Loading...
HomeMy Public PortalAboutORD10506 BILL NO. �5 .. SPONSORED BY COUNCILMAN ORDINANCE NO. Q SQ AN ORDINANCE OF THE CITY OF JEFFERSON, MISSOURI AUTHORIZING AND DIRECTING THE MAYOR AND THE CITY CLERK TO EXECUTE A LEASE ON CERTAIN PROPERTY AT THE JEFFERSON CITY MEMORIAL AIRPORT LEASED TU J. DAWSON MANAGEMENT, INCORPORATED. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF JEFFERSON, MISSOURI AS FOLLOWS: Section 1 . The Mayor and Clerk are hereby authorized and directed to execute a lease agreement with J. Dawson Management, Inc. Section 2. The lease shall be substantially the same in form and content as that lease attached hereto as Exhibit A. Section 3. This Ordinance shall be in full force and effect from and after the date of its passage and approval. Passed 7 ~ g S Approved /p Aft r ` Pr s iding Of f is Mayor �! ATTEST: City Clerk .j 1 ' 'aM,ENIC B STMT'N C11Y OF JEFF . SON NENL IDJ WHEREAS,the City of Jefferson, Missouri, a municipal corporation, hereinafter referred to as "Lessor", entered into a Lease Agreement with J. Dawson Management, Inc., hereinafter referred to as "Lessee," dated October 7, 1985, and letter granting extension of lease period dated September 4, 1990, issued by the Lessor to the Lessee; and WHEREAS,under said Agreement,the Lessee leases an airplane hangar upon the premises of the Jefferson City Memorial Airport,located in Jefferson City,Missouri,and owned and operated by the Lessor; and WI-IEREAS, the Lessor wishes to forgive the fees owed by the Lessee for the months of July, August and September 1993 due to the "Great Flood of'93. NOW, THEREFORE, be it agreed as follows: 1. The parties mutually agree that due to the "Great Flood of'93," the Lessor will forgive Lessee the monthly lease rental owed to Lessor set out under Article V of the Lease Agreement dated January 15, 1993, for the months of July,August and September of 1993 as follow: July 1993 --$ 366.13 August 1993 -- $ 366.13 September 1993 - 366.13 Total -- $1,098.39 2. All other sections of the Lease Agreement dated October 7, 1985, and letter extending lease period dated September 4, 1990„ shall remain in effect as stated. -IN TESTIMONY W EREOF, the parties have hereunto set their hands and seals this 450vday of ' 1994, J. DAWSON MANAGEMENT, INC. CITY OF JEFFERSON, MISSOURI _ Mayor .AT TEST: ATTEST: Secretary ` City CIA Recommended by Transportation Commission APPRO AL A FORM: Administrative Secr Cify Coun a or FIXED BASE OPERATOR (HANGAR RENTAL) LEASE AGREEMENT BETWEEN CITY OF JEFFERSON AND J. DAWSON MANAGEMENT, INCORPORATED Prepared September 11, 1985 4 INDEX TO LEASE AGREEMENT __.. Page ARTICLE I PREMISES AND PRIVILEGES A. Description of Premises Demised 1 B. Use of Demised Property 2 C. Observance of Statutes , Etc. 2 ARTICLE II INGRESS AND EGRESS 2 ARTICLE III OBLIGATIONS OF LESSEE A. Net Lease 2 B. Maintenance and Repair 3 C. Alterations and Repairs to Premises 3 D. Utilities 3 E. Trash, Garbage Etc. 3 F. Signs 4 G. Field Use Charges 4 H. Nondiscrimination 4 I. Affirmative Action 5 J. No Discriminatory Charges 5 K. FAA and Airport Instruments 5 ARTICLE IV TERM OF LEASEHOLD 5 ARTICLE V RENTALS AND FEES A. General 6 B. Facilities Rental 6 C. Utility SErvices and Taxes of Other Governmental Agencies and Permit Fees 6 D. Time and Place of Payment 6 E. National Emergency 7 ARTICLE VI INSURANCE BY LESSEE A. Liability Insurance 7 B. Workers ' Compensation 7 C. Restoration of Casualty Losses 8 ARTICLE VII TERMINATION OF LEASE, ASSIGNMENT AND TRANSFER AND CANCELLATION A. Termination 8 B. Cancellation by Lessee 8 C. Cancellation by Lessor 9 D. Waiver of Statutory Notice to Quit 9 E. Assignment and Subletting 10 Page 1 of 2 • ARTICLE VIII RIGHTS UPON TERMINATION A. Fixed Improvements 10 B. Personal Property 11 ARTICLE IX OBLIGATIONS OF LESSOR A. Snow Removal 11 B. Security 11 ARTICLE X GENERAL PROVISIONS A. Lessor's Reserved Rights 11 B. Non-Interference with Operations of Airport 12 C. Relocation of Improvements 12 D. Lessor's Option to Purchase 13 E. Services 13 F. Paragraph Headings 13 G. Notices, Consents and Approvals . 13 H. Successors and Assigns 14 I. Amendments to Lease 14 ARTICLE XI NON-EXCLUSIVE RIGHTS 14 Page 2 of 2 LEASE AGREEMENT THIS AGREEMENT made and entered into this 7th day Of October r 1985 , by and between the City of Jefferson City, Missouri, a municipal corporation hereinafter designated as "Lessor" and J. Dawson Management, Inc. , hereinafter designated as "Lessee. " WITNESSETH WHEREAS, the Lessor now owns and operates the Jefferson City Memorial Airport, located in Jefferson City, Missouri; and WHEREAS, the Lessee has constructed an airplane hangar upon the described premises set out below, and WHEREAS, the Lessee wishes to sublease the described premises. NOW, THEREFORE, for and in consideration of premises and mutual undertakings, agreements and covenants hereinafter set forth, the parties hereto agree as