HomeMy WebLinkAboutContracts & Agreements_9-2007_CCv0001.pdf Recorded is Official Records,County oS San Rernardina 11/2712007
LARRY 'WALKER 11:46 A
pry',' H
zw Auditor/Controller — Recorder
Recording Request Iii
Regular Mil
And When Recorded Ivlail to:
Doc##: < 0666627 Titles: 1 gages: 4
IFees (4.
Taxps 0-00
City Clerk she 0.0
C: ty of Redlands
P:0, Box 00
Redlands, CA 237
FEES 7777 Space Above This lint~ For Recorder's Use
R 1 " ER!WENT CODE
SECTION 610
RAN('F-IO PACIFIC PROPERTIES, LLC, dba RF DL3x1NDS AVIATION
LEASE AGREEMENT
R,FJDLANDS MUNICIPAL AIRPORT
PARCEL, NOS. I. 2 and
AIRPO RSI I F SE
This Lease Agreement. ("Lease") is made and entered into this 16th day ofoctober
200 ("Effective ctive Date"), by and between the City of Redlands. a municipal corporation ("City"),
and Rancho Pacific :Properties, LLC.. clha Redlands Aviation ('°Lessee"). C:iry and Lessee are
sometimes ind:ividuallv referred to herein as a"Part" and, to=:tether.as the"pasties."
Section 1. Property Leased. City hereby leases to Lessee;certain real property located at the
Redlands Municipal Airport ("Airport") which is designated as Parcel nos. ;1. 2 and 3 on the ma
labeled as Exhibit 3.A ," and which is more particularly described in Exhibit "B" (the `Leased
Premises-). Both Exhibits "A"' and "B" are attached hereto and incorporated orated herein by this
reference.
Section 2, Terme ofLease, The terry of this Lease shall commence mence cert the Effective Date of
this Lease and shall end on the 31" dad c?fDecember, 2029, Unless earlier terminated as;provided
for herein, Lessee shall have the option of extending the terns of this pease for three ) year
extensions ns Ecom January 1, 2030 to December- 31, 203 : from January 1. 2039 to December 31,
20 48:1 and fruits January 1. 2049 to December 31, 2058.
Section 3. Non-Exclusive Riuhtstiranted
A. Lessee shall use the Leased Premises for a: fixed base operation. which shall
include the fbIlowing non-exclusive rights-
Le_.s,, 'Agreement
(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(prim ary and advanced):
(3) Perform maintenance, repairs and overhauls of all types of aircraft,
engines, instruments, radio 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
aircraftparking areas to the terminal and other areas of the Airport;
(5) Conduct sales of automotive ftiel., lubricants and accessories to rarep
vehicles such as tugs, tractors, motorized ranifis, baggage handling equipmentground power
units, and space heaters, and make repairs on ,round service equipment;
(6) Operate a restaurant and conduct related retail sales:
(7) Tow disabled aircraft.
(8) Finance and insure aircraft-,
(9) Construct and rent aircraft hangars and aircraft tie-doNvn facilities and
buildings to house activities authorized by this Lease
(10) Impose reasonable charges upon L,essee's custorners for the provision of'
services described in this Section, and
(11 d` Place arid install, advertising and other signs- provided such signs c)mp C IN
Nvith (:1tv's Sian Code and all other applicable law's, and have been approved by City prior to
placement or installation.
1-,CA1DJ\fAgrec1RN1A Lave
B, Lessee hereby agrees that the building on the Leased Premises comprising the
--l.,,obbv."the adjoining outdoor patio. and the airport security storaoe room located within Such
buildino. which are more shown on Exhibit"C" attached hereto and made as part of this Lease.
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shall be available for use by City and the public subject to the following conditions-.
11 (""se of the Lobby, During the term of this Lease,the Lobby shall be used as a
public airport lobby and patio and for any other related purposes deemed
appropriate by City,
(2) Operations. Lessee shall be responsible for providing lock and key service for
the Lobby, and opening and closing ofthe Lobby 365 day s of m
the year, 8:00a. .
to 5:00 p,in, Lessee shall also make the Lobby available for public meetings.
(Aty shall have access rights to the Lobby and the exclusive right to enter and exit
the storatye room at all times during the tertri of this Lease for the proper operation
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and maintenance of the Airport security systerri.
Furnishings. City shall furnish tables and chairs for the Lobby,
(4) Maintenance. The Parties shall share equally all expenses For the maintenance of
the air cotiditioning and hcat pump, hot water heater, water cooler and plumbing
of the Lobby. Lessee shall provide light bulbs for the perimeter of the Lobby
building and patio area, Lessee shall maintain the temperature in tile storage
room at all times at no (Treater than 75 degrees Fahrenheit and no less than 60
f',CAJJJM,A,gre,e'RM.A Lea',�Agrecment 4
degrees Fahrenheit. City shall pay fior, and provide, electricity and light bulbs fior
the Lobby and patio area, If City determines that new flooring tor the Lobby is
required, the cost Cor the new flooring shall be shared equally by the Pal-ties,
(i) Janitorial Services. Lessee shall provide janitorial services for the Lobby avid
patio area. Lessee shall also provide cleaning equipment, cleaning supplies,
garbage receptacles and bags. Cleaning includes carpet, windows. chairs.
vvashroorrvs, patio, entrances and trash removal, City shall Provide toilet paper
and paper tr.- elsfor the Lobby. Lessee shall not provide janitorial services to the
storage room.
