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R1 CORDING REQUESTED BY RECORDED
AND RETURN TO:
Cit Clerk Cit of Redlands 92 MAY 20 M : 5 P. O, Box 3005
Redlands, CA 92373 S � BE1.,,iNAi' i ltl�)MEMORANDUM OF MASTER GROUND LEASE _... .___.._.
On July 5, 1979, the CITY OF REDLANDS, a municipal corporation ("Landlord"), lease to
AERODYNAMICS, INC., a California corporation (formerly known as Aero-Dynamics Investors,
Inc.) ("Tenant"), tinder that certain Master Ground Lease Agreement ("Master Lease") dated July 5,
1979, as amended from time to time thereafter, diose certain premises ("Premises") 'located r'n or
within the following parcel:
See attached Exhibit "A"
The terra of said Master Lease if for a period of twenty (20) years commencing May 1, 1979,
and ending on. April 30, 1999. The Master Lease also contains certain options to renew its terra for
the following periods:
May 1, 1999. to April 30, 2009;
May 1, 2009 to April 30, 2019; and.
May 1, 2019 to April 30, 2029.
This Memorandum of Master Ground Lease is executed and recorded pursuant to the
provisions of said Master Lease and is not intended to vary the terms and conditions thereof except as
it has been amended from time to time between the parties to include the legal description and the
term as set forth above.
IN WITNESS WHEREOF, Landlord and Tenant have executed this Memorandum of Master
Ground. Lease this 5th day of May , 1992.
"LANDLORD" "TENANT"
CITY OF REDLANDS, AERODYNAMICS, INC.,
A Municipal Corporation A California Corporation
�-
`Mayos „�" Edwin Krick, President
ATTEST:
By: f
Edwin brick, Jr., Secretary
CitY.C�erk
(NOTARIAL ACKNOWLEDGEMENTS ATTACHED)
20 F ,3,1
NOTARY ACKNOWLEDGMENTS
"LANDLORD"
STATE OF CALIFORNIA
COUNTY OF SAN BERNARDINO
Or, — May 5, 1992 before me B. Sanchez the
undersigned Notary Public, personally appeared Charles G. DeMirjyn and Lorrie Poyzer personally
known to me (or proved to me on the basis of satisfactory evidence) to be the persons who executed
the within instrument as Mayor and City Clerk of the City of Redlands and acknowledged to me that
the City of Redlands executed the within instrument.
IN WITNESS WHEREOF, I have hereunto set my hand and official seal.
OFTICIAL ";;41
2),
5EAL
HES Notary Public in andfor
B. SANC
NOTARY PMM-CAUFORNIA
SAN DMA10WO COUNW County and State
"'TENANT"
STATE OF CALIFORNIA
COUN'TY OF SAN BERNARD NO
On — May 15 , 1992 before me Regina E. Daniel
personally appeared Edwin Krick and Edwin Krick, Jr., personally known to me (or proved to me on
the basis of satisfactory evidence) to be the persons whose names are subscribed to the within
instrument and acknowledged to me that they executed the same in their authorized capacities, and
that by their signatures on the instrument, the persons, or the entity(ies) upon behalf of which the
persons acted, executed the instrument.
WITNESS my hand and official seal.
OFFICIAL
REGNA E, DANIEL
TIOTAd?Y PUBUC
CAUFCRMA
1 otary'9 Public nand for said
�AN DERNARDU10 �OU,Njy
County and State
MY COMM. exPires AUG 27, 10�)3
1tj cl
EXHIBIT "A" �j
A, Ao
Legal Description
MASTER LEASE AGREEMENT
REDLANDS MUNICIPAL AIRPORT
PARCEL NO. 5
THAT PORTION OF' LOT 1, TRACT NO. 12083-1, AS PER PLAT RECORDED IN BOOK
176 OF MAPS, PAGES 63 AND 64, RECORDS OF SAN BERNARDINO COUNTY, AND
THAT PORTION OF EAST 1/2 OF SECTION 13, TOWNSHIP 1 SOUTH, RANGE 3 WEST,
SAN BERNARDINO MERIDIAN, ACCORDING TO GOVERNMENT SURVEY, DESCRIBED AS
FOLLOWS :
BEGINNING AT THE SOUTHEAST CORNER OF SAID LOT 1, SAID POINT LYING ON
THE NORTH LINE OF SESSUMS DRIVE; THENCE SOUTH 89 DEGREES 551 001, WEST
ALONG THE NORTH LINE OF SESSUMS DRIVE 93 . 38 FEET; THENCE, NORTH 00
DEGREES 051 2311 WEST 339. 91 FEET; THENCE NORTH 89 DEGREES 541 371, EAST
359. 91 FEET; THENCE SOUTH 00 DEGREES 05" 2�311 EAST 339 . 97 FEET TO A
POINT WHICH IS NORTH 89 DEGREES 5511 1611 EAST 266. 13 FEET FROM THE POINT
OF BEGINNING; THENCE SOUTH 89 DEGREES 551 1611 WEST 266. 13 FEET' TO THE
POINT OF BEGINNING.