follows : ARTICLE I PREMISES AND PRIVILEGES For and in consideration of the terms, conditions and covenants of this Lease to be performed by Lessee, all of which Lessee accepts, Lessor hereby leases to Lessee and Lessee hereby hires and takes from Lessor certain property, together with improvements thereon (hereinafter called "demised premises" ) , and certain attendant privileges, uses and rights, as hereinafter specifically set out. A. DESCRIPTION OF PREMISES DEMISED The premises hereby leased is that certain tract of real estate described as follows: Part of the northwest quarter of Section 15, Township 44 , Range 11, in the County of Callaway, State of Missouri, being more particularly described as follows: From the northwest corner of said Section 15; thence southerly along the west line of said Section 15, 1, 783.70 feet; thence deflecting 91° 16 ' to the left, 540 .75 feet to the point of beginning of this description; thence deflecting 90° 001 to the left, 146 feet; thence deflecting 900 00 ' to the left, 60 feet; thence deflect.i_ng .900 00' to the left, 146 feet; thence deflecting 900 00 ' to the left, Am 60 feet to the point of beginning. comprising approximately 11, 255 square feet total, as delineated by red and green areas and designated upon a plat of said premises hereto attached and marked Exhibit "A. " The parties 1 hereto agree that the green shaded area consists of approximately 8, 784 square feet and the remaining open red area consists of approximately 2 ,471 square feet . B. USE OF DEMISED PROPERTY Lessor hereby grants Lessee the right to sublease said demised premises for the purpose of storing, maintaining and repairing aircraft owned or controlled by an approved sublessee, and purposes reasonably incidental thereto. Lessee shall not use or permit the use of any part of the leased premises in any other manner than set forth above, without the prior written consent of Lessor. DISPENSING and SALE of aviation fuels and lubricants is prohibited. Fixed based operations provided by a sublessee must be approved by the Lessor and appropriate fees paid. C. OBSERVANCE OF STATUTES, ETC. The granting of this lease and its acceptance by Lessee is conditioned upon the right to use said public airport facilities in common with others authorized to do so, provided however, that Lessee shall observe and comply with any and all requirements of the constituted public authorities and with all Federal, State or local statutes, ordinances , regulations and standards applicable to Lessee or its use of the demised premises, including but not limited to rules and regulations promulgated from time to time by the Jefferson City Memorial Airport Commission and adopted by the City Council for the administration of the airport. ARTICLE II INGRESS AND EGRESS Upon paying the rental hereunder and performing the covenants of this Agreement, Lessee and the approved sublessee shall have the right of ingress to and egress from said demised premises for the Lessee, its officers, employees, agents, servants, vendors , suppliers , and invitees over the roadway provided by Lessor serving said premises, and the right of ingress to and egress from the landing area for airplanes . Said Lessor's roadway, aircraft parking ramps and taxiways shall be used jointly with other tenants on the airport and Lessee or sublessee shall not interfere with the rights and privileges of other persons or firms using said facilities for their intended purposes . ARTICLE III OBLIGATIONS OF LESSEE A. NET LEASE The use and occupancy of the demised premises by Lessee will be without cost or expense to Lessor. It shall be the sole 2 responsibility of Lessee to keep, maintain, repair and operate qu the entirety of the demised premises and all improvements and facilities thereon at Lessee's sole cost and expense. B. MAINTENANCE AND REPAIR The standards of up-keep and maintenance required of the Lessee under this lease shall be not less than the standards followed by the Lessor for similar buildings and premises under the Lessor's control. Any deviation from said minimum standards shall be brought to the attention of the Lessee by the Lessor, in writing, and shall be corrected within ninety (90 ) days thereafter. If the failure to maintain properly the proper standards results in a hazard to the public, airport personnel, or the aircraft or airport property then the Lessor shall have the right to order the premises closed until the hazard is remedied. C. ALTERATIONS AND REPAIRS TO PREMISES Further, Lessee agrees not to construct, install, or remove, modify and/or repair any of the premises leased hereunder without prior written approval of the Director of the Department of Transportation, such approval not to be unreasonably withheld but shall be contingent upon approval by Lessor of plans and specifications for the proposed project as well as other operating conditions considered