HomeMy WebLinkAboutContracts & Agreements_4-82 AIR LOMA LINDA AERONAUTICAL SAFETY FOUNDATION - CITY
MASTER LEASE AGREEMENT
REDLANDS MUNICIPAL AIRPORT
PARCEL NO. 5
LEASE AMENDMENT NO. 1
The lease shall be amended as follows :
The name "Loma Linda Aeronautical Safety Foundation" shall be
changed to "Aerodynamics Associates . "
Executed at Redlands '. California , on this 21st day of
September 1982 .
CITY OF REDLANDS (Lessor)
ay r tM Cy r Re / s
ATTEST :
Cit V"r , City f Re 1a s
r
LOMA LIkDA AERONAUTICAL
SAFETY,- FOUNDATION
rs z ent Cvr�u N:1� rr
�t, 3reas r ;%l,d�x J- ertlt,Jr.
AERODYNAMICS ASSOCIATES - CITY OF REDLANDS
MASTER LEASE AGREEMENT
REDLANDS MUNICIPAL AIRPORT
PARCEL NO. 5
LEASE AMENDMENT NO. 2
The MASTER LEASB' AGREEMENT , dated July 5 , 1979 , and
amendments thereto# between the City of Redlands, hereinafter
called "City" , and Aerodynamics Associates , hereinafter
called "Lessee" , is hereby amended as followsi
Section 1
The legal description shown on Exhibit "A-1" shall be
amended to increase the size of Parcel No . 5 by 10 , 395 .0
square feet by adding 85 feet to the westerly portion of the
parcel and removfng 55 • feet from the easterly portion of the
parcel. The revised legal description is attached and made a
part thereof.
Section 2
Under Section 11 "P-roperty " , delete Paragraph b.
"Easements" . .,
Section 3
The following annual rental in addition to the lease
payments paid in ' accordance with Section 6, "Lease Payments"
of the Master Lease Agreement shall be paid - to the City by
Lessee commencing on the date of this amendment, and shall be
paid as follows:
a) 10,395 .0 square feet of unimproved land at $0 .061
per sgdare foot per year until such time as the
construction of Sessums Drive along the frontage of
Parcel No. 5 is completed.
10 ,395 .0 s.f. x $0 .061 = $634.10
b) 10 ,395 .0 square feet of unimproved. land at $0 :093
per square foot per year after completion of
Sessums; Drive along the frontage of Parcel No. 5 .
10 ,395 .0 -s.f. x $0 .093 = $966 .74
c) Rental charges identified in Section 3, a) above,
reflect .a return of 15% annually to the City, based
on the purchase price for the property. The pro-
grammed full airport appraisal will identify the
correct "market value" of airport property and
establish accurate rental charges . These new
charges may require adjustment of those indicated
this Amendment.
d) Lessee agrees that following the programmed ap-
praisal, the additional land rental identified in
Section 3, a) above, -will be adjusted to equal the
new appraised values. Any increase, however, will
not exceed $0 .024 per square foot per year. Lessee
will pay the new identified rental charge, as
identified in the appraisal, or $0 .085 per square
foot per year, whichever charge is the lower of the
two.
e) Completion of Sessums Drive will result in an
additional charge of $0 .032 per square foot per
year to the charge indicated in Section 3 . d)
above. This additional charge reflects the charge
increAse indicated in Section 3 . b) above for the
period prior to the appraisal.
f) Adjustments to these annual rates shall be made in
accordance with Section 6 (c) , "Adjustment of Lease
Payments" .
Section 4
Under Section 6, "L9999 paVMgntSn , delete paragraph c.
"Ad,iustment - _Qf Lease Payments__"_ (1) in its entirety and add
the following new paragraph c. Adjustment -Qf Leaae payments
" (1) Commencing on May 1 , 1986 and each five years
thereafter, the schedule of lease payments identified in
paragraph 6.a, as amended, shall be adjusted in proportion to
the change in the Consumer Price Index (CPI) for the U. S.