I FEE 6
C G
92�-242474 2 7�,,(s
RECORDING REQUESTED BY I 7FEE
_7
AND RETURN TO: REC'ORDED IN
0 F F I r"I ftk I- E C r,)R r)S
City Clerk - City of Redlands
L
9 S-1,
P. 0. Box 3005 LN)"T
9.2 J 1,111 9 A M I I
V
Redlands, CA 923�73
MEMORANDUM OF MASTERGfiduz�61L6-SE
L
On July 5, 1979, the CITY OF REDLANDS, a municipal. corporation ("Landlord"), lease to
AERODYNAMICS, INC., a California corporation (formerly known as Aero-Dynamics Investors,
Inc.) ("Tenant"), under that certain Master Ground Lease Agreement ("Master Lease") dated July 5,
1979, as amended from time to time thereafter, those certain premises ("Premises"') located on or
within the following parcel:
See attached Exhibit "A"
The term of said Master Lease if for a period of twenty (20) years commencing May 1, 1979,
and ending on April 30, 1999. The Master Lease also contains certain options to renew its term for
the following periods:
May 1, 1999 to April 30, 2009;
May 1, 2009 to, April 30, 2019; and
May 1, 2019 to April 30, 2029.
This Memorandum of Master Ground Lease is executed and recorded pursuant to the
provisions, of said Master Lease and is not intended to vary the terms and conditions thereof except as
it has been amended from time to time between the parties to include the legal description and the
term as set forth above.
IN WITNESS WHEREOF, Landlord and Tenant have executed this Memorandum of Master
Ground Lease this STH day of may —) 1992.
"LANDLORD" "TENANT"'
CITY OF REDLANDS, AERODYNAMICS, INC.,
A Municipal Corporation A California Corporation
Z"
E�yBy:
.A "Al
Edwin Krick, President
ATTEST:
By:
✓
Edwin Krick,"Jr., Secreta
l
City C�rk
(NOTARIAL ACKNOWLEDGEMENTS ATTACHED)
NOTARY ACKNOWLEDGMENTS
"LANDLORD"
STATE OF CALIFORNIA
COUNTY OF SAN BERNARDINO
On May 5 , 1992 before me B. Sanchez the
undersigned Notary Public, personally appeared Charles Cr'. DeMirjyn and Lorrie Poyzer personally
known to me (or proved to me on the basis, of satisfactory evidence) to be the persons who executed
the within instrument as Mayor and City Clerk of the City of Redlands and acknowledged to me that
the City of Redlands executed the within instrument.
IN WITNESS WHEREOF, I have hereunto set my hand and official seal.
aaNOFFICIAL MEAL f"
B. SANCHEZ Notary Public in and for said
TARY PUSUC CAUFORMA County and State
SM OERRAM " 00UNTY
cemi� JUM 30,19
"'TENANT"
STATE OF CALIFORNIA
COUNTY OF SAN BERNARDINO
On—May 15 , 1992 before me geqina . T,. )Ani e]
personally appeared Edwin Krick and Edwin Krick, Jr., personally known to me (or proved to me on
the basis of satisfactory evidence) to be the persons whose names are subscribed to the within
instrument and acknowledged to me that they executed the same in their authorized capacities, and
that by their signatures on the instrument, the persons, or the entity(ies) upon behalf of which the
persons acted, executed the instrument.
WITNESS my hand and official seal.
Z
OFFIC]lAl., Sl'AL
R,EGfNA E, DANEt,
t NOTARY PUDLIC - CALWOMA
SAN BERNARDINO COUNTY Notary Public io/and for said
My comm. expire,s AUG T7 19" County and State
EXHIBIT "A"
Legal DescriRtion 4,2474
92
MASTER LEASE AGREEMENT
RED DS MUNICIPAL AIRPORT
PARCEL NO. 5
THAT PORTION OF LOT 1, TRACT NO. 12083-1, AS PER PLAT RECORDED IN BOOK
176 OF MAPS, PAGES 63 AND 64 , RECORDS OF SAN BERNARDINO COUNTY, AND
THAT PORTION OF EAST 1/2 OF SECTION 13, TOWNSHIP 1 SOUTH, RANGE 3 WEST,
SAN BERNARDINO MERIDIAN, ACCORDING TO GOVERNMENT SURVEY, DESCRIBED AS
FOLLOWS:
BEGINNING AT THE SOUTHEAST CORNER OF SAID LOT 1, SAID POINT LYING ON
THE NORTH LINE OF SESSUMS DRIVE; THENCE SOUTH 89 DEGREES 55,1 0011 WEST
ALONG THE NORTH LINE OF SESSUMS DRIVE 93 . 38 FEET; THENCE NORTH 00
DEGREES 051 23" WEST 339.91 FEET; THENCE NORTH 89 DEGREES 5411 ;3711 EAST
359.91 FEET; THENCE SOUTH 00 DEGREES 05,' 2311 EAST 339. 97 FEET TO A
POINT WHICH IS NORTH 89 DEGREES 55" 1611 EAST 266. 13 FEET FROM THE POINT
OF BEGINNING; THENCE SOUTH 89 DEGREES 551 1611 WEST 266. 13 FEET TO THE
POINT OF BEGINNING.
'RE("0F?1)ED ikl_ll I E IlEQUM Sl_ OF
C0!,4P/\rqY
When recorded mail to:
City of Redlands
30 Cajon/P.0. Box 2090
Redlands, CA 92373
Attn: John E. Holmes
City Manager
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MET EQ&I QE LE&HA
This SHORT FORM OF LEASE executed this_2Ptk" day of
May', 1988, by and between the City of Redlands,
California, a Municipal Corporation (hereinafter,
referred to as "City") , and Aero-Dynamics Investors , Inc . , a
California Corporation (hereinafter referred to as "'Lessee") .