(6) Alterations and Liens. Lessee shall not make or permit any other person to make
anv alterations to the Lobby without the prior written consent of City.
Furthermore. any and all alterations, additions, improvements and fixtures, except
furniture and trade fixtures, made or placed in or can the Lobby by Lessee or ally
other person shall, on expiration gar-earlier termination of this Lease, become the
property of CitN, and remain on the Premises. City shall have the option, however.
on expiration or termination of this Lease, of requiring Lessee, at Lessee's sole
cost and expense, to remove any or all such alterations, additions, improvements
or fixtures from the Lobby.
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C, Lessee shall, during the term of this Lease. make available to City, the garage
located at the north end ofthe West T-1-langar on Parcel No. I of the Leased Prernises t'(,)r tile
purpose of storing emergency vehicles,
D. Activities other than those specificall-y- described in paragraphs A(l) through (I I
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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
crect. nor permit the erection of, any structure or ob'
ject rior 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 mit,
g-lit interfere with the landing and taking off of aircraft from the Airport or otherwise
constitute a hazard.
Section 4. Compliance with Laxvs.
A� Lessee shall,at Lessee's own cost and expense, comply with all statutes,
ordinances. regulations and reqUirements of a It governmental entities. federal, state., county and
municipal relating to Lessee5s use and occupancy of the 1_,eased Premises, Nviiether those statutes.
ordinances., reLlUlations 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, perrilit or authorization
throu(1hOUt the term of this Lease. ThejUdgment of any Court of corn petent jurisdiction,or the
admission by Lessee in a proceeding brought by any government agency, that Lessee has
v iolated any such statute,ordinance,regulation or requirement shall,be conclusive as between
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City and Lessee and shall constitute grounds for immediate wrininatiort of this Lease by City:
provided., however., that if any such violation is subject to cure by Lessee, Lessee shall have sixty
(60) days from and after the judgment or any admission by, Lessee of a violation. whichever is
earlier in time., to effect a cure of such violation. IfCity reasonably determines that Lessee has
cured the violation within such sixty (60) days, no termination of this Lease shall occur as:a
result of the judgment or the admission by Lessee of the violation,
B. Lessee assures that it Will undertake air 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 that no person shall be excluded on these grounds from
participating inter receiving the services or benefits of any prograrn or activity covered by this
subpart. Lessee assures that it will require that its covered suborganizations provide assurances
to Lessee that they similarly will undertake affirmative action programs and that they will require
assurances from their su borgan izat ions, as required by 14 CFR Part 152, Subpart E, to the same
e ffe c t.
Section 5. Federal Aviation Administration Regulations and City- Reserved Rjhts 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
agreements. contracts, leases and other privileges given in connection with operation of the
Airport, Such FAA Regulations are attached hereto as Exhibit"D" and are incorporated herein
by this reference. Lessee has no responsibility, for the l"Offilli-nent of Sections 6a, 6b, 15e, 7, K 9
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10, 11, 13, 14 or 15 of Exhibit "C " In addition to Its rights under the FAA re(ILIlations, (-',itv
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,
13. 'I"he ri,,ht, but not being obligated to Lessee, to maintain and keep in repair
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the landirny 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 publiely-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 ofthe 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. arcing said airspace for landing at. taking off from. or operation at the Airport.
Section 6, Termination of Noreement
A. Lessee may terminate this Lease. �,vithout penalty, by providing twelve
12:1) months prior written notice to City. During such notification period.; 11 terms of this Lease
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shall remain in force.
13. Citi rnav terminate this Lease upon the occurrence of any of the following
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events:
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Fifina of bankruptcy proceedings by or against Lessee.
(2) Lessee continues to conduct activity not authorized by this Lease, after
sixt-y, (60) days' prior written notice front 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) Lessee detaLlItS in the payment of Rent or violates any of the ternIs or
conditions of this Lease. anti the Rent is riot paid or the violation is not
corrected within sixty (60) days after service of notice as provided. in
Section 14 hereof.
(6) Lessec"s failure to perform. in all efficient, business-like manner, so as to
promote good public relations, generate customer (I odwill and reflect
credit oil both City and Lessee, the f011OWin- Minimum duties under this
Lease:
(a) Provide aviation fuel service for aircraft. daily. including
weekends and holidays, during normal operating hours. Normal operation
hours are defined zi,s� 8M a.m. to 5:00 p.m.
(b) Provide emergency aviation fuel and emergency minnnum
mechartical repair services for aircraft outside of normal operating hours,
when reasonable to do so.
(e) Nlaintain the Leased Premises and improvements in good
condition and repair at its sole expense.
1,,CAOJNI,Agr�.,RM,A
(7) Lessor. for reasons beyond its control, is prohibited by any Federal or
State regulatory agency frorn operating the property comprising the
Airport for aviation purposes.
(8) Lessor. in its sole discretion, determines to cease operating the property
comprising the Airport for aviation put-poses.