City, Urban Wage Earners and Clerical Workers Index as
promulgated by the Bureau of Labor Statistics of the U. S.
Department of Labor . The adjustment for each rental
adjustment shall be based on the following:
(a) Basic rent shall not decrease as a result of
changes to CPT. :
(b) Basic rent adjustment shall. be Five Percent
(5%) per year or the percentage change in CPT per year ,
whichever is less.
(c) The CPI adjustment will be calculated as
follows : Each year, the base year for calculating the
adjustment will be the full year preceding the-year to be
adjusted. The total five year change in CPI or an increase
in rent of Twenty Five Percent (25%) , whichever is less, will
be applied - as rental adjustment.
(d) Five year rental adjustment shall be
calculated during the second month following the end of each
5 year period as identified in paragraph 6 .c . (1) above .
City shall notify Lessee of the adjusted rental before the
end of the third month following the end of each 5 year
period . Lessees , upon notice from City of the rent
adjustment shall - make up the difference for the preceeding
months back to the,' May 1 due date, and commence paying the
new established rent .
Section 5
The insurance requirements for the entire parcel as
amended shall be 'revised as follows:
a) Delete Section 7 , "Insurance_ in its entirety to
include sub-paragraphs, and add the following new Section 7,
7 . Insurance
a. - As a condition precedent to the effectiveness
of this lease and in partial -performance of the Lessee ' s
obligations hereunder, Lessee, at his own expense, shall
deliver to City for approval, certificates or policies of
insurance as evidence that the following types and amounts of
insurance are in effect during the entire term 'of this lease:
(1) Bodily Injury Liability : Q�, , QQQ, QQQ
Combined Single Limit per occurance._
Such insurance shall include, but not be limited to,
general aviation ,and airport liability, endorsed for hangar-
keeping and premises liability, products and completed
operations, and .contractual liability.
(2) Property Damage: $200 .000 Combined Single
Limit
(3) Fire Insurance: Adequate to cover full
cash value of Lessee 's personal property, tenants improve-
ments and betterments located on leased premises.
F
(4) Worker' s Compensation Insurance: In the
event Lessee hires any employees , Lessee shall provide a
suitable policy of insurance in accordance with- the provi-
sions of the California Labor Code in relation to Workers '
Compensation Insurance.
b. The City shall also be -named insured under
said policy or policies of insurance. Lessee shall be re-
quired to inform City in writing of any change, expiration or
renewal of insurance policy or policies within thirty (30)
days of effective date of change. Further, each policy shall
provide that same shall not be cancelled until a thirty (30) -
day written notice of cancellation has been mailed to the
City of Redlands, Airport Manager, 30 Cajon Street, Redlands,
CA 92373.
C* All insurance required shall- be maintained in
force at all time by Lessee. Failure to maintain said insur-
ance, due to expiration, cancellation, etc. , shall be cause
for the City to give notice to immediately suspend all Les-
see's business activities at the airport. Failure to rein-
state said insurance within thirty (30) days shall be cause
for termination and forfeiture of this lease.
d. 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 in-
demnification 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 connected with its operation under this lease.
e. Lessee shall indemnify and hold 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 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.
section 6
Under Section 8. 1 "Construction Qn atd Ngdification mid
Maintenance- premises leased"_: Paragraph a, Construction:
add the following new paragraph ( 2 )
Construction:_
(2) Schedule fg-k Construction
a. Lessee agrees to commence construction
of hangar development within one hundred twenty (120) days
following approval of this Amendment by the 'City. Further,
construction will be completed within one hundred twenty
(120) days following initiation of construction. Subsequent
hangar development, following the first unit of. construction,
will be initiated within one hundred twenty (120) days
following full occuvancv of the prior hangar constructed.