WITNESSETH:
That for in consideration of the covenants and agree-
ments contained in that certain Lease dated July 5, 1979 ,
(the "Lease") , City does hereby demise and lease unto Lessee,
and Lessee does hereby lease from City that certain real
property in the City of Redlands, County of an Bernardino,
State of California, within the Redlands Municipal Airport
(the "Airport") , situated at 1.745 Sessurns, Drive, and more
particularly described as Parcel 5 on Exhibit "A" attached
hereto and by, this reference incorporated herein (the
"Demised Premises") .
TO HAVE AND TO HOLD the Demised Premises effective from
the Commencement Date as defined in the Lease for as period of
twenty (2,0) years, and containing three (3) ten (10) year
options for extending the Lease , subject to the conditions
and covenants contained in the Lease .
SCHEDULE A
The Demised Premises shall consist of a parcel. of land
known as Parcel 5 within the boundaries of the Redlands
Municipal Airport containing one hundred twenty-two thousand,
two hundred ten and 55/100 (122,210.55) square feet having a
depth and width of three hundred forty-six and 50/100 by
three hundred fifty two and 70/100 (346 .50 x 352.70) feet .
Lessee may construct, modify, repair or improve Parcel #5 of
its leased premises at any time during the term of the Lease
in conformance with established and customary standards of
fixed base operations development , zoning ordinances, sign
ordinances, and building codes of the City of Redlands and
the terms of the Lease .
917
The Demised Premises are situated within the Redlands
Municipal Airport, owned and operated by City, known as
Parcel #5 and is more particularly described on Exhibit A-1,
Parcel No. 5 Property Description, attached hereto and by
this reference incorporated herein (the "Property
Description"') .
IT' IS UNDERSTOOD AND AGREED that this Short Form of
Lease is executed solely for the purpose of giving notice to
the public of the existence of the Lease against the Demised
Premises, the terms and conditions of which are, expressly
incorporated herein by reference for all purposes as though
fully set forth herein . Should there be any inconsistency
between the terms, of this instrument and the Lease incorpor-
ated herein, the terms of said incorporated Lease shall,.
prevail. .
IN WITNESS WHEREOF, the parties hereto have executed
this Short Foo rm of Lease as of the day and year first above
written.
CITY:
City of Redlandst California
a Municipal Corporation
ATTEST: By.-,
HN E . HOLMES kl
Title: City Manager
LESSEE
Cl :
Deputy City erk'
Aero-Dynarrtic!s Investors, Inc . ,
a California.....C o r vo.r, ticn__ ,
aM
STATE OF CALWORNIA `7 SAFECD
0 2 TITLE HYSURANCE
0 COUNTY OF -
San Bernardi B.S.
20th
On this the,,. day of..--, ....... 8�
...... 19 1 before me,
'it the undersigned, a Notary PubHo in and for said county and State,
Personally appeared JOHN J CREATURA FOR NOTARY SEAL OR STAMP
OP
PM"ly
W,rnX-or proved to me on Rhee basis of satisfac evidence to be
the EDWTN 10 KPICK SR
President,and
OFFICIAL SEAL
fb*66 br proved!to me on the basis of sat�sfactory evidence to be MARIA UJISA MADRID
< V i
c e P
96614ffr� of the corporation that executed the within
z NOT�'W BOND FH,EX) Hq
0 instrument on behaff of the corporation therein named�, and acknow- X
'5AN SFAHArW40 COLq1H
ledged to me that such, corporation executed the within instrument My Cm,4rer, Noyernbe� 9, 113y88
pursuant to its by-laws or a resolution of it's board of directors.
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EXHIBIT "A-l"
AERO-DYNAMICS INVESTORS, INC,. - CITY OF REDLANDS
MASTER LEASE AGREEMENT
REDLANDS MUNICIPAL AIRPORT
PARCEL NO. 5
PROPERTY DESCRIPTION
PARCEL NO. 5
That portion of Lot 1, Tract No. 12083-1, as per Plat recorded in Book 176
of Maps, Pages 63 and 64, in the Office of the County Recorder of the County
of San Bernardino; and that portion of the East 1/2 of Section 13, T. I S. ,
R. 3 W. , S.B.M. according to Government Survey described, as follows:
Beginning at the SE 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 Ber-
nardino, State of California, thence North along the East line
of said Section 13, 2198.,92 feet; thence South 89' 54' 37"
West, 1557.05 feet to the beginning of a tangent curve concave
Northeasterly and having a radius of 279.50 feet; thence North-
westerly along said curve, through a central angle of 350 14'
51" an arc distance of 1.71.94 feet to the beginning of a re-
verse curve concave Southwesterly and having a radius of 320.50
feet; thence Northwesterly along last said curve through a
central angle of 35' 14' 51" an arc distance of 19,7.17 feet to
point of tangency; thence S 89' 54' 3711 W, 129.63 feet to the
True Point of Beginning; thence continuing S 89' 54' 37" W,
352.70 feet; thence N 00 05' 23" W, 346.50 feet, thence N 89'
54' 37" E, 352.70 feet; thence S 0' 05' 23" E. 346.50 feet to
the True Point of Beginning.