C. In the event of termination by City -for any of the reasons listed in
Subsection 6B. hereof. City shall, have the following rights:
(1) In accordance with City's FAA Assurance no. 16 (Exhibit "D"),
which specifies "if an arrangement is rnade for management or operation of the Airport by any
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agency or person other than the Sponsor [City of Redlands] or an employee of the Sponsor, the
Sponsor vvill 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 Tee
Hangar area., at no personal or financial liability to Lessee during such operation by Civy. 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. 'Fhe exercise of this right to
conduct Lessee's fixed base operation does not Constitute a waiver by City, of any darnages
arising from Lessee's Failure to comply with tire terms of this 1,,ease. All assets accruing from
City's operation of the Leased Premises. which include all rental payments due City tinder this
I-ease. less customary operating expenses, shall be credited by City to L.cssee*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.
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Section 7, dent and Fuel L'lsaAggc_��v'nt itt
A. 'l he annual rent ("Dent") to be paid to City hy,. Lessee shall be Eighty
Thousand Six Llundred Forty aline Dollars and Eight- Four Cents ($80,649.84). payable in four
approximately equal. quarterly installments on or before. ,Mart h 'I June 30, September` )0 and
December 31 of each year during the term of this lease. The fiat lent installment shall he
prorated and shall be clue and payable within tett (10) days of the Affective Date ofthis lease.
with successive installments slue and payable on each Subsequent September 30"'. December 31".
March 31", June 30"' during the terra of this Lease. dent shall be payable at the office of City at
35 Cajon Street Suite: 155. Redlands, California, or at any, other placer as City from time to time
designates by written notice:to Lessee
B. if Lessee exercises its right to extend the terra of this Lease for 2029
2038. 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, and of an acreage amount
equal to that of the Leased Premises. In the event the Parties are unable to afgree upon a fair
market value, City and Lessee, eacli, shall obtain an appraisal in connection with the
determination of fair market valine, 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 shallrequest 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.
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f11j;09-23'IT",
C. The Rent shall be increased every five years from and after the Effeetive
Date of this Lease, and throuoh any extensions hereof, by an amount equal to the percentage.
increase in the Consumer Price Index, All Urban Consumers (Los Angeles - Riverside - Orance
County). for each such fi vc Fear period.
DIn addition to the Rent described in this section. Lessee shall pay to Lessor
the sunt of $0.02/gallon for each gallon of tbel delivered to the Leased Premises. The Filet
I'lowage payment shall be tuade at the same times as Rent payments are made, A copy of all
bulk delivery invoices of petrolenri-i products delivered to the Leased Premises shall accompany
each quarterly fuel flowage payment to City. Lessee shall be responsible for all maintenance of
fuel Pumps and storage tanks on the Leased Premises, and for any required replacement or
expansion of existing fuel storage facilities.
E. City shall have the right to inspect Lessee's books, including books of all
sails lessees. at all reasonable time to verify, all statements of income. accountings and invoices
required to be made by this Lease.
FIf, by reason of any Act of Congress. Presidential Executive Order.
Reoulation 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 probibitcd
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 aL),reed to b,, the
Parties, or in the event the Parties hereunder are unable to agree upon a reasonable rental, then as
may be deteri-nined by arbitration,
I�CADJNI,AyrceANIA Le&�
%1(017 1r:23anl
G Should City close the runway and the taxiwaN, for public use, other than
for firnited periods necessitated by construction or niainteriance, then the obligation of Lessee to
pay Rent to City shall be terminated.
I-L If. during time of" war or national emergency. the t=inted States
Government shall require for military uses all or such portions of the Leased Premises that a
reasonable amount of reconstruction of the [-,eased Premises will not permit the Lessee's
practical continued occupancy, the provisions of this Lease, insofar as they are rendered
impossible of fulfillment by reason of' the United States (JovernmeriCs use of the Leased
Premises. shall be suspended for the duration of such governmental use. During any Such time
of war or national emergency, City shall have the right to enter into and execute an agreement
with the United States Government for such military use without terminating or otherwise
affecting this [,,,ease_ but rather with the effect of suspending any provisions of this Lease insofar
as
thea are inconsistent with those contained in the agreement of City with the United States
government. Any such period of suspension (if operation of this Lease shall be added to and
shall extend the term of this Lease., and no Rent shall be paid during the period of suspended
operations.
ccti8( 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 frorn arty' and all liability, claims, loss, damages or e,,\,penscs resulting from
Lessee's occupation and use of the Leased Premises, specifically including. without limitation,
any liability. clairn, loss, damage or expense pari by reason of:
W �r "
V1CVD1N4'vUut:t,R\4A Lease Aoccmem 13
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A� The death or litiUry of any person. includim, I_essee or an\, person who is
an employee or agent of Lessee or by reason of the damage to or destruction of any property,
includino property owned by Lessee or by any person who is art employee or agent of Lessee,
firorn an-,,,,cause whatever while that person or property is in or on the 1,.eased Premises or in any
way connected "ith the Lcased Premises or with any of the improvements or personal property
on the Leased Premises
B, The death or iijit.11-V 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 tile Leased Premises or the
it provernents 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 17or or oil
behalf of Lesseel: or
DLessee'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 [,eased Premises by any
dull authorized goverriniental a=envy or political subdivision.
