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HomeMy WebLinkAboutContracts & Agreements_3-11 AIR_CCv0001.pdf AIRPORT HANGAR RENTAL AGREEMENT This airport hangar rental agreement ("Agreement") is made and entered into this I P, day of April, 2011 ("Effective Date") by and between the City of Redlands, a municipal corporation ("City"), and James Nyende ("Tenant"). City and Tenant are sometimes individually referred to herein as a"Party" and, together, as the"Parties." 1. PREMISES. City hereby rents to Tenant, and Tenant hereby rents from City, one certain hangar designated as Hangar No. 23 (the "Premises"), located at the Redlands Municipal Airport ("Airport"), and more particularly described in Exhibit "A" attached hereto. Tenant's rental of the Premises is for the principle purpose of conducting a commercial aviation-related business, and not the storage of aircraft. 2. TERM. The term of this Agreement shall be month-to-month, commencing on the Effective Date of this Agreement. 3. CONSIDERATION. 3.1 Monthly Rental Payments. On the Effective Date of this Agreement, Tenant shall pay to City one-month's rent in the amount of Five Hundred Forty Five Dollars ($545). In addition, Tenant shall pay to City one-month's payment in arrears in the amount of Five Hundred Forty Five Dollars ($545), for a total amount of One Thousand Ninety Dollars ($1,090). Commencing May, 2011, Tenant shall pay to City on or before the 10th day of each month up to and including September, 2012, as monthly rent for the hangar in the amount of One Thousand Ninety Dollars ($1,090). Thereafter, commencing October, 2012, Tenant shall pay the City on or before the 10th day of such month rent in the amount of One Thousand Nine Hundred Ninety One and 22/100 Dollars ($1,991.22) for that month. Thereafter, commencing November 2012, Tenant shall pay the City on or before the 1st day of each month rent in the amount of Five Hundred Forty Five Dollars ($545). A late fee shall be levied in the amount of ten percent (10%) of the amount due for any amount not received by the date such rent is due. Upon providing Tenant thirty (30) days' prior written notice of the same, the rent may be increased by the City, every year on the anniversary date of the Effective Date of the Agreement during the term of this Agreement, by the percentage increase in the Consumer Price Index, all urban consumers, Los Angeles-Riverside-Orange Counties. 3.2 Manner of Payment of Rent. Monthly rent for any partial month shall be prorated at the rate of 1/30th of the monthly rent per day. The monthly rent and any applicable late charges payable by Tenant hereunder shall be paid by Tenant without notice, demand or offset at the office of the Airport Manager at the Airport, or at such other place as may from time to time be designated by City. lAca",djmn Agreements\Airport Hanger Lease.James Nyende.doc interior walls, damage to unsealed floors due to fuel oil spillage, or doors damaged due to Tenant's improper or negligent operation. 4.2 Compliance with Laws. In utilizing the Premises during the term of this Agreement, Tenant shall comply with all applicable statutes, ordinances, rules and regulations established by any federal, state, county or local government agency. 4.3 Waste Disposal. Tenant shall dispose of all sewage and industrial waste in accordance with all applicable regulations and laws of those governmental agencies having jurisdiction or authority thereover. Tenant shall ensure that all solid waste materials are placed in appropriate covered containers designed for use with the type of waste involved, which shall remain covered, and locked, and that such containers remain located on the Premises and not moved from their location for any reason. Tenant shall cooperate with City to provide for the proper separation of waste to maximize recycling. 4.4 Hazardous Materials. (a) Any Hazardous Materials (as hereinafter defined) brought upon, kept or used in or about the Premises or the Airport by Tenant, its agents, employees, contractors or invitees, shall be necessary or useful to Tenant's business and shall be used, kept and stored in a manner that complies with all laws, statutes, ordinances, rules, regulations, orders, requirements, and policies of any and all governmental agencies and authorities applicable to any such Hazardous Materials ("Hazardous Materials Laws"). (b) If Tenant breaches the obligations stated in subparagraph (a) of this Section 4.4, or if the presence of Hazardous Materials on the Premises after the Effective Date results in contamination of the Premises or the Airport, or if Hazardous Materials are otherwise discharged or released from the Premises after