HomeMy WebLinkAboutOrdinance 1735 N.C.S. 09/06/1988Introduced by
John Balshaw
ORDINANCE NO. 1735 N. C. S.
Seconded by
Brian Sobel
AN ORDINANCE AUTHORIZING A LEASE OF
REAL PROPERTY LOCATED WITHIN THE
PETALUMA MUNICIPAL AIRPORT COMPLEX
BE IT ORDAINED BY THE Council of the City of Petaluma as follows:
Section 1. Certain real property located within the Petaluma Municipal
Airport complex in the City of Petaluma, County of Sonoma, State of
California is hereby authorized to be leased under the terms and conditions
set forth in the Lease by and between the City of Petaluma and Walter
Mangon which Lease is attached hereto as Exhibit "A" and incorporated
herein by reference and the City Manager is hereby authorized to sign said
Lease which is for a service and parts/accessories business related to
airport and airplane necessities.
Section 2. The City Clerk be, and she is hereby directed to publish this
ordinance for the period and in the manner as required by the City
Charter.
ORD. 17 3 5 N C S
INTRODUCED and ORDERED published/posted this 15th day of
August , 1988.
ADOPTED this 6th day of September 1988, by the following vote:
AYES: Cavanagh, Tencer, Sobel, Woolsey, Balshaw, Vice Mayor Davis,
Mayor Hilligoss
NOES: None
ABSENT: None
APPROVED: ,^
CITY ATTORN Y
®Rb.17 N (A
LEASE AGREEMENT
PETALUMA MUNICIPAL AIRPORT
THIS LEASE AGREEMENT, made and entered into as of the (yam day of
6J-D-U, 6Ap) 19-E, by and between the CITY OF PETALUMA, a
political subdivision of the State of California, hereinafter referred to as
"Lessor" and WALTER R. MANGON, hereinafter referred to as "Lessee";
WITNESSETH
WHEREAS, the Lessor herein is a politicalsubdivision duly organized and
operating under the laws of the State of California, and owns all that
certain real property located at the Petaluma Municipal Airport, Petaluma,
California, a city airport, hereinafter referred to as "Airport"; and
WHEREAS, Lessor deems it advantageous to itself and the operation of the
Airport to lease unto Lessee a certain parcel of land described herein,
together with certain privileges, right, uses, and interest therein, as
hereinafter set forth; and
WHEREAS, Lessee proposes to lease a ground 'area of one (1) or more acres
for a "limited Service Commercial Operation'!' which shall specifically involve
aircraft maintenance and related services, retail aircraft parts sales, retail
sales of used aircraft; and
WHEREAS, Lessee has indicated a willingness and ability to properly keep
and maintain and improve the leased ground in accordance with standards
established by Lessor; and
WHEREAS, Lessee desires to obtain and avail itself of the privileges, right,
uses and interest therein and herein;
NOW, THEREFORE, IT IS AGREED AS FOLLOWS:
1. TERM
Lessor, ' for and in consideration of all the covenants, conditions, and
agreements to be set forth hereinafter to be kept and performed by
Lessee and by Lessor, does hereby lease unto Lessee, on all the
conditions, covenants, terms and agreements hereinafter set forth,
those certain premises described in Exhibit "A", which is attached
hereto, marked as such and incorporated herein, for a term of forty
(40) years, commencing on September 6, 1988 , and ending
on September.6, 20`28
2. RENTAL
Lessee shall pay to Lessor a rental in accordance with the following
provisions:
(a) The base ground rental
for the premises,
as
described in Exhibit.
