HomeMy Public PortalAbout106-1978 - Authorization of the Aviation Board to Terminate a leaseORDINANCE NO. 106-1978
AN ORDINANCE OF THE CITY OF RICHMOND, INDIANA, AUTHORIZING AND EMPOWERING
ITS BOARD OF AVIATION COMMISSIONERS TO TERMINATE A LEASE BY WAY OF
CONCESSION OF AIRCRAFT STRIP PREMISES: FOR THE FINANCING OF COST OF SAID
TERMINATION, AND OTHER MATTERS RELATING THERETO.
WHEREAS, the Department of Aviation through its Board of Aviation
Commissioners, City of Richmond, Indiana, adopted a resolution October
12th , 1978, approving an Agreement for the termination of a Lease with
Sky Tech, Incorporated and approving the payment of the sum of Ninety
Thousand Dollars ($90,000.00) to Sky Tech, Incorporated, the purchasing
of an inventory of personal property of Sky Tech, Incorporated by the
assumption of the unpaid principal balance of a certain Promissory Note
due and owing by Sky Tech, Incorporated to The Second National Bank of
Richmond, Richmond, Indiana, and the employment of Eugene R. Smith,
President of Sky Tech, Incorporated for a period of up to five (5)
years, all as contained in said Agreement.
WHEREAS, said Resolution together with said Agreement was presented
to the Clerk for presentation to Common Council of the City of Richmond
and was so presented; now therefore,
BE IT ORDAINED by the Common Council of the City of Richmond, Indiana.
SECTION 1. It is hereby found that the Agreement with Sky Tech,
Incorporated for the termination of said Lease, and the employment of
Eugene R. Smith will be of benefit to the health and welfare of the
City of Richmond and is deemed to be in the best interests of the City.
SECTION 2. The Agreement approved by the Board of Aviation Commissioners
is hereby approved; and such Agreement shall be incorporated herein by
reference and shall be inserted in the minutes of the Common Council and
kept on file by the Clerk.
SECTION 3. The Department of Aviation through its Board of Aviation
Commissioners will issue its Promissory Note in the amount of Seventy
Thousand Dollars ($70,000.00), as provided in said Agreement, as one of
the considerations for the termination of said Lease. The President and
Secretary of the Board of Aviation Commissioners are authorized and
directed to execute the said Agreement, Note, Note Assumption and Release
which are attached to said Agreement and any other documents which may be
necessary or desirable to complete the transaction.
SECTION 4. The Mayor and Clerk are authorized and directed to
execute the Agreement approved herein on behalf of the City of Richmond
and any other documents which may be necessary or desirable to complete
the transaction.
SECTION S. That all acts, conditions and things required to effect
and be performed in the execution of the Agreement, the Note, and Note
Assumption, and Release do exceed, have happened and have been performed
in due time, form and manner required by law; and that the issuance and
delivery of the Agreement, the Note, Note Assumption and Release, together
with all other obligations of the City of Richmond, do not exceed or violate
any law or statutory limitation.
SECTION 6. The provisions of this Ordinance and the Agreement, Note
Assumption, Note and Release shall constitute a binding contract between the
City of Richmond and Sky Tech, Incorporated and this Ordinance shall not be
repealed or amended in any respect which would adversely affect the
rights of Sky Tech, Incorporated, its successors or assigns, or the
holders of said Promissory Note so long as the obligation under said
Agreement and Note remains unpaid.
SECTION 7. This ordinance shall be in full force and effect from
and after its passage and signing by the Mayor.
ADOPTED by the Common Council of the City of Richmond, Indiana, this
�A day of78.
Yes ent o ommon Council
ATTEST:. Qe�_
City e -
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PRESENTED to the Mayor of the City of Richmond, Indiana, this
day of 1978.
City Merk
APPROVED by me, Clifford J. Diclo=, Mayor of the City of Richmond,
Indiana, this S-� day of November, 1978.
,yam G`
M�tyb
r
ATTEST : t-u —
-City Clerk
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OF RlCtia�
October 24, 1978
Richmond Common Council
Municipal Building
Richmond, Indiana 47374
Dear Councilmen:
HO.ANI) OF'
1"k nlnund \luniclp l) Alrlo)ll
I � I.•1�nun' : A!, , ! , S'a , - 'I;
ttli'IIVU\i>. I\I)I.AAA .1 i11
The Board of Aviation Commissioners, as you have been made aware, has
been negotiating through their counsel to terminate a long term lease
of Sky Tech, Inc. for the facilities at the Richmond Municipal Airport
and replace it with a short term lease which will utilize new aggressive
personnel to assist the Board of Aviation Commissioners in achieving
their goal of making the Richmond Municipal Airport the gateway to
Richmond, Indiana.
It is the intent of the Board to create and maintain the Richmond
Municipal Airport as a true service facility that will be useful to
industry as well as the citizenry as a whole.
We sincerely believe that the Ordinanceswhich we have tendered to you
this date are effective steps toward that result.
Attached are the following:
1. A Resolution of the Board of Aviation Commissioners recommending the
adoption of an ordinance approving an Agreement with Sky Tech, Inc., copies
of all are enclosed.
2. A Resolution of the Board of Richmond Aviation Commissioners recommend-
ing approval by the ordinance and agreement with Richmond Aviation Cor-
poration, copies of all are enclosed.
