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HomeMy WebLinkAboutContracts & Agreements_25-1971 74 r.`gyp y. t AN AGREEMENT BETWEEN LOUIS A. STOLP, REDLANDS AIRPORT FACILITIES, AND REDLANDS FLITE SERVICE, INCORPORATED FOR THE USE OF REAL PROPERTY AND CERTAIN RIGHTS RELATIVE TO THE REDLANDS MUNICIPAL AIRPORT THIS AGREEMENT , executed in duplicate at Redlands , California, on the /.1' day of S%Tei,beN , 1971, between Louis A. Stolp, Redlands Airport Facilities , and Redlands Flite Service, Inc , hereafter called respectively the Lessor and Lessee, without regard to number or gender The "City" re- ferred to in this Agreement is the City of Redlands, California, a municipal corporation, the legal owner of Redlands Municipal Airport IT IS AGREED between the parties hereto as follows - DESCRIPTION OF PREMISES . The Lessor hereby leases to Lessee, and Lessee hires from Lessor, on the terms and conditions hereinafter set forth, those certain premises with the appurtenances , situated in the County of San Bernardino, State of California, and described in Exhibit "A" which is attached hereto and made a part hereof by reference. TERM The term of the within lease shall be for two (2) years , commencing as of the date that this agreement is executed by the parties hereto RENT: The total rent is One Hundred Dollars ($100. 00) per month or One Dollar ($1. 00) for each revenue flight hour, whichever is the greater, for airplanes operated by Lessee from the Redlands Municipal Airport, plus two percent (2%) of the contract sales price of any aircraft or airman accesso- ries sold by Lessee by virtue of its operations as herein set forth The last three months minimum rent of Three Hundred Dollars ($300 00) shall be paid on the effective date of this agreement and shall be a deposit as security for Lessee' s per- formance of the covenants of the lease to which the lessor may resort for payment of damages arising from breach, should such occur, by the Lessee, of this agreement It is agreed that the Lessee is entitled to receive back that part of the security which has not been applied in satisfaction of damages arising from such breach of this agreement should it occur DELAY IN DELIVERY OF POSSESSION. If Lessor, for any reason whatsoever, cannot deliver possession of the said -1- premises to Lessee at the commencement of the said term, as hereinbefore specified, this lease shall not be void or voidable, but the Lessor shall be liable to the Lessee for any loss or damage resulting therefrom, and the term of the lease shall be extended by the delay for a period equal thereto USE• The premises are leased to the Lessee for the purpose of permitting Lessee to conduct thereon a fixed-base operation which may include the following sale of new and used aircraft, retail and wholesale, together with such equip- ment as the purchaser wishes to add thereto; flight operations, including demonstrations of aircraft for sale, charter (with or without pilot) ,, flight training (primary and advanced, in- cluding instrument and multi-engine) and air charter, not air taxi (scheduled or unscheduled) ; sale of airman supplies and accessories excepting such as would become an intregal part of an aircraft. Lessee shall not use, or permit said premises , or any part thereof, to be used for any purpose or purposes other than the purpose or purposes for which the said premises are hereby leased. UTILITIES Lessee shall pay for its telephone and electric service. REPAIRS Lessee shall, at its sole cost, keep and maintain said premises and appurtenances and every part thereof (excepting exterior walls and roofs which Lessor agrees to re- pair) in good and sanitary condition and repair, and agrees to return said premises and appurtenances in as good condition as they were on the effective date of this agreement, normal wear and tear excepted Lessor agrees to maintain the exterior walls and roofs in good and sanitary condition and repair throughout the term of this agreement. NONLIABILITY OF OWNER FOR DAMAGES • This lease is made upon the express condition that Lessor is to be free from all liability and claim for damages by reason of any injury to any person or persons , including Lessee, from any cause or causes whatsoever while in or upon the said demised premises, Lessee hereby covenanting and agreeing to indemnify and save harmless Lessor from all liability, loss , cost, and obligations on account of or arising out of any such injuries or losses however occurring. INSURANCE a Lessee shall indemnify and save harmless the City, -2 r, its officers , agents , and employees as well as Louis A Stolp, Redlands Airport Facilities , their officers and employees from and against any and all claims , demands , loss or liability of any kind or nature which City, its officers, agents and em- ployees, or any of them, or Louis A Stolp, Redlands Airport Facilities , their officers and employees or any of them, may sustain or incur or which may be imposed upon them or any of them, for injury to or death of any persons or damage to any property in the use of the premises described in the "Property Leased" section herein. b. As a condition precedent to the effectiveness of the Lease and in partial performance of the Lessee' s ob- ligations hereunder, the Lessee shall obtain and maintain in full force and effect during the term of this agreement, a policy or policies of Liability Insurance in carriers and in form satisfactory to City with minimum limits of $100 ,000/$300 , 000 Bodily Injury, and $100 ,000 Property Damage Insurance. In addition, Aircraft Passenger Liability Insurance of� 9 per C. passenger seat shall also be provided. Lessee shall cafzse°to be attached to all of said policies of insurance an endorsement stating that the City of Redlands , its officers , employees , agents , Boards and Commissions , and Louis A. Stolp, Redlands Airport Facilities, their officers and employees , are included as named insureds. c. The policy shall further provide that the same shall not be cancelled or coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City and the Lessor d. Lessee shall , coincidentally with the execution of the Lease, deliver an acceptable Certificate of Insurance on the approved City of Redlands Insurance Certificate Form and certified or photostatic copy of said policies of insurance to City and the Lessor. e. The procuring of such policies of insurance shall not be construed to be a limitation upon the Lessee' s liability, or as a full performance on its part of the indemnification pro- visions of this Lease. Lessee ' s obligation being , notwith- standing said policies of insurance, for the full and total amount of any damage, injury or loss caused by negligence or neglect connected with its operation under this Lease. f. Lessee shall have Workman's Compensation coverage, as required by State of California law -3- DISCOUNTS . Lessor agrees to provide to Lessee for the term of this Agreement and any additional term granted hereby the following discounts a A ten percent (10%) discount from retail market price on all parts sold to Lessee by Lessor except where such sale results in a net loss to Lessor. b. A One Dollar ($1. 