"A" shall be as follows:
First Five Years':
$.20
per
square
foot
per
year
Second Five Years:
$.25
per
square
foot
per
year
Third Five Years:
$.30
per
square
foot
per
year
Fourth Five Years:
$.35
per
square
foot
per
year
The rental rate for the four remaining five year periods of the
lease term shall be computed at the commencement of each
successive five year period at the rental rate applicable for the
immediately preceding five years adjusted for an increase in the
Bureau 'of Labor Statistics Cost of Living Index - San Francisco -
Oakland all items for said precedingfive years. In no event
`a
shall the rental rate for any five year period be less than the
applicable rental rate for the preceding five year period, unless
adjustments in the rental rate are made in accordance with the
provisions of this Agreement as set forth in Paragraphs 24, 26,
27 and 30.
(b) The
base ground rent
shall be payable, in advance, in equal
installments or 1/12 of the specified annual rental,
by the first
day
of each and every
month during the term of this lease and
any
extension thereof.
In the event such payment
is - not made
within five (5) days of
the due date, i.e. , by the
first day of
each
and every month,
there shall be a penalty of
six percent
(6 a)
of the amount due
and owing, which penalty
shall become
part
of that month's rental payment.
Furthermore, and in addition thereto, any amount of rental
payment and penalties unpaid after thirty (30) days shall have a
one and one-half percent (12$) interest charge on the unpaid
amounts, which interest shall likewise become part of the rental
payment.
3. OFF SITE IMPROVEMENT
Lessee shall have no responsibility for the construction of any
improvements to any site not contained within the leased premises.
Lessor l shall set the necessary boundary monuments and grade
stakes on the leased premises. Lessor shall provide a paved taxiway,
or ramp to the leased premises of adequate width to permit access to
said premises by taxiing aircraft.,
4. ON SITE IMPROVEMENT REQUIREMENTS
The Lessee shall be required to construct on said property a building
in conformity with all applicable laws, ordinances, rules and
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regulations containing an initial floor area of not less than 6,000
square feet under one roof. The building shall be a prefabricated
metal structure, as approved by the SPARC of the City of Petaluma.
5. UTILITIES
Lesseeshall pay for all water, sanitary sewage, gas service, electric
power, telephone service, and all other services supplied to the said
premises by Lessor, or any public utility, and shall pay all costs for
the installation and connection and such services from the site or
boundary line thereof. Lessor agrees to make available utilities,
electric, gas, water., sewer, telephone to the site or boundary line of
the leased premises within a reasonable time following execution of this
Agreement.
6. USE OF PREMISES
The leased premises shall be used as follows:
(a) Limited Services 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 ancillary thereto and, at the option of
lessee the training of personnel in such operations. 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 operation set forth shall not be
exclusive.
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(b) Prohibitions
Lessee and/or any Sublessee is prohibited from engaging in the
following:
(1) The sale of food to or the consumption thereof by the
public, provided, however, that "snack foods", sandwiches
and candy may be sold from mechanical dispensers.
(2) The sale or consumption of alcoholic beverage, provided that
coffee and soft drinks may be sold from mechanical
dispensers as provided above;
(c) Common Facilities
Lessee and/or Sublessee shall have the right to access to and use
of facilities at Airport designed for common use, such as landing
area, aprons, taxiways, flood, lights, landing light, beacons,
navigational aids, tower communication, public address systems,
and other common use facilities supplied by Lessor for
convenience and accommodation in operation, landings, and take
off of aircraft. The rights herein extended to Lessee shall be
inclusive of the rights to land, take off, taxi, tow, load, or
unload aircraft.
7. OPERATION OF AVIATION BUSINESS BY LESSEE -
Conditions:
(a) This lease shall be subordinate and subject to the Grant
Agreement, by and between the United States of America, Federal
Aviation Agency, and Lessor, and subsequent grants and
agreements.
(b) The Lessee agrees to make their services available to the public
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without
unjust discrimination and to refrain from
imposing or
levying
excessive discriminatory or
otherwise
unreasonable
charges
or fees for us of said facilities,
provided,
however, the
Lessee may refuse service to any person
or persons
for justifiable
cause,
without discrimination by virtue
of race, color, sex, age
or creed.
