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HomeMy WebLinkAboutContract 10723 FIXED BASE OPERATOR LEASE CITY THE STATE OF TEXAS () CQNT.RACT No.Id I COUNTY OF TARRANT O THIS CONTRACT AND LEASE AGREEMENT is made by and between the City of Fort Worth, a municipal corporation in the State of Texas, acting by and through Robert L. Herchert, its duly authorized City Manager, hereinafter called "Lessor" and William K. Leech, an individual, hereinafter called "Lessee"; W I T N E S S E T H : WHEREAS, Lessor owns and operates Meacham Field (hereinafter called "Airport"), located in the county of Tarrant, State of Texas, and WHEREAS, Lessor deems it advantageous to itself and to its operation of the Airport to lease unto Lessee certain privileges, rights,uses and interests therein, as hereinafter set out; and WHEREAS, Lessee proposes to lease on a generally net basis from Lessor certain ground space, and to avail himself of certain privileges, uses and rights pertaining thereto; and WHEREAS, Lessee further proposes to make certain improvements on the ground demised hereunder; and WHEREAS, Lessee has indicated a willingness and ability to properly keep, maintain, and improve said premises in accordance with standards established by Lessor, if granted a lease of sufficient term on said ground area; and WHEREAS, Lessor and Lessee now desire to execute a lease of an area of land at Meacham Field providing for the construction of aviation-related improvements thereon. NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS: ARTICLE I. That for and in consideration of the term, conditions and covenants of this Lease to be performed by Lessee, all of which Lessee accepts, Lessor hereby leases to Lessee and Lessee hereby hires from Lessor certain property, together with any improvements thereon (hereinafter called "demised premises"), and certain attendant privileges, uses and rights, as hereinafter specifically set out. A. DESCRIPTION OF PREMISES DEMISED. The demised premises are as described in field notes marked Exhibit "A" and outlined in red on the plat marked Exhibit "B", both Exhibits being attached hereto and incorporated herein for all purposes inci- dent to this agreement. OFFICIAL RECORD i, CITY SECRETARY FT. WORTH, TEX. B. DESCRIPTION OF GENERAL PRIVILEGES, USES AND RIGHTS. Lessor hereby grants to Lessee the following general privileges, uses and rights, in common with others, all of which shall be subject to the terms, conditions and covenants hereinafter set forth and all of which shall be non-exclusive on the Airport: (1) The use in common with the public generally of all public airport facilities and improvements which are now or may hereafter be con- nected with or appurtenant to said Airport, except as hereinafter provided, to be used by Lessee for commercial or non-commercial aviation activities and fixed base operations, and all activities in connection with or incidental to said business or operation, as herein defined. For the purpose of this Lease, "Public airport facilities" shall include all necessary landing area appurtenances, including, but not limited to, approach areas, runways, taxiways, public aprons, public automobile parking areas, public roadways, public sidewalks, navigational and avigational aids, lighting facilities, public ter- minal facilities or other public facilities appurtenant to said Airport. (2) The right of ingress to and egress from the demised premises over and across public roadways serving the Airport for Lessee, his agents and servants, patrons and invitees, suppliers of service and furnish- ers of material. (3) Said rights above shall be subject to such ordinances, rules and regulations as now or may hereafter have application at the Airport, C. DESCRIPTION OF SPECIFIC PRIVILEGES, USES AND RIGHTS. In addition to the general privileges, uses and rights hereinabove described and without limiting the generality thereof, Lessor hereby grants to Lessee the right to engage in commercial aviation activities, as defined in Paragraph D below, subject to the conditions and covenants hereinafter set out. D. DEFINITION OF COMMERCIAL AVIATION ACTIVITIES AND FIXED EASE OPERATION. "Commercial Aviation Activities and Fixed Base Operation" are hereby defined as those activities which involve the sale of aviation services for profit to the general public. Said aviation services shall include: (1) The loading and unloading of aircraft in any lawful activity as incidental to the conduct of any services or operations outlined in this paragraph, (2) The maintenance, repair and storage of aircraft, which shall include over- hauling, rebuilding, repairing, inspection and licensing of same, and the purchase and sale of parts, equipment and accessories therefor. (3) The operation of a business of buying and selling aircraft and parts and accessories therefor, and aviation equipment of all descriptions either at retail, wholesale or as dealer. (4) The training on the Airport of personnel in the employ of Lessee and/or Lessee's tenants and sublessees and the training on the Airport of members of the general public as students, or otherwise in