N
Further construction will be predicated on initiation of
construction within one hundred twenty (120) days of full
occupancy of prior hangar constructed with a completion date
of one hundred twenty (120) days for each hangar complex
started.
b . City will automatically extend the
development time requirements if delays are experienced in
processing plans, permit or other items that are attributable
to the City. Lessee may request extension of development
time if delays are experienced in engineering , funding or
other items beyond control of the Lessee. Request for ex-
tentions shall be submitted to the City, in writing, at least
five (5) days prior to the end of the applicable development
time period.
Executed at Redlands, California, on this 7th day of
October 1986.
CTT: REDLANDS
BY
Mayor of the City of Redlands
AT 1E ST:
City Clerk, City of 1 nds
AERODYNAMICS ASSOCIATES
General ParklWr
01 age' ,0 Partner
AERODYNAMICS ASSOCIATES -- CITY OF REDLANDS
MASTER LEASE AGREEMENT
REDLANDS MUNICIPAL AIRPORT
PARCEL NO. 5
LEASE AMENDMENT NO. 3
The MASTER LEASE AGREEMENT, dated July 5, 1979, and amendments thereto, between
the City of Redlands, hereinafter called "City", and Aerodynamics Associates,
hereinafter called "Lessee", is hereby amended as follows:
Section 1
The name of Lessee: "Aerodynamics Associates" shall be changed to read:
"Aero--Dynamics Investors, Inc.".
Section 2
Under Section 5, "Termination of Agreement": add the following new sub-
paragraph e. "Default and Right to Terminate".
e. Default and Right to Terminate
(1) If there should be any default in payment by Lessee of the
rental and/or percentage compensation provided herein, City may gave Lessee and
the Lender identified under Paragraph 8 a (3) written notice of such default.
This lease will not be terminated if within ten (10) days after receipt of such
written notice:
(a) the Lessee or Lender shall cure the default or breach;
(b) or within ten (10) days after receipt of such notice,
Lender shall have given a written acknowledgment of receipt of such notice and
indicating what action Lender is pursuing in response to such default, and with-
in thirty (30) days after receipt of such written notice Lender shall cure the
default or breach.
If neither of said methods of cure are accomllished as pro-
vided above, this Lease and Lessee and Lender's rights hereunder shall at the
option of the City forthwith be terminated and forfeited.
(2) If Lessee should fail to perform, keep or observe any of the
terms, conditions or covenants as set forth in this lease, other than payments
of rental and fees as provided hereinabove, City may give Lessee and Lender writ-
ten notice to correct such condition or cure such default.
(a) This lease will not be terminated if within Thirty (30)
days after receipt of such written notice, the Lessee or Lender shall cure the
condition or default. Further, this lease will not be terminated if the Lender
shall, within the thirty (30) day period, initiate and thereafter diligently
pursue to completion, proceedings for foreclosure and sale under and pursuant
to such foreclosure proceedings, the Lender shall pay the rent:, due and payable
by Lessee under this lease; shall maintain all insurance as required by the
lease; shall begin the cure of any other default or breach not curable by pay-
ment or expenditure of m oney which can reasonably be undertaken by the Lender;
and shall diligently prosecute the said cure of such default or breach until the
the leasehold is either sold upon foreclosure pursuant to the terms of the en-
cumbrance or released or reconveyed thereunder.
(b) In case a default or breach on the part of Lessee occurs
preceding, during or due to bankruptcy, receivership or insolvency of the Lessee,
and the Lender, prior to the receipt of the notice of intent to terminate as
described herein or within thirty (30) days after receipt thereof, shall have
filed in the court having jurisdiction over such bankruptcy, receivership or in-
solvency, a petition for permission to foreclose, the filing of such petition
shall be deemed to be the beginning of foreclosure proceedings for the purpose
of this paragraph. The bankruptcy, receivership or insolvency of Lessee shall
be considered a breach which cannot reasonably be cured by Lender and one not
curable by payment of money.