It may not be readily apparent, however, the Board wishes to assure that
this transaction does not involve tax funds for its completion. Any
money appropriated, now or in the future, to carry out this agreement will
not require any outside funds not included in this transaction.
Yours very truly,
R�bert�'E f �Sr"ooks, President
Board of Aviation Commissioners
of Richmond, Indiana
R!'.S01.UF10N Ol: TIR: BOAU OF AVINNON C(MMI';`ifW4,C;
DGi'ARTM w OP AVIATIm cri'Y ov RIC mwn. 1NmAm
WI-if:!U'AS, The Board oC Aviation Conmiissioners held a special meeting, called
by tho IYosident, Robert I , lWooks, with due notice ;;iveir :arid received by e;tci,
and every commissioner, at 6:00 o'clock P.M. the 12th day of October, 1978,
at the Richmond Nlinicipal Airport, Richmond, Indiana. The Co.7mission members were
present or absent as follows:
Present: Robert E. Brooks, Eugene Stegall, Robert Toschlog,
Bernard N. Cole
Absent: None
l'JHfi!ZEAS, The President, with the meeting duly called to order, considered a
proposed Agreement between the City of Richmond by its Board of. Aviation Com-
missioners and Sky Tech, incorporated regarding the termination of the Lease
between the City of Richmond by its Board of Aviation Commissioners and Sky Tech,
Incorporated dated June 24, 1959, as amended, and which agreement was negotiated
between the members of the Board, its counsel and Sky Tech, incorporated over
a period of the past several months, and a copy of which is attached hereto
and by reference made a part hereof, and,
WHEREAS, The President submitted to members of the Board a copy of the proposed
Agreement with Exhibits 1 through 6, and,
WHEREAS, The Board of Aviation Commissioners heard ail members as to whether the
Agreement should be executed; and,
WHEREAS, After discussion and upon motion duly made by L'uzene Stegall
and seconded by Robert Toschlog , the Board of Aviation Commissioners
voted: -4- ayes and -0- nays, to adopt the following resolution.
BE IT RESOLVED, by the Board of Aviation Commissioners of the Department of
Aviation of the City of Richmond, Indiana, that:
Section 1. It finds that the proposed Agreement terminating the Lease between the
City and Sky Tech, Incorporated will be of benefit to the health or welfare of the
City of. Richmond and its citizens; that it would be for the best interest of the
City if such Lease were terminated and if such Agreement were executed.
Section 2. The form of the Agreement, together with the form of Note and Release,
and proposed form of Ordinance to be passed by the Common Council, presented to
this meeting are hereby approved.
Section 3. The Secretary shall initial and then insert a copy of the forms of
documents approved by this meeting in the records of this Commission.
Section 4. The President and the Secretary of the Board of Aviation Commissioners
arc authorized and directed to execute the Agreement vote, ;Vote assu:iption and
Release approved herein and any other documents which may be necessary or
desirable to complete the transaction on behalf of the City of Richmond by its
Board of Aviation Coi-wissioners.
Section 5. A copy of this resolution, the proposed form of Ordinance and any
other documents approved by this resolution shall be presented by the President
of the Board of Aviation Commissioners to the Ccrmmon Council of the City of
Richmond, Indiana.
Approv
Secre ry
PresidentL_
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AGREEMENT
AGREEMENT made by and between the CITY OF RICHMOND, a municipal
corporation of the State of Indiana, hereinafter referred to as "City",
by its BOARD OF AVIATION COMMISSIONERS, and SKY TECII, INCORPORATED,
hereinafter referred to as "Company", and HUCENI; R. SHITH, hereinafter
referred to as "Smith".
W 1 T N I? S S E T 11 :
WHEREAS, the City and the Company have heretofore entered into a
certain Agreement entitled, Lease By Way of Concession of Aircraft Strip
Premises, dated January 24, 1959, which said lease was amended by a
certain Supplemental Lease By Way of Concession of Aircraft Strip Premises,
dated April. 29, 1959, which said documents are hereby referred to as
"Lease", and,
WHEREAS, the term of the Lease was for a period of thirty (30)
years commencing on .January 1, 1959, together with the rip,ht or option
of the Company to extend the Lease for an additional period of ten (10)
years after the expiration of the original term upon the same terms and
conditions, and,
WHEREAS, the Company has operated as a Fixed Base Operator under
said Lease at the Airport continuously since .January 24, 1959; and tinder
the terms and conditions of such Lease caused to he constructed and
erected upon the leased property a hanger with shop and office space of
approx hnatel.y Twelve Thousand (12,000) square feet, and,
WIIEREAS, Smith Is tho President and sole stuckhnlder ul the Cnmpnny,
and since the executioil of lhc, Lease has been thi. Ind ivldunl :;(d(-Iy
responsible for the day -to -clay operation of the Company's fixed base
operation at the Richmond Municipal Airport; that Smith has personally
involved himself in every phase of the Company's responsibilities under
such Lease and has become identified as the. "operator" of the leased
facilities, and,
WHEREAS, the City is desirous of terminating such Lease with the
Company in order to be able to exercise more control over the conduct
and operation of the Airport and to be better able to plan for its
growth and development; but City is desirous of maintaining the services
of Smith for a pvrlod of up to five (5) years after the terminatlon of
the Lease In order to nssure a quccesslul tran.sillon of the Fixed Based
Operation from the Company to a successor I'lxvd Base Operator; and,
WHEREAS, the Company is willing to enter into an Agreement for the
termination of such Lease, upon the following terms and conditions which
shall include provisions for the utilization of the services of Smith
for a period of at least five (S) years.