any art, science, craft of skill pertaining directly or indirectly to aircraft. (5) The location, construction, erection, maintenance and removal of improve- ments, in any lawful manner, upon or in the demised premises for the pur- pose of carrying out any of the activities provided for herein, subject, however, to the conditions herein generally or particularly set forth. (6) The operation and sale of sightseeing service. (7) The operation and sale of aerial survey, photography and mapping services. -2- (8) The operation of non-scheduled air taxi and charter transportation of passengers. (9) The operation of schools for the instr•iction of flying, navigation, mechanics, aerial survey, photography, aircraft design, theory and construction. (10) The renting and leasing of space in hangars to be constructed hereunder for the private storage of aircraft on a daily, weekly, monthly, or annual basis. (11) Subject to the prior written approval of Lessor, the undertaking of any phase of aviation activity in any way contributing to air transportation or aerial navigation. E. CONDITIONS OF GRANTING LEASE. The granting of this Lease is conditioned upon the following covenants. (1) That the right to use said public airport facilities as well as any and all of Lessee's rights hereunder shall be exercised only subject to and in accordance with the laws of the United States of America, the State of Texas, and the City of Fort Worth; the rules and regulations promul- gated by their authority with reference to aviation and air navigation; and all applicable rules and regulations and ordinances of Lessor now in force or hereafter ordained or promulgated. (2) That Lessee will not, on the grounds of religion, race, color or national origin, discriminate or permit discrimination against any person or group or persons in any manner prohibited by Federal Aviation Administration regulations. ARTICLE II. OBLIGATIONS OF LESSOR A. CLEAR TITLE. Lessor covenants and agrees that at and until the granting of this Lease it is well seized of the leased premises and has good title thereto, free and clear of all liens and encumbrances having priority over this Lease; and that Lessor has full right and authority to lease the same as herein set forth. Lessor further covenants that all things have happened and been done to make its granting of said Lease effective and Lessor warrants to Lessee peaceful pos- session and quiet enjoyment of the leased premises during the term hereof, upon performance of Lessee's covenants herein. B. OPERATION AS A PUBLIC AIRPORT. Lessor covenants and agrees that during the term of this Lease it will operate and maintain the Airport and its public airport facilities, as defined hereinabove, as public airport consistent with and pursuant to the Sponsor's Assurances given by Lessor to the United States Government through the Federal Airport Act. C. CONDITION AND MAINTENANCE OF PRLMISES. Upon execution of this agreement, Lessor shall assume no further responsibility or liability as to the condition of all the premises demised hereunder and shall not assume responsibility or liability for maintenance, upkeep, or repair necessary to keep said premises in a safe and serviceable condition. -3- ARTICLE III OBLIGATIONS OF LESSEE A. NET LEASE. Except as herein specifically provided, the use and occupancy of the demised premises by Lessee shall be without cost or expense to Lessor. It shall be the sole responsibility of Lessee to keep, maintain, repair and operate the entirety of all the premises leased hereunder and all improvements and facilities thereon at Lessee's sole cost and expense. B. CONDITION OF PREMISES. Lessee accepts all the premises demised hereunder in their present condition, and, without expense to Lessor, will repair and maintain any installation thereon, and remove or cause to be removed any debris to the extent required to keep said premises in a neat and presentable condition at all times. C. OBLIGATION TO CONSTRUCT, Lessee shall provide for the location, construction, erection and maintenance of improvements upon the demised premises for the purpose of carrying out the activities provided for herein. Said improvements shall include: Construction on the leased premises described in Exhibit "A" and shown on Exhibit "B: attached hereto, said construction to consist of one colored, all metal hangar having dimensions of SO feet by 60 feet with a concrete floor and aircraft parking ramp connecting to Taxiway B. All plans and specifications for the construction of building and improvements and other facilities (including landscaping) contemplated hereunder shall be prepared as hereinafter set out and shall require the written approval of Lessor before any construction or installation may be undertaken. D_ MINIMUM IMPROVEMENT STANDARD. As part of the consideration herefor, Lessee further convenants and agrees: That he shallconstruct said hangar facility and aircraft parking ramp on a portion of the leased premises described in Exhibit "A" and shown on Exhibit "B", and that the hangar will to a minimum Three Thousand (3000) square feet of building space with a concrete