Loading...
HomeMy WebLinkAboutAgenda Bill 1.G-Ord 03/01/2004f r March 1, 20 Adoption (Second Reading) .of Ordinance 2176 ;N.C.S. to Amend Lease for Mangon Aircraft, a Business. Located at the Petaluma Municipal Airport. (Skladzien/close) • CLEAN VERSIONS'OF ORDINANCE AND LEASE AMENDMENT SHOWING REVISION'S APPROVED AT THE FEBRUARY' 23, 2004 CITY COUNCIL MEETING is 11 Introduced by ORDINANCE NO. N.C.S. Seconded by AN ORDINANCE OF THE COUNCIL OF THE CITY OF PETALUMA AUTHORIZING AN AMENDMENT TO THE LEASE OF REAL PROPERTY LOCATED AT THE PETALUMA MUNICIPAL AIRPORT BE IT ORDAINED BY THE COUNCIL OF THE, CITY OF PETALUMA AS FOLLOWS: . Section 1. The City of Petaluma is planning a hangar expansion project at the Petaluma Municipal Airport, in the City of Petaluma, County of Sonoma, State of California. The City would like to include in the expansion a portion of the premises covered by a pre-existing Lease Agreement between the City and Walter R. Mangon as Lessee, dated September 6, 1988, which Lease may be assigned by Walter R. Mangon to Mangon Aircraft, Inc., as Lessee. To this end, the City and the Lessee have agreed to terms for amendment of the Lease Agreement so that a portion of the current leasehold will be surrendered back to the City and can be included in the City's.hangar expansion project. Therefore, the City Council hereby authorizes amendment of the Lease Agreement , ,as proposed in the "Amendment Number One to Lease Agreement" attached hereto as Attachment. "A", which is incorporated herein by reference, and the City Manager is hereby authorized to sign such Amendment conditioned on execution of a personal lease guarantee in a form acceptable .to the City Manager and signed by Walter Mangon. Section 2. If any section, subsection, sentence, clause 'or phrase or word of this ordinance • is for any reason held to be unconstitutional, unlawful or otherwise invalid by, a court of 1 competent jurisdiction, such decision shall not affect the validity of the -remaining ,portions of this ordinance. The City Council of the City of Petaluma hereby declares that it would have passed and adopted this ordinance and each and all provisions thereof irrespective, of the fact that any one or more of said provisions be declared unconstitutional, unlawful or otherwise invalid. Section 3. This ordinance shall become effective thirty (30) days after the date of its adoption bythe Petaluma City Council.. Section 4. 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 ADOPTED this, AYES: NOES: ABSENT: ATTEST: City Clerk ord 2/25/04 (fm]c) day of day of , 2004 by the following vote: Mayor APPROVED AS TO FORM: City Attorney. , 2004.. • 2 RECORDING REOUESTED BY, AND WHEN; RECORDEI) PLEASE RETURN TO: Mail Tax Statements: Manton Aircraft, Inc. Petaluma Municipal Airport 501 Skv Ranch Drive Petaluma, CA 94954-39.08 AMENDMENT;NUMBER ONE TO LEASE AGREEMENT PETALUMA MUNICIPAL: AIRPORT This Amendment Number One to Lease Agreement. Petaluma Municipal Airport ("Amendment") is made and entered' into as of the day of , 2004, by and between the CITY OF PETALUMA, a political subdivision of the State of California, as Lessor, and MANGON AIRCRAFT, INC., as Lessee. RECITALS A. On or about September 6, 1'988, the CITY OF PETALUMA (hereafter "Lessor") and Walter R: Mangon, as lessee, entered into that certain "Lease Agreement Petaluma Municipal Airport" ("Lease") by which Walter R. Mangon leased approximately 63,120 square feet ,of real property at the Petaluma Municipal Airport as more particularly d'e's'cribed ih Exhibit A to the Lease. B. Pursuant to paragraph 18 of the Lease, Walter R. Mangon' has, requested that Lessor consent to his assignment of the Lease to MANGON AIRCRAFT, INC., as Lessee (hereafter "Lessee"), and Lessor has consented to the assignment. C. Lessor is planning ;a hangar expansion project and would like to include in the expansion a portion of the premises covered by the Lease, hereinafter referred to as "the Surrendered Premises." 