NOW, THEREFORE, in consideration of the mutual covenants, IT IS
AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS:
1. The Company agrees to cancel and terminate the lease with the
City, and the City agrees to accept the cancellation and termination of
such lease upon the following terms and conditions:
i. The City shall pay to Company, its successors or assigns,
the sum of Ninety Thousand Dollars ($90,000.00) as follows:
(a) The sum of Twenty Thousand Dollars ($20,000.00) cash upon
the execution of this Agreement and the approval of the terms
hereof by the Common Council of the City of Richmond, Indiana,
hereinafter referred to as "Council". However, it is understood
and agreed that If the Council shall fail to pass :an ordinnncc•
;authorizing and empowering the execution of tlilt: Agreement by the
Board of Aviation Commissioners on or before Dvicer.aher S, 1918, this
Agreement shall be null and void :and of no further force and effect
and such Lease shall remain in full force and effect for the remainder
of the term of such Lease and any renewal thereof.
(b) The City shall pay to the Company, its successors or
assigns, the balance of Seventy Thousand Dollars ($70,000.00) at
such times and in such amounts, as reflected in the schedule attached
hereto, made a part hereof, and marked "Schedule 1". The sum of
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Seventy Thousand Dollars ($70,000.00) shall be evidenced by a
Promtssory Note executed by the Board ul AviaLlon Cnmmissfonors in
Ihc Ill luclprll "illonnl of `;(-Vcnly '1'bnlul:nld Dollaln (".40,000.00), ,i
copy of which is attached hereto, made a part hereof and marked
"Schedule 2".
ii. The City shall assume and agree to pay the unpaid balance
of that certain Promissory Note dated December 12, 1975, in the principal
amount of Thirty-five Thousand Dollars ($35,000.00) executed by the
Company and co -signed by Smith and his wife, individually, and payable
to The Second Nattonal. Bank of Richmond, Richmond, Indiana, It is the
understanding and agreement of the parties that the obligation evidenced
by such Note is an obligation of the Company (hereinafter referred to as
"Note of Company"). The unpaid balance of principal due on said Note of
Company on August 1, 1976 is Twenty-three Thousand One Hundred Sixty-
seven Dollars and Seventy-six Cents ($23,167.76). It is the understanding
and agreement of the parties hereto that the City will either pay the
balance of the Note of Company in full at the Time of Closing or the
City will execute an assumption of such Note of Company and The Second
National Bank of Richmond will consent to such assumption and agree Lo
release the Company, Smith ,uld Ills wife- I ram :tny I lnbi i ity under -inch
Note of Company.
iii. The Company shall retain all of its accounts receivable
and cash at the Time of Closing. The Company will be liable for all of
its accounts payable, and agrees that all such accounts will be paid in
full at the Time of Closing; and further agrees to save and hold harmless
the City, its successors and assigns, from any and all liability which
may occur from such accounts payable.
iv. The City, its successors or assigns, will purchase from
the Company, its successors or assigns, all of the Company's inventory
of aviation fuel at the Company's cost plus Three Cents ($0.03) per
gallon which it has paid the City for all aviation fuel purchased; the
City will purchase all fuel oil at the Company's cost.
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V. The Company agrees to assign, transfer and convey to the
City all of its right, title and interest in and to the equipment,
machinery, tools and personal property which is attached hereto, made a
part hereof and marked "Schedule 3", free and clear of all liens and
encumbrances. The Company assigns to the City all of its right, title
and interest in and to the following leased equipment, subject to the
terms and conditions of the lease between the owner and the Company and
subject to all obligations pertaining thereto, a copy of which is
attached hereto, made a part hereof and marked "Schedule 4". Also
attached hereto and made a part hereof is a schedule of items owned by
others than the Company and of which the Company has no interest whatsoever,
which schedule is attached hereto, made a part hereof and marked "Schedule
5".
vi. All rents, utilities and insurance shall be prorated at
the Time of Closing.
vii. Recognizing that Smith is the princLpal of the Company,
the. Individual who has hecn responsible for the day-to-day operation of
the business for the past twenty years, and the individual whose service
shall be required for up to the next five (5) years in order to assure a
successful transition of the operation to the City or to a new Fixed
Base Operator to be designated by the City, the City, as additional
consideration to induce the Company and its sole stockholder to terminate
such Lease; agrees to pay to Smith the sum of Sixty-six Thousand Dollars
($66,000.00) for services to be rendered hereunder, payable Thirteen
Thousand Two Hundred Dollars ($13aOT 00) each year in "" a] weekly
Installments and such other considerations ns Iwrclual[(,*r I)rovIdod:
(a) The City shrill provide or guise to he provided a com-
prehensive medical and hospital Lnsurance policy, similar to the
coverage which is now provided by the Company for Smith and his
wife, and,
(1) That Smith will be employed as an employeeofthe
Fixed Base Operation and shall be subject to the orders and
directions of the Board of Aviation Commissioners or of a
fixed base operator, who shall be selected by the City in lieu
of the Company and during such period of employment, Smith
shall conduct himself so as to maintain and enhance the
goodwill of the Fixed Base Operation, and shall at all times
conduct himself In all dealings with suppllcrs, customers and
others ualnh such facility are It ho worm Iht. operator of the
facility.
