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HomeMy Public PortalAbout107-1978 - Authorization of the Aviation Board to Enter into a leaseSPECIAL ORDINANCE NO. 107-1978 AN ORDINANCE AUTHORIZING AND EMPOWERING THE BOARD OF AVIATION COMMISSIONERS OF THE CITY OF RICHMOND, INDIANA, TO ENTER INTO A LEASE WITH A FIXED BASED OPERATOR FOR THE RICHMOND MUNICIPAL AIRPORT. WHEREAS, The Board of Aviation Commissioners of the Department of Aviation, an executive department of the City of Richmond, Indiana, has resolved by resolution passed by said Board of Aviation Commissioners, on the day of , 1978, by unanimous vote, to enter into a lease Agreement with the Richmond Aviation Corporation, a corporation organized and existing by virtue of and under the laws of the State of Indiana; and, WHEREAS, that Resolution, together with said Agreement, was presented to the City Clerk for presentation to Common Council of the City of Richmond and which documents were presented to said Common Council; and, WHEREAS, The Richmond Municipal Airport is now without the services of a Fixed Based Operator; and, WHEREAS, The Richmond Aviation Corporation has the knowledge and experience to successfully be the Fixed Based Operator of the Richmond Municipal Airport. NOW THEREFORE: Be it Ordained by the Common Council of the City of Richmond, Wayne County, Indiana; that: SECTION 1. It is hereby found that the Richmond Municipal Airport exists for the public convenience and necessity for the City of Richmond, Indiana. SECTION 2. And further it is found that the Agreement between the Board of Aviation Commissioners of the Department of Aviation of the City of Richmond, Indiana, and the Richmond Aviation Commission to provide a Fixed Based Operator for the operation of the facilities of the Richmond Municipal Airport will be of benefit to the health and general welfare and is in the best interest of the citizens of the City of Richmond, Indiana. - 1 - SECTION 3. And it is further found that all acts, conditions, and things required to be performed precedent to the passing of this Ordinance and the execution of the Agreement have happened and have been performed in due time, form, and manner required by law and do not exceed or violate any law or statutory limitation. SECTION 4. That the Agreement approved by the Board of Aviation Commissioners of Richmond, Indiana, by resolution of said Board dated the day of , 1978, between said Board of Aviation Commissioners and the Richmond Aviation Corporation 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 5. That the Board of Aviation Commissioners shall and are hereby directed to execute such documents and do such acts as are necessary to complete the transaction, on behalf of the City of Richmond. SECTION 6. That the Mayor and Clerk are authorized and directed to execute the Agreement approved herein, and such other documents which may be necessary to complete this transaction. SECTION 7. This Ordinance shall be in full force and effect from and after its passage and signing by the Mayor. PASSED AND ADOPTED by the Common Council of the City of Richmond. Indiana, the day of `% oti``" 1978. P esi ent o Co Coon A City er PRESENTED to the Mayor of the City of Richmond, Indiana, this S -c4 day of X""_`'H 4- 1978. City C e APPROVED by me, Clifford J. Dickman, Mayor of the City of Richmond, Indiana., this "�' day of ���^ �'L" ' 1978. C i is yor ATTES . City Clerk _ 2 - RESOLUTION OF THE BOARD OF AVIATION COMISSIONE_RS DEPARTMENT OF AVIATION, CITY OF RICHMOND, INDIANA WHEREAS, the Board of Aviation Commissioners held a special meeting, called by the President, Robert E. Brooks, with due notice 1given and received by each and every Commissioner, at 12:00 o'clock noon the 19th day of October, 1978, at #1 Woodside Drive, Richmond, Indiana, office of Attorney Robert L. Hudson, Jr. The Commission_ ,members present constituted a quorum of the Board and there were: Present: Robert E. Brooks, Eugene Stegall, Robert Toschlog, Absent: Bernard N. Cole and, WHEREAS, the President, with the meeting duly called to iorder, offered for consideration a proposed Agreement between the ,Board of Aviation Commissioners of the City of Richmond, Indiana, !';and Richmond Aviation Corporation pertaining to an agreement be- �tween the Board of Aviation Commissioners of the City of Richmond, 1,iIndiana, and the Richmond Aviation Corporation, which agreement ':was negotiated between the members of the Board, its counsel, and I' ,'Richmond Aviation Corporation, a copy of which is attached hereto ';land by reference made a part hereof, and is marked Exhibit "A" i 'hereof; and, ji WHEREAS, the President submitted to members of the Board a ;copy of the proposed Agreement, and proposed Ordinance by which iCommon Council of the City of Richmond, Indiana, would by adopt- jing said Ordinance, approve the proposed Agreement; and i+ WHEREAS, after discussion and upon motion duly made by Eugene Stegall and seconded by Robert Toschlog, the Board of