(c) If such condition or default should continue for thirty
(30) days after receipt of written notice of default, and Lender does not timely
commence foreclosure and sale proceedings, City may at its option elect to term-
inate this lease. Such election to terminate shall not be construed as a waiver
of any claim the City may have against Lessee, consistent with such termination.
(d) If, however, Lessee and/or Lender shall have commenced
the elimination of such default within thirty (30) days after receipt of such
notice, and shall continuously and diligently proceed in good faith to elimin-
ate such default, then the period of correction shall be extended for such length
of time as is reasonably necessary to complete such correction.
(3) Any notice provided for herein shall be by certified mail,
return receipt requested, and shall be directed to Lessee and Lender, as speci-
fied by City and shall be deemed to have been given on the date it is received
by Lessee and Lender.
Section 3
Under Section 8, "Construction on and Modification and Maintenance of
Premises Leased": Paragraph a. "Construction", add the new subparagraph (3) ,
"Encumbrance of Leasehold":
(3) Encumbrance of Leasehold
(a) Incident to any construction, Lessee may encumber its
leasehold to a lender consented to pursuant to a "Consent of Hypothecation" by
City in the form attached hereto as Exhibit "D". "Approved encumbrance" herein
shall mean an encumbrance approved by the City of Redlands. "Lender" herein
shall mean the owner and holder of an approved encumbrance.
I Upon default by Lessee Under any of the terms of
an approved encumbrance, the Lender may exercise any rights provided in such ap-
proved encumbrance, provided that before any sale of the leasehold, whether under
power of sale or foreclosure, the Lender shall give to City, notice of the same
character and duration as is required to be given to Lessee by either or both
such encumbrance or the laws of the State of California.
2 If such notice shall be given and any default shall
continue, City, prior to sale of the leasehold under power of sale or foreclosure,
shall have the right to correct such default and initiate action under Paragraph
5 e of this lease to terminate such lease. Provided that upon any termination
hereunder City shall pay to Lender the amount of principal, accrued interest and
other charges which remain unpaid.
3 If a sale or foreclosure under the approved encum-
brance occurs or if the Lender acquires the property by assignment in lieu of
foreclosure, said purchaser or assignee, as successor in interest to Lessee, will
be bound by all the terms of this lease and will assume all the obligations of
Lessee hereunder. Any acquisition of the property by a party other then Lender
(whether by purchase at judicial :foreclosure proceedings, Trustee's Sale, or upon
assignment: from.. Lender) shall be subject to City's written approval., which ap-
proval shall not be withheld where a reasonable transferee is proposed; a trans-
feree shall. be deemed "reasonable" if its overall financial position is substan-
tially as strong as that of Lessee at the time of execution of this lease. Upon
approval. of such transferee by City, Lender shall no longer be liable for the
performance of any of Lessee's obligations under this lease and the transferee
shall become the new Lessee hereunder.
Executed at Redlands, California, on this 19th day of Apra l- 1988.
CITY OF REDLANDS
.By Z, A,
Mayor of the City of Redlands
ATTEST:
Z'5
City Clerk, City of
nds
AERO-DYNAMICS INVESTORS, INC.
<
Te,
Title
AERO-DYNAMICS INVESTORS, INC. - CITY OF REDLANDS
MASTER LEASE AGREEMENT
REDLANDS MUNICIPAL AIRPORT
PARCEL NO. 5
LEASE AMENDMENT NO. 4
The MASTER LEASE AGREEMENT, dated July 5 , 1979, and amendments
thereto, between the City of Redlands, hereinafter called "City" ,
and "Aero-Dynamics Investors, Inc, " , hereinafter called "Lessee" ,
is hereby amended as follows:
Section 1
The name of Lessee: Aero--Dynamics Investors, Inc. " shall be
changed to read "Aerodynamics, Inc. " .
Property Leased: The legal description shown on Exhibit
"A-1" shall be amended to deduct 6 feet from the easterly portion,
add 12.81 feet to the westerly portion and deduct 7 feet from the
southerly portion. The area of the parcel is decreased by 1 . 5
square feet. The revised legal description is attached and made a
part thereof.