1 D. The parties wish to amend the Lease to provide for (1) return of the Surrendered Premises • to Lessor; (ii) reduction of the rent: to reflect the reduced size of the premises being leased by Lessee; (Ili) a rent credit in consideration for Lessee's actual vacation of the Surrendered"Premises prior'to execution of this Addendum; (iv) Lessee's,ability to assign the Lease with Lessor's consent; and (v) extension of the term of the Lease through September 6, 2038. AGREEMENT Now therefore, the parties hereby amend the'Lease as follows: The premises covered by the Lease shall be amended to exclude the Surrendered. Premises. The parties agree that the Surrendered Premises is approximately 34,020 square, feet, in the area shown on Exhibit A attached hereto as "Surrendered Premises." Within ninety (90) days following, execution .of this Amendment, Lessor shall cause to be prepared a -survey to determine the exact square footage of the remaining premises subject to- the -Lease (shown on Exhibit A as "Amended Mangon Lease"), .and shall prepare a legal description' thereof which wi11 be attached to this Amendment as Exhibit B. Lessee hereby surrenders any and all interest it may have in the Surrendered Premises under the Lease. 2. The provisions set forth in paragraph 2(a) of the Lease for the base ground rental rate per square .foot shall remain unmodified by this Amendment, however, it- is acknowledged that- the total rental due shall. be reduced as of May 1, 2002, to reflect; the reduced square footage of the leased premises as described in Exhibits,A and B to this Amendment. 3. In consideration of Lessee's actual vacation of the Surrendered Premises on or about April 18, 2002, Lessor hereby grants to Lessee a rent credit to compensate Lessee for excess rental paid to the City of Petaluma and possessory interest taxes paid to the County of Sonoma by Lessee from and including May 1, 2002, through and including the execution of this Amendment. -The total amount.of such credit shall be $23;315.85, and shall be credited to Lessee in thirty-six (36) successive rental installments in'the amount of $647.66 each, commencing with the first rental payment due after execution. of this Amendment. 2 0 4. Paragraph 18 of the Lease is hereby amended to read as follows: It- is agreed that Lessee is authorized to assign this lease with the prior written approval of Lessor, which approval shall not be unreasonably withheld. It is further agreed that Lessee is authorized to sublet, with the prior written approval of Lessor, a portion of the premises to an independent contractor for the purpose of assisting Lessee in the full utilization of the Limited Service Commercial Operation as described herein; provided, however, that as a condition of receiving Lessor's prior written approval to sublet to any independent contractor for such allowed use or uses, Lessee shall provide Lessor with a copy of the proposed sublease for Lessor's approval. Any such sublease and/or other agreements entered into by Lessee and the independent contractor shall specify that they shall be subject to the terms and conditions of this lease. Signed copies of all such subleases and/or agreements shall be furnished to Lessor upon execution. 5. The term of the Lease is extended to September 6, 2038, and shall become effective upon receipt of personal lease guarantee 'in a form acceptable to the City Manager, signed by Walter R. Mangon. IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day and year first above written. CITY OF PETALUMA, a political subdivision of'the State of California City Manager ATTEST: City Clerk MANGON AIRCRAFT, INC. SIGNATURES CONTINUED ON NEXT PAGE , President 9 APPROVED AS TO FORM: City Attorney APPROVED: Department Director APPROVED: Risk Manager APPROVED: Finance Director agrmt 2/25/04 (fmk) 9 • 11 City of Petaluma EXHIBIT A MANGON LEASE