by Lessor to be necessary. Lessee shall hold the City of Jefferson City harmless and reimburse it for any and all expenses of any nature whatsoever arising out of any claim for said improvements, changes or repair. Cancellation of the lease shall not be deemed a waiver o£ the Lessee's other remedies at law. D. UTILITIES Lessee shall assume and pay for all costs or charges for utility services furnished to Lessee during the term hereof; provided, however, that Lessee shall have the right to connect to any and all storm and sanitary sewers and water and utility outlets at its own cost and expense; and Lessee shall pay for any and all service charges incurred therefor. E. TRASH, GARBAGE ETC. Lessee shall provide a complete and proper arrangement for the adequate sanitary handling and disposal„ away from the Airport, of all trash, garbage and other refuse caused by a result of the operation. Lessee shall provide and use suitable covered metal receptacles for all such garbage, trash and other refuse. Piling of boxes, cartons, barrels or other similar items , in an unsightly or unsafe manner, on or about the demised premises, shall not be permitted. 3 , F. SIGNS Lessee shall not erect, maintain, or display upon the outside of any improvements on the demised premises any billboards or advertising signs; provided, however, that Lessee may maintain on the outside of said buildings its name(s ) , the size, location, and design of which shall be subject to Lessor's prior written approval. G. FIELD USE CHARGES Nothing herein shall be deemed to relieve Lessee and its sublessees, patrons , invitees, and others from field use charges, as are levied generally by Lessor directly upon the operation of aircraft. H. NONDISCRIMINATION The Lessee for himself, his heirs , personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree as a covenant running with the land that in the event facilities are constructed, maintained, or otherwise operated on the said property described in this lease for a purpose for which a Department of Transportation program or activity is extended or for another purpose involving the provision of similar services or benefits, the Lessee shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to 49 CFR Part 21, Nondiscrimination in Federally Assisted Programs of the Department of Transportation, and as said Regulations may be amended. The Lessee for himself, his personal representatives , successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree as a covenant running with the land that: ( 1) 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, (2 ) 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 be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination, ( 3) that the Lessee shall use the premises in compliance with all other requirements imposed by or pursuant to 49 CFR Part 21, Nondiscrimination iii Federally Assisted Programs of the Department of Transportation, and as said Regulations may be amended. Lessee shall comply with all FAA and U.S. Code requirements as to nondiscrimination. 4 I. AFFIRMATIVE ACTION PROGRAM qr The Lessee assures that it will undertake an affirmative action program as required by 14 CFR Part 152, Subpart E, to insure that no person shall on the grounds of race, creed, color, national origin, or sex be excluded from participating in any employment activities covered in 14 CFR Part 152, Subpart E. The Lessee assures that no person shall be excluded on these grounds from participating in or receiving the services or benefits of any program or activitiy covered by this subpart. The Lessee assures that it will require that its covered suborganizations provide assurances to the Lessee that they similarly will undertake affirmative action programs and that they will require assurances from their suborganizations , as required by 14 CFR Part 152, Subpart E, to the same effect. J. NO DISCRIMINATORY CHARGES Lessee agrees to furnish service on a fair, equal and not unjustly discriminatory basis to all users thereof, and to charge fair, reasonable and not unjustly discriminatory prices for each unit or service; PROVIDED, that Lessee may make reasonable and non-discriminatory discounts, rebates, or other similar types of price reductions to volume purchasers . K. F.A.A. AND AIRPORT INSTRUMENTS The Federal Aviation Administration and the .Lessor are hereby granted the right and privilege by Lessee to place on and around the above described premises, without cost to the Lessee, whatever instruments and equipment they desire during the term of this lease, so long as said instruments or equipment do not interfere with the intended use of the premises by the Lessee. ARTICLE IV TERM OF LEASEHOLD The term of this lease shall be for five ( 5) years subject to earlier termination for cause as provided herein. The term of the agreement shall. commence on 1st day of r tc nhA r , 19 85 . Lessee shall ,have an option to renew said lease for one ( 1) additional term of five (5 ) years on the same terms and conditions, except that rental rates and charges at the end of the original term shall be renegotiated. The option to renew said lease shall be exercised by the Lessee by giving written notice to the Lessor of such intention to renew said lease at least ninety (90) days prior to the expiration of the initial five ( 5) year period. 