HomeMy Public PortalAbout087-2020 - Airport - Mike Davis d-b-a AV 8 Services Group - Lease for Office SpaceLEASE
THIS LEASE AGREEMENT, dated this I (P day of (A, J I, ' , 2020, by and
between the City of Richmond, Indiana, an Indiana municipality, actin y and through its Board of
Aviation Commissioners, hereinafter referred to as "LESSOR", and Mike Davis DB/A AV8
Services Group, hereinafter referred to as "LESSEE".
WITNESSETH:
In consideration of the covenants and terms hereinafter set forth, Lessor and Lessee agree as
follows:
1. PREMISES — Lessor, in consideration of payment and the other terms and conditions
contained herein, does hereby lease to Lessee a portion of Lessor's property commonly known as
that portion consisting of one (1) ground -floor room consisting of approximately 156 square feet,
formerly known as the "Crew Lounge" located at the Richmond Municipal Airport, 5169 State Road
IN-227 South, Richmond, Indiana 47374, which property is hereinafter referred to as the "Leased
Premises". The sole use of the Leased Premises by Lessee shall be as general office space to be used
by Lessee for aviation insurance services.
The Leased Premises currently has utility services installed and in place, including, but not
limited to, electricity, heating and air conditioning, and internet and wifi access, which services shall
continue to be maintained by the Lessor for the use and benefit of Lessee, provided that Lessee must
furnish its own computers and telephone service. Lessee shall also be furnished with security
passcodes for entrance into the Leased Premises.
2. TERM — The term of this Lease Agreement shall be for a period of one (1) year
commencing on the 15th day Jul,,, and continuing through the 15th day of July, 2021.
Notwithstanding such one-year term, in the event the Leased Premises are needed for another project
associated with its business, Lessor shall have the right to terminate this Lease early with at least 180
days prior written notice to Lessee.
3. RENT — Lessee shall pay to Lessor the monthly rental sum of Fifty Dollars ($50.00)
per month during the initial term of this Lease. Thereafter, Lessee shall pay to Lessor the monthly
rental sum of One Hundred Dollars ($100.00) per month during each renewal term that is exercised
pursuant to Section 4 (Option to Renew) below.
Contract No. 87-2020
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4. OPTION TO RENEW — Provided Lessee is not in default at such time, the Parties
shall have the option to renew the Lease for an additional term of one (1) year upon the same terms,
conditions and provisions contained herein, provided that Lessor does not have another use for the
Leased Premises at such time. Said option to renew shall be in the form of an addendum to this
Lease.
Lessee must give Lessor written notice of its intention to exercise the option to renew at least
180 days prior to the expiration of the term herein. Within sixty (60) days thereafter, Lessor shall
notify Lessee in writing whether the Lease may be renewed for the additional one-year period, or if
another use will be required, in which event this lease shall terminate at the end of the original one-
year period.
5. USE OF PREMISES — Lessee shall not permit the Leased Premises to be used for
any unlawful purpose or in any unlawful manner, nor permit any activity which would constitute a
nuisance. Lessee shall not commit waste upon the premises and shall conduct all business in
compliance with applicable laws, ordinances and regulations of any public authority. now or hereafter
affecting the Leased Premises.
Lessee shall not perform or cause to be performed any major structural repairs upon or to the
Lease Premises at any time. Lessee shall not perform or cause to be performed any minor structural
repairs upon or to the Leased Premises without the express consent and authorization of the
Richmond Board of Public Works and Safety. Any minor structural repairs authorized shall be done
in a skillful and workmanlike manner consistent with work done by a skilled craftsman.
Lessee may replace the exterior door of the Leased Premises office with a new exterior door,
replace existing lights with new LED replacement lights, swap the existing interior door with a new
interior door, replace the carpet, prepare and paint walls and trim, and add lettering and tinting to the
new door windows, provided that any personalization of the improvements shall be removed prior to
Lessee's cessation of use of the leased premises office. For any new doors with key locks that are
installed at Lessee's option, a spare set of keys are to be provided to Lessor immediately upon
completion of the installation of the new doors in case emergency entrance is necessary and any and
all keys used by Lessee for the new doors must be returned to Lessor upon termination or non -
renewal of this Lease Agreement. Leased Premises shall be left in a clean and reusable condition,
normal wear and tear excepted.
6. COVENANTS OF LESSOR — Lessor covenants and warrants that it has the lawful
right and authority to enter into this Lease, and that upon the performance of all covenants contained
herein, Lessee shall have the peaceful and quiet enjoyment and use of the Leased Premises without
hindrance on the part of Lessor or any other party claiming title through said Lessor. Lessor shall
continue to have access across the Leased Premises, however, in order to have access to any other
portion of Lessor's property or for the maintaining of any equipment of Lessor located on or about
the Leased Premises.