(c) Public Services
Lessee shall provide comprehensive public services, including,
but not limited to, aircraft maintenance and overhaul, used
aircraft and aircraft parts, new parts and merchandise sales,
service and inspections', aircraft storage.
(d) Hours of Operation
Lessee shall publish a schedule setting forth his hours of
operation.
(e) The airport .manager shall investigate all complaints against Lessee
by members of the public. If he finds that the complaint is
justified, he may direct Lessee to take such reasonable action as
he believes necessary to rectify the complaint or prevent its
recurrence. If Lessee is aggrieved by any such directive, he
may appeal therefrom to the City of Petaluma Aviation Commission,
whose decision shall be appealable to the Petaluma City Council,
whose decision shall be final.
8. SURETY BOND
Prior to the commencement of construction hereunder, Lessee, at its
sole cost and expense, shall furnish the Lessor a surety bond of an
admitted surety company licensed to transact business in the State of
California satisfactory to Lessee, in a sum not less than one hundred
M.
percent (100 0) of the total estimated cost of the construction contract,
guaranteeing the payment for all labor, material, provision, supplies
and equipment used in, upon, for, or about the performance of any
construction work or, labor done thereon of any kind whatsoever as
proposed by Lessee and protecting Lessor, its officers, boards,
commissions, employees, and agents from any liability, losses, or
damages arising therefrom. Lessee shall also provide Lessor a similar
surety bond in an amount equal to the estimated cost of the said
construction of the improvements, guaranteeing faithful performance of
said construction contracts. If Lessee obtains from its contractor or
contractors such bond or bonds in like amount which are satisfactory
to the Lessor, the Lessor, upon application by Lessee's principal and
upon naming the Lessor as an additional obligee of Lessee's principal
and surety under such bond or bonds', will release Lessee from and
consent to the cancellation of the bond or bonds originally furnished
by Lessee.
9. MAINTENANCE AND REPAIRS
Lessee shall, at his sole cost and expense, keep and maintain said
premises and appurtenances, and every part thereof, in good and
sanitary order, condition and repair, and hereby waives all right to
make repairs at the expense of Lessor as provided in Section 1942, et
seq. , of the Civil Code of the State of California. Any failure to
maintain or make said repairs upon being notified by Lessor shall
constitute a default by Lessee.
10. ALTERATIONS AND ADDITIONS
Subsequent to completion of the improvements and facilities as herein
agreed to, Lessee shall not make any alterations to the exterior thereof
or erect any additional structures or improvements on the leased
premises without prior written consent of Lessor. Any such exterior
alterations or additions approved by Lessor shall be constructed at the
7
sole expense of Lessee.
11. SIGNS
Lessee shall be privileged to erect such signs and advertising media as
comply with applicable City of Petaluma ordinances and to place the
same upon the improvement to be erected pursuant hereto. The text,
color, and design of all signs shall be subject to the prior approval of
Lessor.
12. UNLAWFUL USE
No building, structure, or improvement of any kind shall be erected,
placed upon, operated, or maintained on the leased premises, nor shall
any business or operation be conducted or carried on therein or
thereon in violation of any ordinance, law, statute, order, or rule of
any governmental ,agency having jurisdiction thereover, nor shall any
use be made of the leased premises which has not been specifically
allowed.
13. WASTE, QUIET CONDUCT
Lessee shall not commit, or suffer to be committed, any waste upon
said premises, or any nuisance or other act or thing which may
disturb the quiet enjoyment of the use of the surrounding airport
property.
14. RULES AND REGULATIONS
Lessee 'agrees to observe and obey all rules and regulations
promulgated and enforced by Lessor or any other appropriate authority
having jurisdiction over the Airport during the term of this lease.
15. INSU_RANCE
Lessee agrees to procure and maintain at its own cost and expense,
L
and at all times during the term of this lease, comprehensive liability
insurance naming Lessor, its officers, boards, commissions, employees
and agents as additional insureds in the following amounts; property
damage, $250, 000.00, Bodily Injury, $1, 000, 000.00 per person, and
$1,000,000.00 per occurrence.
