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HomeMy Public PortalAbout139-2005 Skydive.Wayne.Co.Lease.6LEASE AGREEMENT The Lease agreement is entered into between the City of Richmond, Indiana, by and through its Board of Aviation Commissioners, hereinafter called "Board", and Skydive Wayne County Inc., an Indiana Corporation, hereinafter called "SWC". WHEREAS, Board owns and operates the Richmond Municipal Airport, hereinafter called "Airport", located at 5169 South State Road 227, Richmond, Indiana; and WHEREAS, SWC will provide skydiving services at the Airport and desires to have a four (4) year lease of office space and hangar space for its operations; and WHEREAS, Board desires to accommodate skydiving services; and WHEREAS, SWC is willing to invest in improvements to the Airport's facilities and has been organized for the purpose of conducting aviation operations, including but not limited to, primary, intermediate, and advanced skydiving instruction, licensed skydiving services, parachute rigging, FAA rigging examinations, parachute repair services, observation rides, aircraft maintenance services, and parachute equipment and accessories sales; and WHEREAS, SWC shall follow all RMA rules and regulations. Now, therefore, in consideration of the mutual promises and covenants contained herein, including the above -stated recitals, the parties hereby agree as follows: 1. Board leases to SWC the Quonset Hut hangar consisting of approximately 6188 square feet currently used as office and classroom space, and approximately 11,900 square feet of hangar floor space. 2. SWC shall use the hangar for the aforementioned services and amenities in support thereof including food and non-alcoholic beverage services. No other uses shall be permitted in leased premises without written approval of the Board. 3. SWC shall perform any new construction and remodeling in accordance with all Federal, State and Local codes and obtain the necessary permits therefore, which construction and remodeling must received the prior approval of Board. 4. Board shall provide water, waste water disposal, and electrical service for the leased premises subject to the following limitations: (a) With respect to the costs of water and waste disposal, SWC shall be responsible for any costs incurred by any negligent acts of SWC, its employees, customers, agents or guests. This includes but shall not be limited to the introduction of any foreign object into the waste water system. A charge of $15.00 dollars per month shall be charged for the usage of the sanitary system. (b) SWC shall be responsible for electrical usage and shall be billed by Richmond Power & Light. Contract No. 139-2005 Page 1 of 6 5. SWC shall pay any utility charges owed to Board within ten (10) days of the date of any invoice from the Board. SWC shall pay any other utility services incurred by its usage of the leased premises. 6. Board shall provide all regular services to aircraft operators in refueling and maintaining the Airport's facilities, including all leased premises. 7. SWC agrees to purchase twenty thousand (20,000) gallons of fuel annually from the Airport. All leased aircraft, hosted by SWC, shall purchase fuel from the airport and such purchases shall be accounted through SWC's monthly fuel statements and shall be credited by all means and methods to SWC's annual fuel agreement, described herein, with the Board. SWC shall promptly pay for all fuel purchases within thirty (30) days of receipt of the bill for fuel. Fuel shall be priced per the agreed upon discounted price depicted in Exhibit A, which exhibit is attached hereto and incorporated by reference. 8. SWC shall pay $760.00 per month for the leased premises, due and payable on or before the first of each month. The term of this Lease shall begin January lst 2006 and end December 31st 2008. 10. SWC agrees to maintain the leased premises, normal wear and tear excepted, and agrees to return the premises to the Board in a well maintained, tenantable condition upon the termination hereof. Board reserves the right to inspect the leased premises at any reasonable time, with twenty four (24) hour written notification to SWC. The Board or its agents shall be permitted emergency access to the leased premises at any time without notice. 11. Title to any and all improvements constructed or installed on the leased premises by SWC shall become the sole property of the Board without additional consideration upon termination hereof. 12. SWC shall use the premises for aviation related purposes only, subject to the applicable regulations of any aviation regulatory agency, federal and state statues, and Richmond Code. 13. SWC shall not cause any mortgage, lien or other encumbrance to be placed on the premises, and if SWC shall fail to cause any such mortgage, lien or other encumbrance to be removed within sixty (60) official notification thereof, the Board may terminate this Lease agreement and all improvements made by SWC shall be forfeited to the Board as liquidated damages, for the breach hereof. 14. This Lease may not be assigned, transferred or sublet by SWC or by process of operation of law or in any manner whatsoever without the prior written consent of the Board, which consent shall not be unreasonably withheld. 15. Except as otherwise provided herein, the Board shall maintain the exterior and roof of the hangar as well as the water lines, sanitary sewer lines, and storm run-off facilities servicing said hangar. 16. Board covenants and agrees that SWC shall have quiet enjoyment of the leased premises throughout the term of this Lease as long as SWC is not in default with to any provision hereof. 17. Board shall maintain all risk, fire and extended coverage on the main hangar. All leasehold improvements made by SWC shall be insured against loss from whatever cause by Page 2 of 6 SWC. SWC shall maintain public liability insurance of not less than $500,000.00 coverage for any occurrence involving only one person and $1,000,000.00 coverage for any occurrence involving more than one person. Current certificates for such coverage shall be furnished to Airport's manager. Board acknowledges that SWC is unable to obtain liability insurance for skydiving activities. SWC agrees to provide current liability release forms to the Airport manager, which shall be used in its operation and which shall also release the City of Richmond, the Richmond Municipal Airport, and all employees or agents of said entities from liability for negligence associated with skydiving activities. 18. SWC agrees to indemnify the City of Richmond, the Richmond Municipal and all employees of said entities against any and all claims, losses, costs, damages and expenses arising out or from the conduct or management of the acts and operations of SWC' S agents, contractors, employees, customers, students or invitees. 