materials furnished to the
Leased Premises at the instance or request of Lessee or any person or entity acting for or on
behalf of Lessee; or
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D. Lessee's failure to perform any provision of this Lease or to comply with
any requirement of law or any requirement imposed on Lessee or the Leased Premises by any
duly authorized governmental agency or political subdivision.
Section 9. Insurance.
A. Liability Insurance. Lessee shall, at Lessee's own cost and expense,
procure and maintain during the entire term of this Lease a broad form comprehensive coverage
policy of public liability insurance issued by an insurance company licensed by the State of
California insuring Lessee and City against loss or liability caused by or connected with Lessee's
occupation and use of the Leased Premises under this Lease in amounts not less than One million
dollars ($1,000,000) for injury to or death of one person and, subject to that limitation for the
injury or death of one person, of not less than Two million dollars ($2,000,000) for injury to or
death of two or more persons as a result of any one accident or incident; and One million dollars
($1,000,000) for damage to or destruction of any property. Such insurance shall be primary with
respect to City and non contributing to any insurance or self-insurance maintained by City.
B. Fire and Casualty Insurance. Lessee shall, at Lessee's own cost and
expense, at all times during the term of this Lease, keep all improvements on the Leased
Premises insured for their full replacement value by insurance companies authorized to do
business in the State of California against loss or destruction by tire and the perils commonly
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covered under the standard extended coverage endorsement to fire insurance policies in San
Bernardino County, California.
C. Lessee shall, within ten (10) days after the Effective Date of this Lease
and promptly thereafter when any such policy is replaced, rewritten or renewed, deliver to City a
true and correct copy of each insurance policy required by this Lease or a certificate executed by
the insurance company or companies or their authorized agent evidencing that policy or policies.
D. Each insurance policy required under this Lease shall contain a provision
that it cannot be modified or cancelled for any reason unless at least thirty (30) days prior written
notice of the modification or cancellation is given to City in the manner required by this Lease
for service of notices on City by Lessee. Further, the insurance policies' limitations amounts
required by this Section 9 shall be subject to periodic review by City for compliance with
industry standards. In the event City reasonably determines that the limitation amount of any
insurance policy shall be increased, City shall provide Lessee with written notification of the
same and Lessee shall, with sixty (60) days of the date of such notice, provide City with
certificates and endorsements evidencing such increased insurance policy limits.
E. 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 by City. Lessee shall be required to
inform City in writing of any change, expiration or renewal of any insurance policy within thirty
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(30) days of the effective date of change. Further, each policy shall provide that the same shall
not be cancelled or modified until a thirty (30) day written notice has been mailed to the City of
Redlands, Attention: Airport Manager, 35 Cajon Street, Redlands, California 92373.
F. The procuring of such policies of insurance shall not be construed to be a
limitation upon Lessee's liability, or as full performance on Lessee's part of the indemnification
provisions of this Lease. Lessee's obligation being, notwithstanding such policies of insurance,
responsible for the full and total amount of any damage, injury or loss caused by negligence
connected with Lessee's operations under this Lease.
Section 10. Construction on and Modification and Maintenance of Premises Leased.
A. Lessee may 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 of City and the
terms of this Lease. Each proposal by Lessee for construction on, or modification of, the Leased
Premises shall have prior written approval by City.
B. Gasoline storage tank maintenance and replacement shall be the
responsibility of Lessee.
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C. All building maintenance on the Leased Premises shall be the
responsibility of Lessee.
D. Upon any termination of this Lease, except pursuant to Section 6B(8)
hereof, all structures constructed by Lessee, including foundations, shall be removed from the
Leased Premises by Lessee at Lessee's sole expense. Notwithstanding the foregoing, City shall
have the option to purchase any or all of the structures on the Leased Premises at the termination
of this Lease, if a mutually agreeable price for such structures is negotiated by City and Lessee.
In the event of termination of this Lease pursuant to Section 6B(8) hereof, Lessor shall pay to
Lessee the then-existing fair market value of Lessee's interest in this Lease and all structures and
improvements owned by Lessee on the property that is the subject of this Lease. Fair market
value shall be determined by an appraiser, mutually agreed upon by Lessor and Lessee. If Lessor
and Lessee cannot agree upon an appraiser, then both Lessor and Lessee shall each select an
appraiser, and such appraisers shall select a third appraiser who shall then detetinine fair market
value.
E. Lessee shall be responsible for the installation of all utilities necessary to
serve the Leased Premises, including water lines and tire hydrants that may be required, and
shall pay for all utilities used on, or by, the Leased Premises.
F. Lessee shall permit City to enter upon and inspect the Leased Premises at
all reasonable times.