00) per hour discount at the prevailing rates for labor on all labor performed by Lessor on aircraft owned or operated by Lessee SERVICES : Lessee agrees to provide such of the services spelled out in the section entitled USES as are economically feasible during the hours from 8 00 a m. , local standard time, to dusk, seven (7) days a week, for the term of this Agreement The Lessee expressly agrees to maintain an office with telephone service and for this purpose Lessor will grant any and all licenses or easements necessary for the installation and maintenance of said telephone service. Lessee agrees to base no less than two airplanes , a two-place and a four-place, at Redlands Municipal Airport which said aircraft shall be available for flight instruction or rental, it being understood between the parties however, that when such air- craft are being used for such purposes or are down for necessary repair and maintenance, Lessee is under no obligation to furnish substitute aircraft Lessee agrees to provide UNICOM service for aircraft. City will furnish UNICOM equipment to Lessee without cost on a loan basis Lessee agrees to operate UNICOM in accordance with FAA regulations , and assumes all liability in connection with UNICOM operation UNICOM operating hours will be seven (7) days per week, from 8 . 00 a m to 5 00 p m , local standard time, or one (1) hour prior to sunset, whichever is later. Lessee agrees to return all loaned UNICOM equipment in good condition, ex- cepting no.Lmal wear and tear, to city upon city ' s written request for same. INTERPRETATION• It is agreed that any ambiguity within this agreement is to be interpreted in the light of the intent and purposes of the Airport Lease and the Management Agreement executed by Lessor and the City of Redlands as such are presently in effect. NON--EXCLUSIVE PRIVILEGE: It is understood by and between the parties hereto that the privileges granted to the -4- Lessor in the aforesaid agreements with the City of Redlands are non-exclusive in that equal privileges may be granted to others on properties other than those owned and/or operated by Lessor and to this extent the privileges herein acquired by Lessee are non-exclusive. ASSIGNMENT. The Lessee shall not sell or assign this lease nor sublet the demised property or any portion thereof without the prior written consent of the Lessor and the approval of the City of Redlands. RELEASE OF OBLIGATION. If by virtue of the act of the Lessor or the City of Redlands or the failure to act of either parties , for any reason whatsoever, including but not limited to the repair or realignment of existing runways or taxiways , Lessee is unable to operate the flight services hereinabove described as such, Lessee shall be relieved from its obligation to pay rent proportionately to the time it was unable to operate, half-days being counted as whole days , but nothing herein shall relieve the Lessee from payment of other fees or charges set forth herein during such periods . ATTORNEY FEES In the case suit is brought to compel the performance of any of the provisions of this agreement, or to seek damages for the breach thereof, the prevailing party shall be entitled to reasonable attorneys ' fees , which shall be fixed by the court, and costs HOLDING OVER• Any holding over after the expiration of the said term, with the consent of the Lessor, shall be construed a tenancy from month to month, at the same rent as herein set forth, and shall otherwise be on the terms and con- ditions herein specified, so far as applicable BINDING ON SUCCESSORS : The covenants and conditions herein contained shall , subject to the provisions as to assign- ment, apply to and bind the heirs , successors , executors , administrators , and assigns of all of the parties hereto, and all of the parties hereto shall be jointly and severally liable hereunder. ADVERTISING The Lessee may advertise in any manner so long as Lessee complies with the ordinances and regulations of the City of Redlands and secures permission in writing from Lessor for the erection of all external signs on leased premises . TIME is the essence of the Lease. -S- TAXES Lessee agrees to pay all taxes imposed or assessed upon his property located at Redlands Municipal Airport NOTICES It is agreed that any notice to be given or served upon Redlands Flite Service, Inc. , the Lessee, shall be sufficient if sent by registered mail , postage prepaid, addressed to P O Box 898 , Mentone, California, and any notice to be given or served upon Redlands Airport Facilities shall be sufficient if sent by registered mail, postage prepaid, addressed to Redlands Airport Facilities , P O. Box 694 , Mentone , California 92359 OPTION TO RENEW LEASE - Lessee is hereby granted an option to renew this lease for a further period of two (2) years from and after the expiration of the original term on the same terms and conditions as herein set forth so far as applicable Written notice of Lessee ' s intention to renew this lease shall be given to Lessor at least 90 days prior to the expiration of this lease. TERMINATION OF AGREEMENT In the event that City of Redlands terminates the City ' s Airport Lease and the Management Agreement with the Lessor , this Lease is automatically ter- minated as of the same date IN WITNESS WHEREOF, Lessor and Lessee have executed this lease on the ` St day of _ Se(TasbcA , 1971 , and make it effective herefrom Redlands Airport Facilities Louis A. Stolp By \`~z 4?Oleet Redlands Flite Service, Inc . Charles H Ellsworth APPROVED By City of Redlands By � R P Merritt, r Di ector of Aviatio Attachment Exhibit "A" Area leased -6- [J /47SS ," J L4a' 1/ /tasArc, EXHIBIT "A" - Area leased to Redlands Flite Service A /I /4,4/5FZ ell oo9rei - 7/ j od- N t�l E S r ea.4a' ex -ia� /5a eel farfF F ✓I—'--— 2f/I rr/! !50 Q crf/ so; r a