EXHIBIT "A-1"
EXHIBIT 'T"
-CONSENT TO HYPOTHECATION
The City of Redlands, hereinafter referred to as "CITY", and Aero-Dynamics. Investors,
Inc. , hereinafter referred to as "LESSEE", entered into a Master Lease Agreement
dated July 5, 1979, hereinafter referred to as "Lease" covering certain real property
located on the Redlands Municipal Airport, City of Redlands, hereinafter referred to
as "Demised Premises".
By use of the following documents which are attached hereto and made a part hereof,
and hereinafter collectively referred to as "Documents", LESSEE proposes to hypothe-
cate its leasehold estate created under said "Lease".
These documents are for financing related to leasehold development of said Demised
Premises.
On this 20th day of May 1988,
CITY hereby consents to the execution, delivery, and recordation of the above stated
Documents subject to the following terms and conditions:
1. That Redlands Feder , hereinafter referred to as
"LENDER" shall fully reconvey all interest in said real property upon re-
payment of the loan described in the loan Document since the sole purpose
of the hypothecation of the subject real property is to secure the loan
amount for LENDER.
2. Except as otherwise provided herein, the above referenced Documents and
any other future additional instruments which may be approved by CITY,
shall be subject to each and every covenant, condition, and restriction
set forth in said Lease, and to all rights and interests of the CITY
therein, none of which are or shall be waived by this Consent.
3. In the event of any conflict between the provisions of said Lease and the
provisions of said Documents; the provisions of said Lease shall control.
4. Any additions or modifications to said financing Documents shall first be
approved by the CITY. LESSEE warrants that all documents and agreements
pertaining to the hypothecation of its leasehold have been fully disclosed
to CITY.
5. The proceeds of the loan to LESSEE shall be used solely for payment of
expenses incident to construction on the Demised Premises of the improve-
ments allowed under Paragraph 8 of the Lease and described in the loan
Documents.
Page 1 of 2 pages
6. DATE,
Dated this •2 0 th dar of May 1988.
CITY:
CITY OF REDLANDS, CALIFORNIA
By d�XZ[ �
Mayor
ATTEST:
Deputy Clerk of the City of Redlands
By &dLrIz Aj
Beatrice Sanchez, Deputy City Clerk
LESSEE:
AERO-DYNAMICS INVESTORS, INC.
By
i e J. CREATURA, President
�
,DDate 'Signed 5/20/88-
By C-�[ �' �7
Title EDWIN H. KRICK, SR. , Vice Presideni
Date Signed 5120288
APPROVED AS TO FORM:
Date
By
City Attorney
S
PaQp 2 of 2 nnQes
LONA LINDA AERONAUTICAL SAFETY FOUNDATION - CITY
MASTER LEASE AGREEMENT
REDLANDS MUNICIPAL AIRPORT
PARCEL No. 5
AIRPORT LEASE
REDLANDS MUNICIPAL AIRPORT
REDLANDS, CALIFORNIA
This indenture made and entered into between the City of Redlands, a municipal corpora-
tion, the Lessor, hereinafter referred to as "City", and
hereinafter referred to as the "Lessee".
WITNESSETH:
1 . Property Leased:
That for and in consideration of the rents, covenants, agreements and conditions
herein set out to be faithfully paid, kept, and performed by Lessee, City hereby leases and
lets to said Lessee certain portions of the Airport known as Redlands Municipal Airport
shownon the map, which is attached to this airport lease as Exhibit "A" and incorporated
as a part hereof. The portion lease is designated as Parcel #5. A legal description of
Parcel #5 is contained in Exhibit "A-1 " , attached hereto and incorporated as a part
hereof.
a. Exclusions from Above Leased Area
None
b. Easements. See Exhibit A--1 for Legal Descriptions.
(1 ) Lessee agrees to grant to City, without cost, a 20' wide public easement
extending from Sessums Drive to the taxiway area. Said easement being the most easterly
20` of Parcel #5. Said public easement is for the use of aircraft, vehicular and pedestrian
use and designated as Easement #5 on Exhibit "A". Lessee further agrees to constructand
maintain all improvements on said Easement #5.
c. Term of Lease
(1 ) TO HAVE AND TO HOLD, Parcel #5 of the demised premises including the use
of all public runways, taxiways, and ramps in common with others, for the term of twenty
years commencing on the 1st day of Play, 1979, and ending on the 30th day of April , 1995
unless sooner terminated as hereinafter provided, and subject to the conditions and covenants
herein.
d. Renewal Option
Lessee shall have three successive options for extending this lease for periods
of ten (10) additional years each, for 1998-2007, 2003-2017, and 2013-2027, respectively,
as regards the leasing of Parcel #5.
2. Non-Exclusive Rights Granted
The use herein granted is for a fixed base operation by the Lessee and includes the
following non-exclusive rights to the Operator.
a. Sales of new and used aircraft, aircraft parts, retail and wholesale, radio
and electronic equipment, navigational and airman supplies and accessories.
