HomeMy Public PortalAbout080-2008 - Airport - Group Growth Lease AgreementLEASE AGREEMENT
THIS LEASE AGREEMENT, hereinafter referred to as "Lease", is entered into by and between
the City of Richmond, Indiana, acting through its Lessor of Aviation Commissioners, hereinafter
referred to as "Lessor", and Group Growth Services, Inc. a Florida corporation authorized to do
business in the State of Indiana with its principal office at 930 East Main Street, Richmond,
Indiana, hereinafter referred to as "LESSEE".
WHEREAS, Lessor owns and operates the Richmond Municipal Airport, hereinafter referred to
as "Airport", located at 5169 South State Road 227, Richmond, Indiana; and
WHEREAS, Lessor desires to lease an airplane hangar at the Airport to LESSEE; and
WHEREAS, LESSEE desires to lease the premises.
WHEREAS, Lessor has leased the premises to the Lessee for the previous two years under the
original term of this lease.
NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein,
including the above -stated recitals, the parties hereby agree as follows:
1. Lessor leases to LESSEE the "Dana hangar" located south of the main drive, and
consisting of approximately 4800 square feet, more or less, hereinafter referred to as "the
Premises".
This Lease shall begin May 1, 2008 and end April 30, 2010 with the LESSEE retaining one
option to renew for a term of two (2) years, from May 1, 2010 through April 30, 2012, provided
that the LESSEE is not in default or in breach of the Lease at the end of such term. Unless
LESSEE notifies Lessor in writing by no later than April 1, 2010, that it intends to exercise
LESSEE'S option to renew, LESSEE'S option to renew shall expire.
2. For this Lease Agreement, LESSEE shall pay Lessor the sum of Twenty Thousand Four
Hundred Dollars ($20,400.00) for LESSEE's lease and use of the premises, payable in Twenty -
Four (24) monthly payments of Eight Hundred Fifty Dollars ($850.00), due and payable on or
before the first day of each month, beginning May 1, 2008 and continuing through April 1, 2010.
3. LESSEE, at its cost and expense, may make improvements to the Premises, after first
obtaining written approval from Lessor. If Lessor requires revisions to the plans or specifications
submitted by LESSEE with respect to a proposed improvement, Lessor shall submit its proposed
revisions to LESSEE within thirty (30) calendar days of receipt by Lessor of the original plans
and specifications from LESSEE. In the event that Lessor does require revisions to the original
plans and specifications, LESSEE shall have thirty (30) days from the date of receipt of the
proposed revisions to resubmit the plans and specifications for Lessor's approval. If LESSEE
fails to resubmit the plans and specifications, LESSEE shall be deemed to have decided not to go
forward with such improvements. Lessor's approval of plans and specifications shall not be
withheld unreasonably. Any plans and specifications submitted by LESSEE and not objected to
by Lessor within thirty (30) days shall be deemed approved. Once plans and specifications are
finally approved as provided for above, LESSEE shall engage one or more qualified contractors
to construct said improvements. Construction shall commence within 90 calendar days of
Contract No. 80-2008
LESSEE's receipt of Lessor's final approval of the plans and specifications and shall be
scheduled for completion not later than Two Hundred Seventy (270) calendar days after
commencement of construction. LESSEE nevertheless covenants and agrees that any such
improvements shall be made in a careful, workmanlike manner and in compliance with all
applicable federal, state and municipal laws and regulations.
4. LESSEE shall be solely responsible and have the obligation to secure all permits and
approvals for all the construction activities it conducts. Lessor agrees to cooperate, upon request
and as reasonably necessary, with LESSEE's efforts to secure said permits and approvals.
5. LESSEE agrees to maintain the Premises, normal wear and tear excepted, and agrees to
return the Premises to Lessor in a well -maintained, tenantable condition upon the termination of
any renewal term of this lease. Lessor reserves the right to inspect the Premises and
improvements, at any reasonable time, with twenty four (24) hour written notification to
LESSEE. The Lessor or its agents shall be permitted emergency access to the leased premises at
any time without notice.
6. Title to any and all improvements constructed or placed on the Premises by LESSEE
shall become the sole and absolute property of Lessor without additional consideration upon the
termination of any renewal term of this lease.
7. LESSEE shall use the premises for aviation related purposes only as approved by the
Lessor, subject to the applicable regulations of any aviation regulatory agency, federal and state
statues, and Richmond Code.
8. The purpose of this Lease is to permit LESSEE to conduct its corporate aircraft
operations and hangar aircraft. It is further agreed that LESSEE may have in said hangar, a
corporate office, restrooms, one motor coach, and storage space to be used for storage of parts,
supplies, equipment attendant to the operations of the hangar.
9. LESSEE shall not cause any mortgage, lien or other encumbrance to be placed on or
attached to the Premises and if LESSEE shall fail to cause such mortgage, lien or encumbrance to
be removed within sixty (60) days after the notice of filing thereof, the Lessor may terminate this
Lease agreement and all improvements made by LESSEE shall be forfeited to the Lessor as
liquidated damages, for the breach hereof, provided, however, that LESSEE shall not be deemed
in default under this Section if LESSEE commences efforts to remove any such mortgage, lien, or
encumbrance within thirty (30) days after receiving notice of the filing thereof, and thereafter
diligently prosecutes the removal of the mortgage, lien or encumbrance.