Avia tion Commissioners voted: 3 ayes and 0 nays, to adopt the follow-, i ,ing resolution: I i� I i i I i i - 1 - BE IT RESOLVED, the Board of Aviation Commissioners of the Department of Aviation of the City of Richmond, Indiana, that: 1. It finds that the proposed Agreement by and between the :Board of Aviation Commissioners of the City of Richmond, Indiana, ':and Richmond Aviation Corporation, being Exhibit "A" hereof, will -not be detrimental to the health, safety, or welfare of the people i of the City of Richmond, Indiana, and that it would be for the best ''interest of the people of the City of Richmond, Indiana, if such Agreement were entered into; and, 2. The form of said Agreement, and proposed form of Ordi- nance to be passed by Common Council of the City of Richmond, Indi If :ana, presented to this meeting are hereby approved. 3. The Secretary shall initial and then insert a copy of the forms of documents approved by this meeting in the records of i; :this Commission. is 4. The President and the Secretary of the Board of Aviation '.Commissioners are authorized and directed to execute the Agreement, I' ;approved 'herein and any other documents which may be necessary or :'desirable to complete the transaction on behalf of the City of j. '.Richmond, Indiana, by its Board of Aviation.Commissioners. li 5. A copy of this resolution, the proposed form of Ordi- nance, and any other documents approved by this resolution shall be ;'presented by the President of the Board of Aviation Commissioners Ito the Common Council of the City of Richmond, Indiana. President,- 4 :Approved: ,Secret y i ii 2 - 1 AGR11M`N1' THIS AGR1i12,tiNI' to lease made and entered into this day of 1978, by and between the IUAItD OF AVIAI'ION COMMISSIONE S of the City of Riclmiond, a Municipal Corporation) of' the State of Indiana, hereinafter called LESSOR and Riclunond Aviation Corporation, an Indiana Corporation, hereinafter called LESSEL. WITNESSET11 WHEREAS, lessor is the owner of the Richmond Municipal Airport of Richmond, Indiana, and the owner of certain facilities, buildings, and improvements situate on said Airport; and WHEREAS, lessor desires to make an agreement with a fixed Base Operator to operate and maintain certain facilities, and buildings at said Airport; and, WHEREAS, lessee has been a Fixed Base Operator at other airports and desires to be a Fixed Base Operator at the Richmond Municipal Airport: NOW THEREFORE: Pursuant to Ordinance No. of the Common Council of the City of Richmond, Indiana, authorizing the Board of Aviation Commissioners of said City to enter into this Agreement to lease; and, In consideration of the covenants of tine lessee and lessor, agreed to be kept by each of them for the benefit of the other, it is hereby mutually agreed as follows: ARTICLE I. DEFINITIONS 1. That the following words, phrases or abbreviations used herein shall have the meaning as here set out: a) F.B.O. shall mean Fixed Base Operator; b) Shop Hangar shall mean a certain airplane hangar approximately 100' x 110' in size and indicated as 'Shop Hangar' on Exhibit 'A' attached hereto and by reference made a part hereof; c) hxecutive hangars shall mean a nest of 12 hangars constructed in 1977-78 on the premises known as the RiclTiond Municipal Airport; d) T-hangars shall mean two (2) nests of ten (10) T-hangars situate on the premises known as the Richmond Municipal Airport; - 1 - e) Administration Building shall be a concrete and brick structure marked "Administration Building" on Exhibit 'A' hereof; f) Leased Premises shall mean those buildings and areas which are included in this lease and which are marked in color on Exhibit 'A' hereof; g) Airport shall mean the Richmond Municipal Airport; h) Board shall mean the Board of Aviation Commissioners of the City of Richmond, Indiana. i) BOAC - means the Board of Aviation Commissioners ARTICLE II. LEASED PREMISES That the lessor does hereby lease to the lessee and the lessee does hereby lease from the lessor the sixty thousand (60,000) square feet of real estate and the improvements thereon, for multiple uses and purposes, being certain buildings depicted on a map, attached hereto, and by refer- ence made a part hereof and called Exhibit 'A', hereof, and described as follows: a) Shop Hangar - used for repair and storage, being approximately thirteen thousand (13,000) square feet; b) T-Hangar - being twenty (20) individual hangars in two (2) nests of ten (10) each, used for storage and being approximately nine thousand (9,000) square feet; c) Executive Hangar - being twelve (12) individual hangars nested in a building, used for storage and repair, and being approximately fifteen thousand (15,000) square feet; d) Administration Building - which shall include all of the administration building, except the second floor, used for administrative purposes, being three thousand (3,000) square feet; provided that the central area of the Administration l Building shall be maintained as a visitors' and pilots' lounge. Excluded also are those rooms on the first floor known as BOILER ROOM and ELECTRICAL ROOM; e) Tie -Down Area - being so marked on Exhibit 'A' hereof; f) Tank -Farm Area - which area shall contain ten thousand (10,000) square feet; - 2 - g) That in addition to all of the above specific land areas and buildings thereon the leased area shall include ten (10) feet in all or any direction from each .and every building herein leased; ThaL all Lhe Grua herein lcasud shall he known as ,Intl called herein "leased premises". ARTICLE III. TERM 1. That the term of this lease shall be for five (5) years commencing on the day of 1978, notwithstanding the date of execution hereof. ARTICLE IV. RI:Nr 1. 