Sect,on 9Insurance
A. Liability Insurance, Lessee shall. at Lessee's own cost and expense.
procure and maintain dUring the term of this Lease a broad form comprehensive coverage policy
�'CA',JVWA21,c'RNIA Lease Ai,_rmnent
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911017 0-23am
of public liability insurance Issued by an insurance company licensed by the State of California
insurin(y Lessee and Citi attaint loss or liability caused by or connected with Lessee's
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Occupation and use of the Leased Premises tinder this Lease in amounts not less than 'Two
million dollars ($2.1000.000) for inJury to or death of one person and. subject to that limitation for
the injury or death of one person, ot'not less than Five million dollars (S5,000.000) for injitiry to
or death of two or more persons as a result of an one accident or incident; and 'kvo million
y I
dollars($2,000,000) for damage to or destruction of an-y property'. Such insurance shall be
primary with respect to City and non contributing to any insurance or self-insurance maintained
by City.
13. Aviation Liability Insurance including Aviation products and Completed
Operations. Hanger Keepers Legal Liability Insurance: Aviation Liability & Products &
Completed Operation coverages shall have limits of Five Million Dollars ($5.000,000) CSL.
Because Lessee assumes "care., custody and control" of aircraft stored in hangers. City requires
Hanger Keepers Legal Liability in an amount of'Fwo Million Dollars($2.000,000), or if stored
aircraft is in excess of this limit. an amount equal to the average value of all said stored aircraft.
CFire and Casualty Insurance, Lessee shall, at Lessee's own cost and
expense. at all tinies during the term of this Lease, keep all improvernents on the [,eased
Prenoises insured for their full replacement value, by insurance companies authorized to do
business in the State of California against loss or destruction by fire and the perils commonly
covered under the standard extended coverage endorsement to fire insurance policies in Sall
Bernardino County, California.
D. Automobile Liabilitv Insurance. Lessee shall at the Lessee's own cost and
expense, at all time during the terra of this Lease. keep in et"Iect a Automobile Liability Insurance
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1J'A DJN1,Ykgree`1RNMA Lease Agreeine ra 15
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coverat 4e -owned
with limits of One Million Dollars(S -,000.000)CSL for all owned and Lion
automobiles.
E. Lessee shall. Nv-ithin ten (10) days after the Effective Date of this Lease.
and promptly thereafter when ,in%, such policy is replaced. rewritten or renewred.deliver to Citly a
true arid correct copy of each insurance policy required by this Lease or a.certificate executed by
the '111SUrance, company or companies or their authorized agent evidencing that policy or policies.
f- Each insurance policy required Linder this Lease shall contain -.t 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
t7or service of notices on City by Lessee.
(,i. Except. lot 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
(30) days of the effective date of change, Further, each policy shall provide that the sanic shall
not be cancelled or modified until a thirty (30)day written notice has been inailed to the City of
Redlands, Attention: Airport Manager. 35 Cajon Street, Suite 15A, Redlands. California 92373.
H. The procuring of such policies of insurance shall not be construed to be a
limitation upon Lessee's liability, or as Cull perforniance on Lessee*s part of the indemnification
I-)r(,,)vi,,ions of this Lease. Lessee's obligation being, notwithstanding such policies of insurance,
responsible for the full and total arnount of any damagle� injury or loss caused by negligence
connected with Lessee's operations Linder this Lease.
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l.: °L`lac insurance required to be provided by Lessee by this section shall be
subject to annual review and by City's L isp Management Department, and Lessee shall
promptlycomply with any such revisions requested by City,
Section 10. Construction of Irta rovemems and Maintenance of Leased Premises.
A. Lessee shall maintain the Leased Premises in good condition and
presentable appearance at all times at Lessee's expense.. Lessee may construct. modify. repair or
improve the Leased Premises at any'time during the term ofthis Lease in conformance With
established and customary standards offixed base operations, ;caning ordinances, sign
ordinances. and building codes of City and the terms of this Lease; provided, however. that
Lessee shall not construct, or permit the construction of;any building within the northerly ISO
feet and the easterly 75 feet of`Parcel no. 2Each proposal by Lessee for construction on, or
modification of, the Leased Premises shall have prior written approval by City. All building
maintenance on the Leased Premises shall be the responsibility of Lessee.
B. Gasoline storage tank maintenance and replacement shall be the
responsibility of Lessee'
C. Upon any termination of this Lease, except PUrS want to Section 613(
hereof. all structures constructed by Lessee. including foundations, shall be removed from the
Leased Premises by Lessee at Lessee's sole expense. N'lotwithstandin the foregoing, City shall
have the option to purchase any or all of the structures oit the Leased Prermses at the termination
of this Lease, if a MUttttally aa�arecaable price for such structures is negotiated by City and Lessee
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In the event of termination of this Lease pursuant to Section 613(8) her°eof'. Lessor shall pay to
Lessee the then-existing; fair market value of Lessee's interest in this Lease and all structures and
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improvements owned by Lessee oil the property that is the SUbjeCft 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 determine fair market
value.
1). Lessee shall be responsible for the installation of all utilities necessary to
serve the Leased Premises., including water lines and tire hydrants that mav be required., and
shall pay for all utilities used oil, or by. the Leased Premises.
E. Lessee shall permit City to enter upon and inspect the Leased Premises at
a]I reasonable times.
Section 11, SUbcontracting, Rights. Lessee shall have the right to subcontract activities
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permitted under tile 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. 'Faxes
ALessee shall pay during the term of this Lease. without abatement.
deduction or offset, ani 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, ill
assessed valuation)of any description levied or assessed during the term of this Lease by any
I`CA''DAL%&qee�,RNIA asic Agreemeni 18
government agency or entity on or a(yain'st,the Leased Premises, the improvements located oil the
Leased Premises,,, personal property located oil tile, l-eased Premises, and the leasehold interest
created by this Lease, Lessee acknowledges and agrees that. in accordance with California
Revenue sand laxation Code section 107,6, that the Leased premises may be subject to property
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 Oil Such interest,
B. Lessee shall defend, indemnify and hold City harmless frorn 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 firom all interest, penalties and other sunis imposed thereon.
and from any sales or other proceeding to enforce collection of any such taxes, assessments or
other charges.