Evidence of such insurance shall be provided by Lessee by filing with
the Lessor a copy of the policy or policies, together with a duly
executed certificate of the insurer to the effect that the insurance
required by this lease is in force and effect. Said policy or policies
or certificates shall contain a provision that written notice of
cancellation or any material change shall be delivered to the Lessor ten
(10) days in advance of the effective date thereof. Lessee shall also
secure and maintain fire and extended coverage insurance on the
buildings and structures to be erected by Lessee as a part of the
aviation operation created by this Lease Agreement. Said insurance
coverage shall be to the full insurable value of the structures and
buildings and contents as erected and placed upon the leased
premises, and shall name Lessor as an additional insured. Lessee
further agrees that in the event of any fire or partial or complete
destruction of the structures erected by Lessee, any proceeds of
insurance received by Lessee shall be held in trust and utilized solely
in the replacement, reconstruction, or repair of the damaged or
destroyed improvements.
16. TAXES
Lessee agrees to pay promptly all taxes and assessments related to
items of property including both real and personal property within the
purview of this Lease, which may be levied or assessed upon said
properties leased or owned by Lessee, as Lessee's interest may appear
when the said taxes and assessments become due and payable during
the occupancy of the leased premises under any levy or assessment by
County, City or other legally authorized governmental authority.
0
17. INSPECT -ION AND NOTICE
Insofar as it may be necessary for the protection of the Lessor's
rights, the Lessor or its agents shall at any and all reasonable times,
and upon reasonable notice to Lessee, have the right to go upon and
inspect the land and premises hereby leased and any structure or
improvement erected or constructed, or in the course of being erected
or constructed, repaired, added to, rebuilt, or restored thereon.
18. ASSIGNMENT OR SUBLETTING
It is agreed that Lessee is authorized to sublet the leased premises to
a Sublessee, subject to the terms and conditions of this lease. Any
such sublease shall be subject to the written approval of Lessor, which
approval shall not be unreasonably withheld. It is further agreed that
Lessee is authorized to sublet 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 upon Lessee's electing to sublet to
any independent contractor for such allowed use or uses, Lessee shall
notify Lessor of such subletting and shall specify in such sublease and
other agreements entered into by Lessee and the independent
contractor 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.
19. IMPROVEMENTS
It is agreed that all improvements constructed by Lessee shall be
r
deemed personal property during the term of this lease, and that
during the term of this lease and any extension thereto lessee shall at
all times have legal title to said improvements, but Lessor shall have a
lien thereon to secure the faithful performance of Lessee's obligations
under the approval of Lessor. Lessor's lien shall be subordinate to a
security instrument, approved by Lessor, and held by any recognized
lending institution but shall not be subordinate to any other
10
encumbrance of any kind. Said security instrument shall not provide
for removal of said improvements.
20. INSOLVENCY, ETC.
If the Lessee be adjudicated as bankrupt or become insolvent, or if
possession of any interest in the leased premises shall be taken by
virtue of any attachment, execution, or receivership, the Lessor may,
at its election, unless such bankruptcy proceedings be terminated in
favor of its election., unless such bankruptcy proceedings be
terminated in favor of Lessee and such insolvency be cured or, such
possession regained within ninety (90) days thereafter, immediately
terminate this Lease by service of notice to such effect upon Lessee in
any manner provided by law.
