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HomeMy Public PortalAbout2012_11_13_R124 Lease Renewal for Leesburg Hangar Condominium Assoc.The Town of Leesburg, Virginia PRESENTED: November 13, 2012 RESOLUTION NO. 2012-124 ADOPTED: November 13, 2012 A RESOLUTION: LEASE RENEWAL FOR THE LEESBURG HANGAR CONDOMINIUM ASSOCIATION, INC. WHEREAS, the Town of Leesburg entered into an agreement October 1, 1982 with Janelle Aviation predecessor -in- interest to the Leesburg Hangar Condominium Association that permitted the private construction, operation, and maintenance of fifty (50) hangars at the Leesburg Executive Airport; and WHEREAS, the original agreement is for a thirty (30) year period and includes a ten (10) year renewal option; and WHEREAS, under Article II, Section 2 of the Lease and Operating Agreement, the Town has been officially requested by the Leesburg Hangar Condominium Association to renew the lease for a ten (10) year period as allowed under the agreement; and WHEREAS, the renewal is predicated upon the finding that the tenant has not failed to perform any covenant of the lease; and WHEREAS, Town staff has completed its due diligence, and finds the Leesburg Hangar Condominium Association to be in compliance with the existing agreement. THEREFORE, RESOLVED by the Council of the Town of Leesburg in Virginia as follows: The Town Manager is authorized to execute a ten (10) year lease renewal for the Leesburg Hangar Condominium Association in a form acceptable to the Town Attorney. PASSED this 13th day of November, 2012. e, C. U stattd, Mayor Town of Leesburg T S : Clerk of Council P:\Resolutions\2012 \1101 Renewal of Lease Agreement with Hangar Condo Assoc Inc.doc Town of Virginia JOHN WELLS Town Manager 25 West Market Street ■ 20176 ■ 703 -771 -2700 ■ Fax: 703 - 771 -2727 ■ jwells @leesburgva.gov ■ www.leesburgva.gov November 14, 2012 DELIVERED VIA EMAIL AND REGULAR MAIL Mr. Thomas Toth Leesburg Hangar Condominium Association, Inc. 11133 Glade Dr. Reston, VA 20191 Re: Renewal of Lease ,�greement for Leesburg Hangar Condominium Association, Inc. Dear Mr. Toth: , Please be advised that the Leesburg Town Council resolved at its meeting of November 13, 2012, to authorize the renewal of the Lease Agreement dated October 1, 1982, ( "Lease ") between the Town of Leesburg and Janelle Aviation, Inc., predecessor -in- interest to Leesburg Hangar Condominium Association, Inc. This letter shall serve as notice of the renewal of the Lease under Article III, Section 2. All other terms of the lease shall remain in full force and effect. The Lease will now terminate on September 30, 2022. I enclose a copy of the resolution authorizing the renewal for your records. Sincerely, JbI n Wells Town Manager cc: Kaj Dentler, Deputy Town Manager Scott Coffman, Airport Manager Jeanette A. Irby, Town Attorney Chad Carper, FAA Scott Denny, DOAV Hometown of the 21" Century NO /z /t3/o? AND OPERATING AGREEMENT [/0/8/82) This agreement, made by and between the Town of Leesburg, Virginia, a Virginia Municipal Corporation, (hereinafter referred to as "landlord ") and'Janelle Aviation, Inc., a Maryland corpora- tion (hereinafter referred to as "tenant "). WITNESSETH: ARTICLE I FACILITIES TO BE LEASED Section 1 In consideration of the covenants and conditions hereinafter set forth, and other good and valuable consideration, landlord hereby leases to tenant that portion of the Leesburg Municipal Airport, Loudoun County, Virginia (hereinafter referred to as it which is located and described as: All of that area north of the 28 aircraft parking ramp, containing 5.6 acres, more or less, along with a non- exclusive egress and ingress easement for construction and later use as-an access road, containing 1.2 acres, more or less; said premises delineated on a plat of the airport attached hereto as Exhibit "A ". Section 2 That portion of the airport referred to in Section 1 above together with the improvements thereon and thereunder shall con- stitute the "premises" and all operations conducted thereon and therefrom and all revenues derived therefrom except for the rent and fees herein reserved shall inure to the benefit of the tenant. 10/1/82 0 - --- -- -- -- ------ ------------------------------------ --------------------------------------------------------- ..._ -------------------------------- ------- ----------------- - - - - -- -------------------- - -- -- - -- (a) In addition to the premises described above, landlord hereby grants to tenant an easement for vehicular ingress and egress over and across the remainder of the property owned by landlord and known as Leesburg Municipal-Airport, Loudoun County, Virginia from (a) the southernmost part of the portion of the Premises described in the Lease as the non - exclusive access road (the "Beginning Point "), to (b) Virginia State Route No. 643. The precise location of the easement may be changed from time to time by landlord, but landlord shall at all times maintain a means of ingress and egress from the Beginning Point.to Virginia State Route No. 643. Landlord shall be solely responsible for the main- tenance, repair and replacement of such access easement. Landlord covenants that such access easement shall be paved and kept in reasonably good repair. If relocated, the access easement shall be similar in size and quality of construction to the access road existing on the date hereof. (b) The easement shall be available twenty -four hours a day, seven days a week for so long as this Lease (or any extension, modification, amendment, restatement or replacement thereof) remains in effect, or, if longer, for so long as any person or entity claiming through tenant has a right to occupy ang portion of the premises, for a maximum duration of forty (40) years from the date hereof. -2- - ..._... - -- - - - - -- - ---_---------------------------- - - - - -- - - - - -- - -- - - -- -- - - ..