Section 1 .c.
Term of Lease: The section shall be changed to read:
" ( l ) 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 May, 1979, and ending on the 30th day of April , 1999
unless sooner terminated as hereinafter provided, and subject to
the conditions and covenants herein. "
Section 1 .d.
Renewal Option: The section shall be changed to read:
"Lessee shall have three successive options for extending this
lease for periods of ten (10 ) additional years each, from May 1 ,
1999 to April 30,_ _2009, from May 1, 2009 to April. 30, 2019, and
from MAy 1 , 2019 to April 30 , 2029, respectively, as regards the
leasing of Parcel #5. "
Executed at Redlands, California, on this 5th day of Mme_,
1992 .
CITY OE� D AN 5
Mayor e City f Redlands
ATTEST:.-
City lerk, i y of Redlands
AEsRrODYNAMICS, INC.
Ti ]
Title
REVISED LEGAL DESCRIPTION FOR MASTER LEASE AGREEMENT R.EDLANDS
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 BERNARINO 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 890 55 '
00" WEST ALONG THE NORTH LINE OF SESSUMS DRIVE 93 .38 FEET;
THENCE NORTH 000 05 ' 23" WEST 339 .91 FEET; THENCE NORTH 890 54 '
37" EAST 359.51. FEET; THENCE SOUTH 000 05 ' 2311 EAST 339.97 FEET"
TO A POINT WHICH IS NORTH 890 55 ' 16" EAST 266. 13 FEET FROM THE
POINT OF BEGINNING; THENCE SOUTH 890 55 ' 16" WEST 266. 13 FEET TO
THE POINT OF BEGINNING.
PREPARED BY: ��5�a Lr0.NQ J�qL�
HAROLD R.
G HARrWICK
No. 2851
R. MARTWICK
L.S. NO. 2 851 Exp. lune 30, 3692
s� 7
QrF�r CAL1F4��
PARCEL # 5 EXHIBIT "A-1"
That portion of the North 1/2 of the SE 1/4 of Section 13 , T. 1 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 Bernardino , State of California ; thence North along
the East line of said Section 13 , 2198 . 92 feet ; thence
South 890 54 ' 37" Nest , 1557 . 05 feet to the beginning of
a tangent curve concave Northeasterly and having a radius
of 279 . 50 feet ; thence Northwesterly along said curve
through a central angle of 350 14 ' 51" an arc distance of
171 . 94 feet to the beginning of a reverse curve concave
Southwesterly and having a radius of 320 . 50 feet ; thence
Northwesterly along last said curve through a. central
angle of 350 14 ' 51" an arc distance of 197 .17 feet to
point of tangency ; thence S 890 541 37" 1V, 74. 63 feet
to tete True Point of Beginning ; thence continuing S 890
54 ' 37" 11,V, 322 . 70 feet ; thence N 00 051 23" 1V, 346 . 50
feet ; thence N 890 54 ' 37" E , 322 , 70 feet ; thence S 00
05 ' 231' E , 346 . 50 feet to the True Point of Beginning .
EASEMENT #5
A 20 foot wade public easement for aircraft,vehicular
and pedestrian use, being
That portion of the North 1/2 of the SE 1/4 of Section 13 , T. 1 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 Nor. 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, 2198 . 92 .feet ; thence
South 890 54 ' 37" I%Iest , 1557 . 05. feet to the beginning of
a tangent curve concave Northeasterly and having a radius
of 279 . 50 feet ; thence Northwesterly along said curve
through a central angle of. 350 14 ' S1" an arc .distance of
171 . 94 feet to the beginning of a reverse curve concave
Southwesterly and having a radius of 320 . 50 feet ; thence
Northwesterly along last said curve through a central
angle of 350 141 511' an arc distance of 197 . 1.7 feet to
point of tangency : thence S 890 541 37" 1V, 74. 63 feet
to the True Point of Beg inning;thence continuing S 89°
54 ' 37" 'W, 20. 00 feet ; .. thence N 00 OS ' 23" 1V, 346 . 50
feet ; thence N 890 541 37" E , 20.00 feet ; thence S 00
051 231? E , 346 . 50 -feet to the True Point -of) `Beginning.
