HomeMy WebLinkAboutContracts & Agreements_5-11 AIR_CCv0001.pdf AIRPORT HANGAR RENTAL AGREEMENT
This airport hangar rental agreement ("Agreement") is made and entered into this 15th
day of Junc, 2011 ("Effective Date") by and between the City of Redlands, a municipal,
corporation ("City""1, and Marlin Kaufrnan {-Tenant"). City and Tenant are sometimes
individually referred to herein as a "Party" and, together, as the "Parties."
I' PREMISES. City hereby rents to Tenant, and Tenant hereby rents ti-oni City, that
certain hangar designated as Hangar No. 26 (the "Premises"), located at the Redlands Municipal
Airport ("Airport"), and snore particularly described in Exhibit "A" attached hereto. This
Agreement for rental of the Premises is for the principle purpose of the storage of Tenant's
aircraft which is identified as year 1966 melee piper model Comanche., Registration No. N8984P,
or for commercial aviation related business, and any incidental aviation related uses associated
therewith.
2. TERM. The terril of this Agreement shall be [month-to-montli] or [other]
commencing on June 15, 2011, and in no event -,hall exceed three (3) years.
3. CONSIDERATION.
3.1 1' of Rental Payments. Tenant shall pay to City on or before the 15"'
day of each month during the term of this Agreement as monthly rent, without deduction, setoff
or demand, the sum of Five Hundred Forty-Seven and 00/100 Dollars ($547.00). 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 two (2) years, by the percentage increase in
the Consumer Price Index, all urban consurners, Los Angel es-Riversi de-Orange Counties, during
the terin of this Agreement, on the anniversary date of the Effective Date of the Agreement.
3.2 Manner of Pqyment of Rent, Monthly rent for any partial month shall be
prorated at the rate of 1/30th of the ii-ionthly rent per day, The monthly rent and any applicable
late charges payable by Tenant hereunder shall be paid by Tenant without notice, dernand or
offset at the office ofthe Airport Manager at the Airport, or at such other place as may from tirne
to time be designated by City.
3.3 Taxes and Assessments,
3.3.1 QbtigqtiQtjjg-j;iy. Tenant is responsible for and shall pay all real
and personal property taxes (including any tax levied on a possessory interest, as defined in
Calilbrnia Revenue and Taxation Code Section 107 or successor statute, if applicable), general
and special assessments, and other charges of every description, levied on or assessed against the
Premises, personal property located on the land or improvements, the leasehold estate, or any
subleasehold estate, falling due during the term of this Agreement. It shall be conclusively
presumed that any airerall. stored at the Premises pursuant to this Agreement shall be considered
"habitually situated" therein as that Cerin is defined it Revenue and Taxation Code section 53362.
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Tenant shall make all such payments directly to the assessing authority, before delinquency and
before any fine, interest or penalty shall become due or be imposed by operation of law for their
nonpayment.
3.3.2 Proration for Partial Year. Any imposition of taxes referred to in
Section 3.3.1 above relating to a fiscal period of a taxing authority, a part of which period is
included within the term of this Agreement and a part of which is included in a period of time
before the Effective Date or after the termination of this Agreement, shall be paid by Tenant as
above but shall be prorated with City.
3.3.3 Tenant I s Rj 4t to Contest. Tenant may contest the legal validity or
amount of any taxes, assessments or charges for which Tenant is responsible under this
Agreement, and may institute such proceedings as Tenant considers necessary. If Tenant contests
any such tax, assessment or charge, Tenant may withhold or defer payment, or pay under protest.,
but shall protect City and the Premises ti-orn any lien by adequate surety bond or other
appropriate security.
3.3.4 Proof of Coran, iance. Upon the request of City, Tenant shall
furnish to City receipts or other appropriate evidence establishing payment or any applicable tax,
assessment or charge. Tenant may comply with this requirement by retaining a tax service to
notify City whether the taxes have been paid.