Section 13. 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 [-,ease shall be renegotiated to comply with
the requirements ofthc 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 tile conduct of operations at the Airport.
Cto shall have complete dominion over the Leased Premises during the
term of this [,ease for the purpose of and to the extent necessary to maintain law, order and
1ACA'-eras Agre6RMAI easp"Agreement
1,C 0 9_3
safety', and shall have the authority and right to deny access to the Airport b-3,1 any person who
fails to conform in all respects to this [,,ease.
Section 14. Notices
All notices shall he given in writin9 by personal delivery or by United States mail.
1
Notices. sent by mail should be addressed as follovv-s:
City: City of Redlands
Attention: Airport 'Manager
zn
PO Box 3005
Redlands, CA 92373
Lessee: Rancho Pacific Properties. LLC, dba
Redlands Aviation
1745 Sessurns Drive. Suite 170
Redlands, CA 92374
When so addressed., such notices shall be deemed given upon deposit in the United States Mail.
Changes may be t-nade 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 15. Asshmment of Lease; Successors and Assigns
A' Lessee shall have the right to assign this Lease suh�ject 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 SUject to all
conditions- items and provisions of this Lease. City approval of such assignments shall not be
unreasonably vv'ithheld.
B: By this Lease, Lessee binds itself., and its representatives and all successors and
assigns in interest. Lessee auarantees the performance of any and all covenants and conditions
contained in this Lease. and upon the failure of any, successor in interest to so perform, Lessee
shall complete stich covenants, conditions and requirements of this Lease.
1"('XDJ%1',Ag.rc&RMA I ekee ARreNlwnt
4"10"0 9 23 3T11 20
G In the event any action is commenced to enforce or interpret any term or condition
of this Lease the Prevailing party in such ar tion. in addition to its costs and other relief" shall be
entitled to the recovery of its reasonable attorneysfees., inClUding 'fees for use of in-house
counsel of a Party.
D. This Lease conStlftlt(N the entire agreement bets ecti 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 that are not expressly set
forth in this Lease are null and void.
E. I*his Lease shall be governed by and construed in accordance with the laws of the
State of California.
Section 16. 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.
Section 17. partial Inyalidity. If any provision of this Lease is held by a court of competent
jurisdiction to be either invalid, void or uneriforceabic, the remaining provisions of this [,,case
shall remain in full force and effect unimpaired by the holding.
Section I Time of Essence. Time is e-xpressly declared to be of the essence of this, Lease.
21
9/1010,7 P 113 am,
Section 19. Mernorandurn of I-ease for RZ�cordin . Cits ,;hall record this Lease oi-the
memorandum or'-short form"of this Lease, 4,vhich describes the Parties, sets forth a description
of the Leased Prermses. specifies the terin of this Lease, and incorporates this Lease by reference
in a form substantially, as set forth in Exhibit"E" attached hereto.
Section 20, ljeadings. Any captions, or headings following a section. subsection, paragraph
and preceding the operative text thereof shall be for convenience of reference only and shall not
in an-,, wav control or affect the scope, intent, meaning, construction, interpretation or effect
thereof.
Section 2:1. Definitions of Day, "Day" or"days"means calendar day or days, except as
otherwise expressly qualified herein as"business"days.
Section 22. Actions of Cites' in its Governmental Capacity. Nothing herein shall be interpreted
as limiting the rights and obligations of City in its goverinnental or regnIatory capacity. including
land use and permitting actions.
[:,CAJ)AlAgre,,',RMA Lease Agreement
22
am
,Section '23Further Assurances, Each Party shall execute and deliver any instruments. and
perform any acts as may be necessary or reasonably requested by the other Party in order to give
full efl-ect to this Lease.
["Accuted at Redlands, California on this -16thday of October 00T
CITY OF REDLANDS
Bv1
Jon Harrison
A'T-FES'f:
C i I e r k Rancho Pacific Properties, LLC
dba Redlands Aviation
By: LESSEE
Name:
Title:
Letse A,,
greenwn, 23
91014)7 9 23 trat
ALL-PURPOSE ACKNOWLEDGMENT
STATE OF CALIFOItNIA
COUNTY OF SAN BERNARDINO SS
BV tine arrthornyx° granted under Chapter 4. Article 3. Section 1 181, of the C"alifornia Civil Code,and;
Chapter 2; Division 3,, Section 40814, of the Cal:ilbrnia Gove me nt Code, on October 17, 2007,
before rase, Teresa Ballin-er, Assistant City Clerk, on behalf of:L.orrie Poyzer, City Clerk of the City=
cat" Redlands, California, personally appeared Ton Harrison, Mayor and Lor-trie Poyzer, C.iter
Clerk X I personally known to me or - ;` ; proved to nye on the basis of satisfactory evidence to
be the persons whose names are subscribed to the within instrument asci acknowledged to me that
they executed the sane in their authorized capacities and that by their signatures on the, instrument
the persons, or the entity upon ehall'ot" hick the persons acted, executed the instrument,
trraariff/j/ WITNIHSS my hand and official seal.