'That the lessee shall pay as rent to the lessor the sum of thirty- six thousand dollars ($36,000.00) per annunn, payable in twelve (12) monthly installments as follows: January 1, $2,000.00 May 1, $4,000.00 September 1, $4,000.00 February 1, 2,000.00 June 1, 4,000.00 October 1, 2,000.00 March 1, 2,000.00 July 1, 4,000.00 November 1, 2,000.00 April 1, 4,000.00 August 1, 4,000.00 December 1, 2,000.00 to be due and payable on the first day of each calendar month, commencing on the first day of January in each calendar year of the term hereof. 1 SLC RZITT 2. That lessee shall pay to lessor upon the execution hereof the sum N:WSIT of twenty thousand dollars ($20,000.00), which sum shall be known as the security deposit for the payment of rent due under this lease and which sum shall bear interest at eight per cent (8%) per annum during the term hereof, and shall be payable not later than thirty (30) days after the end of each lease year to lessee. ARTICLE V. 1. That it is the purpose of this lease agreement to set forth the terms and conditions under which the lessee shall operate as a Fixed Base Operator at the Richmond Municipal Airport and it is specifically agreed by the lessee herein to perform all functions of a Fixed Base Operator including but not limited to: a) Furnish fuel to aircraft. b) Maintain and repair aircraft. - 3 - i) ITov Idr, I itch-4ml u i r( I'll I l mni luui h . d) Lease hangar space. e) Own or lease by F.B.O. charter aircraft. f) Own or lease by F.B.O. rental aircraft. g) Provide student pilot: 1) Flight instruction; 2) Ground school instruction. h) Maintain and operate a UNICOM system of communication. i) Maintain an emergency radio communication system. j) Have available parts and supplies to repair aircraft. k) Have a factory dealership or sub -dealership of one or more major aircraft manufacturers. 1) Have a demonstrator or aircraft available for sale. m) Keep and maintain the leased facilities in good state of repair and serviceability, subject to inspection by BOAC at reasonable tunes. n) Report to lessor promptly any failure of airport facilities and exercise the utmost effort to cause the Richmond Municipal Airport to be a model air -port and further the best interests of the City of Richmond. And in relation to the furnishing of these services the following requirements shall be met by the lessee. FUEL That the F.B.O. shall be required to have: a) two (2) metered filter equipped dispensers, fixed or mobile, for dispensing two (2) grades (80-87 and 100 octane), as available, of gasoline from storage tanks having a minimum capacity of two thousand (2,000) gallons each; b) mobile dispensing trucks which shall have a total capacity of three hundred (300) gallons for each grade of fuel; c) storage and dispensing facilities for jet fuel; d) separate dispensing pumps and meters for each type of fuel. PILOT SCHOOL 3. That the F.B.O. shall cause that there be certification by the FAA of a Pilot School; Ground and Flight School. OPERATING 4. That it is mutually agreed that the Richmond :Municipal Airport I IOURS should be open for operation twenty-four (24) hours a day, seven (7) days a week. - 4 - S. Provided however, that the F.B.O. shall provide such services as are required, between the hours of 7:00 a.m. and sundown, seven (7) days a week and shall be on call during the hours of darkness. AIRCRAFT 6. That the F.B.O. shall be required to furnish such equipment as SINVICE. I:I�UII'P71.N1' is necessary to operate and maintain airport, which equipment shall include but not be Iunited to: 1) emergency starting equilcnent; 2) aircraft engine heater; 3) portable pressure tanks; 4) towing equipment; 5) oxygen supplies; 6) adequate fire extinguishers; 7) all equipment necessary to perform repairs and/or replacement of engines; 8) all equipment and supplies necessary to perform airframe maintenance; 9) wash aircraft; 10) sufficient equipment, supplies and availability of parts to perform maintenance in accordance with manufacturers' recommendations or equivalent. AIRCRAFT 7. That the F.B.O. shall maintain an airplane dealership and in relation thereto have on display and available for sale one or more aircraft. That the I.B.O. shall have available at all times at least two owned or leased to I.B.O. aircraft