HomeMy WebLinkAboutContracts & Agreements_1-16 AIR AIRPORT HANGAR RENTAL AGREEMENT
This airport hangar rental agreement ("Agreement") is made and entered into this
day of M ar c.l-, , 2 Ol 6 ("Effective Date") by and between the City of Redlands,
a municipal corporation ("City"), and My-. M 1 �-e_ Cla.c I& ("Tenant"). City and
Tenant are sometimes individually referred to herein as a"Party" and, together, as the "Parties."
1_ PREMISES. City hereby rents to Tenant, and Tenant hereby rents from City, that
certain hangar designated as Hangar No. I k (the "Premises"), located at the Redlands
Municipal Airport ("Airport"), and more 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 make M oon" model M - 2.0V7 ,
Registration No. kA—1-14Lj 1,l , or for commercial aviation related business,
and any incidental aviation related uses associated therewith.
2. TERM. The term of this Agreement shall be [month-to-month] or [other]
commencing on I M a,e cjn 20(la , and in no event shall exceed three (3) years.
3. CONSIDERATION.
3.1 Monthly Rental Payments. Tenant shall pay to City on or before the 15t1'
day of each month during the term of this Agreement as monthly rent, without deduction, setoff
or demand, the sum of +wo 1-, drt ollars ($ Z75,oo). A late
fee shall be levied in the amount of ten percent (106/o) of the amount due for any amount not
received by the date such rent is due. Upon providing Tenant thirty (30) days' prior written
notice of the same, the rent may be increased by the City every year by the percentage increase
in the Consumer Price Index, all urban consumers, Los Angeles-Riverside-Orange
Counties, OR two percent, whichever is higher at that time, during the term of this
Agreement, on the anniversary date of the Effective Date of the Agreement.
3.2 Manner of Payment of Rent. Monthly rent for any partial month shall be
prorated at the rate of 1/30th of the monthly rent per day. The monthly rent and any applicable
late charges payable by Tenant hereunder shall be paid by Tenant without notice, demand or
offset at the office of the Airport Manager at the Airport, or at such other place as may from time
to time be designated by City.
3.3 Taxes and Assessments.
3.3.1 Obligation to Pay. Tenant is responsible for and shall pay all real
and personal property taxes (including any tax levied on a possessory interest, as defined in
California 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 aircraft stored at the Premises pursuant to this Agreement shall be considered
1
Revised 03-15-16
4.3 Waste Disposal. Tenant shall dispose of all sewage and industrial waste in
accordance with all applicable regulations and laws of those governmental agencies having
jurisdiction or authority thereover. Tenant shall ensure that all solid waste materials are placed in
appropriate covered containers designed for use with the type of waste involved, which shall
remain covered, and locked, and that such containers remain located on the Premises and not
moved from their location for any reason. Tenant shall cooperate with City to provide for the
proper separation of waste to maximize recycling.
4.4 Hazardous Materials.
(a) Any Hazardous Materials (as hereinafter defined) brought
upon, kept or used in or about the Premises or the Airport by Tenant, its agents, employees,
contractors or invitees, shall be necessary or useful to Tenant's business and shall be used, kept
and stored in a manner that complies with all laws, statutes, ordinances, rules, regulations,
orders, requirements, and policies of any and all governmental agencies and authorities
applicable to any such Hazardous Materials ("Hazardous Materials Laws").
(b) if Tenant breaches the obligations stated in subparagraph
(a) of this Section 4.4, or if the presence of Hazardous Materials on the Premises after the
Effective Date results in contamination of the Premises or the Airport, or if Hazardous Materials
are otherwise discharged or released from the Premises after the Effective Date, then Tenant
shall indemnify, defend and hold City harmless from and against any and all claims,judgments,
damages, penalties, fines, costs, liabilities and losses (including, without limitation, diminution
in value of the Airport, damages for the loss or restriction on use of rentable or usable space or of
any amenity of the Airport, damages arising from any adverse impact on marketing of space in
the Airport, and sums paid in settlement of claims, attorneys' fees, consultant fees and expert
fees) which arise during or after the term of this Agreement as a result of such breach,
contamination, discharge or release. This indemnification of City by Tenant includes, without
limitation, costs incurred in connection with any investigation of site conditions or any cleanup,
remedial, removal or restoration work required by any federal, state or local governmental
agency or political subdivision because of Hazardous Materials present in, on or under the
Premises. Without limiting the foregoing, if the presence of any Hazardous Materials on the
Premises after the Commencement Date results in any contamination of the Airport, or otherwise
results in the release or discharge on, under or from the Premises of Hazardous Materials, Tenant
shall promptly take all actions at its sole expense as are necessary to return the Airport to the
condition existing prior to the introduction of any such Hazardous Materials to the Airport or to
otherwise remove and/or abate the release or discharged Hazardous Materials; provided that
City's approval of such actions shall first be obtained, which approval shall not be unreasonably
withheld so long as such actions would not potentially have any material adverse long-term or
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 Materials
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.