(a) The period of such employment shall be five (5)
years commencing on the date that City shall acquire
possession of the leased premises, and such employment
will not terminate except on Smith's death or in the
event that he becomes totally incapacitated or in the
event of his discharge for proper cause only. Provided,
however, Smith may Corminate such employment at any time
after the first anniversary of the cancollation of the•
Lease, by giving to the City, fourteen (14) days' wriLten
notice of his intent to cease such relationship with the
City or its successors or assigns. On termination of
such employment, all compensation and benefits provided
in this Section vii shall cease.
(2) It is agreed that Smith shall provide his services
to the City on the following basis:
(a) Nine (9) hours per day, five (5) days per week
from Monday through Friday. All hours worked in excess
of forty-five (45) hours per week shall be reimbursed
pursuant to applicable wage and hour statutes.
(b) Two (2) weeks' vacation each year 'with pay.
During each employment year, after six (6) months of
employment, the vacation can be taken.
(c) Seven (7) holidays with pay, to -wit: New
Year's Day, Easter, Memorial Day, July 4th, Christmas,
Labor Day and Thanksgiving I)ay.
(d) Seven (7) sick days with pay each year of
employment. If sick days are not taken during any year
of employment, they will be lost and will not be cumulative
for any succeeding year of employment.
(3) For the above. consideration, Smith agrees that at no
time after above defined relationship shall terminate, will he
i:: an employee, (dIIcer or director ur Iutrincr nl any Ilan ur
entity compete with nay of the act lvitles provided by a Ilxed
base operator anywhere within a radius of one hundred (100)
miles of the City of Richmond, Indiana, for a period of five
(5) years after termination of such relationship with the
City, its successors or assigns.
2. The Company and Smith, jointly and severally, warrant and agree
that until the Time of Closing it will conduct the business of a fixed
base operator only in Its regular and ordinary course; that it will use
its hest efforts, pending such closing, to maintain the goodwill of the
Company and Its relations with Its supulicrs, customers, and others
having dealings with It, the same as if the Lease was not to be terminated,
and will use its best efforts to maintain the present value of its good
will and business.
3. It is understood and agreed that this Agreement may be assigned
in whole or in part to a new Fixed Base Operator, however, no assignment
shall relieve the City from primary liability for any of its obligations
hereunder; and in the event of any such assignment, the City shall
continue to remain primarily Ilable for the payment of all moneys specified
in Paragraphs I(I) and I(vll) hereof and for the performance and ohsorvance
of the other covenants, representntlons and al,,reement on ii part
herein provided to be performed and observed by It to the same extent: as
though no assignment had been made. The assignee shall assume the
obligations of the City hereunder to the extent of the interest assigned,
subject of course, to the primary responsibility of the City.
4. The termination of the Lease provided under this Agreement
shall be effective at a time (herein referred to as "Time of Closing")
and place agreeable to the parties within ten (10) days after the Common
Council of the City of Richmond, Indiana, has adopted an appropriate
ordinance authorizing and empowering the consummation of this transaction.
in the event that Council shall fail to adopt, prior to December 5,
1978, an ordinance authorizing and empowering the execution and delivery
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of this Agreement by the Board of Aviation Commissioners, then in such
event, the Lease shall be in full farce and effect and neither the City
or the Company shall have a claim against the other for any alleged
violation of any term or condition of such Lease which may have existed
prior to the date of the execution of this Agreement.
5. At tltc 'Thlic of CluHing, City sh;tll deliver to lln• Company its
check In the amount of Twenty 'Thousand Dollars ($20,000.00), an assumption
of the Note of Company, which assumption is consented to by The Second
National Bank of Richmond, or the delivery of the Note of Company to the
Company marked "Paid in Full"; City's Promissory Note in the amount of
Seventy Thousand Dollars ($70,000.00); a certification by the Controller
of the City of Richmond, Indiana, representing and warranting that the
indebtedness incurred by the City under the terms of this Agreement,
together with all other indebtedness of the City as of the effective
date of this Agreement will not exceed in the aggregate, an amount equal
to two percent (2 ) of the value at taxahlc property- within We City of
Richmond, and as ascertained by the last assessment for State. and County
taxes; and Company shall deliver to the City a Bill of Sale of the
equipment and personal property set forth in Schedule 3; and each party
shall execute and deliver to the other a mutual release in the form
attached hereto, made a part hereof, and marked "Schedule 6".
6. The City shall deliver to the Company and Smith an opinion of
City's corporation counsel, dated as of the Time of Closing, to the
Meet that:
1. The City Is a duty constituted municipal rorporation at
Lhe State of Indiana, validly existing under the Constitution and State U•.,
of the State of Indiana, and has the power and authority to carry uuL
and consummate all transactions contemplated by this Agreement, including
but limited to the payment of moneys in accordance with the installments
provided for herein.
ii. The City has complied with all of the requirements of
Indiana law with respect to the authorization, execution and delivery of
the above Agreement.