__... - - -- -- - - - -- - (c) This grant of easement shall be construed as a real covenant and shall run with the land and shall bind landlord, its successors and assigns for the benefit of tenant, its transferees, invitees, guests, subtenants, successors and assigns (including each and every transferee, successor or assign of less than all of the premises, whether by subdivision, condominium subdivision, .. s sublease or otherwise). ARTICLE TI RENT Section 1 The tenant shall pay the landlord for the premises during the initial 30 --year lease term and the 10 -year optional extension, if lawfully exercised, in the sums and,at the times and manner provided below: -3- Monthly Rent Lease.Xear Per Occupied Storage Space (Due in advance the first of each Jac month) hfr- 10/311982 -83 $ 6.00 1983 -84 $ 6.00 1984 -85 $ 6.00 1985 -86 $ 6.00 1986 -87 $ 6.00 1987 -88 $ 7.20 1988 -89 $ 7.20 1989 -90 $ 7.20 1990 -91 $ 7.20 1991 -92 $ 7.20 1992 -93 $ 8.65 1993 -94 $ 8.65 1994 -95 $ 8.65 1995 -96 $ 8.65 1996 -97 $ 8.65 -3- y3 3 po Fy o0 71,lgq 5' 199.7 -98 $10.40 1998 -99 $10.40 1999 -2000 $10.40 2000 -01 $10.40 2001 -02 $10.40 2002 -03 $12.50 2003 -04 $12.50 2004 -05 $12.50 _ 2005 -06 $12.50 2006 -07 $12.50 2007 -08 $15.00 2008 -09 $15.00 2009 -10 $15.00 2010 -11 $15.00 2011 -12 $15.00 2012 -13 $18.00 2013 -14 $18.00 2014 -15 $18.00 2015 -16 $18.00 2016 -17 $18.00 2017 -18 $21.50 2018 -19 $21.50 2019 -20 $21.50 2020 -21 $21.50 2021 -22 $21.50 The first "Lease Year" shall be the twelve month period beginning with the first day of the first month following the effective date hereof. Section 2 The tenant shall, in addition to the rents provided in this article, pay to landlord the fixed base operator's fees required Ca under Chapter 2.1 of the Leesburg Town ^pertaining to occupied inside storage space (currently $3.00 per hangar per month). Said fee may be increased by the town at the end of each 10 year period following the effective date of this lease. Such increase shall not be unreasonable. -4- ARTICLE II-I TERM OF LEASE Section 1 The initial term of this lease shall be for a period of 30 years beginning from the first day of the calendar month next after the time all conditions to effectuation of this lease set out in Article XIV below are fulfilled. The landlord, through its town manager, shall notify the tenant when these conditions have been met and the beginning date for the lease. In the event � o tr' conditions in Article XIV are not met within 30 days of� _, 1982, the lease may be voided at the option of the town and the $2,000 bid guarantee shall be retained by the town as liquidated damages. The landlord shall have the option to renew the lease for an additional period of ten years, by giving its notice of intention to extend to tenant in writing at least six months prior to the termination date of the tenant's initial term, provided, however, landlord shall exercise its option to renew unless the tenant has failed to perform any covenant of the lease and such failure has continued past the applicable time for cure after notification of non- performance of such covenant. -5- ARTICLE IV USE AND OPERATIONS Section 1 The tenant shall use and occupy the premises solely for the purpose of constructing, operating and maintaining enclosed air- craft storage facilities. The tenant shall conduct its operations at the airport in accordance with the obligations imposed by those certain grant agreements between landlord and the Federal Aviation Administration for the airport, Project #9 -44 -01 -0401, Project #76- 1- 5- 51- 0027 -01, Project #5 -51- 0027 -02 and #5 -51- 0027 -03 and all future similar FAA projects. In furtherance of this general covenant, but without limiting its general applicability, the tenant specifically agrees to conduct its operation at the airport for the use and benefit of the general public; to make available all airport facilities and services to the general public on fair and reasonable terms without discrimination; and provide space on the airport to the extent available, and grant rights and privi- leges for use of the landing area facilities to the airport, to all qualified persons, firms and corporation desiring to conduct aeronautical operations on the airport. --- Section 2 It is specifically understood and agreed that nothing herein contained shall be construed as granting or authorizing the grant- ing of an exclusive right within the meaning of Section 308(a) of the Federal Aviation Act. -6- The tenant assures that it will undertake an affirmative ac- tion program as required by 14 CFR Part 152, Subpart E, of the Code of Federal Regulations to ensure that no persons shall be on the grounds of race, creed, color, national origin, or sex ex- cluded from participating in any employment activities covered in 14 CFR, Part 152, Subpart E. The tenant assures that no person shall be excluded on these grounds from participating in or re- ceiving the services or benefits of any program or activity covered by this subpart. The tenant assures that it will require that its covered suborganizations provide assurances to the landlord that they similarly will undertake affirmative action programs and that they will require,assurances from their suborganizations, as required by 14 CFR part 152, Subpart E, to the same effect. Section 4 The tenant further assures that it will undertake a minority business enterprise program as required by 49 CFR, part 23, of the Code of Federal Regulations to ensure full participation by minority business enterprises in Department of Transportation --� - -- Programs. Section 5 The tenant agrees at its sole cost and expense, to provide the necessary facilities, equipment and any other thing necessary -7- .. __- . to construct and operate 18 aircraft storage facilities in line with the town's request for proposal dated April 14, 1982 and proposal response submitted by the tenant on May 26, 1982. The tenant agrees to construct a minimum of 18 enclosed aircraft storage facilities to.be finished and ready for occupancy within one year of the effective date of this lease. Within three years from the effective date of this lease the tenant shall construct and operate an additional hangar facility of identical design for the occupancy of an additional six aircraft. The proposed facilities must be designed and constructed in accordance with the tenant's proposal, the approved airport layout plan for Leesburg Municipal Airportz and FAA construction design criteria where applicable. Section 7 The tenant agrees not to conduct any other aeronautical commercial enterprise or service other than the construction, operation, sale, and /or lease of aircraft storage facilities as provided herein unless a fixed base operator's license is obtained from the town for each specific additional service requested. -- Section 8 The tenant further agrees, at its sole cost and expense to provide the necessary equipment, material and supplies and all other things, except as hereinafter provided, to construct the asphaltic concrete access road and internal taxiway system in accordance with design standards approved by the Director of Engineering and tenant's aforementioned proposal. Section 9 Within 30 days of the effective date of this lease, the town shall pay to the tenant a sum