3
Revised 03-]5-l6
5. MAINTENANCE ALTERATIONS.
5.1 As-Is Condition. Tenant hereby acknowledges that neither City nor
anyone acting for or on behalf of City, has made any representation, warranty or promise to
Tenant concerning the physical aspects or condition of the Premises or improvements, the
feasibility, desirability or convertibility of the Premises into any particular use, the conditions of
the soil, ground water, or surface waters or the presence or absence of any toxic waste or
hazardous substances or material, and that by entering into this Agreement has not relied on any
representation, statement or warranty of City, or anyone acting for or on behalf of City, and that
all matters concerning the Premises shall be independently verified by Tenant, and that Tenant
shall rent the Premises on Tenant's own examination thereof, AND THAT TENANT IS
LEASING THE PREMISES IN "AS IS" PHYSICAL CONDITION AND "AS IS" STATE OF
REPAIR. Tenant hereby waives and City hereby disclaims all warranties of any or kind of
description, including, without limitation, those of fitness for particular purpose, tenantability,
habitability and use. Tenant hereby expressly waives any and all claims for damages or for
rescission or cancellation of the Agreement because of any representations made by City or by
any agent of City. Tenant acknowledges that it has had sufficient 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
doors and door mechanisms. Tenant hereby waives the provisions of California Civil Code
Sections 1941 and 1942 with respect to City's obligations for tenantability of the Premises and
Tenant's right to make repairs.
5.3 Alterations. Tenant shall not make any alternations to the Premises
without City's prior written consent. Any alterations made shall remain on and be surrendered at
the expiration or sooner termination of the term; provided, however, that City may, at City's sole
election, demand the removal from the Premises of all fixtures and improvements or of certain
fixtures or improvements or both as specified in the notice provided for below. A demand to take
effect at the normal expiration of the term shall be effected by notice given at least thirty (30)
days before the expiration date. A demand to take effect on any other termination of the
Agreement shall be effected by notice given in or concurrently with notice of such termination or
within sixty (60) days after such ter>nination. Tenant shall comply with the notice before the
expiration date for normal termination, and within thirty (30) days after the notice for other
tenninations.
5.4 Utilities. Except for electrical services which shall be provided by City,
Tenant shall be responsible for the payment of all costs for utility services to the Premises. City
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.
5
Revised 03-15-16
8.2 Tenant's Duty to Surrender. At the expiration or earlier termination of the
term of The Agreement, Tenant shall surrender to City in as good condition and repair as of the
Effective Date, the possession of the Premises. If Tenant fails to surrender the Premises at the
expiration or sooner termination of this Agreement, Tenant shall defend and indemnify City from
all liability and expense resulting from the delay or failure to surrender, including, without
limitation, claims made by any succeeding tenant or Tenant or resulting from Tenant's failure to
surrender.
8.3 Hp1ding Over. If Tenant shall continue to occupy or possess the Premises
after the termination of this Agreement without the consent of City, then unless City and Tenant
have otherwise agreed in writing, Tenant shall be a tenant on a month-to-month basis. All the
terms, provision and conditions of this Agreement shall apply to this month-to-month tenancy
except those terms, provisions and conditions pertaining to the term, and except that the monthly
rent shall be immediately adjusted upward upon the expiration or termination of this Agreement
to equal three hundred percent (300%) of the monthly rent for the Premises in effect under this
Agreement during the month which includes the day immediately prior to the date of the
expiration or termination of this Agreement. This month-to-month tenancy may be tenninated by
City or Tenant upon thirty (30) days' prior notice to the non-terminating Party. In the event
Tenant fails to surrender the Premises upon such tennination or expiration, Tenant shall defend,
indemnify and hold City hannless against all loss, liability, cost or expense resulting from or
arising out of Tenant's failure to surrender the Premises, including, without limitation, any
amounts required to be paid to any lessee or prospective lessee who was to have occupied the
Premises after said termination or expiration and any related attorneys' fees and brokerage
commissions. Notwithstanding the foregoing, no termination of this Agreement shall release
Tenant from any liability or obligation hereunder, whether of indemnity or otherwise, resulting
from any acts, omissions or events happening prior to the date of termination, or date of
surrender if it be later.
9. NOTICES. Any notice required or permitted to be given under this Agreement
shall be in writing. Delivery of such written notice shall be conclusively taken and sufficiently
given after deposit in the United States Mail, addressed as follows:
City: Airport Manager
City of Redlands
35 Cajon Street, Suite 222
P.O. Box 3005 (mailing address)
Redlands, CA 92373
Tenant: Mike Clark
18987 Wyler Road
Riverside, CA 92504
Any Party may at any time change its address for notices by giving written notice of such change
to the other Party in the manner provided in this paragraph.
7
Revised 03-15-16
11,10 Construction of Lease; Severability. To the extent allowed by law, the
terms, covenants, conditions, provisions and Leases in this Agreement shall be construed and
given effect in a manner that avoids any violation of statute, regulation or law. City and Tenant
covenant and agree that in the event any tenni, 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 ten-n, covenant condition, provision or Lease shall in no way affect any other term
covenant, condition provision or Lease in this Agreement.
11.11 Relationship, The Parties intend by this Agreement to establish the
relationship of City and Tenant only, and do not intend to create a partnership, joint venture,
joint enterprise, or any business relationship other than that of City and Tenant.
IN WITNESS WHEREOF, the parties to this Agreement have duly executed this
Agreement on the date set forth above.
CITY OF REDLANDS TENANT
Airport Manager
Title:
ATTEST:
D9 ty City Clerk, Jeanne Donaldson
9
Revised 03-15-16