HomeMy Public PortalAbout2021.05.15 Hangar 101 Lease - Gem Air LLCInstrument # 439742
VALLEY COUNTY, CASCADE, IDAHO
04-29-2021 14:43:36 No. of Pages: 11
Recorded for: CITY OF MCCALL
DOUGLAS A. MILLER Fee: $0.00
Ex -Officio Recorder Deputy: AMF
Electronically Recorded by Simplifile
Recording Requested by and
When Recorded Return to:
City Clerk City of McCall
216 East Park Street
McCall, Idaho 83638
For Recording Purposes
Do Not Write Above This Line
GEM AIR, LLC
McCall MUNICIPAL AIRPORT
COMMERCIAL LEASE
THIS AGREEMENT is made and entered into this day May 15, 2021 by and between
THE CITY OF McCALL, IDAHO, a municipal corporation, hereinafter referred to as the
"Lessor," and GEM AIR, LLC, an Idaho limited liability company, hereinafter referred to as the
"Lessee."
WITNESSETH:
That the Lessor, for and in consideration of the rents, covenants and agreements hereinafter
mentioned on the part and behalf of the said Lessee to be paid, kept, and performed, does by
these presents grant, demise and lease unto the said Lessee, and the said Lessee does by these
presents hire, rent, and take from the said Lessor, that certain business premises and common
area located in Hangar #101 at the McCall Municipal Airport, to wit:
Please see Exhibit "A" attached hereto.
TO HAVE AND TO HOLD said premises, together with the appurtenances, privileges,
rights, and easements thereto belonging, unto the said Lessee for the term of 4 and 1/2 months,
said term to commence on May 15, 2021 and terminate on September 30, 2021 for the rental and
upon the terms and conditions as follows:
1. RENTAL: Lessee covenants and agrees to pay monthly rent for said premises in
the sum of $1,000 per month, payable on the 15th day of each month for that month commencing
May 15, 2021. The final payment due on September 15, 2021 shall be $500. A late payment fee
of $75 shall be due and payable for any rent payment made after the due date and shall be
payable with that rent.
2. USE OF PREMISES: Lessee covenants and agrees that the leased premises
shall be used for Lessee's business purposes and shall not be used for any other purpose or
purposes without the prior written consent of Lessor.
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3. VEHICLE PARKING: Lessor agrees not to use airport parking for customers.
Additional fencing and striping needed will be at the Lessee's expense. At no time shall
passengers/customers be unsupervised when operating vehicles inside the airport perimeter
fence. At no time shall vehicles park outside designated parking areas or create a nuisance for
adjacent landowners and tenants.
4. MAINTENANCE: Lessee agrees to maintain the leased premises in as good
condition as the same are in at the time Lessee shall take possession thereof, reasonable wear, tear
and damage by the elements excepted, subject to the specific duties imposed upon the respective
parties hereto by this Lease with regard to the maintenance of certain portions of the demised
premises, and, at the termination of this Lease in any manner, Lessee shall surrender said premises
to Lessor in such condition.
Exterior: Lessor agrees to maintain and keep the roof, exterior walls, and foundation in a
good state of repair at Lessor's cost and expense, except as to damage occasioned by Lessee's use
and occupancy of said premises, including damage by Lessee's customers, employees or those
persons going on the leased premises for the purposes of doing business with Lessee. Provided,
however, that Lessor shall not be obligated to make any such repairs until written notice has been
given by Lessee to Lessor, and Lessor shall not be liable for any damage to Lessee's personal
property due to damage to the building, unless Lessor has failed to make the necessary repairs
within a reasonable time after written notice of said damage and the need of repairs has been given
to Lessor.
Common Area and Landscaping. Lessor shall maintain the common area and landscaping
located around the leased premises.
Interior. Lessor agrees to repair the interior of the building, including repairs of electrical
fixtures and inside plumbing apparatus, and maintenance and repair of the heating and any air
conditioning units.
Interior Janitorial; Common Area. Lessee agrees to clean and maintain the interior of the
leased premises. Lessee shall clean the bathroom and clear common spaces of trash after every
large group, or on a weekly basis, whichever is more frequent.