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iii. The Department of Aviation is an executive department of
the City of Richmond, Indiana, established for the benefit of the City
of Richmond, which is under the control of its Board of Aviation Commissioners.
In entering Into the nforosatd AgreemenL and performinp, their obi IF,otions
thereunder, both the City and the Ikoard of Avlat loin Cnunnir.;;loner:t ;ire
acting in furtherance of the public purpose for which they were created.
iv. All resolutions and actions of the Board of Aviation
Commissioners and all ordinances adopted by the Common Council of the
City of Richmond relating to this Agreement, and all related proceedings
comply with all by-laws, rules and regulations of the Commissioners, the
City and the Common Council thereof.
v. Each member of the Board of Aviation Commissioners is duly
appointed pursuant to the Statutes of the State of Indiana.
vL. That the indebtedness Incurred by the My under the terms
of this Agreement together with all other indebtedness of the City as of
the effective date of this Agreement will not exceed in the aggregate,
an amount equal to two percent (2%) of the value of taxable property
within the City of Richmond, and as ascertained by the last assessment
for State and County taxes.
7. The Company shall deliver possession of the leased premises to
the City at. the Time of Closing at which time the Lease shall be cancelled.
8. All the terms and provisions of this Agreement shall be binding
upon and Inure to the benefit of and he enforceable by Lhe successors
and assigns of the City and the Company curd upon the heirs, personal
representatives and assigns of Smith.
9. This Agreement is delivered and is intended to be performed in
the State of Indiana, and shall be governed by and construed in accordance
with the laws of that State.
IN WITNESS WHEREOF, the City, the Company and Smith have caused
this Agreement to he executed in their respective corporate and individual
names and the seal of the City of Richmond, Indiana, to be hereto affixed
and attested by their respective duly authorized officers, all as of the
day of , 1978.
CITY OF RICIRIOND, INDfANA
By: - -
Attest: Clifford .1 Dickman, Mayor
Jo Ellen Trimble, Clerk
Attest:
- ---------------- ---------
Secretary
Attest:
BOARD OF AVIATION COMMISSIONERS
City of Richmond, Indiana
By: _
Robert E. Brooks, President
"CITY"
SKY TECH, INCORPORATED
By:
Eugene R. Smith, President
Secretary
"CO^IPANY"
Eugene R. Smith, Individually
"SMITH"
STATE OF INDIANA )
) SS:
COUNTY OF IIAYNE )
Before me, _ a Notary Public in and for the
State and County aforesaid, personally appeared Robert E. Brooks, President,
and _ , Secretary, with both of whom I am
personally acquainted, and who, upon their oaths, acknowledged themselves
to be the President and Secretary, respectively, of the Board of Aviation
Commissioners of the City of Richmond, Indiana, one of the within named
parties, and that they, as such President and Secretary, being authorized
so to do, executed the foregoing instrument for the purposes contained
therein by subscribing thereto the name of said City and attesting the
official seal of said City by themselves as such President and Secretary
respectively.
WITNESS, my hand and notarial. seal of office at Richmond, Indiana,
this _ day of — ., 1978.
Notary Public residing in Wayne
County, Indiana
My Commission expires:
STATE' OF INDIANA )
) SS:
COUNTY OF WAYNF. )
Before me, _, a Notary Public in and for
the State and County aforesaid, personally appeared Eugene R. Smith and
_ , with both of whom I am personally acquainted,
and who, upon their oaths, acknowledged themselves to be the President
and Secretary, respectively, of Sky Tech, Incorporated, being authorized
so to do, executed the foregoing instrument for the purposes contained
therein, by subscribing thereto the name of said corporation and attesting
by themselves as such President and Secretary, respectively.
WITNESS, my hand and Notarial Seal of office at Richmond, Indiana,
this day of _ , 1978.
Notary i'ubl is residinf, in Wayne
County, Indiana
My Commission expires:
STATE OF INDIANA )
) SS:
COUNTY OF WAYNE )
Before me, _ , a Notary Public in and for the
State and County aforesaid, personally appeared Eugene R. Smith, with
whom 1 am personally acquainted, and who, upon his oath, acknowledged
1jjjTksvJ-f to be the Individual In the foretoing instrument.
WITNI?SS, my hand and NoLarlal Swil of office at Richmond, Indiana,
this ---- day of -- - - ----- —' 1978.
My Commission expires:
Notary Public residing in Wayne
County, Indiana
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STATE OF TNDTANA )
) SS:
COUNTY OF WAYNE )
Before me, _, a Notary Public in and
for the State and County aforesaid, personally appeared Clifford J.
Dickman, Mayor and Jo Ellen Trimble, Clerk, with both of whom I am personally
acquainted, and who, upon their oaths, acknowledged themselves to
he the Mayor and Clerk, respectively, of Lhe City of Richmond, Indiana,
ono of the within named parties, ;and that Lhey, as such Mayor and Clerk,
being authorized so to do, executed the foregoing instrument for the purposes
contained therein by subscribing thereto the name of said City and attesting
the official seal of said City by themselves as such Mayor and Clerk,
respectively.