5 ARTICLE V RENTALS AND FEES A. GENERAL For the ground area and buildings (s ) herein demised, Lessee shall pay to Lessor a fixed annual rental as hereinafter set forth. B. FACILITIES RENTAL In consideration of the leasing aforesaid, Lessee hereby covenants and agrees to pay to Lessor as rent for said demised premises the sum Of one Thni1Gand._SMMn Hundred SevpI3 .aht and 881100 ( $1 77$.$8 ) annually at the present rate of $0.18 per square foot per year for the area shaded green on the attached Exhibit "A, " and $0.08 per square foot per year for area shaded red which said sum shall be paid in equal monthly installments in the amounts of (_ln_ a Ehindrad Fc)rty—'gbt and 24/100 Dollar ($ 148.24 ) , the first monthly Installment to be paid upon execution of this lease and all subsequent monthly installments shall be due and payable on the 1st day of each and every month hereafter. In the event Lessee erects a structure upon any part of the area shaded red during the term of this lease, the rental rate per square foot for any such area shall automatically increase from $0.08 to $0.18 pro rated from the time such structure is put in use. In addition to the rentals set out above, Lessee shall pay to Lessor five (5 ) ) per cent of rental received from the sublessee. C. UTILITY SERVICES AND TAXES OF OTHER GOVERNMENTAL AGENCIES AND PERMIT FEES 1. Lessee agrees to pay for all utility services, and to pay all taxes and assessments which may be levied by any governmental agency with respect to the demised premises. 2. Lessee further agrees to pay any applicable license or permit fees to enable it to operate on the Jefferson City Memorial Airport and in the city, this includes any business licenses. D. TIME AND PLACE OF PAYMENT Rentals for all Facilities and Permits shall be paid on or before the first day of each month. All payments are to be made to the City of Jefferson, Department of Transportation, Airport Division, 320 East McCarty Street, Jefferson City, Missouri 65101, or such other place the Lessor may direct Lessee, in writing. 6 E. NATIONAL EMERGENCY In the event possession of the demised premises and the improvements thereon is assumed by the United States of America under any emergency powers, the rent due under this lease shall abate for the period of such possession. If the the Lessee shall be reimbursed by the United States Government for its assumption of possession, then the rental provisions of this lease shall remain in effect, but provided further. , however, that if said reimbursement is less than the amount of rental herein provided, the Lessee shall be required to pay to the City only such amount of reimbursement as it shall receive from the United States Government. ARTICLE VI INSURANCE BY LESSEE A. LIABILITY INSURANCE Lessee or approved sublessee agrees that it will at all times maintain public liability insurance with reputable insurance companies, the following: FAM Hangar Keepers Liability $3,000,000 each accident Comprehensive Public Liability Insurance Bodily Injury $250 ,000 each person $800, 000 each accident Property Damage $1,000 ,000 each accident This insurance shall assure the obligation of the Lessee to save the Lessor harmless from any and all claims for damages arising on the demised premises or resulting as a direct or indirect consequence of the occupation and use of said demised premises by the Lessee or approved sublessee. Current copies of said insurance policies or certificates of insurance shall be furnished to the Lessor and shall be promptly replaced upon expiration. Lessor shall be named as an additional insured on the policy. B. WORKERS ' COMPENSATION Said Lessee further covenants and agrees that the Lessee will save harmless said Lessor and -the above demised premises at all times during the continuation of this Lease from all damages, claims, fines, penalities, costs and expenses whatsoever which may result to said Lessor or to said demised premises or to any improvements at any time situated thereon under the provisions of the Workers ' Compensation Law and other statutory provisions of a similar nature. 