Ok
•'.. -, LORRIE POY/ER, CITY C:IyIwsI
#'•m "'
. rte .
By:
�4/ t fl `N\N Teresa Ball]tiger, Assistant C'ityC[e-L:
( 09)79 -753I
-----
CAPACITY CLAIMED BY SICIls3ER(;)
Individual(s) signing for oneselt7thernsely s
i
Corporate orate Officer(s)
Titles)
C'ompany'
Partner(s)`
l'ar-trrership__ ,
Attorney-In-Fact
Principal(s) ®_
Trust
x ; Other
Titic(s): Mayor-and City Clerk
Entity Represented- City of Redlands, a municipal eorporatiou
THIS E TIFIC.£ T : MU'STBE ATTACHEDTO THE DC)('t.3MENT DESCRIBED BELOW
'Title or Type of Document Rancho Pacific Properties, LL( dba Redlands nds Aviation - Las
:'agreement
Dante of Docurrrent; October 16, 2007
Signer(s) Other°Than Named Above: Rancho Pacific. Properties, LLC.,", dba Redlands Aviation by:
Bill Angel, Manager
�i
ACKrNO%k`I,El.)CjMEN f.
`tate of C:alifiorraia
Couttty of EW- L tip ;
(tai before me,.�t?r�"�_� _fl �� ��+ �"� Personally appeare(I
�!— � ... – personalk, known t� rtae t�proved to rrte
oil the basis of sattsf it€crr evidence)to lie the per c of--oti whos, name(,i.) tti.ate subscribed to the w°itltin €€strument
and acknowlech,cd to rnc that he; lit 'c ecurcd the sine in Esis,`I t#t-a€zuttl prized ra acayf'^i ,and that bV
Itts. r't�rcat`signature{
on the instrument the persdil("or the entliy upon bChtalf'0f'whic:h [ht personW-4 acte
executed the -instrum nt.
WIFNE SS my haste! and official sea].
ST=HASAN(Iii{tt iture9 NCiTANEASAti 7'fSAM. 010 -4
Ends: Areas Leased and Areas Excluded Exhibit"A"'
Legal Descriptions of Leased Land Exhibit"B"
Lobby, patio and storage room identified Exhibit,-C"
z:I
City of Redlands Assurances to Federal Aviation Administration Exhibit"U"
Memorandum of Lease Exhibit"E"
I kA'J)ArAgree'IR.%—IA Lease Aizreemeni 24
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PARCEL ` : LEASE ° 154 4633
PARCEL, #1 OF LEASF_.� 431 40.5 ° l '.. �
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Ica six am PARCEL OF LEASE : 16 ,320 s .
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EXCLUDED AREA * C : 1Z,,464 sq, ft
U111111 EXCLUDED `,".AREA �wNt 10,000 S
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EASEMENT 42 .-TO CITY PapasTRIA-14 AWILSS �Frk*#A AUTO PAIMUO Tb PUBLIC LOBBY.
TO CITY _.-vEHICULaStAND PROE'STRt/tW ACCESS !W,TAXIWAY
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Exhibit 'S to Lease , Redlands Munici2al Airport
Legal Description of Parcel #1 Land Leased:
All that portion of, the East half of the East- half of Section 13,
T. 1 S. I E. 3 W. , San Bernardino Base & Meridian in the City of
Redlands, County of Saxe Bernardino, State of California , described
as follows
Beginning at the Northeast corner of the Southeast 1/ 4 of said
Section 13; thence North along the East lime of said Section 13 to
the intersection with a lime parallel with and 17 feet (measured at:
right angles) north of said North line; of the Southeast 1/4 of Section
13 to the True Point of Beginning, thence West along last said parallel
line to the intersection with a line parallel with and 935 feet (mea-
sured at right angles) West of said East line of the East half of the
East half ofSection' 13; thence South along last said parallel line to
the intersection with a line parallel with and 440 feet (measured at
right angles) South, of said North line of the Southeast; 1/4 of Section
13; thence East along last- said parallel. line, 380 feet to the 'begin-
ning of a tangent curve concave Southwesterly and having` a radius o
320 feet; thence EasLcrly and Southerly along said curve through a
central angle of 33'x' 33 ' 6" an arcdistance of 157.42 feet to the
beginning of a reverse curve concave Northeasterly and having a radius
of 280 feet; thence Southerly and Easterly along, last said curvy;
through a central angle of 330 330 " an arc distance of 163. 99 feet
to a point of tangency .with a line parallel with and 540, feet (measured
at right angles)
South of said North dine of the Southeast 1/4 of
Section 13 thence East along last said parallel line toy* the inter
section with said East line of Section 13 ; thence North aloin last
said East line to thoe True Paint of Beginning
Excepting therefrom, that portion described as follows :
Beginning at the Northeast corner of the Northeast 1:/4 off the
Southeast 1/4 of said Section 13 thence West along the North line of
said Northeast 1/4 of the Southeast 1/4 of Section 13 to the i,ntersec-
tion with a line parallel with and 600 feet (measured at right angles)
West of the East line of said Northeast 1/4 of the Southeast 1/4 �of
Section 13 thence South along last said parallel line to the inter-
section with a line parallel with and 40 feet (measured at right angles):
South of said North line of the Northeast 1/4 of the Southeast 1/4 of
Section 13 to the True Paint of Beginning; thence East along last said
parallel line to the intersection with a line parallel with and 500
feet (measured at right. angles' West of said East: lime. of the Northeast
1/4 of the Southekst 1/4 of Section 13 ; . thence South along last said
parallel line to the intersection with a line parallel with and 140
feet (measured at right angles) South of said North line of the North-
east 1/4 of the Southeast 1/4 of Section 13 thence 'West along last
saidp arallel line to the intersection with a line parallel with and