10. This Lease may not be assigned, transferred or sublet by LESSEE or by process of
operation of law or in any manner whatsoever without the prior written consent of the Lessor,
which consent shall not be unreasonably withheld.
11. On May 1, 2008, Lessor shall deliver the Premises to LESSEE in suitable, clean
condition appropriate for the purposes described in Sections 8 and 9.
12. Lessor shall provide LESSEE with 24 hours fuel service ("After Hours service") for
aircraft at the Premises. After Hours service will be charged at a rate of $22.00 per hour or $18.00
per hour depending on which employee is called to perform the labor.
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13. Lessor shall provide all appropriate and necessary services usually supplied by an airport
operator of hangar space so that LESSEE may fully utilize its aircraft at the Airport.
14. Lessor shall maintain, and make repairs as necessary to, the heating, electrical, and
plumbing systems and structural components of the Premises, including but not limited to the
roof, walls, floors, foundations and sanitary systems. The word "floor" in the preceding sentence
refers to the structural mass only and not to the finish or covering on said floors. Lessor shall also
maintain the grounds in and around the Premises, including but not limited to the grass and
pavement areas, and shall keep the pavement areas free from debris, ice and snow on the same
basis that Lessor maintains the runways and taxiways of the Airport and shall cut grass and mow
weeds on the Premises in the same manner and at the same frequency that grass is mowed in
other hangar areas of the Airport.
15. Lessor covenants and agrees that LESSEE shall have quiet enjoyment of the Premises
during the term of this Lease as long as LESSEE complies with all applicable laws, ordinances
and government regulations and is not in default with respect to any provision of this Lease.
16. Lessor shall procure, maintain and pay the premiums upon all risk, fire and extended
coverages on the Premises (excluding any improvements made by LESSEE) and any other
contents of the Premises owned by Lessor, in amounts no less than the full replacement cost
thereof without reduction for depreciation. Copies of the above -required policy shall be provided
to LESSEE prior to the commencement date of this Lease together with certificates of insurance
reasonably acceptable to LESSEE.
17. LESSEE shall procure, maintain, and pay the premiums upon public liability and
property damage insurance with companies reasonably acceptable to Lessor which shall insure
LESSEE and Lessor against any and all injury and damage to any person, persons or property in
connection with the Premises, and having minimum limits of liability of not less than
$500,000.00 coverage for any one occurrence involving no more than one person and
$1,000,000.00 coverage for any on occurrence involving more than one person and $100,000.00
coverage for property damage and all-risk, fire and extended coverage on all improvements now
or hereafter constructed on the Premises in amounts not less that the full replacement cost thereof
without reduction for depreciation. Copies of the above -required policies shall be provided to
Lessor prior to the commencement date of this Lease together with certificates of insurance
acceptable to Lessor.
18. All such policies of insurance required by Sections 17 and 18 shall name Lessor and
LESSEE as the insured parties, as their respective interests appear, and shall contain a clause that
the insurer will not cancel or change the insurance without first giving Lessor and LESSEE thirty
(30) days written notice.
19. LESSEE agrees to indemnify and save harmless the Lessor against any and all claims,
losses, costs, damages, and expenses arising out of or from the conduct or management of, or
from any work or anything whatsoever done in and about the Premises, causing injury or damage
to any person or property due to any act or neglect of the LESSEE, LESSEE's agents,
contractors, or employees, or due to any failure of the LESSEE, LESSEE's agents, contractors, or
employees, to comply with or perform any requirements of the provisions of this Lease, on
LESSEE's part to be performed, or due to any use made by the LESSEE of the Premises. In case
of any action or proceeding being brought against the Lessor by any reason of any such claim,
LESSEE, on notice from Lessor, shall resist and defend such action or proceeding. The foregoing
provision shall not be construed to require LESSEE to indemnify or save harmless Lessor against
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consequences due to any work or act done by said Lessor in or to the Premises or any part of the
Airport other than the Premises.
20. Lessor agrees to indemnify and save harmless LESSEE and LESSEE's agents,
contractors and employees against any and all claims, losses, costs, damages, and expenses
arising out of or from the conduct or management of, or from any work or anything whatsoever
done in and about the Premises, or arising during the term from any condition of the buildings or
driveways or sidewalks adjoining the Premises, causing injury or damage to any person or
property due to any act or neglect of the Lessor, Lessor's agents, contractors, or employees, or
due to any failure of the Lessor, Lessor's agents, contractors, or employees to comply with or
perform any requirements of the provisions of this Lease, on Lessor's part to be performed, or
due to any use made by the Lessor of the Premises. In case of any action or proceeding being
brought against the LESSEE or LESSEE's agents, contractors, and employees by reason of any
such claim, the Lessor, on notice from the LESSEE, shall resist and defend such action or
proceeding. The foregoing provision shall not be construed to require said Lessor to indemnify or
save harmless LESSEE against consequences due to any work or act done by said LESSEE in and
to the Premises.