21. LENDER SECURITY
Notwithstanding anything to the contrary contained in this Lease, it is
understood and agreed that Lessee may, without the consent of
Lessor, assign, transfer, mortgage or encumber Lessee's interest
under this Lease and leasehold estate created, to -a lender on the
security of the leasehold estate for the sole purpose of providing
security for the repayment of a loan or loans made and used to finance
the construction of substantial improvements by Lessee upon the leased
premises and Lessee may execute any and all instruments in connection
therewith necessary and proper to complete any such loan and perfect
the security therefor as may be required by such lender. Any such
lender shall have the right at any time during the term hereof and
while this 'lease is in full force and effect;
(a) To do any act or thing required of Lessee hereunder and all such
acts or things done hereunder shall be as effective to prevent a
forfeiture of Lessee's rights hereunder as if done by Lessee;
(b) To realize on the security of the leasehold estate and to acquire
and succeed to the interest of the Lessee hereunder by
11
foreclosure or by a deed of assignment given in lieu of
foreclosure and thereafter 'at such lender's option to convey or
assign the interest or title to this leasehold estate to any other
person subject to the terms, conditions and covenants of this
lease; and
(c) To cure, within sixty (60) days after notice of default by Lessee
under the terms of this Lease.
A copy of any and security devices or other instruments shall be
filed with Lessor prior to the effective date thereof and the
Lessee shall give Lessor prior written. notice of changes thereto.
22. SURRENDER OF POSSESSION
At the expiration of the leasehold term, Lessee agrees to yield and
deliver to Lessor the possession of the leased premises and all
buildings, fixtures, physical improvements and appurtenances erected
by Lessee pursuant to paragraph 4 hereof, in good condition, normal
wear and tear excepted.
23. DEFAULT
In the event of default by Lessee in the performance of any of the
terms, covenants, or conditions hereof, including the failure to pay
rent, Lessor shall make w-ritten demand by registered mail upon Lessee
to remedy said default and, if, thereafter, Lessee remains in default
for sixty (60) days, Lessor, by and through its Airport Manager,
shall havethe right to take immediate possession of said premises.
During said sixty (60) day period Lessee may appeal to the Petaluma
City Council and request consideration of any circumstances claimed to
cause such. default, provided that any such circumstances shall not be
deemed. to be a waiver of such default, in the event the City Council
extends the aforesaid sixty (60) day period.
No waiver of 'Lessor or default by Lessee of any of the terms,
12.
covenants, or conditions hereof to be performed, kept, or observed by
Lessee shall be . construed to be or act as waiver by Lessor of any
subsequent default of any of the terms, covenants, and conditions.
herein contained to be performed, kept, and observed by Lessee.
24. RESERVATION AS TO NAVIGATIONAL AID
Lessor reserves the right during the term of this lease, or any
renewal and/or extension thereof, to install air navigational aids,
including lighting, in, on, over, under, and across the leased
premises. In the exercise of any of the rights hereof, Lessor 'agrees
to give Lessee not less than ninety (90) days written notice of its
intention to install such air navigational aids. If the Lessee's
enjoyment of the premises under this Lease is substantially interfered
with by any such installation, the Lessee's rent shall be reduced in
proportion to such interference.
25. INDEMNITY
Lessee hereby covenants and agrees to, and shall, indemnify, save
harmless and defend, the Lessor, its agents, officers and/or employees
against all claims, demands, costs, and liabilities which may be made
against Lessor by reason of or arising from anything done, performed,
or ommitted to be done .or performed on the leased premises by the
Lessee or arising out of Lessee's performance of its obligations
pursuant to this agreement. However, this indemnity does not extend
to any loss, damage or expense arising out of the negligence or willful
misconduct of the Lessor, its agents, employees, or officers.
26. EMINENT DOMAIN
It is expressly agreed by Lessor and Lessee that in the event eminent
domain proceedings are undertaken by any governmental agency
affecting the whole of- the Airport, or any part thereof, which would
adversely affect Lessee's interest hereby Lessee shall be entitled to
compensation by virtue thereof, consistent with current eminent domain
13
laws and appraisal procedures.
27. NATIONAL EMERGENCY
In the event that a national emergency or a declaration by Federal,
State or County Government causes a drastic curtailment of civilian
aviation activities, Lessee shall be entitled to submit a request for
reduction in the lease rental rate. Lessee shall be entitled to present
facts and data to show that such a curtailment has taken place and
that the curtailment has seriously affected Lessee's utilization of the
leased premises. If such facts and data indicate that a reduction in
lease rent is warranted, then Lessor and Lessee shall agree to
negotiate a reduction in the rental rate during the period of
curtailment.