600 feet measured at right angles) West of said East line of the
Northeast" 1/4 of the Southeast 1/4 of Section. 13 thence "North along
lest said parallel line to the 'true Point of Beginning
-2-
And also excepting therefrom, that portion described as follows :
Beginning at the Northeast corner of the Northeast 1/4 of the
Southeast 1/4 of said Section 13 ; thence West along the North line of
�aid Northeast 1/4 1 of the Southeast 1/4 of Section 13 to the intersec-
tion with a line parallel with and 534 . 04 feet (measured at right
angles) West of the East line of said Northeast 1/4 of the Southeast
1/4 of Section 13; thence South along last said parallel line to the
intersection with a line parallel with and 242 feet (measured at right
angles) South of said North line= of the Northeast 1/4 of the Southeast
1/4 of Section 13 to the True Point of Beginning; thence East along
last said parallel line to the, intersection with a line parallel with
and 465.54 feet West of said East line of the Northeast 1/4 of the
Southeast 1/4 of Section 13 ; thence South along last said parallel line
to the intersection with a line parallel with and 389 feet (measured
at right angles) South of said North line of the Northeast 1/4 of the
Southeast 1/4 of Section 13; thence East along last said parallel line
to the intersection with a line parallel with and 454. 54 feet (measured
at right angles) West of said East line of the Northeast 1/4 of the
Southeast 1/4 of Section 13; thence South along last said paralLel line
to the intersection with, a line parallel with and 400 feet (measured
at right angles) South of said North line of the Northeast 1/4 of the
Southeast 1/4 of Section 13 ; thence West along last said parallel line
to the intersection with a line parallel with and 496 . 04 feet (measured
at right angles) west of said East line of the Northeast 1/4 of the
-3-
Southeast 10`4 of Section 1 ;
thence south along last said parallel
Linc to the
intersection with a line parallel with and 440 feet
; right;, angles) South of said North line of the Northeast
(measured
of the southeast 1/4 of Section 13 .thence West along last said
1/4
parallel line to the intersection with a line parallel with and 534 . 04
feet measured at right angles`) West of said Bast line of the North-
the 4 of Section 13; thence: North along last
east 1/4 cif the ,o, theast `
parallel line to the True Point of Beginning.
And the Cityof Redlands; shall retain an Easement therefrom
described as follows
Beginning at the Northeast corner of the Northeast 1/4 of the
Southeast 114 of said Section 13; thence West along the North line of
said Northeast 1/4 of the; southeast 1/4 of Section 1.3 to the intersec-
tion
with a line parallel with and 600 feet (measured at right angles'
West of the East line of said No 1/4 of the Southeast 1/4 of
Section 13 to the True Point of Beginning; thence south along last said
ne to the intersection with a line parallel with and 140 feet
parallel 1��
measured at right angles South said North line of the;. Northeast
1/4 of the. southeast 1/4 of Section 13 ; thence West along
Last said
ne to the `intersection with a line parallel with and 680 feet
parallel 1 "�.
West o
said East line of the Northeast 1/4 of the Southeast 1/4 of
Section 13; thence North along, last said parallel line to said North
line of the. Northeast 1/4 of the southeast 1/4 of section 1 ; thence
Bast, along last said 'North line to the True Point of Beginning.
.- -
And also, the City of Redlands shall retain an Easement there-
from described as
Beginning At the Northeast corner of the Northeast 1/4 of the
Southeast 1/4 of said Section 13; thence West along the; forth line
of said Northeast 1/4 of the Southeast 1/4 of Section 13 to the
intersection with a line parallel with and 550 feet (measured at right
" . angles) test of the East line of said Northeast 1/4 of the Southeast
1/4 of Section 13; 'thence South along last said parallel line to the
intersection with a:; line parallel with and 140 feet (measured at right
angles) South of said North line of the Northeast 1/4 of the Southeast
1/4 of Section 13 to the Tree Paint of Beginning', thence Ease along
last said parallel line to the intersection with a lire parallel with
and 540 feet (measured at right angles) 'West of said East line of the
Northeast 1/4 of the Southeast 1/4 of Section 13 thence South along
last said parallel line to the intersection with a line parallel with
and 24.2 feet (measured at right angles) South of said forth lire of
the Northeast 1/4 of the Southeast 14 of Section '3 thence East
along last said parallel line line to the intersectionwith a; line' paralle
with and 534.04 feet (measured at right angles) test of said East lin
of the Northeast_ 1/4 of the Southeast 1/4 of Section 13, thence South
along last said parallel: line to the intersection with a line paralle
with and 252 feet South of said North line of the Northeast 1/4 of th
Southeast 1/4 of Section 13 thence West along last said parallel lig
to the intersection with a line parallel. with and; 550 feat measured
{
at: right angles) West of said East line of the Northeast 1/4 of the
Southeast 1/4 of Section 13 ; thence North along last~ ` said parallel
line to the True Point of Beginning.