the Effective Date, then Tenant shall indemnify, defend and hold City harmless from and against any and all claims, judgments, damages, penalties, fines, costs, liabilities and losses (including, without limitation, diminution in value of the Airport, damages for the loss or restriction on use of rentable or usable space or of any amenity of the Airport, damages arising from any adverse impact on marketing of space in the Airport, and sums paid in settlement of claims, attorneys' fees, consultant fees and expert fees) which arise during or after the term of this Agreement as a result of such breach, contamination, discharge or release. This indemnification of City by Tenant includes, without limitation, costs incurred in connection with any investigation of site conditions or any cleanup, remedial, removal or restoration work required by any federal, state or local governmental agency or political subdivision because of Hazardous Materials present in, on or under the Premises. Without limiting the foregoing, if the presence of any Hazardous Materials on the Premises after the Commencement Date results in any contamination of the Airport, or otherwise results in the release or discharge on, under or from the Premises of Hazardous Materials, Tenant shall promptly take all actions at its sole expense as are necessary to return the Airport to the condition existing prior to the introduction of any such Hazardous Materials to the Airport or to otherwise remove and/or abate the release or discharged Hazardous Materials; provided that City's approval of such actions shall first be obtained, which approval shall not be unreasonably withheld so long as such actions would not potentially have any material adverse long-term or I:Wca\djrW\AgreeEnents\Airport Hanger Lease.Ia.mes Nyende doc 3 combinations. City shall only be liable to Tenant for damage resulting from gross negligence in accessing Premises. 4.8 Re nests from A' ort Mana er. Tenant shall cooperate with any reasonable request from City's Airport Manager regarding use or operations at the Airport. 5. MAINTENANCE ALTERATIONS. 5.1 As-Is Condition. Tenant hereby acknowledges that neither City nor anyone acting for or on behalf of City, has made any representation, warranty or promise to Tenant concerning the physical aspects or condition of the Premises or improvements, the feasibility, desirability or convertibility of the Premises into any particular use, the conditions of the soil, ground water, or surface waters or the presence or absence of any toxic waste or hazardous substances or material, and that by entering into this Agreement has not relied on any representation, statement or warranty of City, or anyone acting for or on behalf of City, and that all matters concerning the Premises shall be independently verified by Tenant, and that Tenant shall rent the Premises on Tenant's own examination thereof, AND THAT TENANT IS LEASING THE PREMISES IN "AS IS" PHYSICAL CONDITION AND "AS IS" STATE OF REPAIR. Tenant hereby waives and City hereby disclaims all warranties of any or kind of description, including, without limitation, those of fitness for particular purpose, tenantability, habitability and use. Tenant hereby expressly waives any and all claims for damages or for rescission or cancellation of the Agreement because of any representations made by City or by any agent of City. Tenant acknowledges that it has had sufficient tune to conduct all inspections, reviews and studies of the Premises that Tenant may deem necessary. Tenant hereby expressly assumes the risk that adverse physical conditions and the full extent thereof, may not be revealed by Tenant's inspections, reviews and studies of the Premises. 5.2 Maintenance of Premises. Throughout the term of this Agreement, Tenant shall, at Tenant's sole cost and expense, maintain the Premises in first class condition and repair, provided, however, that City shall maintain the structural components of the hangar, including doors and door mechanisms. Tenant hereby waives the provisions of California Civil Code Sections 1941 and 1942 with respect to City's obligations for tenantability of the Premises and Tenant's right to make repairs. 5.3 Alterations. Tenant shall not make any alternations to the Premises without City's prior written consent. Any alterations made shall remain on and be surrendered at the expiration or sooner termination of the term; provided, however, that City may, at City's sole election, demand the removal from the Premises of all fixtures and improvements or of certain fixtures or improvements or both as specified in the notice provided for below. A demand to take effect at the normal expiration of the term shall be effected by notice given at least thirty (30) days before the expiration date. A demand to take effect on any other termination of the Agreement shall be effected by notice given in or concurrently with notice of such termination or within sixty (60) days after such termination. Tenant shall comply with the notice before the expiration date for normal termination, and within thirty (30) days after the notice for other terminations. 