28. NOTICES
Any and -all notices to be given under this Lease, or otherwise, may
be served by enclosing the same in a sealed envelope addressed to the
party intended to receive the same, at its address, and deposited in
the 'United States Post Office as registered mail with postage prepaid.
When so given, such notice shall be effective from the date of the
mailing of the same. For the purpose thereof, unless otherwise
provided in writing by the parties hereto, the address of the Lessor,
and the proper party to receive any such notices on its behalf is:
City Clerk
City of Petaluma
11 English Street
Petaluma, .California 94952
and the address of the Lessee is:
Walter Mangon
DBA Mangon Aircraft Repair Services
1736 'Caulfield Lane
Petaluma, California 94952
(Until address is established at airport)
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29. INVALID PROVISIONS, SEVERABILITY
It is expressly understood and agreed by and between the parties
hereto that in the event any covenant, condition, or provision
contained herein . is invalidated by a court of competent jurisdiction,
the invalidity of any such covenant, condition or provision shall not
invalidate any other covenant, condition, or provision of this
Agreement, provided, however, that the invalidity of any such
covenant, condition-, or provision shall not materially prejudice either
the Lessor or the Lessee in their respective rights and obligations
contained in the valid covenants, conditions, and provisions of this
Agreement.
30. RENEGOTIATION
Lessor reserves the right to enter into other leases with fixed base
operators or other limited service commercial operators on the Airport
during this Lease or any extension thereof., provided, that Lessee
shall have the right to renegotiate any term or provision of this Lease
which with respect to the matters specified in Paragraphs 2, 5, 6 and
16, hereof, unduly or unreasonably restricts Lessee's competitive
position in regard to such other Lessees for fixed base operations or
limited service commercial operation on the airport shall not be deemed
in and of itself as sufficient reason to renegotiate any term or
provision of thi"s Lease..
31. BINDING ON SUCCESSORS
The covenants and conditions herein contained shall apply to and bind
the heirs, successors, executor, administrators, and assigns of all the
parties hereto.
32. TIME
Time is of the essence in this lease.
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MANGON LEASE
DESCRIPTION
All that portion of land lying within Parcel "A" as shown upon the map
entitled Exhibit "A" airport property map on file with the City of Petaluma.
Further described as follows:
Beginning at a 1/2" iron pipe tagged RCE 11226 located at the most
northwesterly corner of Parcel "A" as shown upon said map. Thence, N
35020155" E 437.88 to a point on the westerly boundary of Parcel "B" as
shown upon said map. Thence, S 54033'00" E 1,200.04 feet to an open 3/4"
iron pipe set flush with the pavement, marking the west end of a southerly
170.00 foot offset to the center line of the runway. Thence, from said point
S 35027100" W 437.88 feet to a point along the northerly line of Parcel "A".
Thence, N 54033'00" W 208.99 to a point. Thence S 35027100" W 88.05 feet
to an open 3/4" iron pipe marking the northwest corner of the lease parcel
herein to be described said point to be known as the true point of beginning.
Thence, from said point of beginning S 54033'00" E 234.14 feet to an open
3/4" iron pipe. Thence, S 3502710011 W 270.00 feet to an open 3/4" iron pipe.
Thence, N 54033100" W 234.14 feet to an open 3/4" iron pipe. Thence, N
35027'00" E 270.00 feet to the true point of beginning.
Lease Parcel contains 1.45 acres more or less.
IN WITNESS WHEREOF, the parties hereto have set their hand the day and
year first above written.
MUM Off low",
tor
mangon .lease
LAW13
CITY OF PETALUMA
B Y ....
ITY MANAGER
LESSOR
MANGON AIRCRAFT REPAIR
M-1MM -7 /
President
Risk Ma na gef
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