7 S C. RESTORATION OF CASUALTY LOSSES Lessee agrees that in case of destruction in whole or in part of said improvements either by fire or otherwise, that it will within ninety (90) days thereafter either (a) repair said damage, or (b) remove the damaged improvement and the debris resulting therefrom and restore the surface condition of said demised premises to its original condition, at which date this lease shall be deemed cancelled. If said destruction is of such extent that complete rebuilding is necessary, the Lessee may elect to rebuild and shall have a reasonable period of time in which to complete said rebuilding, during which period the Lessee shall continue to pay the Lessor the rents provided in this lease or any renewal thereof. ARTICLE VII TERMINATION OF LEASE, ASSIGNMENT AND TRANSFER AND CANCELLATION A. TERMINATION This Lease shall terminate at the end of the full term hereof or the option term, if exercised, and Lessee shall have no further right or interest in any of the ground improvements hereby demised, except as provided in Article VIII. B. CANCELLATION BY LESSEE This Lease shall be subject to cancellation by Lessee after the happening of one or more of the following events : 1. In the event City should cease to operate or maintain an airport adjacent to the demised premises . 2 . The lawful assumption by the United States Government, or any authorized agency thereof, of the operation, control or use of the Airport, or any substantial part or parts thereof, in such a manner as substantially to restrict Lessee for a period of at least ninety (90) days from operating thereon. 3. Issuance by any court of competent jurisdiction of any injunction in any way preventing or restricting the use of the Airport , and the remaining in force of such injunction for a period of at least ninety (90 ) days . 4 . The default by Lessor in the performance of any covenant or agreement herein to be performed by Lessor and the failure of Lessor to remedy such default for a period of sixty ( 60 ) days after receipt from Lessee of written notice to remedy the same. Lessee may exercise such right of cancellation by written notice to Lessor at any time after the lapse of the applicable periods of time and this Lease shall terminate as of that date. Rentals due hereunder shall be payable only to the date of said termination. 8 C. CANCELLATION BY LESSOR This Lease shall be subject to cancellation by Lessor in the event Lessee shall: 1. Abandon the demised premises . 2. Discontinue its operations as outlined in Article I , Section B. 3. Defaults in payment of rent within five ( 5) days after being due, then City after giving written notice of default may within ten ( 10 ) days thereafter elect to declare this lease forfeited, in which event Lessee shall surrender possession of said premises peacefully to the Lessor. If Lessee shall default in any of the other covenants herein contained and shall continue in such default for a period of thirty (30) days after notice thereof in writing from the Lessor, the Lessor shall have the election to declare this lease forfeited and thereupon, the Lessee shall surrender possession of said premises . Lessee shall have the right to remove the improvements from the demised premises as provided herein with respect to removal on terminatin of the lease, except that Lessor may require any back rental payments to be made before allowing such removal. 4. If Lessee fails to obtain any insurance required by this contract, or if any insurance policy required by this contract expires or is cancelled, then Lessee shall cease all operation on leased premises until proper insurance is obtained. If proper insurance is not obtained within fifteen ( 15 ) days then Lessor may declare this lease forfeited. In any of aforesaid events, Lessor may take immediate possession of the demised premises and remove Lessee's effects , forcibly, if necessary, without being deemed guilty of trespassing. Upon said default, all rights of Lessee shall be terminated provided, however, Lessor and Lessee shall have and reserve all of their available remedies at law as a result of said breach of this contract. Failure of Lessor to declare this Lease terminated upon the default of Lessee for any of the reasons set out shall not operate to bar, destroy or waive the right of Lessor to cancel this Lease by reason of any subsequent violation of the terms hereof. D. WAIVER OF STATUTORY NOTICE TO QUIT In the event Lessor exercises its option to cancel this agreement upon the happenings of any or all of the events set forth in Section C (Cancellation by Lessor) , a notice of cancellation shall be sufficient to immediately cancel this Agreement; and, upon such cancellation, Lessee hereby agrees that 9 WA it will forthwith surrender up possession of the demised premises to the Lessor as set forth in Article VIII . E. ASSIGNMENT AND SUBLET'T'ING 1. The Lessee shall not sublease, or assign this lease without first obtaining the written approval of the City through the Director of the Department of Transportation; but in such event, Lessee shall remain liable to Lessor for the remainder of the term of the lease to pay to Lessor any portion of the rental and fees provided for herein. Said sublessee or assignee shall not sublease or assign said lease except with the prior written approval of Lessor and Lessee herein, and any assignment by the Lessee shall contain a clause to this effect. 