which are available for charter service, certified under FAA Regulations. That the F.B.O. shall have available at all tunes two or more aircraft owned or leased to F.B.O. which may be either rented to a qualified pilot or which may be used for pilot instruction, certified by FAA. That the F.B.O. shall keep a roster of aircraft on the leased premises which aircraft are owned by others that are available for lease or rent to qualified pilots; a roster of hangared aircraft shall be available at all times, by plane number and hangar number. - 5 - That the aircraft as herein specified, whether owned or leased, shall meet all relevant requirements of Part 135 of the FAA Regulations. That all leases or rentals of aircraft.by the F.B.O. shall be evidenced by a w[•itten aAI'C(111e11t. PERSONNEL, b. That the F.B.O. shall have such personnel on duty during operating hours: AIRCRAFT SALES a) one person with a current COMMERCIAL PILOT'S certificate with rating appropriate for type of aircraft to be demonstrated for the purpose of selling aircraft; AIRCRAFT' b) one person currently certified by FAA with ratings appropriate MAINTENANCE for the work being performed, who may hold an airframe and/or power plant rating to maintain aircraft; FLIGHT c) one person properly certified by FAA as flight instructor to INSTRUCTION cover the type of training offered, including but not limited to: 1) instrument rating; 2) ground school instructor; 3) flight instructor (non -instrument); FULL -SERVICE d) one person, properly trained, who shall be on duty during operating hours to dispense aviation fuels and oil and provide other related services; AIRCRAFT REPAIR e) one FAA certificated repairman qualified in accordance with the terms of the Repair Station Certificate to repair aircraft; CHARTER SERVICE f) one person properly certified to fly charter flights, being certified under Part 135 of the Federal Aviation Regulations for charter flights. Multiple responsibilities may be assigned to personnel to meet personnel requirements for all activities provided however, that only one person may not meet all requirements. Ail F.B.O. operations shall be in accordance with state and local laws and FAA Regulations. ARTICLE VI. 1. That lessee agrees to operate the leased premises for the use and benefit of the public. a) To furnish good, prompt and efficient services adequate to meet all of the demands for its services at the airport. b) To furnish said services on an equal, fair and non- discriminatory basis to all users thereof; and c) To charge fair, reasonable and non-discriminatory prices for each unit oT sale or service, provided however non- disrr•iminator•y discowits May he cillowed to volwoe purchaser,. 2. That the lessee hereof' does covenvit I'or lessee his personaL representative, successor in interest, and assigns as a part of the consideration hereof, as a covenant running with the land that: a) No person, on the grounds of race, color, sex, 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. b) In the construction of any improvements on, over, or under such land, leased hereunder and the furnishing of services thereon, no person on the grounds of race, color, sex, creed or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination. c) The lessee shall use the leased premises in compliance with all other requirements by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Sub -title A, Office of the Secretary, Part 21, Non-discrimination in federally assisted programs of the Department of Transportation -Effectuation of Title IV of the Civil Rights Act of 1964, and as said regulations may he amended. 3. 'That it is clearly understood by the lessee that no right or privilege has been granted which would operate to prevent any person, firm, or corporation operating aircraft on the airport from performing any services on its own aircraft with its own regular employees that it may choose to perform. 4. That it is understood and agreed that nothing herein contained shall be construed to grant or authorize the granting of an exclusive right. 5. Lessor reserves the right to further develop or improve the landing area of the airport as it sees fit, regardless of the desires or views of the lessee, and without interference or hindrance. - 7 - 6. 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 awned facilities of the airport, together with the right to direct and control all activities of lessee in this regard. 7. 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. 8. This lease shall be subordinate to the provisions of any existing or future agreement between lessor and the United States, relative to the operation 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. All lessee personnel required to hold FAA Certificates and ratings and shall maintain such certificates and ratings. 