in the amount of $5,000 as partial reimbursement for tenant expenditures in connection with the engineering and design of the aircraft storage project, ancilliary structures and general site development. Section 10 The covenants and agreements set forth in Section 1 through 9 of this Article IV shall he personal to Janelle Aviation, Inc. and shall not be binding upon mortgagees of this lease, transferees of condominium units, mortgagees of transferees, and any mortgagees of tenant or any transferees in possession or who have acquired title by foreclosure or deed in lieu thereof. ARTICLE V MAINTENANCE Section 1 The tenant shall be responsible for exterior maintenance and repair of all common areas, hangar storage facilities, access - - - -- roads, taxiways, and other facilities on the premises. Maintenance will include grass cutting, snow removal, pavement cleaning and resurfacing (when determined by landlord), crack sealing and weed control. -9- Tenant shall keep the premises free from any obstruction an in neat and presentable condition in accordance with industry standards for a first class general aviation airport. Section 2 In addition, the tenant shall perform the structural main- tenance of the access road and internal taxiway system and main- tain them in condition suitable for their contemplated use. Landlord reserves the right to close any airport facility when reasonably necessary for the purpose of maintenance, repair, further development or construction or for the safety of the general public. Section 3 The maintenance obligations in,this Article V and other obli- gations under this lease shall be separately applied to those por- tions of the premises submitted to the condominium regime and those portions not yet submitted. The submitted portions shall be the responsibility of the Condominium Unit Owners Association, and a default by Janelle Aviation as to the portions not yet submitted shall not affect the submitted portions. The Condominium Unit Owners Association will contribute its pro rata share (based on - -- the proportion of the premises submitted to condominium) for the upkeep of the access easement which is not a portion of the sub- mitted land. Landlord shall have no responsibility for maintain- ing the access easement while this Lease or any portion hereof remains in-effect. -10- ARTICLE VI UTILITIES AND TAXES Section 1 Tenant shall be responsible for and covenants promptly to pay all bills for heat, light, gas, electricity, water and other utilities provided on the premises at the option of the tenant. Section 2 The tenant shall be liable for all taxes, penalties and interest thereon assessed, levied or charged by any government against tenant's leasehold interest or any improvements made by the tenant on the premises hereafter. In the event said tenant does not promptly pay said taxes, landlord shall have the right to pay the same and charge the same to,tenant as additional rent. The tenant shall further promptly deliver to landlord a photo- static copy of paid real estate and personal property tax receipts from the County of Loudoun within 15 days of payment. ARTICLE VII INSURANCE AND LIABILITY Section 1 Tenant agrees to carry and maintain, with a responsible -- -- insurance company approved by landlord, insurance in amounts not less than those shown below: (a) Workmen's compensation insurance as required by the appropriate laws of the State of Virginia; -11- (b) Fire and extended coverage., vandalism and malicious mis- chief on all structures on the premises in an amount equal to their -fair insurable value as approved by the town.. Tenant agrees that all insurance policies will contain an appropriate endorsement with a 30 day notice of cancellation clause. All proceeds of insurance shall be first applied to the rebuilding of any damaged or destroyed buildings. Certificates from the insurance company showing the coverage carried, with the endorsements thereon, shall be furnished by tenant to landlord within 30 days from the effective date of this lease-and in the event they are not so furnished to landlord it shall have the right to secure the same and such charges shall become additional rent. Leasehold mortgagees may be named as additional insureds on all policies required hereunder. Section 2 Tenant shall not do or permit any act or thing upon the premises which may - subject landlord to any liability or responsi- bility by reason of any violation of law or of any legal require- ment of public authority, but shall exercise such control over the premises as to fully protect landlord against any such liability. Tenant shall indemnify and hold landlord harmless from and against any and all liability, fines, suits, claims, demands and actions and costs and e.xpenses of kind or nature of anyone whomsoever, due to or arising out of (a) any breach, violation or non - performance of any covenant, condition or agreement in this lease set forth -12- and contained herein on the part of tenant to be fulfilled, kept, observed and performed; and /or (b) any damage to property occasioned by tenant's construction, alteration, restoration, use or occupancy of the premises; and /or (c) any injury to any person or persons, including death resulting at any time therefrom occur- ring in or about the premises, and not caused by or resulting from the fault of landlord or any tenant of landlord other than the tenant or its subtenants, if any. Section 3 The tenant shall add the premises to its public liability insurance policy under Article VII, Section 3 of its lease with the town assigned from Century Aviation, Inc. An appropriate endorsement adding the premises shall be delivered to the town within 30 days of the effective date of this lease. This covenant shall be personal to Janelle Aviation, Inc. Section 4 Landlord and tenant hereby release the other from any and all liability or responsibility to the other or anyone claiming through or under them by way of subrogation or otherwise for any loss or damage to property covered by any insurance then in force, even if such loss or damage shall have been caused by the fault of negligence of the other party, or anyone for whom such party may be responsible, provided, however, that this release shall be applicable and in force and effect only with respect to any loss or damage occurring during such time as the policy or policies of -13- insurance covering said loss shall not adversely affect or impair said insurance or.prejudice the right of the insured to recover thereunder.. The parties hereto agree to endeavor to procure such a clause or