2. In the event written approval for a sublease is given, by the City through the Director of the Department of Transportation, sublessee shall pay the appropriate aircraft storage fee required for fixed based operations . ARTICLE VIII RIGHTS UPON TERMINATION A. FIXED IMPROVEMENTS At the termination of this Lease for any reason, Lessor shall be entitled at its option to have the land demised herein returned to it clear of all fixed improvements above ground level which have been constructed by Lessee and restored to its original condition. Request for said removal shall be set forth in writing by Lessor to Lessee thirty ( 30) days prior to termination of this lease. If removal is not requested prior to said thirty (30) days , Lessee shall have no obligation for such removal. If Lessor requires such removal, Lessee may have ninety ( 90) days after termination in which finally to remove any such improvements, and provided that such occupancy for purposes of removal shall be subject to ground rentals due hereunder. if Lessee fails to remove said improvements, they may thereafter be removed by Lessor at Lessee 's expense. The Lessee shall be the owner of all of the improvements which it makes on the demised premises at its expense. Upon the termination of this lease, or any renewal thereof, Lessee shall have the right to remove the said improvements at the cost of the Lessee, it being the purpose of the parties that the title to said improvements shall not inure to the City through the theory of annexation. In the event' Lessee elects to remove the improvements, Lessee shall at its cost restore the demised premises to their condition prior to the placing of the improvements thereon. 10 MMW B. PERSONAL PROPERTY Upon termination of this lease, Lessee shall remove all personal property from the demised premises within ten ( 10 ) days after said termination and if Lessee fails to remove said personal property, said property may thereafter be removed by Lessor at Lessee's expense. ARTICLE IX OBLIGATIONS OF LESSOR A. SNOW REMOVAL The Lessor will make every effort to clear snow and ice from parking - and apron areas . Removal will be done on a priority basis with runways and taxiways having priority. B. SECURITY The Lessor will encourage police to patrol the Airport terminal and apron areas. ARTICLE X GENERAL PROVISIONS A. LESSOR'S RESERVED RIGHTS 1. Lessor reserves the right (but shall not be obligated to Lessee) to maintain and keep in repair the landing area of the airport and all publicly-owned facilities of the airport, together with the right to direct and control all activities of the Lessee in this regard. 2. Lessor reserve the right further to develop or improve the landing area and all publicly-owned air navigation facilities of the airport as it sees fit, regardless of the desires or views of the Lessee, and without interference or hindrance. 3. Lessor reserves the right to take any action it considers necessary to protect the aerial approaches of the airport against obstruction, together with the right to prevent Lessee from erecting, or permitting to be erected, any building or other structure on the airport which in the opinion of Lessor would limit the usefulness of the airport or constitute a hazard to aircraft. 4 . During time of war or national emergency Lessor shall have the right to enter into an agreement with the United States Government for military or naval use of • part or all of the landing area, the publicly-owned air navigation facilities and/or other areas or facilities of the airport. If any such agreement is executed, the 11 provisions of this instrument, insofar as they are inconsistent with the provisions of the agreement with the Government, shall be suspended. 5. It is understood and agreed that the rights granted by this agreement will not be exercised in such a way as to interfere with or adversely affect the use, operation, maintenance or development of the airport . 6. There is hereby reserved to the City of Jefferson City, its successors and assigns , for the use and benefit of the public, a free and unrestricted right of flight for the passage of aircraft in the airspace above the surface of the premises herein conveyed, together with the right to cause in said airspace such noise as may be inherent in the operation of aircraft, now known or hereafter used for navigation of or flight in the air, using said airspace or landing at, taking off from, or operating on or about the airport. 