4. USE OF PREMISES.
4.1 Use of HaL,ngar. The Pren-rises shall be used and occupied by Tenant
principally for the storage of aircraft and related business or other aviation uses. No other
commercial activity of any kind whatsoever shall be conducted by Tenant in, fi-orn or around the
Premises. Tenant shall take such steps as are necessary to ensure that the performance of such
maintenance work does not damage the Premises. Tenant shall control the conduct and demeanor
of its employees and invitees, and of those doing business with it, around the Premises and shall
take all steps necessary to remove persons whom City may, for good and sufficient cause, deem
objectionable. Tenant shall keep the Premises clean and free of debris at all times. Upon
termination of this Agreement, Tenant shall immediately surrender possession of the Premises
and shall remove the Aircraft and all other property therefrom, leaving the Premises in the same
condition as when received, ordinary wear and tear and improvernents made by Tenant excepted.
Tenant shall be liable for any and all darnage to the Premises caused by Tenant's use, including,
without limitation, bent or broken interior walls, damage to unsealed floors due to fuel oil
spillage, or doors damaged due to Tenant's improper or negligent operation.
4.2 Qp to I k
qnc(Lwith Laws. In utilizing the Premises during the terns of this
Agreement, Tenant shall comply with all applicable statutes, ordinances, rules and regulations
established lay any federal, state, county or local government agency.
4.3 Wast e-yrs ver Tenant shall dispose of all sewage and industrial waste in
accordance with all applicable regulations and laws of those governmental agencies having
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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 ti-om 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,
(ar) 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 contarnination 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 of the Conirnencement Date results in any contamination of the Airport, or otherwise
results in the release or discharge on, under or fi-om 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
short-term effect on the Airport, will not unreasonably interfere with the use and enjoyment of
other portions of the Airport, and will be performed in accordance with all Hazardous l,Iaterials
Laws. Upon the termination of this Agreement, Tenant shall surrender the Premises to City free
of any and all Hazardous Materials and in compliance with all Hazardous Materials Laws. This
indemnification shall survive the termination or expiration of this Agreement.
(c) For the purpose of this Section 4.4, the term "l-lazardous
Materials" includes-, without limitation, any flammable explosives., radioactive materials,
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hazardous materials, hazardous wastes, hazardous or toxic substances, or related materials
defined in the Cornprehensive Environmental Response, Compensation and Liability Act of
1980, as amended (42 U.S.C, §9601 et seq.), the Hazardous Materials Transportation Act, as
amended (49 U.S:C. §1801 et seq.), the Resource Conservation and Recovery Act of 1976, as
amended (42 US,C. §9601, et seq.). Section 25117 of the California Health & Safety Code.,
Section 25316 of the California Health & Safety Code, and in the regulations adopted and
publications promulgated pursuant to them, or any other federal, state or local environmental
laws, ordinances, rules or regulations concerning the environment, industrial hygiene or public
health or safety now in effect or enacted after the Effective Date.
4.5 Billboards and Sims. Tenant shall not construct, install or maintain, nor
allow upon the Premises any billboards, signs, banners or like displays which may be placed in
or upon any building or structure in such manner as to be visible fi-om the outside thereof, except
with the prior -written consent of City.
4.6 Waste- Nuisance. Tertant shall not user the Premises in any manner that
will constitute waste, nuisance or unreasonable annoyance to owners or occupants of adjacent
properties. Tenant shall not use the Premises for sleeping, washing clothes, cooking or the
preparation, manufacture or mixing of anything that might emit any odor or objectionable noises
or lights onto adjacent properties. Tenant shall not do anything on the Premises that will cause
damage to the Premises.
4.7 Access; Locks, Keys; Combinations:' Tenant shall cornply with all
reasonable regulations and directives of City regarding access to the Premises. City may enter
the Prermses without permission of, or supervision by, Tenant for inspection or emergency
purposes (i.e. fire, burglary, flooding, criminal activity, or other catastrophe) determined
reasonably necessary by City or required by law, including but not limited to five-year fire
sprinkler inspections. maintenance work, that, requires entrance by City, or any other to lawfully
enter the Premises. City shall subsequently notity Tenant of any entry for emergency purposes
and the reason for the entry if the Tenant was unable to supervise such entry. City reserves the
right to limit Tenant's access to the Airport or the Prem,ices, or both, due to any terrorist threat,
civil unrest, any unsafe condition, of fbr the safety and protection of persons and property. City
shall not be responsible for Tenant's inability to access the Airport or the Premises due to events
or acts beyond the control of City, Tenant shall, at its own expense, furnish City's Airport
Manager with a duplicate set of keys or lock combination for the locks securing the Premises,
City shall secure keys and lock con-ibinations from access or exposure by unauthorized
individuals and will notify Tenant immediately in the event of any compromise of keys and lock
combinations. City shall only be liable to Tenant for damage resulting from gioss, negligence in
accessing;Prernises.
