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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 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Doc#: 2008—0311652 Titles: 1 Pages: 5 l ,rees 0.00 Taxes a.00 0.00 I D � Other �.�.$0.00 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 Micro-word 6/6/08 9:36 a.m.. 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. ' - T7- Aligi TV t COMM. *1554582 WITNESS my hand and official seal. 'ti =• 40tay P. kC .C1400rnia 8 f Sari County t /FAYCann Expir,_rrb,.2.221,2W 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. \\ ttI 11111/111/4 \\\\\ R E 0 LORRIE POYZER, CITY CLERK of 44, 4,..„ ,oFke a RA7.6,0\ -SW • — :: • : * 1888 I * By. 1:0/ "...**•••.... r - / // ' LIFO Os \‘‘ Teresa Ballinger, Assistant City Clerk "IttimittO (909)798-7531 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 1 T .. 1 .. 1 \M �"- ..,, y _.. . --• A EXHIBIT "1 " . . - _ sit s*.ww.r o+eiS a. — -_ __ rzax ras. ,• - rail N' ..' . i.•aN's � yia,aN. " a*'ax".f.« s • •.r'"avc`'i` ..�.r ,..,yr:.r.t.•r«r' ..x__. « ♦..a.' ....-a- ..,yR ...�...a_....__-.-,�,+' .. �. ? ,. ..0%4 7. - eruct ***r. "' M1. ir" ilk4 1 1 l\. l,� .+/ , i%/Si/" "+a a •+ ,j�! ' /' PARCEL. II PARCEL PAROL .4, . s..t ,�...- ,14,4"'t..,. 5t . 4 d •- tit ,teal r.t i • ....t D.+4-•,00* %ft ii i 5 � � I QI , PARCEL .:.:'.: .y..- ; 1L; stetww a+ rssr kill cassrwzgs*+ } ! tan*.tolos 2M * x rd ' ecwa*+srr t PARCEL-NO 1. (431,405.SQ.FT) , , I` ' , . ' PARC LNO. 2 ' (162,320 SQ.fT) .. i.. 1 ' -`` PARCEL NO, 3 •(154,633 SQ.F"C).. " \ I 14AT PUBLIC LOBBY AND PATIO) z �, PARCEL 14D, 4 . (120,165 SC3FT) .. _ : . i . •t:. . .-1 , EXCLUDED ty ARE ( , st- �� PARCEL NO 5 i (111 '616 SQ.FT) —' r , $1 Ill",� EXCLUDED AREA ' 2;" ( 10,000 tit f ) ' y . . , 4 i . !1 1 EASEMENT f l TO `ITY ...... metteAre tests„ ri. vatto tv • ' t - ' CASEMENT 'SZ -•TR."-GTY PtoitssItif.0 'asst exam moo r'utwS To ',Stu +4 `, : ', ..,EASEMENt 3. TO.CI'T'Y AV ►LMI A»o PID($TM*IMI MOMS 10 Twxzw�kr ' -• '` Ott - « � EASEMENT '„, '• t +A ,IPr'Nrlt`�1i«W o•we Vtt,cut•a*A+tet7P.YA/fitter/AY 4. To C1TY N,MAK , ' ....- ,..,......-.r ,... , . . ...-„•..,..,w.t.: .:. , .y � 1..N . t .y.,..,'- ..•...a.-... .i . ,r.lt. iF \ I1 1 1 Y ' at 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. Th;5LLi . f'-‘+ 1 C) C . 1),I1Agree\Re.dlands Hangar Owners* Association Lease Agreement tlit" Mico-word 616/08 936 a.m.. 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 Micro-word 6/6/08 9:36 a.m.. (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. 3 D.INIAgreeRedlands Hangar Owners" Association Lease Agreement M iem-word 6,6/08 9:36 a.m.. 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 4 DJM\Agree\Redlands Hangar OwnersAssociation Lease Agreement Micro-word 6;6/08 9:36 a.m. 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. 5 1),IM,Agree,Redlands Hangar Owners' Association Lease Agreement Nlicro-worci 6,6/08 9:36 a.m.. 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. 6 UJM A,rce\Redlands Hangar Owners' Association Lease Agreement Micro-word 6,'6/08 9:36 a.m.. (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 DiMAglee‘Rediands Hangar Owners' Association Lease Agreement Micro-word 6/6/08 9:36 am.. 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 WM'Auree\Redlands Hangar OwnersAssociation Lease Agreement NI icro-word 6/6/08 9:36 a.m.. 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 9 DJM 12,rLc\Redlands Hangar Owners Association Lease Agreement Micro-word 6=6/08 9:36 a,m.. 