-1-
b. Flight operations, including demonstrations of aircraft for sale, charter
(with or without pilot) , and flight training (primary and advanced) .
c. Maintenance, repair and overhaul of all types of aircraft, engines , instruments ,
radio and electronics gear.
d. Line service, including fueling, lubrication and other servicing of any aircraft
including military into-plane contracts and airline for those carriers which desire such
services, a right to load and unload passengers and cargo and to transport passengers from
transient aircraft parking areas to the terminal and other areas of the airport.
e. Sales of automotive fuel , lubricants and accessories to ramp vehicles such as
tugs, tractors, motorized ramps, baggage handling equipment, ground pourer units, space heater
etc. ; a right to make repairs on ground service equipment.
f. Motel , restaurant, cocktail lounge, and related retail sales, excluding vending
machines. Prior to approval of a cocktail lounge, a separate fee schedule will be negotiatec
by the Operator with City, on sale of alcoholic beverages.
g. Towing disabled aircraft.
h. Financing and insuring aircraft.
i . Loading and unloading aircraft in any lawful activity.
j . Service Charges -- a right to assess reasonable charges and fees to customers
for all these services.
k. Fueling aircraft of operator, Operator's customers and transients and to
provide into-plane fueling to airlines and military which desire such services.
1 . Construction and rental of aircraft hangars and aircraft tie--down facilities and
such buildings, to house activities authorized in paragraph 2a, b, c, h, herein.
m. All advertising signs erected on the property will comply with City of Redlands
Sign Ordinance, and must have City approval , in writing, prior to erection.
n. Activities other than those specifically stated in paragraphs a through r7,
paragraph 2, herein, will not be conducted or serviced by the Lessee without written advance
approval by the City.
3. Riahts Not Granted
The right to conduct the following activities, which are normally conducted in an
airport terminal building is not granted to the Lessee:
a. Vending machines of any kind.
b. Passenger flight insurance.
c. "O" Drive automobile service.
d. Taxicab service.
e. Public automobile parking for which a charge is made. (Fixed Base operator
Customer Parking is not considered Public Parking) .
-2-
f. Ticket counter space for any passenger travel by aircraft, except for aircraft
charter service.
g. Travel agency operations, including sale of tours by aircraft.
h. Commuter airline operation, including schedule air transportation of freight
and mail .
4. Federal Aviation Administration Regulations Agreed To
It is mutually understood and agreed by the Lessee and City that the City of
Redlands, in accepting Federal Aid for the development of the Redlands Municipal Airport,
agreed in writing to FAA Regulations concerning any agreements, contracts, leases, or
other privileges given in connection with the Airport. These FAA Regulations are attached as
Exhibit "B" and incorporated as a part hereof. The Lessee has no responsibility for the
fulfillment of Sections 6a, 6b, 6c, 7, 8, 9, 10, 11 , 131 14 or 15 of Exhibit "B" . In addi-
tion to the FAA Regulations which the City agreed to in Exhibit "B", the City reserves for
itself, the following rights:
Aeronautical Uses
a. The right to further develop or improve the landing area of the airport as may bE
found necessary in the City's sole discretion, regardless of the desires or view of the
Lessee and without interference or hindrance.
b. The right, but not being obligated to the Lessee, to maintain and keep in
repair the landing area of the airport and all publicly-owned facilities of the airport,
together with the right to direct and control all activities of the Lessee with regard to
all publicly--owned facilities.
c. The right that this lease shall be subordinate to the provisions and requirement
of any existing or future Grant Agreements between City and the United States of any existinc
or future Federal Aviation Administration Regulations relative to the development, operation
or maintenance of the Airport.
Non Aeronautical Uses
d. That there is hereby reserved to City, its successors and assigns, for the use
and benefit of the public, a right of flight for the passage of aircraft in the airspace
above the surface of the premises of the Lessee described in the "Property Leased" section,
page 1 , herein together with the right to cause in said airspace such noise as may be
inherent in the operation of aircraft, now known or hereafter used for navigation of or
flight in the air, using said airspace of landing at, taking off from or operating on
Redlands Municipal Airport.
e. That the Lessee by accepting this Lease expressly agrees for itself, its
successors and assigns that it will not erect nor permit the erection of any structure
or object nor permit the growth of any tree on the and described in the "Property leased"
section, pane 1 , herein, in violation of Ordinance #1281 - City of Redlands Height Zoning
Ordinances.
-3-
f. That the Lessee by accepting this lease expressly agrees for itself, its
successors and assigns, that it will not make use of his premises described in the "Property
Leased" section, page 1 , herein, in any manner which might interfere with the landing and
taking off of aircraft from Redlands Municipal Airport or otherwise constitute a hazard.
In the event the aforesaid covenant is breached, City reserves the right to enter upon the
Lessee's premises described in the "Property Leased" section, page 1 , herein, and cause
the abatement of such interference at the expense of the Lessee.
5. Termination of Agreement
a. The Lessee at any time after two years from the date of commencement hereof
may terminate this Agreement without penalty, by notifying City, in writing, twelve (12)
months prior to the termination date, as proposed by the Lessee. During the notification
period of twelve (12) months, all terms of the lease will be in force.
Should the City close the runway and the taxiway for public use, other than for
limited periods necessitated by construction or maintenance, then the obligations of the
Lessee under Section six (6) shall be terminated.
b. The City may terminate this Agreement in its entirety upon the occurrence of
any of the following events:
(1 ) Filing of bankruptcy proceedings by or against the Lessee.
(2) Lessee conducts activity not authorized by the lease, subsequent to receipt
of a thirty (30) days ' written notice from Lessor to cease and desist.