9. The F.B.O. shall cause to be available rental car service and have available such communication facilities as necessary for occupants of aircraft to secure ground transportation. ARTICLE VII. 1. That the F.B.O. shall provide insurance, naming the lessor hereof as a coinsured on all of its operations including but not limited to: a) Aircraft Liability, both owned and unowned aircraft and aircraft held for sale: 1) bodily injury property damage 2) comprehensive public liability property damage b) Hangar Keeper 1) liability c) Products Liability $100,000.00 each person 300,000.00 each accident 100,000.00 each accident 100,000.00 each person 300,000.00 each accident 100,000.00 each accident 100,000.00 each accident 100,000.00 each accident on type of plane and services rendered. - 3 - kI tih1dunl hnLI I4rnl01. Pi lul 1) public liability-BI $100,000.00 each person BI 300,000.00 each accident 2) passenger liability-BI 100,000.00 each person BI 300,000.00 each accident 3) student and/or renter-BI 300,000.00 each accident PD 100,000.00 each accident 2. That the F.B.O. shall have insured to value all structures and/or buildings herein loused, naming lessor as coinsured, by an insurance company authorized to do business in the state ol- Indiana, against any loss by fire, windstorm or any other casualty. Any moneys received by lessee from an in- surance company as a result of any loss or damage pursuant to the terms of this section shall be held by lessee for the benefit of lessor and used as set out in Article XI, No. 2. 3. That any vehicle owned by lessee which is used in or about the leased premises shall have insurance thereon, naming lessor or coinsured with respect to the liability coverage on said vehicle; provided further that any vehicle which is used to transport personnel of any kind, employees or non -employees, to or froml the leased premises to any other place, by or at the direction of the lessee shall be similarly covered by liability insurance. INIII. NI- 4. That the I.B.O. shall protect and hold ha nidess the lessor from any FI(:NfION and all claims whatsoever, including Bodily Injury and Property Damage from any occurrence whatsoever which occurrence shall be from an act or acts, an omission to perform an act or acts to be performed or required to be performed by the lessee under the terms and conditions of this lease, or not under the terms of this lease, whether the occurrence occurred on the leased premises or elsewhere. IM,ICLI; VIII. 1. That the lessee shall be in (ICIALllt under the tUrIIIS of this ICaSC Ill;FIUILI' it' any of the Collowuik events occur: a) lessee shall fail to pay rent when due; b) lessee shall fail to keep any covenant agreed to be performed under this lease; c) lessee shall not provide the facilities or services set out above which are called the duties of the F.B.O. d) if lessee shall file a voluntary petition in bankruptcy, or shall be adjudicated as bankrupt or insolvent, or shall make an assignment for the benefit of creditors, or shall file any _ 9 - DISPUTE d) continued petition or answer seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under the present or future federal bankruptcy act or any other present or Future applicable federal, state or other statute or law; or shall ,euk or consent to or acquiesce in or fail within ninety (90) days to set aside the appointment of any trustee, receiver, or liquidator of lessee or of all or any substantial part of its properties or of demised properties; such event shall be an 'event of default'. That if there shall be an event of default as specified in "d" above, in addition to this lease being terminated by such default, all rent then due or which would become due shall in such event be due and payable at the time of such default and shall be liquidated damages for the loss of the bargain and not as a penalty. 2. That upon the lessee being in default as set out above, the lessor shall declare a default of this lease by lessee and shall give notice to lessee in writing of such default setting out in detail the basis of such default. 3. That such notice shall be given to lessee by lessor in writing, by U.S. certified mail, and if lessee shall not correct such default within thirty (30) days of the receipt of such notice the lessor may in such event, at its option, declare this lease terminated. 4. That in the event this lease shall be terminated by reason of a default the lessee shall forfeit the aforesaid security deposit. Provided further that lessee, if this lease is terminated by default, shall not surrender the herein leased facilities in as good a condition as they were at the inception of this lease and the security deposit be insufficient to repair or replace said facilities the lessee shall be liable for such additional amount of money as is necessary to so replace or repair said herein leased facilities. 2. a) That any dispute as to the ekistence of a default shall be settled by submitting the evidence of such dispute to a panel of three (3) persons, all non-residents of Wayne County, one selected by each party hereto and the third selected by the State Board of Aviation Commissioners of Indiana. b) That any dispute relining to tho condition Or the herein leased facilities at the termination of this lease for any cause shall be settled as set out in No. 2 above. 