Wl'I'NI;SS, my hand and notarial sent of office at Richmond, Indiana,
His day of 1978.
My Commission expires:
Notary Public residing in Wayne
County, Indiana
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"SCHEDULE I"
9%
PAID ON
DATF.
PRINCIPAL
INTEREST
PAYMENT
PRINCIPAL
BALANCE
1.
December
1,
1979
$70,000.00
$6,300.00
$ll,000.00
$4,700.00
$65,300.00
2.
December
1,
1980
65,300.00
5,877.00
11,000.00
5,123.00
60,177.00
3.
December
1,
1981
60,177.00
`i,41').93
11,000.00
5,584.W
54,592.9";
4.
December
1,
1982
54,592.93
4,913.36
II,000.00
6,086.64
48,506.29
5.
December
1,
1983
48,506.29
4,365.56
11,000.00
6,635.00
41,871.99
6.
December
1,
1984
41,871.99
3,768.41
11,000.00
7,231.59
34,639.70
7.
December
1,
1985
34,639.70
3,117.57
11,000.00
7,882.43
26,757.27
8.
December
1,
1986
26,757.27
2,408.15
11,000.00
8,591.83
18,165.44
9.
December
1,
1987
18,165.44
1,634.88
11,000.00
9,365.12
8,800.32
10.
December
1,
1988
8,800.32
792.02
9,592.34
8,800.32
-0-
MUF
$70,000.00
Richmond, Indiana
. 1978
FOR VALUE RECEIVED, the undersigned, the CITY OF RICHMOND, INDIANA,
by its BOARD OF AVIATION COMMISSIONERS, a municipal corporation, duly
organized and existing in the State of Indiana, hereby promises to pay
to SKY TECH, INCORPORATED, its successors or assigns, on or before ten
(1.0) years from the date hereof, the }principal amount of Seventy `thousand
Dollars ($70,000.00) with Interest thereon at the rate of nine percent
(9 ) per annum from the date hereof until the principal amount: is fully
paid. Principal and interest shall he payable. at 20 Forest Place,
Richmond, Indiana, or such other place as the Note holder may designate,
in consecutive annual installments of Eleven Thousand Dollars ($11,000.00)
on the first day of each December, commencing on December 1, 1979. Such
annual installments shall continue until the entire indebtedness evidenced
by this Note is fully paid, except that any remaining indebtedness, if
not sooner paid, shall be due and payable on December 1, 1988.
If any annual installment under this Note is not paid when due the
entire principal amount outstanding and accrued interest thereon shall
at once become due and payable at the option of the Note holder. The
Note holder may exercise this option to accelerate during any default by
the undersigned regardless of any prior forbearance. If suit is brought
to collect this Note, the Note holder shall be entitled to collect all
reasonable costs and expenses of suit, including, but not limited to,
reasonable attorney's fees.
The undersigned may prepay the principal amount uutt;tandin); in
whole or In part. The Note holder may rcqufrc that any partial prcpayrneutr:
(1) be made on the date annual InstaflnucnLs are due and (ii) he in tin
amount of not more than Eight Thousand Dollars ($8,000.00). Any p;irt.ial
prepayment shall be applied against the principal amount outstanding and
shall not postpone the due date of any subsequent annual installments or
change the amount of such installments, unless the Note holder shall
otherwise agree in writing.
Presentment, notice of dishonor, and protest are hereby waived by
all makers, sureties, guarantors and endorsers hereof. This Note shall
be the joint and several obligation of all makers, sureties, guarantors
and endorsers, and shall be binding upon them and their successors and
assigns.
It is hereby certified, reclted and doclared that all acts, conditions
and things required to exist, happen rind he performed precedent to and
In the executlon and delivery of Lhis Note do exist, have hnppencd and
have been performed In due time, form and manner required by Law; and
the issuance and delivery of this Note, together with all other obligations
of the City does not exceed or violate any constitutional or statutory
limitation.
IN WITNESS WHEREOF, the undersigned has caused this Note to be duly
executed, ..attested and delivered as of this day of
1978.
ATTEST:
CITY OF RICHMOND, INDIANA, by its
BOARD OF AVIATION COMMISSIONERS
By:
Secrcrary.
"SCHEDULE 3"
UANTITY
DESCRIPTION
1.
1
Log chain
2.
l
Deana tow bar
3.
1
.leap - 1959 - serial #57'i4890193
4.
1
Cessna 150C - 1968 -- N3086i ser.
5.
1
3 toot stop ladder
6.
1
De-I;reaser Gun
7.
3
55-gallon drums (trash barrel)
8.
3
30-};allon drums (trash barrel)
9.
1
Vibro-tool
10.
3
30-gallon drums
11.
3
55-gallon drums
12.
3
Engine slings
13.
1
Drone plane
14.
2
Electric buffers
15.
2
Beech 18 jack pads
16.
1
Hyd. Press. Pot
17.
1
Grease gun
18.
1
Champion gap setting tool
19.
1
Blow gun
20.
1
Air chuck
21.
1
200 gallon oil tank
22.
1
Flectric "iy,n
23.
2
Plcnlc tahl�s
24.
1
Misr. nlrc•ridt rirts
25.
Eon'Jne 011 Inventory
26.