5. ALTERATIONS, FIXTURES, EQUIPMENT AND IMPROVEMENTS:
Lessee shall make no improvements to the leased premises or add fixtures or equipment, or make
alterations to the leased premises, without first receiving Lessor's written consent therefor. Lessee
shall have the right to remove any fixtures, equipment, alterations, or improvements with the
expiration of this Lease, if Lessee is not in default of any of the terms and conditions herein and
provided further that any damage which might be occasioned by the removal thereof will be repaired at
Lessee's expense. Furnishing of leased non -common use space shall be the responsibility of the Lessee.
6. SIGNS: Subject to compliance with applicable City of McCall sign and design
review codes, Lessee shall have the right to place a reasonably sized sign upon the premises
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advertising Lessee's business and for the purpose of indicating the name and nature of the business
carried on by the Lessee in said premises; provided, however, that said sign will not obstruct the
vision of the leased property on either side of the property subject to this Lease Agreement. Upon
termination of this Lease, Lessee shall have the right to remove said sign from the premises so
long as Lessee repairs any damage to the structure occasioned by such removal at Lessee's own
cost. Interior signage directing Lessee's customers to the appropriate waiting area shall in in place
prior to conducting operations. This signage is at Lessee's expense.
7. COMPLIANCE WITH LAW: Lessee agrees to comply with all municipal,
state and federal laws, rules, regulations and ordinances and to do all things necessary to stay in
compliance with the same. Lessee agrees to keep operating licenses and permits current.
8. GLASS: Lessee agrees to replace all broken or damaged glass upon said leased
premises; provided that said glass as used as replacement must be of the same quality as that which
was broken or damaged.
9. UTILITIES: It is expressly agreed that during the full term of this Lease, Lessor
shall furnish and promptly pay for all heat for the said premises and shall pay for all other water,
gas, electricity, power and other utilities, except telephone and internet service, used in or about
said premises, at Lessor's own cost and expense. Lessee shall provide and pay for its telephone
and internet service for the premises and provide for the removal of its trash and garbage.
10. TAXES AND ASSESSMENTS: Lessee shall pay any personal property taxes
and assessments of any kind levied against Lessee's personal property located upon the above
described premises, promptly as the same become due.
11. ASSIGNMENT OR SUBLEASING: Lessee shall not assign this Lease nor
sublet to any other lessee the said leased premises or any portion thereof.
12. AUTOMATIC CANCELLATION: It is understood and agreed that voluntary
or involuntary filing of bankruptcy, or assignment for the benefit of creditors, or any other act of
insolvency by or on behalf of the Lessee shall automatically cancel this Lease, and Lessor shall be
entitled to immediate possession of the leased premises.
13. DAMAGE OR DESTRUCTION: If the structure located upon the leased
premises shall be damaged by fire, the elements, explosions, or other causes, not directly as a
result of Lessee's negligence, Lessor will, at Lessor's own proper cost and expense cause the
same to be repaired and restored to the same condition as before such damage was done, subject to
delays due to adjustment of insurance claims, strikes and other causes beyond Lessor's control. If the
structure shall be so damaged as to be unfit in whole or in part for occupancy or use in the manner and
form as theretofore used, Lessor shall cause the same to be promptly restored, repaired and rebuilt and the
rents hereby reserved, or a fair and just portion thereof according to the nature and extent of the damage
sustained, will be suspended and cease to be payable until said premises shall be restored to the same
condition as before such damage was done. In the alternative, and at Lessor's sole option, Lessor may
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elect not to repair, restore, or replace the damaged property and in that event, this Lease shall terminate,
Lessee shall forfeit all rent theretofore paid to Lessor, and neither party shall have any further
responsibility or liability under the terms of this Lease.
14. FIRE HAZARDS: The Lessee shall not do anything in the premises or bring or
keep anything therein which will increase the risk of fire, or which will conflict with the regulations
of the fire department or any fire laws, or with any fire insurance policies on the buildings, or with
any rules or ordinances established by the board of health, or with any municipal, state, or
federal laws, ordinances, or regulations.