21. Lessor 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 waste disposal, LESSEE shall be responsible for
any costs incurred by any negligent acts of LESSEE 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 $10.00 dollars per month shall be charged for
the usage of the sanitary system subject to rate increased if increased by Richmond
Sanitary District.
(b) LESSEE shall be responsible for electrical usage and shall be billed by
Richmond Power & Light.
22. LESSEE shall pay any utility charges owed to Lessor within ten (10) days of the date of
any invoice from the Lessor. LESSEE shall pay any other utility services incurred by its usage of
the leased premises.
23. Except as otherwise provided herein, the Lessor 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.
24. Lessor shall provide all regular services to aircraft operators in refueling and maintaining
the Airport's facilities, including all leased premises.
25. LESSEE agrees to purchase fuel annually from the Airport. All leased or owned aircraft,
hosted by LESSEE , shall purchase fuel from the airport and such purchases shall be accounted
through LESSEE's monthly fuel statements and shall be credited by all means and methods to
LESSEE's annual fuel agreement, described herein, with the Board. LESSEE 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 as follows:
(1) Annual purchase of fuel less than 2,500 gallons: Zero Discount
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(2) Annual purchase of fuel greater than 2,500 gallons, but less than 5,000 gallons:
$ .15 per gallon discount on Jet A fuel and $ .08 per gallon discount on MOLL
fuel
(3) Annual purchase of fuel greater than 5,000 gallons: $ .20 per gallon discount on
Jet A fuel and $ .10 per gallon discount on 100LL fuel
In clarification of this lease agreement, the parties agree that the fully discounted price shall be
applied to all purchases made by LESSEE, subject to reimbursement of Lessor by LESSEE of the
discounts applied, in the event that annual fuel purchases by LESSEE fail to exceed the minimum
thresholds listed herein for the application of such discounts. Such reimbursement shall be made
within thirty (30) days of an annual accounting and invoice for reimbursement being presented to
LESSEE by Lessor.
26. LESSEE shall not permit any fuel or hazardous materials to be stored on the leased
premises.
27. LESSEE 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.
28. Pursuant to Indiana code 22-9-1-10, LESSEE, or any person acting on behalf of LESSEE
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.
29. Lessor will maintain and keep in regular repair the landing area of the airport and all
publicly owned facilities of the airport, together with the right to reasonable direct and control all
activities of LESSEE in this regard.
30. The Lessor 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 Lessor,
would limit the usefulness of the Airport or constitute a hazard to users of the airport.
31. During the time of war or national emergency, Lessor shall have the right to lease the
landing area or any part thereof to the United States Government for military or naval use, and if
such lease is executed, the provisions of this instrument, insofar as they are inconsistent with the
provisions of the lease to the government, shall be suspended.
32. This Lease shall be subordinate to the provisions of any existing or future agreement
between the Lessor and the United States of America or the State of Indiana, relative to the
operation of maintenance of the Airport.
33. LESSEE 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 Lessor, files a voluntary petition for
bankruptcy, or is adjudged bankrupt in action initiated by another party. If LESSEE fails to pay
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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 Lessor may also terminate this Lease upon the occurrence of a default, by giving notice to
LESSEE in writing within 30 days of the sending of such notice by certified mail. LESSEE shall
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, LESSEE shall be liable for such amount of money as is necessary to replace or
repair the premises. In addition, LESSEE shall be liable for any costs incurred by the Lessor in
the event of default by LESSEE, including but not limited to reasonable attorney's fees, whether
or not legal proceedings are commenced.
34. In the event the leased premises an appurtenant structures are damaged in anyway, not
attributed to LESSEE, its employees, customers, agents or guests, the Lessor 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. LESSEE shall restore, repair, or rebuild any damage to the premises attributable to
LESSEE, its employees, customers, agents, or guest.
35. Any notices required hereunder shall be sent as follows:
a. Board of Aviation Commissioners
Municipal Building
50 North 5t' Street
Richmond, IN 47374
b. Group Growth Services, Inc.
930 East Main Street
Richmond, IN 47324
36. If any provision of this Lease is declared invalid or unenforceable, the remainder hereof
shall continue to be in full force and effect.
37. 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.
38. Property taxes levied on the leasehold improvements shall be paid by LESSEE. Any
property taxes levied on the main hangar structure or real estate shall be paid by the Lessor.
39. The undersigned parties represent that their respective representatives have authorized the
execution of this Lease Agreement, which authorizations remain in full force and effect.
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Executed as of this —23rd day of _June 2008, although signatures may be subsequently
affixed.
THE CITY OF RICHMOND, GROUP GROWTH SERVICES, INC.
INDIANA, by and through its
Board of Aviation Commissioners
By S/S Mel Bruns President By_S/S Bob Dickman , Owner
(Mel Bruns) (Bob Dickman)
Approved by S/S Sarah L. Hutton_, Mayor of Richmond, Indiana
Sarah L. Hutton
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