endorsement, provided no additional charge is made therefor. Section 5 Tenant agrees to save harmless and indemnify landlord from any judgment recovered by anyone for personal injury or property damage sustained or claimed to have been sustained by reason of any of the rights granted tenant by this lease or any activities conducted by'the tenant and shall pay all expenses and costs in defending against any such claim made against landlord provided that tenant shall not be liable for.any damage, injury or loss occasioned by the negligence of landlord, its agents or em- ployees. Landlord shall be named as an additional insured on all liability policies of insurance purchased by tenant. Section 6 No destruction or damage to the premises, or any part thereof, by fire, flood, Wind storm or other casualty or hazard shall terminate this lease, or any provision thereof. ARTICLE VIII DAMAGES TO OR DESTRUCTION OF PREMISES In the event any of the above premises Leased to tenant are destroyed or damaged by fire or other casualty, tenant covenants to rebuild said structures, in the same location, as soon as prac- MEC ............._...... . ticable and of at least equal size and quality as the original. Tenant shall be entitled to use the proceeds from any and all insurance payments for the reconstruction, repair and rebulding of any structures which have been destroyed or damaged, however, the proceeds of insurance -shall be held by an insurance trustee whose appointment shall be approved by any first mortgagees and by land- lord, pending receipt and approval of progress invoices for com- pletion of the rebuilding which approval shall be timely and not unreasonably withheld. ARTICLE IX CIVIL RIGHTS Section 1 Janelle Aviation, Inc., as a covenant personal to it, as a part of the consideration hereof, does hereby covenant and agree that (1) no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the bene- fits of, or be otherwise subjected to discrimination in the use of said facilities, (2) that in the construction of any improvements on, over, or under such land and the furnishing of services there- on, no person on the .grounds of race, color, or national origin — - shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination, (3) that the tenant shall use the premises incompliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, -15- Part 21, Nondiscrimination in.Federally- assisted programs of the Department of Transportation - Effectuation of Title VI of the Civil Rights Act of 1964,.and as said Regulations may be amended. Section 2 That in the event of the .failure to comply with any of the above nondiscrimination covenants after notice and the applicable period to cure, landlord shall have the right, subject to Articles XIII and XVII, to terminate the lease, and to re -enter and repos- sess said land and the facilities thereon, and hold the same as if said lease had never been made or issued. ARTICLE X RULES AND REGULATIONS Section 1 The tenant shall continually police subtenants and aircraft storage owners on the premises relative to their compliance with all airport rules and regulations and the terms of this lease. Throughout the initial and subsequent term of this lease the tenant shall be responsible for the actions of its subtenants and owners. Subtenants and condominium unit owners shall not be responsible for the failure of Janelle Aviation, Inc. hereunder so -- - long as they are in compliance with all applicable rules and regu- lations imposed by the town and contained in the condominium documents. _16- .......................... . .......................... _............ _......... ........................ .. ....._........_...........__... Section 2 Rules and Regulations dealing with the airport and additions, alternations or modifications of said rules and regulations may from time be made by landlord and be deemed a part of this lease and shall be effective immediately at such time as notice is given to tenant. Section 3 The right to dispute the reasonableness of any additional Rules or Regulations upon tenant's part shall be deemed waived unless the same shall be asserted by service of a notice in writ- ing upon landlord within ten days after the notice of adoption of any such additional Rules and Regulations. Pending resolution of such dispute, tenant shall nevertheless comply with the rule or regulation in question as well as all others. Wherever there is any conflict between the provisions of this lease and the Rules and Regulations, this lease shall govern. Section 4 This lease shall be subordinate to the lease and operating agreement between the Town of Leesburg and Janelle Aviation, Inc. as assigned from the original lease and operating agreement - - - - -- between the Town of Leesburg and Century Aviation, Inc., and except where inappropriate by its context, any covenant, require- ment, or regulation prescribed in the assigned Century Aviation lease shall apply to the conduct of operations to be performed by tenant on the premises; provided, however, that the estate of any -17- transferee or mortgagee of condominium units or the estate of any transferee or mortgagee of this lease shall not be affected by any failure to comply with the Century Aviation Lease, and such trans- ferees or mortgagees need only comply with the terms hereof and of the condominium documents, when recorded. ARTICLE XI EVENTS OF DEFAULT The occurrence of any of the following shall constitute an event of default hereunder. (a) Failure of tenant to take any or all acts required prior to the effectuation of this lease within the prescribed time. (b) Failure to construct any of the improvements called for in this lease within the prescribed.time period. (c) Failure of tenant to pay when due any installment of rent or fees hereunder or any such other sum herein required to be paid by tenant. (d) Failure to meet any of the maintenance or repair requirements prescribed herein. (e) Tenant's failure to vacate and surrender the premises as required in this lease upon expiration of the term or termination -- - -_ of this lease. (f) Tenant's failure to perform any other covenant or condition of this lease. so long as this lease has not expired or been terminated, the tenant shall have the right to cure any default within 30 days -18- ........................... . ............................ ............................... ............................. after receipt of ...a ,notice of such default from Landlord. No further time shall be permitted to cure any monetary default. If a non - monetary default cannot be totally.cured within the said 30 day period, and tenant is in good faith using all due speed to cure this default, commencing within the said 30 day period, then tenant shall be allowed such further reasonable time to cure as is necessary, provided that landlord shall have the right to request that tenant supply evidence on the progress of the efforts to cure every two weeks during the extended period, and this Lease shall continue as if no such default has been committed. ARTICLE XII RIGHTS OF LANDLORD UPON DEFAULT BY TENANT Section 1 In the event of occurrence of an event of default hereunder: (a) At any time after any event of default shall occur and remain uncured after the expiration of the prescribed time to cure, and subject to Articles XIII and XVII, landlord, at its option, may serve notice upon tenant that this lease and the then unexpired term hereof shall cease and expire and become absolutely void on the date specified in such notice, to be not less than five days after the date of such notice, and thereupon, and at the expiration of the time limit in such notice this lease and the term hereby granted, as well as all of the right, title and inter- est of tenant hereunder, shall wholly cease and expire and become -19- ................ . void in the same manner and with the same force and effect (except as to tenant's liability) as if the date fixed in such notice were the date herein specified for expiration of the term of this lease. Thereupon, tenant shall immediately quit and surrender to landlord the premises., and landlord may enter into and repossess the premises by summary proceedings, detainer, ejectment or other- wise, and remove all occupants thereof and, at landlord's option, any property thereon without its employees being liable to indict- ment, prosecution or damages therefor. (b) In the event of default by tenant under a covenant not personal to Janelle Aviation, Inc. and failure to cure as aforesaid, landlord shall be entitled as a matter of right and without notice to tenant or any other party or parties (such notice hereby waived) to the appointment of a receiver with full and complete authority to enter upon the premises, to employ watchmen to protect any improvements from depredation or injury and to preserve and protect the personal property therein, to continue any and all outstanding contracts or, at receiver's option, to enter into a new contract or contracts and to continue the commercial operation of the Airport, subject, however, at all -- times to the rights of transferees of hangar condominium units and their mortgagees provided such transferees and mortgagees are not in default hereunder. (c) In the event of a breach or threatened breach by tenant of any of the agreements, conditions, covenants or terms hereof, -20- .................... ............................... ............................ . landlord shall have the right to injunction to restrain the same and the right to invoke any remedy allowed by law or in equity whether or not other remedies, indemnity or reimbursements are herein provided. The rights and remedies given to landlord in this lease are distinct, separate and cumulative remedies, and no one of them, whether or not exercised by landlord, shall be deemed to be in exclusion of any of the others. O - wL.- - h In addition to the rights afforded to landlord in Section 1 of this Article, landlord may declare that the bond described in Article XIV, Section 2, is forfeited and may claim the same as liquidated damages for the breach of this agreement. ARTICLE XIII SALE OR SUBLEASE OF HANGARS 0 -n4- i n» i The tenant shall have the right to sell as condominium or sublease the hangar storage facilities constructed under this lease. All condominium documents and other instruments related to any sale of the facilities shall be approved in advance by the Leesburg Airport Commission. Any such sales transaction shall ex- -- -- clude the sale of land which shall remain in fee simple ownership of the Landlord. All facilities constructed on the premises shall become the property of the landlord at the expiration of the initial term of this lease or subsequent term of this lease if legally extended by landlord and tenant. -21- LP Prior to approval of the condominium documents and instru- ments, the tenant shall furnish an attorney's certificate from an attorney licensed by the Virginia Bar Association certifying that the documents meet all national, state and local regulations and laws governing such documents. Section 2 Tenant plans to construct hangar buildings on the premises and to sell individual hangars within such buildings as condomini- um units. The terms and provisions of this Section shall apply in the event tenant chooses to proceed with such condominium project. A condominium unit is hereafter called "Unit" and the owner of any Unit is hereafter called a "Unit Owner ". (a) While still owner of the entire leasehold estate and of the improvements, tenant proposes to file a Condominium Declara- tion with respect to the premises and the improvements thereon, such Declaration to be filed just prior to the first conveyance of a Unit to a Unit Owner. Upon purchasing a Unit, the Unit Owner will, in addition to title to the improvements constituting the Unit, acquire an undivided interest in the leasehold estate created hereby, and will thereupon be deemed an assignee of the - leasehold estate to the extent of such undivided interest, and shall assume the obligations of tenant hereunder insofar as such obligations affect the undivided interest of the Unit Owner and are not personal to Janelle Aviation, Inc. Without limiting the generality of the foregoing, the Unit Owner will be obliqated to -22- pay the monthly rent hereunder and fixed base operator's fee referred to in Article II, Section 2. Notwithstanding anything to the contrary contained herein, at such time as Janelle Aviation, Inc. has assigned all of its interests in the premises to Unit Owners, landlord will.consider only the assignee Unit Owners, their transferees, heirs and.successors bound hereunder and Janelle Aviation, Inc. shall be relieved of all those rights, obligations, duties and interests under this lease which are not personal to Janelle Aviation, Inc. (b) Each Unit Owner shall comply with all of the require- ments of the Condominium Declaration and the Bylaws of any Con- dominium Association established with respect to such condominium as the same may be amended from time to time, and a default by the Unit Owner under such Declaration or Bylaws shall constitute an event of