ramp connecting to Taxiway B. Lessee will expend on such construction an estimated sum of Seventy Thousand and No/100 Dollars ($70,000). E. SUBMISSION OF PLANS. Within ninety days after the approval of this Agree- ment by the City Council of the City of Fort Worth, Lessee shall submit to Lessor final plans and specifications for the construction of the improvements and facilities contemplated hereunder, All plans, specifications and work shall be subject to the approval of the Director of Public Works and must conform to all local, State and Federal codes, laws, ordinances and regulations now in force or hereafter prescribed by authority of law. Lessee shall at his sole cost and expense obtain all necessary licenses and permits. F. CONSTRUCTION SCHEDULE. All construction shall be completed on or before January 1, 1980. Upon completion of construction, title to all permanent improvements shall vest -4- in Lessor. All other improvements, of a non-permanent nature, and all trade fixtures, machinery and furnishings made or installed by Lessee may be removed from the leased premises at any time by Lessee except as otherwise provided in this Lease, G. MAINTENANCE. Lessee shall, at his sole cost and expense, maintain all the premises demised hereunder and the improvements and appurtenances thereto in a present- able condition consistent with good business practice in a safe, neat, sightly and good physical condition. Lessee shall repair all damages to said premises caused by his employees, patrons, or its operation thereon; shall maintain and repair all equip- ment thereon, including any drainage installations, paving, curbs, islands, buildings and improvements; and shall repaint and reglaze its own buildings and facilities as necessary. Lessee agrees that in the event it shall become necessary to make changes within the area covered by this Lease of plumbing, any wiring or similar installations, Lessee will promptly make such changes and installations at his sole expense, subject to the approval of Lessor and in accordance with all applicable Federal, State and municipal laws or regulations. Lessor in its reasonable discretion shall be the sole judge of the quality of maintenance, Upon written notices by Lessor to Lessee, Lessee shall be required to perform whatever maintenance Lessor deems necessary. If such maintenance is not undertaken by Lessee within ten (10) days after receipt of written notice, Lessor shall have the right to enter upon the demised premises and perform such maintenance, the cost of which shall be borne by Lessee, H, COMMERCIAL AVIATION 0?ERATIONS BY LESSEE. Lessee agrees that any commercial aviation operations on the premises shall be conducted in a proper, efficient and courteous manner. Lessee agrees to promote aviation activity on the Airport, Lessee further agrees that all said services shall be furnished on a fair, equal and non-discriminatory basis to all users thereof, and that only fair, reasonable and non-discriminatory prices for each unit of sale or service will be charged, I. UTILITIES. Lessee shall assume and pay for all costs or charges for utility services furnished to Lessee during the term hereof, Lessee shall have the right to connect to any and all storm and sanitary sewers and all water and public utilities at its own cost and expense, and Lessee shall pay for any and all service charges incurred therefor. J. TRASH, FIRE EXTINGUISHERS, ETC. Lessee shall provide a complete and proper arrangement for the adequate sanitary handling and disposal away from the Airport of all trash, garbage, and other refuse caused as a result of the operation of its -5- business. Lessee shall provide and use suitable covered metal receptacles for all such garbage, trash and other refuse. Piling of boxes, cartons, barrels or other similar items in an unsightly or unsafe manner on or about the demised premises shall not be permitted. Lessee shall also provide and maintain in proper condition readily accessible fire extinguishers in a number and of a type approved by fire underwriters for the particular hazard involved. K. SIGNS. Lessee shall not maintain upon the outside of any improvements or elsewhere on the demised premises any billboards or advertising signs without the prior written consent of the Airport Manager. Flashing lighted signs shall be pro- hibited, L. FIELD USE CHARGES. Nothing herein shall be deemed to relieve Lessee and his tenants, sublessees, patrons, invitees, and others from such field use charges, including fuel flowage fees, as are levied generally by Lessor directly or indirectly at the Airport. M. PREFERENCE LIEN. Lessee hereby gives, grants and pledges unto Lessor a contractual preference lien upon all property, tangible or intangible, and property rights belonging to Lessee now or at any time hereafter placed in or upon the demised premises to secure the prompt payment of all rentals and fees and the performance of any or all covenants and obligations to be kept and performed by Lessee hereunder. ARTICLE IV TERM OF LEASEHOLD A. TERM. The term of this lease shall be for a period of twenty-five (25) years commencing October 