(3) Lessee makes any general assignment for the benefit of creditors.
(4) The abandonment or discontinuance of operations at the Airport by the
Lessee.
(5) Lessee fails to perform, keep and observe any and all terms of the lease
which are to be performed, kept and observed by him, unless prevented from doing so by an
act of Cod.
(6) The Lessee defaults in payment of the lease payments , as specified herein,
or violates any of the terms or conditions of the lease, and the lease payment is not paid
or the violation i.s not corrected within sixty (60) days after service of notice as pro-
vided in paragraph 13, herein.
(7) Violation or non-compliance by the Lessee of any of the provisions of
Paragraph 4, herein.
(8) Occurrence of any act by the Lessee which results in his failure to perform
the following minimum duties under this lease, which acts shall include:
(a) Maintaining the leased premises and improvements in good condition and
repair at his sole expense.
c. In the event of termination by the Lessor for any of the reasons listed in
paragraph 5, b, 1 thru 8, City shall have the following rights :
-4-
(1 ) In accordance with City's Assurance #16 to Federal Aviation Administration
(Exhibit "B" herein) , which specifies "If an arrangement is made for management or operation
of the airport by any agency or person other than the Sponsor, (City of Redlands) or an
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" the City, at its option, if it is necessary and essential to provide
aeronautical facilities necessary for the operation of the Redlands Municipal 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 the City, which opera-
tion shall only 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 . The exercise
of this right to conduct the Lessee' s Fixed Base Operation does not constitute a waiver by
the City of any contract damages arising from Lessee' s failure to keep the terms of this
lease. All assets accruing from the City's operation of the leased premises, less customary
operating expenses , which will include all rental payments due the City under this lease,
shall be credited by the City to the Lessee's interest.
d. Termination shall not relieve either party of any liability or indebtedness
incurred prior to the termination of the lease.
6. Lease Payments
a. The following annual rental will be paid to the City by Lessee commencing on May
1 , 1979. Rentals for land, leased in accordance with the provisions of paragraph 1 , c,
hereof, shall be paid as follows :
(1 ) Parcel #1
a) 111 ,816 sq. ft. of unimproved land @
$0.0257/sq. ft./yr. = $2,873.67
(2) If the Lessee provides an aviation fuel service for aircraft, the
following payment shall be made for fuel flowage:
$0.02/gallon for each gallon of fuel delivered to Lessee's
premises described in "Property Leased" section, page 1 , herein.
All maintenance of fuel pumps and storage tanks will be paid for
by Lessee. Lessee is responsible for any required replacement
or expansion of existing fuel storage facilities on his lease-
hold. This fuel flowage payment is payable in addition to the
total rental amount, which includes Item a, (1 ) herein.
b. Alternative rental after May 1 , 1981 . Commencing on May 1 , 1981 , rents for the
use of the premises described in paragraph 6, a, (1 ) Parcel No. 1 , a, shall be the greater
of either of the following amounts:
(1 ) One-half of one percent (1/2%) of the Lessee's gross receipts from his
business activities under said lease including gross receipts of all sub-lessees , or;
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(2) The annual land rental payments stated in paragraph 6, a, herein, provided
that the rent specified in 6, a, (2) "For Fuel Flowage" herein, shall be paid in addition
to the greater of the amounts payable under the alternative rentals established in para-
graph 6, b, above. Fuel sales described in paragraph 6, a, (2) above, are excluded in
computing gross business upon which the 1/2% is paid City. Also excluded in computing
gross business under 6 (b) (1 ) are the receipts of those leasing tie -down space, etc. ---
and in particular does not include Mission Aviation Fellowship receipts from contributions,
etc. if it leases a hangar, nor its "sales" of aircraft and parts to affiliated organiza-
tions. The "gross receipts" for this purpose should be only those from activities listed
in Section Two (2) conducted with unrelated parties. See paragraph 10, herein, for reports
required.
c. Adjustment of Lease Payments.
(1 ) Commencing on May 1 , 1979, and each five years thereafter, the schedule
of lease payments listed in paragraph 6, a (1 ) , and (2) above, shall be adjusted in propor-
tion to the increases or decreases in the indices of (1 ) , the U.S. Bureau of Labor Statistics
for Hourly Wage Rates of all workers in manufacturing and (2) all Commodity Wholesale Prices.
The indices in (1 ) and (2) shall be averaged arithmetically for the last available twelve
(12) months indices. Initial adjustment made on May 1 , 1981 shall be based on the increase o
decrease in these two indices from the month of May, 1979 to the average of both indices for
the calendar year of 1980.
(2) If, during time of war or national emergency, the United States Government
shall require for military uses, all or such portions of the premises that a reasonable
amount of reconstruction of the premises will not permit the Lessee's practical continued
occupancy, the provisions of this lease insofar as they are rendered impossible of fulfill-
ment by reason of the United States Government's use or uses of the premises shall be sus-
pended for the duration of such governmental use or uses. It is further agreed between the
respective parties hereto that during any such time of war or national emergency, the 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 effecting this lease agreement, but
rather with the effect of suspending any provisions under said agreement insofar as they are
inconsistent with those contained in the agreement of the City with the government. Any
such period of suspension of operation of the aforesaid lease will be added to and shall
extend the lease term as aforesaid, and no lease payments shall be paid during the period
of suspended operations.