15. LABOR CONTRACTS AND EMPLOYEES: The parties expressly covenant
and agree that all labor contracts and employment agreements with employees shall be made
directly with Lessee and that all such employees shall be deemed solely the employees of Lessee
and in no way employees of Lessor. Lessee covenants and agrees to indemnify and hold harmless
Lessor of and from any liability for any acts of employees of Lessee or any acts of persons working
for Lessee under a labor contract.
16. STAFFING AND SECURITY: Lessee's customers shall not be within the
airport perimeter fence to include inside the leased building space without at least one employee
of the Lessee present. Lessee's staff shall ensure all customers exit the perimeter fence and
building prior to departing the leased premises. All gates and doors shall be locked prior to
departing unless responsibility is assumed by other building tenants. At no time shall the
building or gate access codes be given to customers.
17. RIGHT OF INSPECTION: Lessor shall have the right to enter the demised
premises at any reasonable time to examine the same and to determine the state of repair or
alterations which shall or may be necessary for the safety and preservation of the premises.
18. WASTE PROHIBITED: Lessee shall not commit any waste or damage to the
premises hereby leased nor permit any waste or damage to be done thereto.
19. LIABILITY: Lessor shall not be liable for any injury or damage which may be
sustained by any customer, person or property of the Lessee, or any other person or persons
resulting from the condition of the leased premises or any part thereof, or from any other source
or cause whatsoever related to Lessee's business, and Lessee agrees to indemnify and hold
harmless Lessor from such liability.
20. LIABILITY INSURANCE: Lessee shall maintain a comprehensive liability
insurance policy covering the above -demised premises during the term of this Lease with a
responsible insurance company, all at the sole cost and expense of Lessee, in the names and for
the benefit of Lessee in the sum of $1,000,000.00 single -limit coverage. Lessee shall furnish
Lessor with a certificate of such liability insurance stating that said insurance is in full force and
effect during the term of this Lease. Lessor shall be named as an additional insured on said policy.
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21. FIRE AND EXTENDED COVERAGE INSURANCE: Lessee may maintain
fire or casualty insurance, or such other insurance as Lessee deems necessary, on the contents
and personal property located on the leased premises owned by Lessee as Lessee desires, and
Lessor shall be under no duty or obligation to maintain any insurance on such personal property
and contents owned by Lessee.
22. SURRENDER OF POSSESSION: Lessee agrees to surrender possession of
said leased premises to Lessor at the expiration of this Agreement, or any extension thereof, in the
same condition as when the same were entered by Lessee, wear and tear, reasonable use and
occupancy and damage by the elements excepted.
23. DEFAULT AND FORFEITURE: Time and the strict and faithful performance of
every one of the conditions of this Agreement is expressly made the essence of this Agreement. If
default is made by the Lessee in payment of any part of Lessee's rent when the same shall become
due, or default be made by the Lessee in keeping, performing or observing any of the covenants
and agreements herein contained and such default shall remain so for a period of thirty (30) days
after written notice shall have been sent by certified or registered mail to Lessee as hereinafter
provided, then in such event the Lessor may, at the Lessor's election, either in law or equity seek
specific performance of this Agreement or may declare said term and Lease forfeited and ended
and re-enter said demised Premises to repossess and enjoy the same as in their first estate, and the
effect of such default shall in itself, at the election of Lessor, without further notice or demand
constitute a forfeiture and termination of this Lease. If the Lessee shall fail to surrender possession
of the demised Premises to Lessor, the Lessee shall be deemed guilty of an unlawful and forcible
detention of said Premises. If Lessee shall abandon or vacate said Premises, or if this lease be
terminated for breach of any of the covenants and agreements herein contained, Lessee hereby
agrees to pay all reasonable expenses incurred by Lessor in obtaining possession of said Premises
from Lessee, including reasonable legal expenses and attorney's fees, and to pay such other
expenses as the Lessor may incur in putting the Premises in good order and condition as herein
provided, and also to pay all other reasonable and necessary expenses or commissions paid by
Lessor in releasing the Premises. In the event of notification of default by Lessor to Lessee and
Lessee does in fact incur such default, then and in that event, Lessee shall pay, in addition to all
arrearage existing under the notice of default, the reasonable attorney's fees incurred by Lessor in
sending notice of default.