Exhibit "B"
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 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
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 rant or ermit an exclusive richt forb7dden
g p y by Section 308(a) of the
Federal Aviation Act of 1958 (49 U.S.C. 1349 '1(a) ) -,at the. Airport,°or- at any other airport
now owned or controlled by it;
b. Agrees that, in furtherance of the policy of then 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 , in-
cluding, but not limited to charter flights , pilot training, aircraft rental and sight-
seeing aerial photography, crop dusting, aerial advertising and surveying, air carrier
operations, aircraft sales and services, sale of aviation petroleum products whether or
-14-
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
sale of gasoline or oil , or both, granted before July 17, 1952, at such an airport, at the
earliest renewal , cancellation, or expiration date applicable to the agreement that estab-
lished the exclusive right; and
d. Agrees that it will terminate any other exclusive right to conduct an aeronautica
activity now existing at such an airport before the grant of any assistance under the Airport
and Airway Development Act.
4. 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 specifi-
cally covenants and agrees :
a. That in its operation and the operation-, of all facilities on the Airport,
neither it nor any person or organization occupying space or facilities thereon will dis-
criminate 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 requiring the Contractor:
(1 ) to furnish said service on a fair, equal , and not unjustly discriminatory
basis to all users thereof, and
(2) to charge, fair, reasonable, and not unjustly discriminatory prices for
each unit or service; Provided, That the contractor may be allowed to make reasonable and
nondiscriminatory discounts, rebates, or other similar types of price reductions to volume
purchasers.
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 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 chanting or exercise
-15-
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 repacement of any structure or facility which is substantially
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 res.ultH n'g from airport conditions,
including temporary conditions, and
c. Promptly notifying airmen of any condition affecting aeronautical use of the
Airport.
_w
7. Insofar as it is within its power, and. reasonable; .the' Sponsorwill , 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, or growth of any structure, tree or other object in
the approach areas of the runways of the Airport, which would constitute an obstruction to ai
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.
O. 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, take action to
restrict the use of land adjacent to or in the immediate vicinity of the Airport to activi-
ties 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
-16-
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 effi-
ciency of the Airport.
10. 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 States at all
times, without charge, for use by government aircraft in common with other aircraft, except
that if the use by government aircraft is substantial , a reasonable share, proportional to
such use, of the cost of 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 an 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.R. would unduly interfere with use of the landing area by other authorized aircraft,
or during any calendar month that:
a. Five (5) or more government aircraft are 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.M. , 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 construc-
tion at Federal expense of space or facilities for such purposes . The approximate amounts
of areas and the 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.
-17-
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.R. 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 Accountinc
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.
15. If at any tine 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 II 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 this Part, the Sponsor will acquire,
extinguish, or modify such right or claim of right in a manner acceptable to the F.A.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 found 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 sufficien.t .ri.ghts and author ty `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.
--18-
EXHIBIT "C"
Payments as defined in Section 6, Lease Payments, shall not commence until such time
as the City of Redlands provides public access to the lease property.
-19-
EXHIBIT "D"
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".
The documents are for financing related to leasehold development of said Demised
Premises.
On this 11th day of May , 1989,
CITY hereby consents to the execution, delivery, and recordation of the above stated
Documents subject to the following terms and conditions:
1. That Redlands Federal Savings & Loan, hereinafter referred to as "LENDER"
shall fully reconvey all interest in said real property upon repayment 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
C
6. DATE.
Dated this _ 11th day of May , 1989.