7. This lease shall become subordinate to provisions of any existing or future agreement between the Lessor and the United States of America or any agency thereof relative to the operation, development, or maintenance of the airport , the execution of which has been or may be required as a condition precedent to the expenditure of federal funds for the development of the airport . An 8. Lessor, through its duly authorized agent, shall have at any reasonable time during business hours the full and unrestricted right to enter the leased premises for the purpose of inspection. B. NON-INTERFERENCE WITH OPERATION OF AIRPORT Lessee by accepting this Lease expressly agrees for itself, its successors and assigns that it will not make use of the leased premises in any manner which might interfere with the landing and taking off of aircraft from Jefferson City Memorial Airport or otherwise constitute a hazard. In the event the aforesaid covenant is' breached, Lessor reserves the right to enter upon the premises hereby leased and cause the abatement of such interference at the expense of the Lessee. Lessor shall maintain and keep in repair the landing area of the airport, and shall have the right to direct and control all activities of the Lessee in this regard, except as otherwise herein provided. C. RELOCATION OF IMPROVEMENTS In the event Lessor requires the demised premises for expansion or development of the airport Lessor reserves the right, on six ( 6 ) months ' notice, to relocate or replace Lessee 's improvements in substantially similar form at another location on said Airport. In said event, Lessee shall have the right to terminate this Lease. 12 D. LESSOR'S OPTION TO PURCHASE Lessor reserves the right to purchase the improvements constructed on the premises by the Lessee at any time during this lease or any renewal thereof, or at the termination thereof on the following terms : The actual cost of the improvements, to be substantiated by actual invoices covering labor and materials at the time of the improvements , shall be furnished to the Lessor. In the event the Lessor shall exercise its right to buy the improvements, the price to be paid the Lessee shall be determined by the actual cost of construction of said improvements , depreciated at the rate of three per cent ( 3%) per annum from the time the improvements were constructed until the time the Lessor desires to exercise said option to purchase. In the event the City desires to exercise the option to purchase, it shall give to the Lessee, in writing, notice of its intention to purchase the improvements six ( 6 ) months prior to -the purchase thereof., and Lessee shall not improve the demised premises during this period. If Lessor gives notice as aforesaid, of its intent to exercise this option to purchase, Lessee may elect to retain and remove said improvements from the demised premises at its own cost and at no cost to the Lessor and Lessee shall also at its cost restore the demised premises to their condition prior to the placing of the improvements thereon. E. SERVICES The Lessor shall have no responsibility or liability to furnish any services to Lessee other than those specified in this lease, but Lessee may negotiate with Lessor for any additional. services it may request and shall pay for such additional services the consideration so negotiated. F. PARAGRAPH HEADINGS The paragraph headings contained herein are for convenience in reference and are not intended to define or limit the scope of any provision of this lease. G. NOTICES, CONSENTS AND APPROVALS Whenever any notice or payment is required by this Lease to be made, given or transmitted to the parties hereto, such notice or payment shall be deemed to have been given if enclosed in an envelope with sufficient postage attached to insure deliver, and deposited in the United States mail, addressed to: LESSOR. . . .City of Jefferson Department of Transportation Airport Division 320 East McCarty Street Jefferson City, MO 65101 LESSEE. . . .J. Dawson Management, Incorporated 405 West Elm Jefferson City, MO 65101 13 or such other place as either party shall in writing designate in the manner herein provided. H. SUCCESSORS AND ASSIGNS All of the terms , covenants and agreements herein contained shall be binding upon and shall inure to the benefit of successors and assigns of the respective parties hereto. I. AMENDMENTS TO LEASE All amendments of this lease must be made in writing by mutual agreement of the parties, and no oral amendments shall be in force or effect whatever. ARTICLE XI NON-EXCLUSIVE RIGHTS It is understood and agreed that nothing herein contained shall be construed to grant or authorize the granting of an exclusive right within the meaning of Section 308 of the Federal Aviation Act of 1958. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed as of the date first above mentioned at Jefferson City, Missouri. CITY OF JEFFERSON, MISSOURI Recommended by a Municipal Corporation Transportation Commission (C By ,/j Administrate Sec etary ayor " T— ATTEST: J. DAWSON MANAGEMENT, INC. By City C1 rk Presi nt APPROVAL AS TO FORM: y ounselor 14