1, 1979, and ending September 30, 2004. If Lessee exercises and performs all of its duties and obligations hereunder during the term hereof, then upon applying in writing not less than six months nor more than nine months before the end of the said term, Lessee shall have the first right of refusal to execute a new lease of the demised premises for two additional consecutive five-year periods, with each lease for such additional period to be on such terms and conditions as Lessor may prescribe and with the rentals provided for therein to be based on rental rates of comparable properties at Meacham Field at the time of the execution of each additional lease agreement. ARTICLE V A. GROUND RENTAL. As annual ground rental for the ground area leased hereunder, as described in Exhibit "A" and shown on Exhibit "B" attached hereto, said area con- taining a total of Eight Thousand, Five Hundred Three (8,503) square feet, Lessee -6- shall pay to Lessor Twelve (12) cents per square foot per year for an annual rental of One Thousand Twenty and 36/100 Dollars ($1,020.36) each year of the term of this agreement. Rental payments shall commence at the time any part of the property be- comes occupied for revenue producing purposes but in no case later than January 1, 1980. B. ADJUSTMENT OF RENTALS. Upon written notice from Lessor to Lessee delivered within 30 days prior to the end of each five (5) year period during the term of this Lease, Lessor shall have the right but not the duty to adjust the ground rental pay- able hereunder to conform same to rentals then prevailing at the airport for compa- rable ground space, any increase in ground rental not to exceed four percent (4q) per year over the amount theretofore payable under the then expiring five (5) year period, C. TIME PAYMENT. All rentals shall be paid monthly in advance, in amounts each month equal to one-twelfth (1/12) of the annual rental, the first payment in the amount of Eighty-Five and 03/100 Dollars ($85.03) at the time any part of the property be- comes occupied for revenue producing purposes but in no case later then January 1, 1980; and a like payment shall be due on or before the first day of each successive. month thereafter during the term hereof. ARTICLE VI. INSURANCE AND INDEMNIFICATION A. FIRE INSURANCE. During the full term of this Lease, Lessee shall, at his sole cost and expense, cause all improvements constructed in the demised premises to be kept insured to the full insurable value thereof against the perils of explosion, fire and like perils. Said insurance shall be procured from a company authorized to do business in the State of Texas and satisfactory to Lessor that such coverage has been procured and is being maintained. The proceeds of any such insurance paid on account of any of the perils afore- said shall be used to defray the cost of repairing, restoring or reconstructing said improvements, as necessary in the opinion of Lessor. Property insurance policies required by this paragraph shall contain waiver of subrogation endorsements and shall contain a provision that no change, cancellation or renewal of such insurance shall take effect until at least 30 days after notice thereof in writing has been delivered to Lessor. B. INDEMNIFICATION. Lessor shall stand indemnified by Lessee as herein pro- vided. Lessee is and shall be deemed to be an independent contractor and operator -7- responsible to all parties for his respective acts or omissions, and Lessor shall in no way be responsible therefor. Lessee covenants and agrees to indemnify, hold harmless and defend at his expense Lessor, its officers, agents, servants or employees from and against any and all claims or suits for damages or injury, includ- ing death, to any and all persons or property, of whatsoever kind or character, arising out of or incident to the leasing of or the use, occupancy, or maintenance of the premises by Lessee, his officers, agents, employees, patrons, contractors, subcontractors, licensees or invitees; and Lessee does hereby assume all liability and responsibility for any and all claims or suits for damages or injuries, including death, to any and all persons or property, of whatsoever kind or character, whether real or asserted, occurring during the term of this lease in connection with the use, occupancy or maintenance of the premises by Lessee, his officers, agents, employees, patrons, contractors, subcontractors, licensees or invitees; and Lessee hereby indem- nifies and holds harmless the Lessor for any and all damage or destruction to Lessor's property arising out of the acts or omissions of Lessee, his agents and employees. Lessee shall pay promptly when due all bills or charges for construction or maintenance as well as any other amounts due for material, services and labor furnished in con- nection herewith, and shall indemnify Lessor for non-payment of same. Lessee shall indemnify Lessor against any and all mechanics and materialmen's liens or any other type of claims or liens imposed upon the premises demised hereunder arising as a result of Lessee's conduct or inactivity, Lessee shall promptly, after