3. That upon termination of this lease by the ending of the term the lessee shall receive on such termination the security deposit plus eight per cent (8%) annual interest thereon, provided however if lessee shall not surrender the facilities herein leased in as good a condition as they were at the inception of this lease, the cost of repair or replacement of such facilities shall be deducted from said security deposit. ARTICLE IX. EXCLUSIVE, 1. That nothing in this lease shall be construed to give the lessee RIGHTS ITS any exclusive right to conduct business as a Fixed Base Operator at the Richmond Municipal Airport, it being specifically agreed that lessor may construct and lease such facilities at said airport as it may deem in the best interest of the City of Richmond, provided that no contract or lease agreement entered into by the lessor hereof shall be more advantageous to any other lessee than this lease agreement to the lessee herein. 2. That upon the failure of lessee to provide any service to the public, herein required to be furnished, that lessor may upon written notice to lessee, but not sooner than thirty (30) days after receipt of such notice by lessee, provide such service. 3. That upon failure of lessor to provide any service to lessee or to the public the lessee may provide such service and deduct the cost of from the next payment of rent which shall become due after reasonable notice to lessor. 4. That should lessor object to such acts as set out in No. 3 next above, the dispute shall be settled as set out in Article VIII, No. 2, a) hereof. ARTICLE X. UTILITIES 1. That lessor shall furnish all water used on the Richmond Municipal Airport at its sole expense. 2. That lessor shall furnish electricity to the airport lights as hereinbefore set out and to the administration building at its sole expense. 3. That lessee shall furnish electricity to all other buildings on said Richmond Municipal Airport at its sole expense, including hangars. 4. That lessee shall have at least one private telephone line and shall have installed and keep one (1) pay telephone which shall be available to the public twenty-four (24) hours a day, seven (7) days a week, at its sole expense. S. That lessor shall have a private telephone line independent of' any telephone line of lessee at its sole expense. 6. That lessee shall furnish at lessee's sole expense any and ail utilities required at the Richmond Municipal Airport not specifically set out above. 7. That lessee shall maintain and operate any and all communication's system necessary and usually in operation at an airport, including but not limited to a UNICOM system. 8. That lessor will keep cut to a neat and attractive appearance all grass areas not under cultivation at its sole expense; however the moving of aircraft in tie -down for purpose of grass cutting will be done solely by lessee, and all the leased premises shall be kept neat and clean by the lessee, including leased grass areas. 9. That lessor will have the duty to clear all runways, taxiways, aprons, parking areas, roads, and driveways of snow, provided that no more than two (2) persons shall be required to be so employed at any one time, nor shall any person so employed be required to work more than eight (8) hours in any one day. 10. That lessor will have duty to keep and maintain all airport lighting, including beacon, taxiway lights, runway lights, and landing lights in good operating condition, except that which is maintained and paid for by lessee. 11. That lessor shall furnish receptacles for trash and rubbish and these shall be emptied twice weekly, if necessary. The lessee shall cause all trash and rubbish for which lessee or lessee's customers generate to be placed in above said receptacles daily. 12. That lessor shall have the duty to heat the Administration Building to a temperature of 68 degrees at all times from November 1 to May 1. - 12 - 13. That lessee shall provide all other- heat fur any ,uul all build ings which it occupies under this lease to the degree required for the purpose of such buildings. 14. That lessee will maintain a certain electric identification sign adjacent to Highway #227 on said Airport and keep lighted during all hours of darkness. ARTICLE XI. DESTRUCTION 1. In the event of damage, destruction or loss to improvements or 011 facilities herein leased by lessee which damage or loss is not capable of i REMI SITS being repaired, replaced, restored or rebuilt within one hundred eighty (180) days, the lessee shall have the option to terminate this agreement by giving written notice of such intention to terminate within sixty (60) days after the occurrence of such event, effective as of the date of the receipt of such notice. 