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 10 DJR1 Agree\Redlands Hangar Owners' Association Lease Agreement Micro-‘\'ord 6/6/08 9:36 a.m._ 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 11 M Agree\Redlands Hangar Owners" Association Lease Agreement icro-word 616/08 9:36 a.m.. 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 12 DJN,LAgree,Redlands Hangar Owners' Associadon Lease Agreement Micro-‘\ord 6/6/08 9:36 an.. (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. 13 1)iN1 AgrecRedlands Hangar Ov,tiers" Association Lease Agreement icni-word 6;6/08 9:36 a.m.. 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. 14 DiM'Agreeltedlands Hangar Owners' Association Lease Agreement Micro-word 616/08 9:36 a.m.. 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 Micro-word 6i6/08 9:36 a.m.. 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. 16 WM Agree\Redlands Hangar Owners' Association Lease Agreement Micro-word 6'6/08 9:36 a.m.. 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 Micro-word 6/6/08 9:36 a.nt. 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 DJM'Agree\Redlands Hangar Owners Association Lease Agreement Micro-word 616/08 9:36 a.m.. 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. 19 DJM'Agree\Redlands Hangar Ch‘ncrs' Association Lease Agreement Micro-word 6/6/08 9:36 am.. 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 Micro-word rd 6/6/08 9:36 a.m— 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 WM Agree-Redlands Hangar Owners Association Lease Agreement Micro-word 6/6/08 9:36 a.m.. 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 . / S. szog,ORP00.47, = • — = • -- 1888 : * By: LL .. r - - \4-eV „„ ... Rt4 \\\ `///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 Micro-word 616108 9:36 a.m.. • ` � -_�- -------- \ -~__ ` ___' —_--_ __ \ ~�-_ ~-�'-~~.~�__ ` -_-�— ---_�` ...•' —__--- -� � . ���-�~`�~�-� ri • 1( ,, . ,: INIM '•tASEIMENT 11.2 ••TQ,-DITY Pratsteire- ALCMS, exam We're ramose Ts Pima.« ' ' ^ ' ' '/ .'~� . \ � 77��� \ ' �efQ[|\[ 1�'`[0 [i�Y `' ` ' ' I �i ' \ - ' ^- \ : ' . / . ' 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 Micro-word 6/6/08 9:36 a.m.. 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 1).1,11\Aeree\Redlands Hangar Owners"Association Lease Agreement Nlicro-word 616/08 9:36 a.m.. .• ~`----- ! 1 — _ �... • ..• ./I ' -- ;_ —�- - EXHIBIT "1 " •i • .�- ._ W _ f CMS .� — ��.—_ •..` .3=� , �- �'-\• '• • �M>r.YY.e...N Miµ. + i - -- - -- tf1.•►i -. a11.+e• •f1.1 afr M`■{• \ 1 •ao' f�`■..s• ISI li� i ; /• —= — ,r•••+ ./'! .,ll PARCEL - r PARCEL '` PAROL ��i• , 6..rd..• •..- 1117'''......` . * L •+• *5 `� tR 4 -; ' aysrerr , .:Cc..■ 1r+-.eo s..t s ti A swaawwras i( " " 'r'••a �' PARCEL ` PARCEL„ a e..aararraa �+ •`w�r.y-rn a�R , • A E...., _'\.• I I. e 1 • - - I PARCL-NO. 1 (431,405 SCI-FT.) . If PAROL NO. 2 (162,320 SOFT.) .. ' ti I I • ' • r PUBLIC LOBBY AND PATIO PARCEL No. 3 {154,633 54FT.)•. •- 1 •! ►.�yl ; PARCEL NO 4 (120,165 SOFT) _ : . •. ' [-•—] EXCLUDED AREA I" I. ( 12,41.4 sj. ft 1 ' PARCEL NC' 51 (III ,816 SOFT,) . . ', , "11wis111'1 `. EXCLUDED AREA lt: ( 10,000 sit ft) ' . ,., EASEMENT ;1 TO C[IY :POI ...fa•PT aeeaaa w «..+..r #' I, ;i ..tASEIMENT 42 •.TO.-GTY ha.rw /IvssTASI'S raw .wry met** nw rr,« • • 7 EASEMENt +3` TO CITY ..viwroum..a moo socsraww�utast To TA11M#Y • - 4 ►reaasr•Laeesr.Iw♦uf vt�•cwart ueifN••■•■.r�r • I J • ' (' ` 3 -EASEMENT . To CITY It . ri,r.'i I' bEFI.irlrr '! I*I coY1 I i