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G. Lessee shall maintain the Leased Premises in good condition and
presentable appearance at all times at Lessee's expense.
Section 11. Subcontracting Rights. Lessee shall have the right to subcontract activities
permitted under the terms of this Lease, provided such subcontracts satisfy the requirements of
this Lease, including City's requirements concerning insurance and financial responsibility, and
have prior written approval by City. Lessee shall notify 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.
Section 12. Taxes.
A. Lessee shall pay during the term of this Lease, without abatement,
deduction or offset, any and all real and personal property taxes, general and special assessments,
and other charges (including any increase caused by a change in the tax rate or by a change in
assessed valuation)of any description levied or assessed during the term of this Lease by any
government agency or entity on or against the Leased Premises, the improvements located on the
Leased Premises, personal property located on the Leased Premises, and the leasehold interest
created by this Lease. Lessee acknowledges and agrees that, in accordance with California
Revenue and Taxation Code section 107.6, the Leased Premises may be subject to property
15
Agi-oossitedlands Hangar Owners' Association Lease Aucement
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taxation and that Lessee may be deemed to have a possessory interest in the Leased Premises and
may be subject to the payment of property taxes levied on such interest.
B. Lessee shall defend, indemnify and hold City harmless from and against
any liability, loss or damage resulting from any taxes, assessments or other charges required by
this Section to be paid by Lessee and from all interest, penalties and other sums imposed thereon,
and from any sales or other proceeding to enforce collection of any such taxes, assessments or
other charges.
Section 13. Affirmative Action. Lessee shall 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. Lessee assures City that no person shall be excluded on
such grounds from participating in or receiving the services or benefits of any program or
activity covered by Subpart E, and that Lessee shall require that its covered suborganizations
provide assurances to City and Lessee that they similarly will undertake affirmative action
programs and that they will require assurances from their suborganizations, as required by 14
CFR Part 152, Subpart E.
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Section 14. 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 Airport 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 Lease shall he renegotiated to comply with
the requirements of the applicable laws and regulations.
B. During the term of this Lease, Lessee shall comply with all laws, rules and
regulations promulgated and enforced by City and by any other authority having jurisdiction
over the conduct of operations at the Airport.
C. City shall have complete dominion over the Leased Premises during the
term of this Lease for the purpose of and to the extent necessary to maintain law, order and
safety, and shall have the authority and right to deny access to the Airport by any person who
fails to confoini in all respects to this Lease.
Section 15. Notices. All notices shall he given in writing by personal delivery or by United
States mail. Notices, sent by mail should be addressed as follows:
City: City of Redlands
Attention: Airport Manager
P.O. Box 3005
I 7
WM Agree Redlands Hangar Owners' Association Lease Agreement
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Redlands, CA 92373
Lessee:Redlands Hangar Owners Association Inc.
Attention President
P.O. Box 7690
Redlands, CA 92375-0690
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 16. 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 provisions of this Lease. City approval of such assignments shall not be
unreasonably withheld.
B. By this Lease, Lessee binds itself, and its representatives and all
successors and assigns in interest. Lessee guarantees the performance of any and all covenants
18
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and conditions contained in this Lease, and upon the failure of any successor in interest to so
perform, Lessee shall complete such covenants, conditions and requirements of this Lease.
C. In the event any action is commenced to enforce or interpret any term or
condition of this Lease the prevailing Party in such action, in addition to any costs and other
relief, shall be entitled to the recovery of its reasonable attorneys' fees, including fees for use of
in-house counsel by a Party.
D. This Lease constitutes the entire agreement between City and Lessee
respecting the Leased Premises, the leasing of the Leased Premises to Lessee, the construction
and operation of the Redlands Airport described in this Lease, and the Lease terms set forth in
this Lease, and correctly sets forth the obligations of City and Lessee to each other as of its date.
Any agreements or representations respecting the Leased Premises, the Airport or any other
matter discussed in this Lease not expressly set forth in this instrument are null and void.
E. This Lease shall be governed by and construed in accordance with the
laws of the State of California.
Section 17. No Partnership or Joint Venture. Nothing in this Lease shall be construed to
render City in any way, or for any purpose, a partner,joint venturer or associate in any
relationship with Lessee, other than that of City and Lessee, nor shall this Lease be construed to
authorize either Party to act as agent for the other.
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Section 1 . Time of Essence. Time is expressly declared to be of the essence of this Lease.
Section 19. Memorandum of Lease for Recording. City shall record this Lease or the
memorandum or"short form"of this Lease which describes the Parties, sets forth a description
of the Leased Premises, specifies the term of this Lease, incorporates this Lease by reference in a
form substantially as set forth in Exhibit"L?"attached hereto.
