HomeMy WebLinkAboutStaff Report 3.A 12/21/2009o ,
®eCembe~ 21, 2®09
EFFECTIVE DATE
OF ®RDINANCE
1
2
3
4
5
6
7
8
9
10
11
Introduced by
ORDINAiVCE'NO. 2355 N.C.S.
Seconded by
APPROVING AMENDMENT NO. TWO TO THE MANGON AIRCRAFT, INC.
LEASE AGREEAflENT AND AUTHORIZING ITS EXECUTION BY THE CITY MANAGER
WHEREAS, on September 6, 1988, the City of Petaluma, as Lessor, and Walter R. Mangon,
12 as Lessee, entered into a Lease Agreement ("Lease"), for the ground lease of 1.45 acres, more
13 or less, of property, located in the Aviation Commercial Subzone of the Petaluma Municipal
14 Airport; and,
15 WHEREAS, on March 18, 2005, upon request from Walter Mangon, Amendment No. One
16 to the Lease was entered into to assign .his interest as Lessee in the Lease to Mangon Aircraft,
17 Inc.; and,
18 WHEREAS, Mangon Aircraft, Inc. has requested a second amendment to the.Lease to
19 include aircraft rental and flight ihstruction within the definition of permitted limited service
20 commercial operation.
21 NOW, THEREFORE BE IT ORDAINED by the City Council of the City of Petaluma:
22 Section 1. Amendment No. Two to the Ground Lease Agreement between the City
23 of Petaluma and Mangon Aircraft, Inc., attached hereto as Attachment A to Ordinance, which
24 is incorporated herein by reference, is approved.
25 Section 2. The City Manager is authorized to execute Amendment No. Two.
26 Section 3. If any section, subsection, sentence, clause or phrase or word of this
27 ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court
28 of competent jurisdiction, such decision shall not affect the validity of the remaining portions of
29 this ordinance. The City Council of the City of Petaluma hereby declares that it would have .
30 passed and adopted this ordinance and each and all provisions thereof irrespective of the fact
Ordinance No. 2355 N.C.S. Page 1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
that any one or more of said. provisions be declared unconstitutional, unlawful or otherwise
invalid.
Section 4. This ordinance shall become effective thirty (30) days after the date of its
adoption by the Petaluma City Council.
Section 5. The City Clerk is hereby directed to post this ordinance for the period and in
the manner required by the City Charter.
INTRODUCED and ordered posted/published this 7th day of December, 2009.
ADOPTED this day of , 2009 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Claire Cooper, City Clerk
Pamela Torliatt, Mayor
APPROVED AS TO FORM:
Eric Danly, City Attorney
Ordinance No. 2355 N.C.S.
Page 2
ATTACHMENT A
TO ORDINANCE
AMENDMENT NUMBER TWO TO LEASE AGREEMENT
PETALUMA MUNICIPAL AIRPORT
This Amendment Number Two to Lease Agreement ("Amendment") is made and entered into
this day of , 2009, by and between the CITY OF PETALUMA, a municipal
corporation ("Lessor" or "City"), and MANGON AIRCRAFT, INC., a California corporation
("Lessee") .
RECITALS
A. Lessor and Walter R. Mangon, Lessee's assignor ("Original Lessee") entered into that certain
Lease Agreement ("Lease") as of September b, 1988, for Original Lessee's ground lease of the
property identified therein (the "Premises") fora "Limited Service Commercial Operation" for
aircraft maintenance and related services, retail aircraft parts sales, and retail sales of used
aircraft.
B. On February 23, 2004, the City Council of the City adopted Resolution No. 2004-017A N.C.S.,
by which it gave City's consent to assignment of Original Lessee's interest in the Lease to Lessee,
subject to Origindl Lessee's execution of a guaranty of performance of Lessee's obligations
under the Lease.
C. As of March 18, 2005, Original Lessee executed that certain Lease Guaranty ("Guaranty") in
favor of the City and that certain Amendment Number One to the Lease.
D. The Guaranty authorizes City, without notice or demand and without affecting Original
Lessee's liability under the Guaranty, to consent to any alteration of any covenant, term, or
condition of the Lease in any respect.
E. Lessor and Lessee desire to further amend the Lease to include flight instruction and aircraft
rental among the uses permitted under the Lease.
F. For good. and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Lessor and Lessee enter into this Amendment.
AGREEMENT
l . This Amendment shall incorporate by this reference all of the Recitals and Exhibits thereto.
2. Capitalized terms used herein within definition shall have the meanings ascribed to them in
the Lease.
3. Section 6(a) of the Lease is hereby amended in its entirety to read as follows:
(a) Limited Service Commercial Operation
The Lessee or Sublessee shall conduct Limited Service Commercial
Operations on the leased premises which includes, without limitation,
the maintenance, repair, refurbishment, construction and reconstruction
of any and all types of aircraft, together with all operations customarily
Ordinance No. 2355 N.C.S. Page 3
ancillary thereto; at the option of Lessee, the training of personnel in such
opera,tio,ns; flight instruction' and aircraft rental: Tie down services may
be provided for customers as required, but the rate shall be at least twenty
percent (20%) more than that charged by the City for tiedowns. Lessee is
authorized: to operate retail sales of parts and merchandise related to flight
and flying operations. The uses and operations set forth shall not be
exclusive.
4. All flight instruction and aircraft rental services permitted under this Lease shall at all times be
subject to Lessee's compliance with Section VIII. 3., Flight Instruction and Aircraft Renfal, of that
certain document known as the June 1992- Lease Policy and Standards for Services and
Operations at Petaluma Municipal Airport, a copy of which section is attached hereto as Exhibit
A and incorporated herein by this reference, as fhe same may be amended from time to time.
Failure to so comply shall constitute an event of default under the: Lease.
5. All other provisions of the Lease shall remain unchanged and in full force and effect.
IN WITNESS WHEREOF, Lessor and Lessee have executed this Amendment as of the date
first written above.
LESSOR:
CITY OF PETALUMA
By:
John C. Brown, City Manager
ATTEST:
By:
Claire Cooper, City Clerk
APPROVED AS TO FORM:
By:
Eric VN. Danly, City Attorney
Ordinance No. 2355 N:C.S. Page 4
1
2
3
5
6
7
8
9
10.
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
2'7
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
APPROVED:
By:
Department Director
APPROVED:
By:
Robert Patterson, Airport Manager
APPROVED:
By:
Ron Blanquie, Risk Manager
APPROVED:
By:
Finance Director
LESSEE:
MANGON AIRCRAFT, INC.
By:
Walter R. Marigon, President
1310455.1
Ordinance No. 2355 N.C.S.
Page 5