CITY:
CITY OF REDLANDS, CALIFORNIA
By a2kw E.
for the Mayor City Manager
ATTEST:
Deputy Clerk of the City of Redlands
By
LESSEE:
AERO-DYNAMICS INVESTORS INC.
$y -- �r.
Edwin H. Krick, Sr.
Title President
Date Signed // ala
By
( k�"
Rodney 11ard
Title Vice-president
Date Signed 1
APPROVED AS TO FORM:
Date
By
City Attorney
Page 2 of 2 pages
r r rr rr '"n f Jar Il'r
r r „ � � ern r/�rr iJ�fr/ �„rr�r J rrr %✓ l� r iJ%rr
' �" � ✓.. i �� r r* �%,���" g" "; >"� r"����)"fir�/ �y "OCf1b "'��'� e �r/��r rhe �,✓
,., r 1 r r r rJ�frn}rj roJn7 Nll�!q /
/ 9,
r,
' I k` � � �� `' a" �� ra�i` r r rPF � ✓x � � r���r � 1 ° y
Ysq, ,y �*` r n 1✓i �, 1Fl f a r
q,. �".^ 1SX r i i t 1�/4 Y r ✓�l r �k.,r V 5Y � 4Y roti r r
=`, J 4 ;,„.d �" � •4 �f r f � BI"" VP
uj
ee
jd ;rr i 1/11
4�1,
CK q
3n r r U
A C M
xy
r, 3 ur .YwG r q , s-•• r y+.w. /� w N P y� a
,_ I r f � � r p✓ u " 4U, r i r'i i l',
ttan ' rs Nr
n a
txt s„„ � y ✓ r y r r r ✓rf r �/ �s„, b��x
5 1,47
raIq
�`fu l }` ( riFJr b d *' e -; l`/fir
v r' C, w N `'ru dna nt
r
�, .. ' � ”
tl W
1 UM
j ,R „n[l i } 'fir. ✓ fie/ 7��i, l� r�i r p r r
d �,✓r/r/i r// ;� r ea
i 1
y 7
C) t
j rmEf° / �:
fk Vi r "'f r rl f" Yv r
gg
70
rr gg
xcof
F %n
r�"'
r
Cil e
-w
i.� 4
j.
rrr
roti ti '
n
r i l`;
p M ww 4r r /
Ar
r ,,� OY `"s" ^^* «k i Irl �,.r Ir ✓,w �, rr i
r
" �r G"n � ""�, ��°� _ r�n r fif� r✓ n y
i r
i` ,�, � @- f `ti y✓; �(r X t"rr rrr i
r
°rntl ;
»•l Si I
/
' it r fD
l ' r ✓ �.
r'
I r rrr
r,
� to r � r r
LL,
��, r r t ', ee iK7 dr .; n. ✓� J ) r� fir ✓�' f r 14,
r
J r mn
p /NI
err /lr
AIT
r
° k
r t, �
r Ptd r t a�� r ✓i/ I U%�
m,ln it r J r '1� I
'Y
r rr
/ r lr! l/yJl r/,
r
" 0 r f r r!r[� r r✓ u J �n i Y �{i}���r ��i 9b �/ i i/f r/j�'..
r r 1 ?,� ✓ .. a r� /rti(i� / �r!<iF r//�i��1�`
%= ,r, � iF r r✓��r o pr'fir � :�n/fi ,�B r!• /}prf J �Fr (rrr f(r,.
., r t/r/µ � r c .,� r�e r lyr�/ ''n n �` rr✓fr'I�!ff � ��
" � �r,"�", ,r r ✓r+a ref, .� "` ,, r ., lr;fJ� y � ✓ �, , N r� r r ��f����}����� IL
,.,J r r✓ �4 // a'; J r' r r(} � ;i r �� / ri�'1/j��� 1'I�4
' „". ',„ ';; '"� r� h � ✓r I �j/Jjr
,
"",l/ rHy/ry/� �r
lik