PARCEL NOTE: ALL LINES ARE PLOTTED FROM DEED DESCRIPTIONS AND DRAWN ON THE PHOTO. NO FIELD SURVEY WAS PERFORMED. CITY OF PETAMT U-V-A- 11C 1 T V 0 F P E. T A -L U IM All" 11' 12/31/03 1 MANGON LEASE PARCEL DEPARTMENT OF PUBLIC _L' ITY FAcmrms.AND SERVICES' jl�" 'M. GLOSE lls� N.T.S. I PETALUMA - AIRPORT SH NWM.MC W*UL OLVD. PETAUNAA. CA. 240K 776-4= JJDP�Mjft B. -ALLEN 11' 'AIRPORT PHOTO cc AD RED -LINED VERSIONS OF ORDINANCE AND LEASE AMENDMENT SHOWING REVISIONS APPROVED AT THE FEBRUARY 23, 2004 CITY COUNCIL MEETING • • ORDINANCE NO. Introduced by N.C.S. Seconded by AN ORDINANCE OF THE COUNCIL OF THE CITY OF PETALUMA AUTHORIZING AN AMENDMENT TO THE LEASE OF REAL PROPERTY LOCATED AT THE PETALUMA MUNICIPAL AIRPORT BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS: Section 1. The City of Petaluma is planning a hangar expansion project at the Petaluma Municipal Airport, in the City of Petaluma, County of Sonoma, State of California. The City would like to include in the expansion a portion of the premises covered by a pre-existing Lease Agreement between the City and Walter R. Mangon as Lessee, dated September 6, 1988, which Lease may be assigned by Walter R. Mangon to Mangon Aircraft, Inc., as Lessee. To this end, the City and the Lessee have agreed to terms for amendment of the Lease Agreement so that a portion of the current leasehold will be surrendered back to the City and can be included in the City's hangar expansion project. 'Therefore, the City. Council hereby authorizes amendment of the Lease Agreement as proposed in the "Amendment Number One to Lease Agreement" attached hereto as� Attachment "A", which is incorporated `herein by reference, and the City Manager is hereby authorized to sign such Amendment conditioned on execution of a personal lease guarantee in a form acceptable to the City Manager and signed by Walter Mangon. Section 2. If any section, subsection, sentence, clause or phrase or word of this ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court of 1 competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City. Council of the City of°Petaluma hereby declares. that .it would have passed and adopted this ordinance and each and all provisions thereof'irrespective of the fact that any one or more of said provisions be declared unconstitutional, unlawful or otherwise invalid. Section 3. This ordinance shall become effective thirty (30) days' after the date of its adoption by the Petaluma City Council. Section 4. 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 day of , 2004. ADOPTED this day of 200.4 by the following vote: AYES: NOES: ABSENT: Mayor ATTEST: APPROVED AS TO FORM: City Clerk City Attorney ord 2/25/04 (fmk) 2 RECORDING REO.UESTED BY, AND WHEN RECORDED PLEASE RETURN. TO: Mail Tax Statements:. Manion Aircraft, Inc. Petaluma Municipal Aimort 501 Skv Ranch Drive Petaluma —CA 949543908 . AMENDMENT NUMBER ONE, TO LEASE AGREEMENT PETALUMA MUNICIPAL AIRPORT • This Amendment Number One to Lease Agreement Petaluma Municipal Airport ("Amendment") is made and entered into as of the day of 2004, by, and between the CITY OF PETALUMA, a political subdivision of the State of California, as Lessor, and MANGON AIRCRAFT, INC., as Lessee. RECITALS A. On or about September 6,, 1=988, the CITY OF PETALUMA (hereafter "Lessor") and Walter R. Mangon, as lessee, entered into that certain "Lease .Agreement Petaluma Municipal Airport" ("Lease") by which Walter R. Mangon leased approximately 63,120 square feet of real property at the Petaluma Municipal Airport as more particularly described in Exhibit A to the Lease. B. Pursuant„°,to,'�paragraph „18,of the. Lease; Walter R. Mangon has requested that Lessor consent `to his assignment. "of the Lease to MANGON AIRCRAFT, INC., as Lessee (hereafter ``.Lessee'');..and,Lessorhas consented to the assignment., C. Lessor i. planning a hangar expansion project and would like to include in the -expansion a 'portion of the premises covered by the Lease, hereinafter referred to as "the Surrendered Premises." 