the execution of this Lease, provide public lia- bility insurance for personal injuries/death growing out of any one accident or other cause in a minimum sum of One Hundred Thousand Dollars ($100,000.00) for one person and Three Hundred Thousand Dollars ($300,000.00) for two or more persons; and shall provide property damage liability insurance in a minimum sum of Three Hundred Thousand Dollars ($300,000.00) for property damage growing out of any one accident or other cause. Lessee shall maintain said insurance with insurance underwriters authorized to do business in the State of Texas and approved by Lessor. Lessee shall furnish Lessor with a certificate from the insurance carrier showing such insurance to be in full force and effect during the entire term of this Lease, or shall deposit with the Lessor copies of said policies. Said policies or certificates shall contain a provision that written notice of cancellation or of any material change in said policy by the insurer shall be delivered to Lessor thirty (30) days in advance of the effective date thereof. -8- ARTICLE VII CANCELLATION ASSIGNMENT AND TRANSFER A. CANCELLATION BY LESSOR. This Lease shall be subject to cancellation by Lessor in the event Lessee shall: (1) Be in arrears in the payment of the whole or any part of the amounts agreed upon hereunder for a period of fifteen (15) days after the time such payments become due, (2) Make a voluntary or involuntary assignment for the benefit of creditors. (3) File a voluntary petition in bankruptcy, (4) Abandon the demised premises. (5) Fail to replace any improvements by Lessee which have been destroyed by fire, explosion, etc., within six (6) months from the date of such destruc- tion, or, (6) Default in the performance of any of the covenants, and conditions required herein. In any of the aforesaid events, Lessor shall give Lessee written notice of such breach or default, and Lessee shall immediately correct same, If within thirty (30) days from the date of such notice, the breach or default complained of shall not have been corrected, then and in such event, Lessor shall have the right to declare this lease immediately terminated as to the balance of the term herein, and may forcibly, if necessary, re-enter and take immediate possession of the demised premises and remove or seize Lessee's effects under the preference lien granted to secure per- formance of Lessee's obligations hereunder without being deemed guilty of any nature of trespass; provided, however that in the event that subsection (2) and/or (3) occur, Lessor shall not be required to give written notice to Lessee, but Lessee shall have thirty (30) days from the occurrence of said event to correct same. This lease, or a copy hereof, shall be sufficient warrant for any person. All rental due hereunder shall be payable to said date of termination. Failure of Lessor to declare this Lease terminated upon the default of Lessee for any of the reasons set out shall not operate to bar or destroy the right of Lessor to cancel this Lease by reason of any subsequent default or violation of the terms hereof. B. ASSIGNMENT AND TRANSFER. This Lease shall not be assigned in whole or in part by Lessee without the prior written consent of Lessor, and any attempted assign- ment without such prior written consent shall be void, C. SUSPENSION OF LEASE. During the time of war or national emergency, Lessor shall have the right to lease the landing area or any part of said Airport to the United States Government for military or naval use, If any such lease is executed, any provisions of this instrument which are inconsistent with the provisions of the lease to the Government shall be suspended. Nothing contained -9- in this lease shall prevent Lessee from pursuing any rights which Lessee may have for reimbursement from the United States Government for the taking of any part of this leasehold or for any loss or damage caused to Lessee by the United States Government. Ai'TICLE VIII RIGHTS UPON TERMINATION Upon termination of this Lease other than under Article VII A hereof, Lessee shall immediately remove all personal property from the demised premises and return the premises and improvements thereon to Lessor in a good state of repair. Any property remaining on the premises after termination shall, at Lessor's sole option, become the property of Lessor or same may be removed and/or disposed of in any manner deemed appropriate by Lessor. Lessor shall not be liable in any manner for such re- moval and/or disposal; and the cost and expense of such removal and/or disposition shall be paid by Lessee. ARTICLE IX GENERAL PROVISIONS A. CONCESSIONS EXCLUDED. It is specifically agreed and stipulated that the following concessions and the establishment thereof are excluded from this Lease, to wit: (1) Ground transportation for hire. (2) Auto rental, (3) Food sales. (4) News and sundry sales. (5) Barber and valet service. (6) Alcoholic beverages. (7) Aviation fuel sales. B. ATTORNEY'S FEES. In any action brought by Lessor for the enforcement of the obligations of Lessee, Lessor shall be entitled to recover interest and reason- able