Legal, Description of Parcel #21 Land Leased:
All that portion.on of the East half of Section 13 , T. 1 S. , R. 3 W.
San
Bernardino Base and Meridiani in the City of Redlands , County of
San Bernardino, State of California , described as follows :
of said
Beginning at the northeast comer o the Southeast 1,x'4
Section 1 thence test along the forth line Of said Southeast .,� of
Section 13 to the intersection, ith a. line parallel: with and 1660.
00
feet measured at right angles) West of the East line of said East
half of Section 13`, thence
North along last sai
at right angles) West of the said East line of the EaSL half ofI
Section 13; thence North along last said parallel line to the True
Point of Beginning.
Excepting therefrom, to the City of Redlands , a 30 foot wide
easement for vehicular and pedestrian ingress and egress to to I xiway
described as follows :
All that portion of the East Half of Section 13 ; T . I S. , R. 3 W. ,
San Bernardino Base and Meridian, in the City of Redlands , County of
San Bernardino, State of California, described as follows :
Beginning at, the Northeast corner of the Southeast 1/4 of said
Section 13 thence fiest> along the North line of said Southeast 114
of Section 13 to the intersection with a line parallel with and 965
feet (measured at r).ght angles) West of the East line of said East
half of Section 13 ; thence North along last said parallel line to
the intersection with a line parallel with and 17 feet (measured at
right angles) North of said North line of the Southeast 1/4 of Section
13 to the True Point of Beginning.
Thence East along last said parallel line to the intersection
with a line parallel. 3.
with and 935 feet (measured at right angles)
West: of said East line of the East half of Section 13; thence South
line to the intersection with a line parallel
along last said parallel
with and 440 feet (measured at right angles) South of said North line
of the Southeast 1/4 of Section 13; thence west along last said para-
llel line to the intersection with a line parallel with 'and 965 feet
-2-
(measured at right ,ankles) West of said East line of the East
hall" of Section 13; thence North along last said parallel line
457 feet to the True Point of Beginning.
Lep al Description of Parcel #3 , Land Leased
I
That portion of the North 112 of the Southeast 1/4 of Section
133, Townshil) I South , Range 3 West , San Bernardino Base and
Meridian, according to Government Survey described as follows :
Beginning at the Southeast 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, 2197. 92 feet ; thence South 89* 54 , 3711
West , IS57 . 05 feet to the True Point of Beginning, last said
point being the beginning of a tangent curve concave to the
Northeast and having a radius of 280 . 00 feet ; thence Northwest-
erly. along said curve through a central angle of 21' 341 21" an
arc distance of 105 . 42 feet, a radial at said point bears North
21 * 281 5811 East ; thence North 0* OSI 23" West , 337. 39 feet ;
thence Northeasterly at right angles to last said line, 435. 00
feet; thence Southeasterly at right angles to last said line
357 . 00 feet ; thence Southwesterly at right angles to last said
line to the True Point of Beginning.
Redlands Mu . ipal Airport Lobby
Covered Patio
Dobby
Redlands 4 BG 2 S.F� �
Aviation
Office
5CALE : (2e3 S.A
Storage Room
Bathrooms
I
.50`
E IT
'T:7" "
Exhibit 'Q'
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 not 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
-1-
Exhibit U'
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;
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 any
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 Isale 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
-2-
xhibit.`D'
. agrees that it will terminate any other exclusive richt to conduct
an aeronautical activity now existing at such an airport before the grant of any
assistance under the Airport and Airway Development Act.
,: 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 operati ►n 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 rewiring the contractor;
i. to furnish said service on a fair, equal, and not unjustly
discriminatory basis to all users thereof, and
ii, to charge, fair, reasonable, and not unjustly discriminatory
prices for each unit or service; provided., That the contractor may be allowed t
crape reasonable and nondiscriminatory discounts, rebates, or other similar types
of price reductions to volume purchasers..
s -
Exhibit 'D'
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 that 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
4-
Exhibit D'
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
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 easements 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, of growth of any
structures, 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 the 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,
Exhibit D'
8. Insofar as it is within its power and reasonable, the Sponsor will,
either by the acquisition and retention of easements 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 Airport or any of its facilities other than in conformity
with the Airport Layout plan as so approved by the F,A.A. if such changes or
alterations might adversely affect the safety, utility, or efficiency of the Airport,
M 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
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Exhibit `p'
States at all tunes, without charge„ for use by government aircraft in common
with other aircraft, except that if the use by government aircraft 1s substantial, a
reasonable share, proportional to such use, of the cost operating and maintaining
facilities so used, may be charged. Unless otherwise determined by the F.A.A•;
or otherwise agreed to by the Sponsor and the using agency, substantial use of
the 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 F.A.A. would
unduly interfere with use of the landing area by other authorized aircraft, or
during any calendar month that,
a. Five or more government aircraft aro 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 F.A.A.
may consider necessary or desirable for construction at Federal expense of
space or facilities for such purposes. The approximate amounts of areas and the
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Exhibit `D'
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 F.A.A.
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.
Exhibit `d'
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 11 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 the Part, the Sponsor will acquire, extinguish, or modify such
right or claim of right in a manner acceptable to the FA.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 such transaction, the obligation to perform all
such covenants is assumed by another public agency funded 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 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.
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Exhibit `D'
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
1
Christine Smith
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