1
Cash Box
27.
2
Storage Cabinets
28.
1
Metal Office Desk
29.
2
Office chairs
30.
1
Filing cabinet
31.
1
Adding Machine
32.
1
Typewriter - 1958
33.
1
Typewriter Table
34.
1
Billing, Machine
35.
2
Overstuffed Chairs
36.
1
Key Cabinet
37.
1
Clock
38.
1
VHF Kadio
39.
1
AmnlIfer
411.
1
Altlnu+ter
41.
1
Win([ Instrument - udomcter
42.
1
Unlrom Radio nod Antennn
4 1.
I
B I nckbort rd
44.
1
':Jest e Bnsket
45.
1
A I r CondIttoner
46.
1
Check Paymaster
47.
4
Bamboo Blinds
48.
1
Log Book Rack
49.
1
Bulletin Board
50.
1
Showcase
51.
2
Large Couches
52.
1
Coat Tree
53.
2
Ash Trays
54.
1
Table
55.
1
Lamp
56.
1
Clock
1'i066986
57.
1
Water Colder
58.
1
SII;nuture Frost Icss 21 ref rigerat or
59.
1
Wa11 map
60.
1
Air Conditioner
61.
1
Typewriter table
62.
1
Pencil sharpener
63.
1
Misc. Clip Board
64.
1
Cabinet Aircraft Manuals
65.
1
Data View LF-1015 and films
66.
1
Blackboard
67.
1
Metal Cabinet
68.
1
Radio Speaker
69.
1
First Aid Kit
70.
l
Table
71.
1
Metal Can (fireproof)
72.
1
Clock
7:3.
1
Slvdgo ikmmvr
74.
1
Shovels
75.
3
hoes
76.
1
Hake.
77.
1
Tce Chopper
78.
3
Brooms
79.
1
Batt. Charger
80.
1
Batt. Water Jar
81.
1
Auto. Floor Jack
82.
1
Pry Bar
83.
1
5-Gallon Oil can
84.
1
10 foot step ladder
85.
1
10 foot ladder
86.
8
Fire Extinguishers
87.
1
Scissors Jack
88.
1
Folding Chair
89.
1
Plop Bucket
90.
2
Extension Cords
91.
l
Wood Dollle
92.
1
Drain Snake
93.
1
Beech 18 Tow liar
94.
t
Portal Lamp
95.
1
Extension Cord
96.
1
2-ton Hoist
97.
1
Chain Fall
98.
1
220 Nitrogen Cyi. is Gauge
99.
1
Floor Scrubber
100.
3
Hydraulic Jacks
101.
2
Water Hoses
102.
2
Floor Creepers
103.
1
Spark Cleaner
104.
4
5-gallon Oil Cans
105.
1
Portable Lamp
106.
1
Air Hose
107.
3
Hose Holders
108.
1
Block 4 DUCker Sweeper
109.
2
Portable air tanks
110.
l
Mop
ill.
1
Squeegee
112.
1
1-Quart Oil Can
113.
1
Beech Tow Bar (35)
114.
1
Beech Tow Bar (23)
115.
1
Mooney Tow Bar
116.
1
Piper Arrow Tow Bar
117,
2
Piper Tow Bars
118.
1
Beech Tow Bar
119.
5
Ceti:;ua Tow hnrs
120.
1
Cl Ipperr.
121.
I
CI Ipycrs
122.
2
Work Benches
123.
1
Large Vise
124.
1
Atlas Lathe & Bench
125.
1
Arbor Press
126.
1
Bench Grinder Sears
127.
1
Small Vise
128.
1
Wayne Air Compressor
129.
1
Craftman Drill.
130.
2
Metal Cab
131.
1
rire Extinguisher
132.
2
5-gallon Bottles (Water)
133.
1
First Aid Kit
134.
1
Ptetal Cabinet
135.
1
Acetelyne Tank
136.
1
Oxygen Tank
137.
1
Water Ilosc, Holder
138.
I
Welding Torch & Gaul;cs
139.
18
Folding Chairs
140.
5
Tables
141.
1
Desk
142.
1
Lamp
143.
1
Air Conditioner
144.
1
Billing Machine
145.
1
Metal Cabinet
146.
1
Wooden Cabinet
147.
1
Waste Basket
148.
1
Blackboard
149.
1
Bulletin Board
150.
1
Office Chair
151.
1
Instrument - Commercial Course
152.
1
Reclining Chair
153.
1
Large Table
154.
1
Coat Tree
155.
1
Wood Prop
156.
1
Exhaust Pan and Motor
ITEM
1.
080127
2.
053401
3.
053402
4.
069151
5.
069383
6.
053405
7.
053408
H.
053409
9.
05'3410
10.
009152
H .
078595
12.
078596
13.
053411
14.
053412
15.
069638
16.
075926
17.
18.
19.
"SCI I I-;w l x 4"
DESCRIPTION SERIAL.