default under this lease and shall entitle landlord to exercise the landlord's remedies under this lease with respect to the undivided leasehold estate of such Unit Owner. (c) If required by landlord or by such Declaration or Bylaws, the Unit Owner shall pay his proportionate part of the rent payable hereunder, including, but not limited to, such Unit -` Owner's pro rata share of the insurance premiums and property taxes applicable to the premises and to the Unit Owner's Unit, to the Condominium Association for payment, in turn, to landlord or other person entitled thereto. The fire and extended insurance coverage with respect to such Unit shall be included within a -23- ........................... blanket fire and extended insurance policy covering all of the inprovements located on the premises, which policy shall comp. ly with the requirements contained in this lease. (d) Irrespective of any default by Janelle Aviation, Inc. or by .any other Unit Owner, so long as any Unit Owner is not in default hereunder with respect to a covenant not personal to Janelle Aviation, Inc., the undivided leasehold estate of such Unit Owner may not be terminated prior to the expiration of the term of this lease. (e) Any mortgage or deed of trust granted by a Unit Owner covering his Unit shall be a leasehold mortgage covering the unit and the undivided interest in the leasehold estate of the Unit Owner in and to the premises. Any mortgagee of such Unit shall have the same rights and be entitled to the s »^e notices with respect to default by the Unit Owner- Mortgagor under this lease as are afforded to any mortgagee of the entire l- asehold estate here- under by Article XVII hereof, and there shall be no termination of the undivided interest of the Unit Owner in and to the lease- hold estate because of default by such Unit Owner without compli- ance by landlord with the applicable provisions of such Article XVII. (f) No termination of the undivided interest in the lease- hold estate of any Unit Owner shall terminate the Condominium Declaration unless the interest of all Unit. owners has terminated, but such Condominium Declaration shall remain in full force and -24- effect so long as any Unit Owner owns a Unit unless otherwise terminated in accordance with the provisions of such Declaration and with the prior written consent of the mortgagees of all Unit Owners. Upon the expiration of the term of this lease, or upon the_ earlier termination of the entire leasehold estate hereunder, the Condominium Declaration shall terminate and be of no further force an effect unless at the time of such termination landlord shall file an instrument of record expressly consenting to the continuation of such Declaration. (g) The landlord agrees to join with the tenant in executing the Condominium Declaration approved by landlord pursuant hereto, submitting the premises to the Condominium Act (Title 55, Chapter 4.2, 1950 Code of Virginia as amended) . ARTICLE XIV CONDITIONS TO EFFECTUATION OF LEASE The obligations of this lease are subject to the following conditions precedent: (a) If required, the lease must be approved by the Virginia Department of Aviation. In addition, the said tenant must secure all necessary permits for the conduct of the oneration.of the said airport and service to be conducted there. In the event the lease is disapproved by the Virginia Department of Aviation and /or the location of the hangar facilities is disapproved by the Federal Aviation Administration, all rights and obligations in this lease -25- shall terminate. Both parties covenant to use their best efforts to secure the necessary and requisite approvals described above. ( -b) Landlord shall have received, prior to execution of this lease, a corporate surety bond, or other acceptable security, in a form approved by the town attorney, to guarantee the construction of all facilities required to be completed hereunder. ARTICLE XV MISCELLANEOUS PROVISIONS Section 1 Failure of landlord to insist in any one or more instances upon a strict performance by Tenant of any of the provisions, terms, covenants, reservations, conditions or stipulations contained in this lease shall not be construed as a waiver or relinquishment thereof for the future, but the same shall continue and remain in full force and effect, and no waiver by landlord of any provisions, terms, covenants, reservations, conditions or stipulations hereof shall be deemed to have been made in any instance unless specifically expressed in writing by landlord as an amendment to this lease. Section 2 "- Tenant warrants that no person or agency has been employed or retained to solicit or secure this lease upon an agreement or un- derstanding for a commission, percentage, brokerage or contingent fee and shall hold the landlord harmless from any claim for same, including attorneys' fees in the event any claim is made upon -26- landlord or litigation is commenced or threatened against land- lord. ARTICLE XVI QUIET ENJOYMENT Section 1 Landlord warrants that it has the power and authority to enter into this lease and so long as tenant performs each and every covenant agreement, term provision, and condition herein tenant and its customers shall have quiet and peaceful possession of the premises without hinderance from landlord or anyone.claim- ing under or through landlord. Section 2 Landlord agrees that it will supply any person legitimately requesting same with a statement as to the continuing validity of this lease, the status of rental payments and any defaults then in existence. Such statements shall be delivered upon request to purchasers of Condominium Units or a mortgagee with respect to the portion of the premises occupied by such Unit or Units. Landlord may collect a reasonable fee for its expenses in preparing such statements. ARTICLE XVII PROVISIONS RESPECTING MORTGAGEES The following sections shall be in effect, anything contained in this lease to the contrary notwithstanding: -27- ..................... Section 1 (a) A leasehold mortgagee has the unrestricted right to take this Tease (or any portion thereof relating to a condominium Unit) by assignment in lieu of foreclosure and to sell it either after foreclosure or after taking the assignment, all without the con- sent of landlord, but no such occurrence shall relieve Janelle Aviation, Inc. of its obligations hereunder until after completion of the original improvements, free and clear of all mechanics' liens. The leasehold mortgagee shall be personally liable for tenant's obligations hereunder, to the extent the same are not personal to