24. HAZARDOUS SUBSTANCES:
Lessor. Lessor represents and warrants that there has been no release of hazardous
substances on the property as defined by applicable Federal or State laws and regulations and holds
Lessee harmless from any violation alleged to have occurred prior to Lessee's taking possession
of the property. This covenant shall survive the closing of this transaction.
Lessee. Lessee represents and warrants that the premises will never be used for the
generation, manufacture, storage, treatment, disposal, release or threatened release of any
hazardous substances as those terms are defined in the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended, 42 USC § 9601 et seq. ("CERCLA")
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Superfund Amendments and Reauthorization Act ("SARA"), applicable state laws or regulations
adopted pursuant to either of the foregoing. Lessee agrees to indemnify and hold harmless Lessor
against any and all claims and losses resulting from a breach of this provision of this agreement.
This obligation to indemnify shall survive the payment of the indebtedness and the satisfaction of
this agreement.
25. ATTORNEY'S FEES: In the event an action is brought to enforce any of the
terms or provisions of this Lease or enforce forfeiture thereof for default thereof by either of the
parties hereto, the successful party to such action or collection shall be entitled to recover from
the losing party a reasonable attorney's fee, together with such other costs as may be authorized
by law.
In case suit shall be brought for an unlawful detainer of the said premises for the recovery
of any rent due under the provisions of this Lease, or because of the breach of any other covenant
herein contained on the part of Lessee to be kept or performed, Lessee shall pay to Lessor all costs,
expenses and attorney's fees which shall be incurred by Lessor in enforcing the covenants and
agreements of this Lease Agreement.
26. NOTICES: All notices required to be given to each of the parties hereto under
the terms of this Agreement shall be given by depositing a copy of such notice in the United
States mail, postage prepaid and registered or certified, return receipt requested, to the respective
parties hereto at the following address:
Lessor: City of McCall
216 E. Park Street
McCall, ID 83638
With a copy to:
Lessee:
City Clerk
216 E. Park Street
McCall, ID 83638
Gem Air, LLC
31 Hamner Dr
Salmon, Idaho 83467
or to such other address as may be designated by writing delivered to the other party. All notices
given by certified mail shall be deemed completed as of the date of mailing except as otherwise
expressly provided herein.
27. REPRESENTATIONS: It is understood and agreed by and between the parties
hereto that there are no verbal promises, implied promises, agreements, stipulations,
representations, or warranties of any character excepting those set forth in this agreement.
28. CIVIL RIGHTS PROVISIONS: The following obligations are assumed by
Lessee and include the following: the Lessee, for itself, its representatives, agents, successors in
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interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree, as a
covenant running with the land, that no person on the grounds of race, color, or national origin
shall be excluded from participation in, denied the benefits of, or be otherwise subjected to
discrimination in the use of said facilities; that in the construction of any improvements on, over,
or under such land and the furnishing of services thereon, no person on the grounds of race, color,
or national origin shall use the Premises in compliance with all other requirements imposed by or
pursuant to Title 49, Code of Federal Regulations, Department of Transportation. Subtitle A.
Office of the Secretary, Part 2 1. Department of Transportation -Effectuation Title VI of the Civil
Rights Act of 1964, and as said Regulations may be amended; (3) that in the event of breach of
any of the preceding nondiscrimination covenants, Lessor shall have the right to terminate this
Lease, and to reenter and repossess said land and the facilities thereon. and hold the same as if said
Lease had never been made or issued.
29. BINDING EFFECT: The provisions and stipulations hereof shall inure to the
benefit of and bind the heirs, executors, administrators, assigns and successors in interest of the
respective parties hereto.
30. RECORDING: The parties hereto agree that they will not record a copy of this
Agreement, Lessee's occupancy of said premises being notice of Lessee's interest therein, and the
recording of said Lease by Lessee shall, at the option of Lessor, constitute a default in the terms
and conditions hereof.