2. In the event of any damage, destruction or loss to improvements or facilities which are insured as set out in Article VII, No. 2, the lessor agrees that it will promptly use the proceeds of such insurance to replace, restore, or repair such loss. ARTICLI: XI 1. FAXES 1. The lessee agrees that it shall be solely responsible for lawful taxes, or assessments levied by the State of Indiana, Wayne County, or the Municipality of Richmond, Indiana, or any other tax or assessment levying bodies with respect to the herein leased premises. ARTICLE XIII. OPTION 1. That upon the termination of the initial term hereof the lessee shall have the option to renew this lease upon the following conditions: a) that all covenants agreed to be kept by lessee have been adhered to and kept; b) that this lease is not in default; c) that the annual rent set out herein shall be increased by an amount equal to one-half (1/2) of the increase in the cost J of living index, times thirty-six thousand dollars ($36,000.00); - 13 - ASSIMENT NOTICES d) that the lessee maintain the security deposit at the same amount as set out in this lease; e) that all terms and conditions of this lease shall continue in full force and effect throughout the additional term, except that this option shall be of no effect at the end of this optional term; f) that the optional term shall be for a term of five (5) years; g) that at the termination of the optional term the lessee shall have the right of first refusal of a new F.B.O. contract. ARTICLE XIV. 1. .That this agreement shall inure to the benefit of the parties hereto, their heirs, successors or assigns, provided however that this lease or any renewal thereof shall not be transferred, assigned, or otherwise disposed of by the lessee to any person, persons, partnership, trust, corporation, or.any other entity whatsoever without the written consent of lessor. 2. That all notices sent because of any provision of this lease shall be in writing and sent by U.S. mail, registered, with a return receipt, and shall be effective as of the date of receipt as stamped or written on the return receipt by the postal authority making the delivery. 3. Notices given to lessor shall be sent to: Board of Aviation Commissioners Municipal Building 50 North Sth Street Richmond, Indiana 47374 Notices given to lessee shall be sent to: Kevin Oxley Box 197, R.R. #4 Winchester, Indiana 47394 Or addressed to such other place as the parties shall give notice. ARTICLE XV. CONDITION PRECEDENT TO THIS AGREEMENT BECOMING EFFECTIVE It is mutually understood and agreed between the parties hereof that this agreement shall be of no force or effect until and unless a certain agreement to terminate the present lease between Sky -Tech, Inc. and the City of Richmond, Board of Aviation Commission is signed and becomes effective 14 - and further provided that this agreement shall be ratified and approved by the Coimnon Council of the City of Richiiond, Indiana. NYfICIA: XVI. Nit SU?LIJW1iOUS I. The lessor shall have the right to inspect the leased premises PROVISIONS at any reasonable time. 2. The lessee or lessor shall have the right to record this lease. 3. This lease contains the entire agreement between the parties and cannot be modified, altered or changed except by written agreement of the parties. 4. If any provision of this lease shall be declared invalid or unenforceable the remainder of the lease shall continue in full force and effect. - 15 - IN WITNESS WHEREOF, the parties have executea tnese present,.eacn tor themselves and their successors and assigns on this day of , 1978. LESSOR: BOARD OF AVIATION COMMISSIONERS OF '111E CITY OF RICHMOND, INDIANA President Secretary Member Member LESSEE: APPROVED: Mayor, My of Ric]-diiond, Indiana DATE: Preside Secretary BEFORE ME the undersigned, a Notary Public in and for t e tate o In iana anCounty of Wayne, personally appeared Robert E. Brooks, Eugene Stegall, Robert Toschlog, and Bernard N. Cole, known to me to be the persons of the Board of Aviation Commissioners of the City of Richmond, who executed the foregoing lease and who acknowledged that, they being duly authorized by ordinance of the Common Council of the City of Richmond, Indiana, signed said lease for and on behalf of said Board and City. IN WITNESS WHEREOF, I have hereinto set my hand and notarial seal this day of October, 1978. otary is My Commission.Expires: BEFORE ME an the undersigned, a Notary Public in and for t e State o I Tana Coandty of Wayne, personally appeared personally own to me to e t e RESIDENT SECRETARY respectively o an Indiana corporation w io execut [III: oregoing lease an acnowledged that they, being duly authorized by resolution of the Board of Directors of said corporation signed said lease for an on behalf of said corporation. IN WITNESS WHEREOF, I have hereunto set my hand and notarial Oseal at 1978. this day of My Commission Expires: - 16 - Notary Public EXHIBIT "A" BLACK - Executive Hanger BROWN - Shop Hanger Green - Administration Building RED - Old T-Hanger BLUE - Tie Down Space