5.4 Utilities. Except for electrical services which shall be provided by City, Tenant shall be responsible for the payment of all costs for utility services to the Premises. City 1:'ca'�djm'tAgreements\Airpi7i1 flange-Lmse.lames Nyende.doc 5 terminate this Agreement in addition to all other rights and remedies provided by law or equity to which City may resort cumulatively or in the alternative. 8.2 Tenant's Dui to Surrender. At the expiration or earlier termination of the term of The Agreement, Tenant shall surrender to City in as good condition and repair as of the Effective Date, the possession of the Premises. If Tenant fails to surrender the Premises at the expiration or sooner termination of this Agreement, Tenant shall defend and indemnify City from all liability and expense resulting from the delay or failure to surrender, including, without limitation, claims made by any succeeding tenant or Tenant or resulting from Tenant's failure to surrender. 8.3 Holding Over. If Tenant shall continue to occupy or possess the Premises after the termination of this Agreement without the consent of City, then unless City and Tenant have otherwise agreed in writing, Tenant shall be a tenant on a month-to-month basis. All the terms, provision and conditions of this Agreement shall apply to this month-to-month tenancy except those terms, provisions and conditions pertaining to the term, and except that the monthly rent shall be immediately adjusted upward upon the expiration or termination of this Agreement to equal three hundred percent (300°/x) of the monthly rent for the Premises in effect under this Agreement during the month which includes the day immediately prior to the date of the expiration or termination of this Agreement. This month-to-month tenancy may be terminated by City or Tenant upon thirty (30) days' prior notice to the non-terminating Party. In the event Tenant fails to surrender the Premises upon such termination or expiration, Tenant shall defend, indemnify and hold City harmless against all loss, liability, cost or expense resulting from or arising out of Tenant's failure to surrender the Premises, including, without limitation, any amounts required to be paid to any lessee or prospective lessee who was to have occupied the Premises after said termination or expiration and any related attorneys' fees and brokerage commissions. Notwithstanding the foregoing, no termination of this Agreement shall release Tenant from any liability or obligation hereunder, whether of indemnity or otherwise, resulting from any acts, omissions or events happening prior to the date of termination, or date of surrender if it be later. 9. NOTICES. Any notice required or permitted to be given under this Agreement shall be in writing. Delivery of such written notice shall be conclusively taken and sufficiently given after deposit in the United States Mail, addressed as follows: City: Airport Manager City of Redlands 35 Cajon Street, Suite 222 P.O. Box 3005 (mailing address) Redlands, CA 92373 Tenant: James Nyende 15508 Cleveland Drive Fontana, CA 92336 [:lcaAjmWgreementstA€rport Hanger Lease.lames Nyende.doc 7 f 11.10 Construction of Lease; Severability. To the extent allowed by law, the terms, covenants, conditions, provisions and Leases in this Agreement shall be construed and given effect in a manner that avoids any violation of statute, regulation or law. City and Tenant covenant and agree that in the event any term, covenant, condition, provision or Lease in this Agreement is held to be invalid or void by court of competent jurisdiction, the invalidity of any such term, covenant condition, provision or Lease shall in no way affect any other term covenant, condition provision or Lease in this Agreement. 11.11 Relationship. The Parties intend by this Agreement to establish the relationship of City and Tenant only, and do not intend to create a partnership, joint venture, joint enterprise, or any business relationship other than that of City and Tenant. IN WITNESS WHEREOF, the parties to this Agreement have duly executed this Agreement on the date set forth above. CITY OF REDLANDS TENANT By= Airport Manager Jieo4yende A'TTEST'. City Clerk i:`ca\djnMgreements�Airport Hanger Lose.James Nyende.doc 9