31. SITUS: This Lease is established and accepted by the Lessee under the laws of
the State of Idaho, and all questions concerning its validity, construction and administration shall
be determined under such laws.
32. HEADINGS: The bolded paragraph headings are for convenience only and are
not a part of this Lease agreement and shall not be used in interpreting or construing this Lease
agreement.
33. SEVERABILITY: If any portion or portions of this Lease shall be, for any
reason, invalid or unenforceable, the remaining portion or portions shall nevertheless be valid,
enforceable, and carried into effect, unless to do so would clearly violate the present legal and
valid intentions of the parties hereto.
IN WITNESS WHEREOF, the Lessor and Lessee do execute this Lease Agreement the day and
year first above written.
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LESSOR:
By.
Attest:
CITY OF MCCALL, IDAHO
Robert S. Giles, Mayor
BessieJo Wa ner, City Olerk `'%'9'
STATE OF IDAHO
County of Valley
)
: ss
On this day of Ish41 2021, before me, the undersigned, a Notary Public in and
for said State, personally appeared Robert S. Giles and BessieJo Wagner, the Mayor and City
Clerk, respectively of the CITY OF McCALL, IDAHO, known to me or identified to me to be
the persons whose names are subscribed to the within instrument, and acknowledged to me that
they executed the same and were so authorized to do so on behalf of the City of McCall, Idaho.
1 NOTARY PUBLIC - STATE OF IDAHO
SARAH EDSON
COMMISSION NUMBER 20200108
MY COMMISSION EXPIRES 1-10-2026
(SEAL)
LESSOR: GEM AIR
Johanna Schroeder
STATE OF )
: ss
County of Valley )
Notary Public
On this day of 2021, before me, the undersigned, a Notary
Public in and for said State, personally appeared Johanna Schroeder known to me or identified
to me to be the persons whose names are subscribed to the within instrument and acknowledged
to me that they executed the same and were so authorized to do so on behalf of Gem Air.
(SEAL) Notary Public
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LESSOR: CITY OF MCCALL, IDAHO
By:
Robert S. Giles, Mayor
Attest:
BessieJo Wagner, City Clerk
STATE OF IDAHO
: ss
County of Valley
On this day of 2021, before me, the undersigned, a Notary Public in and
for said State, personally appeared Robert S. Giles and BessieJo Wagner, the Mayor and City
Clerk, respectively of the CITY OF McCALL, IDAHO, known to me or identified to me to be
the persons whose names are subscribed to the within instrument, and acknowledged to me that
they executed the same and were so authorized to do so on behalf of the City of McCall, Idaho.
(SEAL)
LESSO ' : GEM A
a Schro
STATE OF ICi�GI'�j )
ss
County of3 €y Fyn yli( )
On this GV day of 2021, before me, the undersigned, a Notary
Public in and for said State, personally appeared Johanna Schroeder known to me or identified
to me to be the persons whose names are subscribed to the within instrument and acknowledged
to me that they executed the same and were so authorize . o do so on behalf of Gem Air.
Notary Public
(SEAL)
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April 8. 2021
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EXHIBIT "A"
Approximately 1,000 square feet of space consisting of:
Office Space: 200 square feet
Common Area: 800 square feet
in Hangar #101 located at 336 Deinhard Lane, McCall, ID 83638.
Hangar 101 Floor Diagram
City of McCall Office Space
Common Area
City of McCall Office Space
Restroom
Common Area
Gem Air Dedicated Office Space
(100 square feet)
Gem Air Dedicated Office Space
(100 square feet)
Conference Room
Common Area
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EXHIBIT "B"
Fencing
Temporary fencing shall be installed as indicated below. The fencing noted by the solid
line must be in place prior to operation. The dashed line is not to scale and, if needed,
shall be placed to enable parking compliant with City Code.
Signa2e,
Signs shall be installed at gates and access points on the temporary fence. The sign shall read
"NO UNESCORTED PASSENGERS BEYOND THIS POINT". Signs shall be outdoor signs
with white background, black letters with a black border 18" x 18" or larger. Lessee may use
existing signs from lessee's previous occupancy.
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