4.8 Requests from AirVoit - Mail,
iggr,, Tenant shall cooperate with arly
reasonable request from City's Airport Manager regarding use or operations at the Airport.
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5. MAINTENANCE, L f I�;I� TIONS.
5.1 s ls...Condit o-n', 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, aground 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 w=arranty of City,, or anyone acting for or can 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, l'�rl
ATHAT 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 bind 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 time 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
door, 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 shard 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 ofthe'term: provided, however, that City may. at City's scale
election, demand the removal front the Premises of all fixtures and improvements or of certain
fixtures or improvements or both as specified in the notice. provided for below. A dernand 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 tape effect on any other termination of the
Agreement shall be effected by notice given in or, concurrently with mice of such termination or
within sixty (60) days after such termination. Tenant 'shall comply with the notice before the
expiration data: for normal termination, and within thirty (3 ) 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 casts for utility services to the Premises. City
shall not be liable for the failure to provide electrical services if it is prohibited from doing so by
events or actions beyond its control;
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o. PROHIBI IONGAIN T ASSIGNMENT_AND 1 Ll T'�ING. Tenant shall
not assign or transfer, whether voluntarily, involuntarily or by operation of law, its interest in this
Agreement or any part: hereof; leo such assignment or transfer shell be valid or binding, An
attempted assignment or transfer shall be grounds IbrCity's termination of this Agreement. A
used, in this Article 6 the, term "assignment" shall: incline a "more than 5% change in
ownership of Tenant." A "more than 25% change in ownership of Tenant" shall mean, if Tenant
is a corporation, the transfer of more than 25% of the voting stock of Tenant, or if Tenant is a
general partnership, the transfer of the right to share in more than 5% of the profits of such
partnership; or, if Tenant is a limited partnership'a transfer of more than 25% of the voting rights
of the general partner thereof to individuals or entities which were not theretofore general
partners of Tenant. In addition, the paring of aircraft not owned or under exclusively lease by
Tenant in the Premises shall constitute a sublease for purpose of this Article,.
7. INDEMNITY.
7.1 Indemnity. Tenant shall indemnify, hold harmless and defend City, its
elected officials, officers and employees, from and against any and all actions, claims, damages,
disabilities or expensesincluding, without limitation; attorneys' tees (including fees for use of
in-house counsel by a Party), witness costs and court costs that may be assented by any person or
entity, including Tenant, arising out of or in connection with arty of the following circumstances
7.1.1 Use of Premises. Use of the Premises or Airport in any manner by
Tenant, its agents, employees, invitees, subtenants, licenses and contractors, and the agents,
employees, patrons, contractors and invitees of Tenants and subtenants, including any use of the
Premises or the Airport not allowed under this Agreement.
.1.2 Breach by Tenant. Any breach by Tenant of the terms, covenants
or conditions herein contained.
7.1.3 Other�Activ�ties. Any other activities of Tenant, its agents,
employees and subtenants whether or not there is concurrent negligence on the part of City, but
excluding liability due to the sole active;negligence or sole willful misconduct of City. This
indemnification obligation is not limited in any way by any limitation on the amount or type of
damages or compensation payable by or for Tenant or its agents under workers' compensation
acts, disability benefit acts or other employee benefit acus::
8. TERMINATION AND EXPIRATION.
.l Termination for-Tenant's Default_t If Tenant fails to pay rent or any other
sums to be paid by Tenant hereunder, Tenant shall have thirty ( t1) days after written notice is
given Tenant to cure the deft ult. If any default by Tenant shall continue uncured following,
notice of default as required by this Agreement, City shall have the right to irnmediately,:
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.