19. SWC agrees to release the City of Richmond, the Richmond Municipal Airport, and all employees or agents of said entities from liability for negligence associated with the operations of SWC at the Airport. 20. SWC hereby covenants no person on the grounds of race, religion, color, sex or national origin shall be excluded from participation, denied services or be otherwise subjected to discrimination in the use of the leased premises and the services provided therein. 21. Pursuant to Indiana code 22-9-1-10, SWC, or any person acting on behalf of SWC shall not discriminate against any employee or applicant for employment to be employed in the performance of this Agreement, with respect to hire, tenure, terms, conditions or privileges of employment or any matter directly or indirectly related to employment, because of race, religion, color, sex, disability, national origin or ancestry. 22. The Board reserves the right to take any action legally enforceable as per the contents of the Airport Compliance Handbook, and that it considers necessary to protect the aerial approaches of the Airport against obstruction which, in the reasonable opinion of the Board, would limit the usefulness of the Airport or constitute a hazard to users of the airport. SWC shall advise the Airport staff on duty and the local area traffic of all skydiving activities over or within the vicinity of the Airport. SWC agrees to temporarily modify its skydiving activities at the request of the Airport manager, if in his reasonable opinion such activities constitute a hazard to aircraft, users of the airport, routine Airport operations, and farming operations. SWC shall permanently modify its skydiving activities only when all Federal Aviation Administration safety surveys have been conducted by Federal Aviation Administration officials with conclusive results in favor of any complaints previously filed with the Federal Aviation Administration. 23. This Lease shall be subordinate to the provisions of any existing or future agreement between the Board and the United States of America or the State of Indiana, relative to the operation of maintenance of the Airport. 24. SWC shall be in default under the terms of this Lease, if it fails to pay rent when due, fails to perform any obligation required herein, fails to comply with any covenant set -forth, fails to abide by the written rules and regulations of the Board, files a voluntary petition for bankruptcy, or is adjudged bankrupt in action initiated by another party. If SWC fails to pay rent or any other charge when due, a $25.00 late fee will be charged shall be assessed each month beginning at 30 days past due and continue each additional 30 days past due until paid in full. The Board may also terminate this Lease upon the occurrence of a default, by giving notice to SWC in writing within 30 days of the sending of such notice by certified mail. SWC shall Page 3 of 6 surrender possession of the leased premises in as good or better condition as the premises were at the commencement of this Lease, normal wear and tear excepted, and if the premises be not in such condition, SWC shall be liable for such amount of money as is necessary to replace or repair the premises. In addition, SWC shall be liable for any costs incurred by the Board in the event of default by SWC, including but not limited to reasonable attorney's fees, whether or not legal proceedings are commenced. 25. In the event the leased premises an appurtenant structures are damaged in anyway, not attributed to SWC, its employees, customers, agents or guests, the Board shall restore, repair, replace or rebuild the same at its cost to substantially the same condition that existed immediately prior to such casualty. Such work shall be commenced and completed as promptly as is practicable. SWC shall restore, repair, or rebuild any damage to the premises attributable to SWC, its employees, customers, agents, or guest. 26. Any notices required hereunder shall be sent as follows: a. Board of Aviation Commissioners 50 North 5t' Street Richmond, IN 47374 b. Sky Dive Wayne County Inc. P.O. Box 70 Boston, IN 47324 27. If any provision of this Lease is declared invalid or unenforceable, the remainder hereof shall continue to be in full force and effect. 28. SWC shall not permit any fuel or hazardous materials to be stored on the leased premises. 29. The parties hereto submit to jurisdiction of the courts of Wayne County, Indiana, and suit arising under this Contract, if any, must be filed in said courts. 30. Property taxes levied on the leasehold improvements shall be paid by SWC. Any property taxes levied on the main hangar structure or real estate shall be paid by the Board. 31. The undersigned parties represent that their respective Boards have authorized the execution of this Lease Agreement, which authorizations remain in full force and effect. 32. Within twenty-four (24) hours following any accident which results in injury or death during skydiving operations, SWC shall provide to the Board a manifest and a liability release waiver, which waiver shall include the name and social security number, if provided, of each person involved in said accident, including but limited to SWC's employees, agents, or contractors. 33. Special events, other than normal day to day operations, must be approved by the Board, and any fees or charges payable to the Board by SWC in connection with any special events shall be separately negotiated by the parties hereto. 38. In further consideration of the Board entering into this Agreement, the owner of SWC, Jaime Praeter, will personally guarantee the performance of all obligations of SWC pursuant to this Agreement. Page 4 of 6 Executed as of this _6th_ day of _June 2005, although signatures may be subsequently affixed. THE CITY OF RICHMOND, INDIANA, by and through its Board of Aviation Commissioners By S/S William Smith President (William Smith) Skydive Wayne County Inc. By S/S Jaime Praeter Owner (Jaime Praeter) Approved by S/S Sarah L. Hutton Mayor of Richmond, Indiana Sarah L. Hutton PERSONAL GUARANTY All promises, covenants, or obligations of Skydive Wayne County, Inc. are hereby personally guaranteed by the owner of said entity Jaime Praeter. By: S/S Jaime Praeter Jaime Praeter Title: President Date: July 5, 2006 Page 5 of 6 EXHIBIT A SWC will receive discounted fuel from the Board. The discounts are listed below. Amount purchased (per year) Discount * 0-20,000 gallons $0.10 per gallon * 20,001 to 40,000 gallons $0.20 per gallon Fuel purchases in excess of 40,000 gallons per year will be included on a contract addendum. This addendum will be negotiated between SWC and the Board when anticipated fuel purchases are expected to surpass 40,000 gallons, but prior to the occurrence.