Section 20. Headings. Any captions or headings following a section, subsection,paragraph
and article numbers and preceding the operative text thereof shall be for convenience of
reference only and shall not in any control or affect the scope, intent, meaning, construction,
interpretation or effect thereof.
Section 21. Definitions. "Day"or"days"means calendar day or days, except as otherwise
expressly qualified herein as"business"days.
RIM Agreadtedlands Hangar Owners'Association Lease Agreement
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Section 22. Actions of City in its Governmental Capacity. Nothing herein shall be
interpreted as limiting the rights and obligations of City in its governmental or regulatory
capacity, including land use and permitting actions.
Executed at Redlands, California on this 17th day of June, 2008.
CITY OF REDLANDS
By:
.7=
,/on Harrison, Mayor
ATTEST:
_At-ye
//I )
City Clerk
LESSEE
REDLANDS HANGAR OWNERS'
ASSOCIATION
By: -
Name: Ev't
Title: s
21
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ALL-PURPOSE ACKNOWLEDGMENT
STATE OF CALIFORNIA
COUNTY OF SAN BERNARDINO ) SS
CITY OF REDLANDS
By the authority granted under Chapter 4, Article 3, Section 1181, of the California Civil Code, and Chapter 2,
Division 3, Section 40814, of the California Government Code, on June 17, 2008, before me, Teresa Ballinger,
Assistant City Clerk, on behalf of Lorrie Poyzer, City Clerk of the City of Redlands, California, personally
appeared Jon Harrison, Mayor and Lorrie Povzer, City Clerk who proved to me on the basis of satisfactory
evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me
that he/she/they executed the same in his/heritheir authorized capacity(ies) and that by his/her/their signature(s)
on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is
true and correct.
WITNESS my hand and official seal.
oluinitiu1/41
oF R ///,, LORRIE POYZER, CITY CLERK
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`///ilunin00 Teresa Ballinger, Assistant City Cle4
(909)798-7531
CAPACITY CLAIMED BY SIGNER(S)
1 1 Individual(s) signing for oneself/themselves
1 1 Corporate Officer(s)
Title(s)
Company
1 Partner(s)
Partnership
1 Attorney-In-Fact
Principal(s)
Trustee(s)
Trust
x } Other
Title(s): Mayor and City Clerk
Entity Represented: City of Redlands, a municipal corporation
THIS CERTIFICATE MUST BE ATTACHED TO THE DOCUMENT DESCRIBED BELOW:
Title or Type of Document: Lease Agreement - Redlands Hangar Owners' Association - City
Date of Document: June 17, 2008
Signer(s) Other Than Named Above: Redlands Hangar Owners' Association by Eric C. Paul, President
ACKNOWLEDGMENT
State of California
County of San Bernardino )
on June 16, 2008 _before me, Janice McConnell, Notary Public
(insert name and title of the officer)
personally appeared Eric C. Paul
who proved to me on the basis of satisfactory evidence to be the person(r$)'whose name*is/are-
subscribed to the within instrument and acknowledged to me that he/se/they executed the same in
his/t F/cher? authorized capacity(*); and that by his/JJerftfyaif signature(§)-on the instrument the
person,,$);or the entity upon behalf of which the person )'acted, executed the instru ment.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
x`` ��-y �,(}M��t. #15545$2 !„3.
y. +c t aHfotniaWITNESS my hand and official seal. a �MAt1 Sar.B}m3rdin�Gerrity
+CaT,n_Exp,R,s 4b,27.,20Q9
Signature (Y AY1v (Seal)
Ends: Parcel Map No. 4 Exhibit "A"
Legal Descriptions of Leased Land Exhibit "B"
Federal Aviation Administration Regulations Exhibit "C"
Short form of Lease ................ .................................... ................ Exhibit "D"
DJNLAgreeRedlands Hangar OwnersAssociation Lease Agreement
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PARCEL #4
That portion of the North 1/2 of the SE 1/4 of Section 13, T.1 S. R. 3 W. S.B.M.
according to Government Survey described as follows:
Beginning at the SE 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 Eastline
of said Section 13, 2198.92 feet; thence South 89° 54' 37" West, 1557.05 feet
to the beginning of a tangent curve concave Northeasterly and having a radius
of 279.50 feet; thence Northwesterly along said curve through a central angle of
20° 34' 00" an arc distance of 100.33 feet to a point, said point having a
radial which bears N 200 28' 37" E, said point also being the True Point of
Beginning; thence continuing Northwesterly along said curve through a central
angle of 14° 40' 51 " an arc distance of 71 .62 feet to the beginning of a reverse
curve concave Southwesterly and having a radius of 320.50 feet; thence North-
westerly along last said curve through a central angle of 350 14' 51" an arc
distance of 197.17 feet to a point of tangency; thence S 890 54' 37" W. 74.63 feet;
thence N 00 05' 23" W, 346.50 feet; thence N 89° 54' 37" E, 322.70 feet; thence
S 0° 05' 23" E to the True Point of Beginning.