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8.2 Tenant`, pty,atoSurrender. At the expiration or earlier termination of the
term of The Agreement,ement, "Tenant shall surrender to City in as good condition and repair as of the
Effective hate, the possession of the Prerni es. If Tenant fails to surrender the Premises at the
expiration or sooner tennination of this A reen`tent, Tenant shall defend and inde mn4 City froni
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 f4jo Cclipu Oyo r 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 anonth-to-month basis. All the
tern-as, 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%) of the monthly rent for the premises in effect under this
Agreement during the month which includes the day inu-nediately 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) clays' prior notice to the non-terminating Darty. In they event
Tenant fails to surrender the Premises upon such termination or expiration, Tenant shall defend,
indemnify and hold City harmless against; all kiss, 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;
coaninissions. Notwithstanding the ;foregoing, no termination of this Agreement shall release
Tenant frons any liability or obligation hereunder, whether of indemnity or otherwise, resulting
from any acts, omissions or events happening prion- to the date of termination, or data; of
surrender if it be latex.
. 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 9237
Tenant.- Marlin Kauthian
14-17 Blossom Avenue
Redlands, CA 92373
(951) 316-3837
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Any Party may at any time change its address lbr notices by giving written notice of such change
to the other Party in the manner provided in this paragraph.
10. INSI-JRANCE. Upon the Effective Date of this Agreement, Tenant shall provide
City with a copy of Tenant's aircraft insurance policy for the specific aircraft that is stored in the
Premises. In tite, event Tenant replaces such aircraft with a replacement aircraft during the term
of this Agreement, Tenant shall provide City with a copy of the Tenant's aircraft insurance
policy for such replacement aircraft within ten (1,0) days of the same.
11. MISCELLANEOUS PROVISIONS.
ILI Joint and SevgEd Obligations. If Tenant consists of iriore than one person.,
the obligation of all such persons is joint and several.
11.2 Cations. The captions of this Agreement are for convenience and case of
reference only and do not define, limit, augment or describe the scope, content or intent of this
Agreement.
11.3 Successors. Subject to the provisions of this Agreement on assignment and
subletting, each and all of the covenants and conditions of this Agreement shall be binding on
and shall inure to the benefit of the heirs, successors, executors, administrators, assigns and
personal representatives of the respective Parties.
11.4 Broker's ConIrnissions, Ex------ Tenant and City mutually covenant that
no brokers have been or will be used with respect to this Agreernent. In the event any broker or
finder perfects a claim fora commission or finder's fee based upon any such contract, dealings
or communications, the Party through whom the broker or findert-ii-akes a successful claim shall
be responsible for said corm-nission or fee and all costs and any expenses (including reasonable
attorneys' fees) incurred by the other Party in defending against the same.
11.5 Aalivable Law' and Forum. This Agreement shall be construed and
interpreted according to California law and any action to enforce the terms of this Agreement or
for the breach thereof shall be brought and tried in the County of San Bernardino.
11.6 Covenants and Conditions, All provisions of this Agreement whether
covenants or conditions., on the part of Tenant shall be deemed to be both covenants and
conditions and such covenants shall survive termination.
1 L Time of Essence—,' Time is>and shall be ol'the essence of this Agreement
and of each and ev=eryI this Agprovision contained in recinent.
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11.8 No Discrim'nat' n. Tenant shall comply with all applicable federal, state
and local laws, rules and regulations relating to non-discrimination in employment and services
because of race, color, ancestry, national origin, religion, sex, marital status, age, medical
condition and handicap.
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11.9 No "hid�'atlt Rena ficiaric�s.d at irtg contained in this Agreement shah;
be construed to create and the parties do not intend to create any rights in third parties,
I I.10 Construction of Le , $evil lity._To the extent allowed by lave. the
terns, covenants, conditions, provisions and Leases in this Agreement shall be construed and
given effect in a tnan.ner 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 tease shall in leo way affect any other terra
covenant, condition provision or Lease in this Agreement.
11;11 R lationshi-D: The Parties intend by this Agreement to establish the
relationship of City and Tenant only, and elle 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'
7
w
Airport Manager
Title: Marlin atifznan Tenant
ATTEST:
City CIer
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