If, by reason of any Act of Congress, Presidential Executive Order, Regulation
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 prohibited
absolutely or temporarily suspended, the amount of rental due and covenanted to be paid
by the Lessee hereunder to the City under any provision of this paragraph 6 shall be
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reduced to a reasonable rental in view of such circumstances as may from time to time
be agreed to by the respective parties hereto, or in the event the parties hereunder are
unable to agree upon a reasonable rental as aforesaid, then as may be determined by
compulsory arbitration as described in paragraph 6, (3) below.
(3) Any question, dispute, controversy, or misunderstanding arising under or
in connection with this paragraph 6, shall be determined by three arbitrators to be appointec
for the purpose as follows :
"(a) Within five (5) days after notice by either party to the other
requesting arbitration, one arbitrator shall be appointed by
each party. Notice of such appointment, when made, shall be
given by each party to the other.
"(b) The two arbitrators shall forthwith choose a third arbitrator
to act with them. If they fail to select a third arbitrator
within ten (10) days of their appointment, upon application of
either party, the third arbitrator shall promptly be appointed
by the then presiding ,judge of the Superior Court of the State
of California in and for the County of San Bernardino, acting
in his individual and not official capacity. The party making
such application to such judge shall give the other party to
this lease five (5 ) days ` notice of his application.
"(c) The arbitrators shall proceed with due dispatch. The decision
of any two of the three arbitrators shall be binding, final
and conclusive on the parties to this lease. Such decision
shall be in writing and delivered to the parties, and shall be
in such form that a judgment may be entered on the decision in
the Superior Court of the State of California in and for the
County of San Bernardino.
"(d) If either party fails to appoint an arbitrator as provided by this
paragraph, then such arbitrator not so appointed shall be appointed
as provided in subparagraph (b) .
"(e) The expense of any such arbitration shall be borne as the arbitra-
tors direct. "
7. Insurance
a. Lessee shall indemnify and save harmless the City, its officers, agents, and
employees, from and against any and all claims, demands, loss or liability of any kind or
nature which City, its officers, agents 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, page 1 , herein.
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b. As a condition precedent to the effectiveness of the lease and in partial
performance of the Lessee's obligations 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 $300/
000/500,000 Bodily Injury, and $100,000 Property Damage insurance. In addition to auto-
mobile, premises and operations coverage, policy(ies) shall also cover Contractual and
Products Liability. Lessee shall cause to be attached to all of said policies of insurance
an endorsement reciting the first paragraph of this section.
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.
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.
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 provisions of this lease. Lessee's obligation being, notwithstanding
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 Workmen's Compensation coverage, as required by State of
California law.
8. Construction on and Modification and Maintenance of Premises Leased:
a. Construction:
(1 ) Parcel #5
(a) Lessee may construct, modify, repair or improve Parcel #5 of its
leased premises at any time during the term of the lease in conformance with established
and customary standards of fixed base operations development, zoning ordinances , sign
ordinances, and building codes of the City of ,Redlands and the terms of this lease.
(b) Approval of Construction or Modification:
Each proposal for construction on, or modification of, the leased
premises must have prior written approval of City. The Lessee shall submit a development
plan for Parcel #5 to the City for approval prior to any construction or improvement.
(c) Underground Fuel Storage:
Gasoline storage tank maintenance and replacement are the responsi-
bility of the Lessee.
(d) Building Maintenance:
111 building maintenance on the leased property, is the responsibility
of the Lessee.
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(e) Hangar Construction
All hangars constructed by Lessee will have the following minimums
and shall be constructed to at least the quality of the existing hangars at the airport.
(1 ) Fully enclosed, metal Pascoe TH2 construction or equal , in-
cluding a solid separate compartment for each aircraft, except hangars constructed at the
specific request of an individual rentor on the basis of a long term lease. Special
hangars for larger aircraft will conform to Pascoe TH2 construction quality.
(2) 4" concrete bases throughout the building.
(3) One fluorescent light fixture per individual aircraft space.
(4) 2" asphaltic concrete apron around the two long sides of
hangar and the side nearest the active taxiway. Asphaltic concrete pavement shall com-
pletely cover area between the two adjacent hangars, and will extend a minimum of 50 feet
from the long side of all hangars.
(5) Baked-On color on outside walls. (Anodized aluminum walls
are also acceptable) .
(6) Comply with all City of Redlands Building Codes.
(7) Provide adequate electric conduit area for each hangar building
for future electric service expansion.
(8) All utilities will be placed underground.
(9) Electric heat and light for any hangar space rented as office
or shop space.
(10) Provision for the minimum requirement of 25 lb. dry chemical
type fire extinguisher for hangar buildings as prescribed by the Fire Chief of the City of
Redlands. Extinguisher will be mounted on outside of building in a breakglass cabinet.
(f) Disposition of Buildings Constructed:
(1 ) Upon termination of the initial period of this lease or termina-
tion of the renewal period of this lease, or termination of the lease by Lessee under
paragraph 5, a, herein, all structures constructed by the Lessee, including foundations,
will be removed from the leased premises by the Lessee at Lessee's expense without cost
to City. City has the option to purchase any or all buildings constructed by the Lessee
at the termination or expiration of this lease, if a satisfactory price can be negotiated by
the City and the Lessee.