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7. DEFAULT — In the event Lessee fails to pay any rent when due, or if Lessee fails to
perform any other of the terms, conditions and covenants of this Lease, or if Lessee shall become
bankrupt or insolvent, or files any debtor proceeding pursuant to any statute either of the United
States or of any State either by a Petition in Bankruptcy or for the appointment of a receiver or
trustee of all or a portion of Lessee's property, or if Lessee shall abandon said premises or suffer this
Lease to be taken under any writ of execution, then Lessee shall be in default of this Lease.
In the event of such default as described in this paragraph above, other than the case of
default for payment of rent, Lessor shall give Lessee ten (10) days written notice to cure such default
but if such cure has not been completed within the ten (10) day period, Lessor shall have the right to
take any one of the following remedies:
a. Lessor may, at its option, declare all installments of rent -due and payable, and upon
such acceleration, sue for the balance due during the term of this Lease.
b. Lessor may, without further notice, immediately re-enter and take possession of the
Leased Premises without terminating this Lease, and sublease said premises for the account of
Lessee, holding Lessee responsible and liable for the difference in any rent received from the sub
lessee, and for the costs and expenses required in procuring said sublease, including, but not limited
to costs of repair, brokerage fees, and attorney's fees. In the event of such re-entry, Lessor may
remove all persons and property from the Leased Premises and store such property in a public
warehouse at the cost of and for the benefit of Lessee, all without notice of legal process and without
being guilty of trespass or being responsible for the loss and/or damage to the property removed.
C. Lessor may terminate this Lease and remove Lessee from the possession of the
Leased Premises and use its best efforts to lease the premises to another, while holding Lessee
responsible for all rents and other payment due until the effective date of such new leasing in
addition to all cost of such removal.
In the event of a default for non-payment of rent, Lessee shall have a thirty (30) day right to
cure, provided, however, that Lessee shall not be entitled to a thirty (30) day right to cure no more
than three (3) times each year of the lease term or any renewal herein.
In the event any default hereunder, cannot reasonably be cured within thirty (30) days after
notice, Lessee shall have, at the sole determination and discretion of Lessor, such additional time as
may be reasonably necessary to remedy the same, provided that Lessee in good faith diligently
proceeds and continues to thereafter prosecute the cure of such default. Lessor may, without
obligation, cure at any time and without notice any default by Lessee under this Lease and recover
from Lessee on demand all costs and expenses incurred in such cure, including without limitation,
reasonable attorney's fees, and interest on the amount of the costs and expenses so incurred at the
rate of 15% per annum.
Page 3 of 5
No remedy herein stated is intended to be exclusive of any other remedy and Lessor shall
also have available any and all other remedies available to it pursuant to law. The failure or delay by
Lessor to exercise any right of default shall not impair any such right following further act of default
and shall not be construed to be a waiver to exercise such right upon any subsequent default by
Lessee.
The thirty (30) day right to cure previously described above shall not be available to Lessee
in excess of three (3) times per each year of the Lease term herein.
Shall it be necessary for Lessor to enforce any of the obligations of Lessee under this Lease,
Lessee further agrees to pay all reasonable costs of enforcement, including, but not limited to,
reasonable attorney's fees, whether or not suit is required against Lessee.
9. NOTICES — Any notice or consent required to be given in writing pursuant to the
terms contained herein shall be sufficient if mailed, return receipt requested, to the following
addresses:
Lessor: Rodney Mayse, Airport Manager
City of Richmond, Indiana
50 N. 5t' Street
Richmond, IN 47374
Lessee: Mike Davis DBA AV8 Services Group
5169 SR 227 South
Richmond, IN 47374
or such other address as may be specified from time to time in writing and delivered to the other
party.
9. CONTROLLING LAW AND BINDING EFFECT — This Lease shall be construed
pursuant to the laws of the State of Indiana and if any term or condition shall to any extent be
deemed invalid or unenforceable, the remainder of this Lease shall be valid and enforceable to the
extent permitted by law. This lease shall further be binding upon and inure to the benefit of the
parties, their agents, successors and assigns.
10. MODIFICATION OF AGREEMENT. No modification to this agreement shall have
any force and effect unless and until such modification is signed in writing by both Lessor and
Lessee.
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11. EXECUTION OF AGREEMENT. Any person executing this Contract in a
representative capacity hereby warrants that he or she has been duly authorized by his or her
principal to execute this Contract.
IN WITNESS WHEREOF, the parties, through their duly authorized representatives, sign
and execute this Lease as of the date first above written, although the signatures may be on different
dates.
2 Approved
Snow, r
Date
LESSOR
City of Richmond, Indiana
By and through its Board of Aviation Commissioners
By: /.2�2,�, �-�n� ��� aoap
JG,Uk- *14415 , President
LESSEE
Mike Davis DBA AV8 Services Group
Date f / 2 0
Mike Davis, Owner
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