1 • D. The parties wish to amend the Lease to provide for (i) return of the Surrendered Premises to Lessor; (ii) reduction of the rent to reflect the reduced size of the premises being leased by Lessee; (iii) a rent credit in consideration for Lessee's actual vacation of the Surrendered Premises prior to execution of this Addendum; (iv) Lessee's ability to assign the Lease with Lessor's consent; and (v) extension of the term of the Lease through September 6, 2038. AGREEMENT Now, therefore, the parties hereby amend the Lease as follows: 1. .,The premises covered by the Lease shall be amended to exclude the Surrendered Premises. The parties agree that the Surrendered Premises is approximately 34,020 square feet, in the area shown on Exhibit,A attached hereto as ``-Surrendered Premises." Within ninety (90) days: following execution of this Amendment, Lessor shall cause to be prepared a survey to determine the exact square footage of the remaining premises subject to the Lease (shown on Exhibit A as "Amended Mangon Lease"), and shall prepare a legal description thereof which will be attached to this Amendment as Exhibit • B. Lessee hereby surrenders any and all interest it may have in the Surrendered Premises under the Lease. 2. The provisions set forth in paragraph 2(a) of the Lease for the base ,ground rental rate per square foot shall remain unmodified by this Amendment, however, it is acknowledged that the total rental due shall be reduced as of May 1, 2002, to reflect thereduced square footage of the leased premises as described in Exhibits A and B to this Amendment. 3. In consideration of Lessee's actual vacation of the Surrendered Premises on or about April 18, 2002, Lessor hereby grants' to Lessee a rent credit to compensate Lessee for excess rental paid to the City of; Petaluma and possessory interest taxes paid to the County of Sonoma by Lessee from and'inc'luding May 1,, 2002, through and -including the execution of this Amendment. The total amountof such credit shall be $2a,3.15.85, and shall be credited to: Lessee in thirty-six (36) successive;rental installments in the amount of $647.66 each, `commencing with the first rental payment due after execution of this Amendment. 2 4. Paragraph 18 of the Lease is hereby amended to read as follows: It is agreed that Lessee is authorized to assign this lease with the prior written approval of Lessor, which approval shall not be unreasonably withheld. It is further agreed that Lessee is authorized to sublet, with the prior written approval of Lessor, a portion of the premises to an independent contractor for the purpose of assisting Lessee in the full utilization of the Limited Service Commercial Operation as described herein; provided, however, that as a condition of receiving Lessor's prior written approval to sublet to any independent contractor for, such allowed use or uses, Lessee shall provide Lessor with a copy of the proposed sublease for Lessor's , ,approval. Any such sublease and/or other agreements entered into by Lessee and the independent contractor shall specify that they shall 'be subject to the terms and conditions of this lease. Signed copies of all such subleases and/or agreements shall be furnished -to Lessor upon execution. 5. The term of the Lease is extended to September 6, 2038, and shall .become effective upon receipt of personal lease guarantee in ac form acceptable to the City Manager, signed by Walter R. Mangon. IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day and year first above written.. CITY OF PETALUMA, apolitical subdivision of the State of California City Manager ATTEST: City Clerk L MANWN AIRCRAFT, INC. SIGNATURES CONTINUED ON NEXT PAGE , President 3 APPROVED AS TO FORM: City Attorney Department Director APPROVED: Risk'Manager APPROVED: Finance Director agrmt 2/25/04 (fmk) • 4