EASEMENT #4
A 20 foot wide public easement for aircraft, vehicular and pedestrian use, being
That portion of the North 1/2 of the SE 1/4 of Section 13, T. 1 S. R. 3 W. S.B.M.
according to Government Survey described as follows:
Beginning at the SE 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, 2198.92 feet; thence South 89° 54' 37" West, 1557.05 feet
to the beginning of a tangent curve concave Northeasterly and having c radius
of 279.50 feet; thence Northwesterly along said curve through .a central angle
of 35° 14' 51" an arc distance of 171 .94 feet to the beginning of a reverse
curve concave Southwesterly and having a radius of 320.50 feet; thence North-
westerly along last said curve through a central angle of 35° 14' 51" an arc
distance of 197.17 feet to point of tangency; thence S 89° 54' 37" W, 74.63
feet to the True Point of Beginning; thence N 00 05' 23" W, 346.50 feet, thence
N 890 54' 37" E, 20.00 feet; thence S 00 05' 23" E, 346.50 feet; thence S 890
54' 37" W, 20.00 feet to the True Point of Beginning.
Exhibit "C"
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 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 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;
Page 1
Exhibit "C"
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 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
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 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:
(1) to furnish said service on a fair, equal, and not unjustly discriminatory
basis to all users thereof, and
Page 2
Exhibit "C"
(2) 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.
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 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 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
Page 3
Exhibit "C"
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 easement 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, 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 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.
8. Insofar as it is within its power and reasonable, the Sponsor will, either by the
acquisition and retention of easement 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
Page 4
Exhibit " „
Airport or any of its facilities other than in conformity with the Airport Layout plan as so
approved by the FAA, 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 FAA., 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
FAA. 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 FAA. may consider necessary 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 within 4, months after
receipt of written request from the FAA.
Page 5
Exhibit "C"
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.
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 some transaction, 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
Page 6
Exhibit "C"
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.
Page 7
Exhibit "C"
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
Page 8
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
CITY CLERK
CITY OF REDLANDS
PO BOX 3005
REDLANDS,CA 92373
SPACE ABOVE THIS LINE FOR RECORDER'S USE
MEMORANDUM
OF
LEASE
This Memorandum of Lease is entered into this 17th day of June, 2008, by and between
the City of Redlands, a municipal corporation ("City") and Redlands Hangar Owners'
Association, Inc., a California corporation ("Lessee"). City and Lessee are individually referred
to herein as a"Party" and, together, as the "Parties."
1. City and Lessee entered into a certain Lease Agreement ("Lease") dated June 17,
2008 ("Effective Date"), for the purpose of leasing certain real property located at
City's Municipal Airport.
2. The term of the Lease commenced on the Effective Date and ends on the 30th day of
April, 2029, unless earlier terminated as provided for therein. Lessee has three
successive options for extending the term of the Lease for periods of ten (10)
additional years each, from May 1, 2029 to April 30, 2039, and from May 1, 2039 to
April 30. 2049, and for eight (8) additional years from May 1, 2049 to April 30, 2057,
respectively.
3. The property that is the subject of the Lease is described in Exhibit"1," attached
hereto.
4. This Memorandum of Lease is not intended to amend or modify, and shall not be
deemed or construed as amending or modifying, any of the terms, conditions or
23
DJM\Agrec\Redlands Hangar Owners' Association Lease Agreement
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EXHIBIT "D"
provisions of the Lease. In the event of a conflict between the provisions of this
Memorandum of Lease and the provisions of the Lease, the provisions of the Lease
shall control. The Lease shall be binding upon and inure to the benefit of the Parties
and their respective heirs, successors, and assigns, subject to the provisions of the
Lease.
IN WITNESS WHEREOF, the Parties have executed this Memorandum of Lease as of
the day and year first above written.
CITY: LESSEE:
City of Redlands, Redlands Hangar Owners' Association
A municipal corporation
By: By:
Mayor, City of Redlands Name:
Title:
Attest as to Mayor's signature: Attest as to Lessee's signature:
City Clerk Name:
Title:
Date: Date:
EXHIBIT "D"
24
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