Credit Card Imprinter
Red Jacket Pump
Red Jacket Pump
Blackmer Pump
446929
Smith Meter
Filter Separator
Loading Assembly
Loading Assembly
Filter Separator
Filter Separator
035155
7/Hoxai;011a] Sign II
456192
7/IlexagonaI ;ign II
456192
10,000 gal. U C Tank
10,000 gal. U C 'Tank
12,000 ;al. U C Tank C
073973
Wheaton Float Suctio
CMC Truck
14115
Ford 800
DD3773
GMC #6
D2895
"SCHEDULE 5"
1. Coffee System of Dayton: Coffee Machine and stand
2. Lincoln-Kaler: Candy and cigarette machines
3. American Linen Co.: 3 towel cabinets
4. Pepsi Co.: Pepsi machine
5. Stewart Co.: Sandwich machine.
6. liana Corp: Office equipment and furniture
Frigldaire lee Machin(,
link-O-Made water softener
1 liana tow bar
7. United States Parachute Association: P1isc. Supplies and Equipment
8. Squires Flying Service: Misc. Furniture and Supplies
9. E. A. A.: Filing Cabinet
10. Richmond Javicees: Misc. Office Equipment and Furniture
I; I',I.I:A'; i
THIS RELEASE AGREEMENT, made and entered into on the day of
, 1978, by the CITY OF RICHMOND, by its BOARD OF AVIATION
COMMISSIONERS, hereinafter referred to as "CITY", and SKY TECH, INCORPORATED,
hereinafter referred to as "COMPANY", and EUGFNE R. SMITH, hereinafter
referred to as "SMITH",
W I 'I' N L S S E T I
WHEREAS, the City and thv Company have heretofore i�ntered into a
certain Agreement. ent It led, Lease By Way of Concession of Aircraft Strip
Premises, dated January 24, 1959, which said lease way; :emended by a
certain Supplemental Lease By [day of Concession of Aircraft Strip Premises,
dated April 29, 1959, which said documents ar< hereby referred to as
"Lease", and,
WHEREAS, the term of the Lease was for a period of thirty (30)
years commencing on January 1, 1959, together with the rigA or option
of the Company to extend the Lease for an addi[ionai period of ten (10)
years alter file (-xl)irntfuu n; th,- ori;final term upon the- .tiame terror; and
conditions, and,
WIIl,1,FA5 I ile Ccmipnnv has operate,I Nixo d i;n e raior it; ider
said Lease at the: Airport continuously since January 24, 1959; andunder
the terms and conditions of such Lease caused to be constructed and
erected upon the leased property a hanger with shop and office space of
approximately 'Delve Thousand (12,000) square feet, and,
WHEREAS, Smith is the President and sole stockholder of the Company,
and since the execution of the Inase ins been the individual solely
responsible for they day-to-day operation of the Company's fixed base
operation at the Richmond Municipal Airport; that SmlLh has personally
involved himself in every phase of the Company's responsibilities under
such Lease and has become identified as the "operator" of the leased
facilities, and,
6,`IIIRP;Ati, t;I, Cliy i:, deslrou:; "I ,(lelinal1!i;, si,wh knob,( with the
t.0III panV ill Ill-dor t" hr :11, (' I I'Xor('i',c IIIIIII' (wllrcl "Vol IIII- colni'l('I
and operal Ion o t ir+ A i rpo; I and t (I he III•I I (•r nh i" I o p l rill I or I I ,i
growth and dev(:Iopme�lt; hp C1ty Is (h�sIrnl:, ,f rar:lutaJping the services
of Smith for a period of up to five (5) years alter the termination of
the Lease in order to assure a successful transition of the Fixed Based
Operation from the Company to a suc,,.essor Fixed Base Operator, and,
WHEREAS, the parties have entered into a certain Agreement for the
termination of such Lease dated the day of 1978,
(''AGREEMENT') which said Agreement is made a part of this Release and
incorporated by refcrcnce, t.ud,
Mil?REAS, the pnr( les agrcc to (•::ccutc Tl,i:, ruuual 1;( ;( use and to
settle all claims with respect to such Lc -+se, cx, etlt onjI and to the
extent as providod for and reserved under .said Agconment.
IN CONSTDT:,YJT0X of the terminac ion of she Lease in accordance with
such Agreement, and the release of their respective legal rights with
regard to such "Lease' , and in emu d erat ion of the execution of this
Release, each part` for himself and his i:e'irs and Ural representatives,
successors and assigns, expressly releases the others, and their heirs,
legal representatfves, succchsorn and a4.sll;ns, from ail-laims, demands
and onu om of act !on brat auy of such I,:Irt ir., L:I. , may have had
ngaln:;t Inch )(her paned on the Lc;lsr. Provldc(i, h,)w(v(r, it is understood
and ngrccd that ChLI Rcleasc shnlI nut rcleasc an,, ,,I tno pLirtics frorl
any of their respective covenants, agreements, obligations or i.iabilities
as contained in the Agreement dated the day of
1978.
The parties agree that the Luse shall be and is hereby terminated
and cancelled as of the day of 1 1978.
IN WITNESS WtEREOF , the e parties have execu! cd this Release at
Richmond, Indiana, on the cl-iy acid year first above
Attest'
Attest:
BUARD OF AVIATION ('O`IMISSIONLR.q
City of Ricimini;d, Tildialla
Robert E. Brooks, llr(,.!;Ident:
, Secretary
I I C rly I
SKY TECii, TNCORPOIWIED
. Secretary
I I Co"'TP A. "Ic Y "
"SMITH"
,l I 11(lividual ly