(g) Utilities:
(1 ) Unless otherwise expressly stated herein, Lessee agrees to
pay for all utilities, including disposal and sewer rental fees used on or by the leased
premises.
(2) The Lessee shall be responsible to install necessary utilities to Parcel
#5 including water lines and fire hydrants that may be required.
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(h) Inspection by City:
(1 ) Lessee aarees to permit City to enter upon and inspect all
leased premises at all reasonable times.
(i ) Maintenance and Appearance of Lease Premises :
(1 ) Lessee agrees to maintain the leased premises and improvements
in good condition and presentable appearance at all times at his expense.
9. Subcontracting Rights:
a. The Lessee shall have the right to subcontract portions of activities under
the terms of the lease, provided such agreements meet the requirements of this lease,
meet the City' s requirements concerning financial responsibility, and have advance
approval in writing, by City. Lessee shall notify the 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.
10. Payments, Reorts and Verifications:
a. Lease and fuel flowage payments will be made every three months by the Lessee,
without being billed by City. Payments will be made not later than the 20th day following
the end of each three months of the term of this lease. Commencing June 1 , 1979, said
quarterly lease payments will continue to be made. Any required supplemental payments
based on dross receipts will be made annually no later than April 15th following the close
of each calendar year under this lease.
b. Beginning May 1 , 1979, and continuing throughout the remaining life of the
lease, the Lessee shall , no later than April 15th following the close of the calendar
year, submit to City a verified statement stating that gross receipts statement from
sales of all goods and services including) gross receipts of all sub-leases for the calendar
year are identical to those reported to the Bureau of Internal Revenue and showing amounts
of fuel sales which are excepted from gross receipts.. First gross receipts statement is
due, under this provision, on or before April 15, 1980,
c. A copy of all bulk delivery invoices of petroleum products delivered to the
Lessee' s premises described in the "Property Leased" section, page 1 , herein, shall
accompany each quarterly fuel flowage payment to City.
d. City shall have the right to inspect the Lessee's books, including books of
all sub-lessees, at all reasonable times to verify all statements of income, accountings ,
and invoices required to be made by this agreement.
11 . Taxes:
a. Lessee agrees to pay all taxes imposed or assessed upon his leased premises
located at Redlands Municipal Airport.
12. General :
a. It is understood and agreed that each and all the terms of this lease are
subject to the regulations and provisions of law applicable to the operation of Redlands
Municipal Airport as a Federal Aid Airport Project. If any provision of this lease is
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invalid, the other provisions of the lease which are valid shall remain in effect, and
the lease will be renegotiated to comply with the requirements of the applicable laws
and regulations.
b. the Lessee agrees to observe and obey during: the term of this lease all laws,
rules and regulations promulgated and enforced by the City of Redlands, California, and
by any other proper authority having jurisdiction over the conduct of operations at the
Redlands Municipal Airport. The fee schedule listed in paragraph 6 herein, is not con-
sidered as coming under the purview of this paragraph. Any fee changes will be made by
separately negotiated agreements between the Lessee and the City.
c. The City of Redlands shall have complete dominion over the premises described
in the "Property Leased" section, page 1 , herein during the term of this lease for the
purpose of and to the extent necessary to maintain law, order, and safety, and has the
authority and right to deny access to the Redlands Municipal Airport by any person who
fails to conform in all respects to this lease.
13. Notices:
a. It is agreed that any notice to be given or served upon
, the Lessee, shall be sufficient if sent by registered mail , postage pre-
paid, and any notice to be given or served upon City shall be sufficient if sent by regis-
tered mail , postage prepaid, addressed to Director of Aviation, City of Redlands, P. 0.
Box 280, Redlands, California, Zip Code 92373.
14. Assignment of Lease; Successors and Assigns;
a. Assignment of Lease
Lessee shall have the right to assign this lease subject to Assignee meeting
the City's requirements concerning financial responsibility, and the City granting advance
written approval . Any assignment of this lease will require that the Assignee be subject
to all conditions, items, and provisions of the lease. City approval of such lease assign-
ments shall not be unreasonably withheld.
b. Successors and Assigns
By this lease, the Lessee binds itself, trustees, representatives., and all
successors and assigns in interest. The Lessee guarantees the performance of any and all
covenants and conditions contained in this agreement, and upon the failure of any successor
in interest to so perform, Lessee agrees to complete such covenants, conditions and renuire-
ments of this agreement.
15. Recording of Lease:
a. Lessee agrees to the recording of this lease. This lease becomes effective
May 1 , 1979.
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Executed at Redlands, California on this day of 19
a
T O.. RjE��LI�, S (Lessor)
ATTEST:
By
Mayor Oddie 0. Mar in�z, dr.
Ci t
�r
Curtis .N. Ha.rr•l , Pres.:
idem
APPROVED FOR FORM:
M
s Edward P Taylor
Se a"ry
Citytterney
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Encls : Areas Leased and Areas Excluded . . . . . . . . . . . . . .Exhibit "A"
Legal Descriptions of Leased Land . . . . . . . . . . . . .Exhibit "A-1 "
City of Redlands Assurances to Federal Aviation
Administration . . . . . . . . . . . . . . . . . . .Exhibit "B"
Schedule to Begin Payments. . . . . . . . . . . . . . . . .Exhibit "C"
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