attorney's fees. C. TAXES. Lessee agrees to pay any taxes or assessments which may be lawfully levied against Lessee's occupancy or use of the demised premises or any improvements or property placed thereon as a result of Lessee's occupancy. D. SUBORDINATION OF LE.ISE. This lease shall be subordinated to the provision of any existing or future agreement between Lessor and the United States relative to the operation or maintenance of the Airport, the execution of which has been or may be required as a condition precedent to the expenditure of Federal funds for the development of the Airport. -10- E. PARAGRAPH HEADINGS. The paragraph headings contained herein are for the convenience in reference and are not intended to define or limit the scope of any provision of this lease. F. NOTICES. Notices to Lessor provided for herein shall be sufficient if sent by certified mail, postage prepaid, addressed to Airport Manager, Fort Worth Muni- cipal Airport, Meacham Field, Fort Worth, Texas, and notices to Lessee if sent by certified mail, postage prepaid, addressed to William K. Leech, Meacham Field, Fort Worth, Texas or to such other addresses as the parties may designate to each other in writing from time to time. G. SUCCESSORS AND ASSIGNS. All of the terms, covenants and agretaments herein contained shall be binding upon and shall inure to the benefit of successors and assigns of the respective parties hereto. H. VENUE. The venue of any action brought on this contract shall lie in Tarrant County, Texas. EXECUTED at Fort Worth, Tarrant County, Texas, this o�6 Zr day of 1979. ATTEST: CITY OF FORT WORTH, LESSOR C� By: City..Secretary City Manager r A ROVED AS TO FORM AND LEGALITY: f WILLIAM K. LEECH, LESSEE C ty Attor ey William K. Leech An Individual A:'_''_;;.;J b'f CITY COUNCIL Ci���Secretary Date 9 -11- av 1% 44 -C & NAM o & t H �w sNlrN'N o� J b N1, Z8L ~ m��ZoZ.S �' .1"tq co O "'r' p O 0 �.._ LLJ WAft o d C• u'r... ' w Uj LU w b a Lu p� 00 0 ib'9L 3,£Zoz N a " " O C W f4 H H pa H x x w MEACHAM FIELD LEASE SITE N0. 12-S A tract of land out of the James Wallace Survey, being a portion of a tract conveyed to the City of Fort Worth by deed recorded in Volume 1112, Page 574, Deed Records, Tarrant County, Texas and also being a portion of Fort Worth Municipal Airport Meacham Field, more particularly described using the Texas Coordinate System, North Control Zone, coordinates and bearings as follows: Commence at a point in the North line of 38th Street and the West line of North !fain Street, said point being an easterly southeast corner of Meacham Field, Thence: West 1055.11 feet and North 817.52 feet to the point of be- ginning of the herein described lease, the coordinates or said beginning point are X - [,044.634.00, Y - 417,765.50; Thence: North 87 degrees 37 minutes West 110.0 feet to a point for the South- west corner of the herein described lease; Thence North 2 degrees s3 minutes East 76.4 feet to a point for the Northwest corner of herein described lease; Thence: South 88 degrees 33 minutes East 110.00 feet to a point for the North- east corner of herein described lease; Thence: South 2 degrees 23 minutes West 78.2 feet to the place of beginning and containing 8,503.0 square feet of land more or less. EXHIBIT "A" City of .Fort Worth, Texas Mayor and Council Communication DATE REFERENCE SUBJECT: New Lease - Wi 1 1 i am K. Leech - PAGE NUMBER Meacham Field 1 9/25/79 C-4815 1of William K. Leech, an individual, seeks to enter into a lease agreement for approximately 8,800 square feet of unimproved land in the T-hangar area at Meacham Field. The rental rate will be $.12 per square foot per year resulting in annual revenue to the City of $1,056, more or less, depending on the outcome of the site survey. Term of the lease will be 25 years beginning October 1, 1979, and ending September 30, 2004. Rental payments will commence on January 1, 1980, thereby allowing 90 days for construction. The City will have the option to adjust the rental rate at the end of each five year period to the rate then charged for ground space, but not to-exceed 4% per year over the rate previously paid. The lessee will be granted an option, at the end of the twenty-five year term, to lease the site for two consecutive five-year terms at the rate then charged on the airport for like property. Mr. Leech will build one, all metal, colored hangar measuring 50' X 60' and costing approximately $70,000, He will connect the site to Taxiway B with a concrete ramp at no expense to the City. Mr. Leech also will bear the cost of connecting to the utilities. At its meeting on September 17, 1979, the Aviation Advisory Board unanimously recommended approval of the new lease to William K. Leech. Recommendation It is recommended that the City Council authorize the City Manager to enter into a new lease with William K.Leech under the terms and conditions described above, VS:plg SUBMITTED FOR THE CITY MANAGER'S DISPOSITIO COUNCIL: PROCESSED BY OFFICE BY; [!T-APPROVED ORIGINATING ❑ OTHER (DESCRIBE) DEPARTMENT HEAD: Barry Hall CITY SECRETARY FOR ADDITIONAL INFORMATION 9- 1.7r_79 CONTACT: Barry Hall 624-1127 DATE