Janelle Aviation, Inc., but only for the period during which it is the owner of the leasehold estate, whether by fore - closure or assignment. (b) The mortgagee of the tenant's leasehold estate, at any time before the rights of tenant shall have been terminated here- under, as provided in this lease, may, at its option do any act or any thing necessary proper hereunder to prevent such termination, and any act or thing so done shall be as effective to prevent such termination of tenant's rights hereunder as if done by said tenant; and if tenant so desires any such mortgage or deed of trust may provide that, as between any such mortgagee and land- lord, such mortgagee on making good any default hereunder by tenant shall thereby have all the rights provided by law. (c) For the benefit of the holder of any mortgage on the leasehold estate created by this lease who shall have become -28- .................. ............................... entitled to notice as hereinafter provided in Section 1(d) of this Article XVII, landlord agrees not to accept a surrender of this lease -at any time while such mortgage shall remain a lien on said leasehold; and landlord and tenant further agree for the benefit of _any such leasehold, mortgagee that, so long as any such mortgage shall remain a lien on said leasehold, landlord and tenant will not subordinate this lease to any mortgage that may hereafter be placed on the fee or amend or alter any terms or provisions of this Lease or consent to any prepayment of any rent without secur- ing the written consent thereto from such leasehold mortgagee. (d) Landlord agrees that if and so long as the leasehold estate of the tenant is encumbered by a leasehold mortgage or deed of trust, landlord will give to the.holder of any such mortgage notice of any default under this Lease or the happening of any contingency referred to in Article XI simultaneously with the qiv- ing of such notice to the tenant. In the event the tenant fails to cure a default within the period in Article XI, landlord shall give notice of such failure to the leasehold mortgagee, and such leasehold mortgagee shall have the right for an additional period of thirty (30) days from the receipt of such notice from landlord of failure by lessee to cure the previously noticed default and, to the same extent and with the same effect as though done by tenant, to take such action and /or to make such payment as may be necessary or appropriate to cure any such default or contingency so specified, it being the intention of the parties hereto that -29- ............ ............................... ...... ............................... the landlord shall not exercise its right to terminate this Lease as in Article XII, without affording to the holders of any such mortgages or deeds of trust the same rights and the same notices with respect to any such default or contingency and the additional notice of tenant's failure to cure as above provided, and the same period or periods of time within which to cure the same as are afforded to the tenant hereunder (and a period of thirty, (30) days from receipt of such notice or failure by tenant to cure the previously noticed default). With regard to any default that may not be cured by the payment of money, the leasehold mortgagee shall have the right, prior to termination of this Lease by landlord, to extend the period of time beyond the said thirty (30) days for such addi- tional period as, in good faith, will enable the leasehold mort- gagee to institute foreclosure proceedings, appoint a receiver for the purposes, among other things, of curing such default and /or to acquire by foreclosure tenant's interest in this Lease, to affect a removal of tenant from and /or acquire possession of the leased premises and for such reasonable time thereafter as may enable the leasehold mortgagee to cure any and all such defaults provided that with respect to defaults in the payment of rent the time for the leasehold mortgagee to cure shall not exceed thirty (30) days. Landlord agrees to accept performance and compliance by any such leasehold mortgagee of and with any term, covenant, agreement, provision, condition or limitation on tenant's part to be kept, -30- observed or performed hereunder with the same force and effect as though kept, observed or performed by tenant. Landlord's right to terminate this lease or any part thereof shall be subject to the rights of any mortgagee to receive notice and opportunity to cure, and-such mortgagee, their transferees, successors and assigns, shall not be obligated to cure any default under a covenant which is personal to Janelle Aviation, Inc. (e) If this lease shall terminate prior to the expiration of the lease term, landlord shall enter into a new lease for the leased premises with any such leasehold mortgagee for the remain- der of the then term, effective as of the date of such termina- tion, at the rent and upon the same terms, covenants and condi- tions contained herein (includinq the option to extend this Lease), on conditions that: (i) Such leasehold mortgagee shall make a written request for such new lease within thirty (30) days after date of such termination; and (ii) On the commencement date of the term of the new lease, such leasehold mortgagee shall cure all defaults of tenant which are not personal to Janelle Aviation, Inc. under this Lease (susceptible of being cured by such leasehold mortgagee) which remain uncured on that date, and shall pay or cause to be paid all unpaid sums which at such time would have been payable under this Lease but for such termination, and shall pay or cause to be paid to landlord on that date all expenses, including legal expenses -31- and reasonable attorneys' fees, incurred by landlord in connection with any such default and termination, as well as in connection with the execution and delivery of such new lease. Section 2 . Landlord agrees that it shall not encumber or cause a lien, claim or charge to be placed against or imposed on the title to the premises; and should any lien, claim or charge be placed against or imposed on the title to the premises by or on account of the landlord, and properly chargeable to it, then tenant at its option may pay the same and deduct that amount.plus interest and costs from the rent payment next due. Landlord further represents and warrants to tenant that the premises are free from all encum- brances, liens, defects in.title, violations of law, leases, tenancies, easements, restrictions and agreements. In the event of a taking of the premises by eminent domain or condemnation proceedings so as to render the same unusable for the purposes contemplated by the parties hereto on the date hereof, then tenant shall have the option to terminate this lease, or renegotiate the terms hereof in view of said taking_ In the event __ -- of such a taking which does not significantly or materially affect the use of the premises as contemplated on the date hereof, then this lease shall remain in full force and effect. In the event that the lease is not terminated following any such taking, both the landlord and tenant shall share in the award -32- or purchase price of the premises taken according to the respec- tive interests therein as determined by a court of competent jurisdiction; in.the event of a termination of this lease and there is at that time a mortgage on the leasehold interest of the property, such mortgagee shall have the right to first receive such amount as may be necessary to pay off the balance of the out- standing loan; and the balance after paying the landlord the value of the land as determined in such taking shall be divided between the parties according to their respective interests, and provided, however, that if this lease continues in effect after such taking and it is necessary for the balance of the premises to be restored or repaired, then the tenant, at its sole expenses, shall make such repairs or restoration and it shall first receive the cost thereof out of any award or purchase price before the sharing of any residue of the award or purchase price between the landlord and tenant. ARTICLE XVIII NOTICES Any notice required or permitted to be given pursuant to this Agreement shall be in writing and shall be sufficient if actually delivered or if sent by certified mail (return receipt requested) properly stamped and addressed, to landlord as follows: -33- ............. ................... Town Manager ATTN: Assistant Town Manager Town of Leesburg in Virginia P.O. Box 88 Leesburg, Virginia 22075 to tenant as follows: JANELLE AVIATION, INC. Leesburg Municipal Airport Route 1, Box 432 Leesburg, VA 22075 or to such other address as landlord and tenant may from time to time designate by written notice. ARTICLE XIX ASSIGNMENT The personal obligations of Janelle Aviation, Inc. under this lease may not be assigned in whole or in part during the first five years of the lease term. Thereafter such assignment shall require the prior approval of the Leesburg Town Council. Tenant shall have the right and privilege to mortgage and /or otherwise encumber its leasehold interest, in whole or in part, in the premises and /or in any part thereof, and to assign this Lease as security for the performance of its obligation under such Mort- gage and other encumbrance. In addition, tenant shall have the right to assign this lease in connection with the sale of Con - dominum Units as contemplated in Article XIII to such other per- sons, firms and /or corporations as tenant may select; provided, -34- however: (1) such assignment shall be made expressly subject to the terms, covenants and conditions of this lease; and (2) there shall.be delivered to. landlord a duly executed copy of such deed of assignment; and such assignment shall not be effective to bind landlord until notice shall designate the name and address of the assignee and the post office.address of the place to which all notices required by this Lease shall be sent. Such assignee of tenant (and all succeeding and successive assignees) shall succeed to all rights of tenant under this Lease, including the right to mortgage, encumber and otherwise assign and sublet, subject, how- ever, to all the duties and obligations of tenant (which are not personal to tenant) in and pertaining to the then unexpired term of this Lease. Upon such assignment by tenant, or by a successive tenant, the original tenant (and /or its successive assignee or assignees), the assignor in such an assignment, shall be released and discharged from those duties and obligations hereunder which pertain to the portion of the premises assigned as to the then unexpired term of this Lease, including the payment of rents, taxes or other impositions which are not then due and payable; it being the intention of this Lease that the tenants then in posses- sion shall be the sole persons liable for the payment of rent, taxes and other impositions becoming due and payable during the term of its possession of the demised premises and that there shall be no obligation on the part of the original tenant (or any assignee) for the payment of any rent, taxes or other impositions -35- becoming due and payable after the term of its possession of the premises. Section 3 Tenant or its assignees shall have the right to sublet all or any_ part of-the premises upon the following terms and condi- tions: (1) No such sublease shall in any way affect or modify the tenants` obligations under this lease. (2) Each sublease shall provide that it is subject and subordinate to the rights of the landlord under this lease, and to any modification thereof, and to the terms and provisions of any deeds of trust or mortgages to which this lease is subordinate, and to all renewals, extensions or modifications thereof_. The provisions for such subordination shall be self- operative so that no further instrument of subordination need be required. (3) Each sublease shall also provide that the sublessee shall abide by and comply with all of the terms set forth in this lease, or any modifications thereof, except with respect to the terms regarding rent and insurance, which shall remain the tenants' obligations. -36- IN WITNESS WHEREOF, the parties have caused the same to be executed by themselves and their appropriate officer, all being duly authorized to act, this d day of 1982. ATTEST: Clerk of ouncil ATTEST: (TENANT) TOWN OF LEESBURG IN VIRGINIA (LANDLO ) By: R bert E. evi]a�,,;- Mayor JANELLE AVIATION, INC. By James M. Hay es, Jr. resident (SEAL) d -37- State of Virginia ) ss County of Loudoun } The foregoing instrument was acknowledged before me this 8 day of October , 1982, by Robert E. Sevila ,the Mayor of the Town of Leesburg, Virginia, a Virginia municipal corporation, on behalf of the corporation. [Notarial Seal] 219-tary Public My commission expires: 2 -25 -83 State of ` ) ss County of� Th foregoing instrument was acknowledged before me this day of L -4u_ _ , 1982, by James M. Haynes, Jr., the president of Janelle Aviation, Inc., a Maryland corporation, on behalf of the corporation. Notary Pub is [Notarial Seal] My commission expires: My Commission Expires February 2' 6, i7mf -38-