HomeMy WebLinkAboutResolution 2018-007 Approving Marana Regional Airport Lease Agreement MARANA RESOLUTION NO, 2018-00')-"
RELATING TO REAL ESTATE; APPROVING AND AUTHORIZING THE MAYOR TO
EXECUTE A MARANA REGIONAL AIRPORT Ll'ASE AGREEMENT' WITH
MARICOPA AIRCRAFT SERVICE, INC. FOR THE LLASE OF APPROXIMATELY
TWO ACRES OF 'TOWN-OWNED PROPERTY AT THE MARANA REGIONAL
AIRPORT LOCATED AT 11700 W. AURA VALLEY ROAD
WHEREAS Maricopa Aircraft Service., Inc. desires to lease a portion of
Town-owned property at the Marana Regional Airport for commercial aeronautical
uses; and
WHEREAS the Mayor and Council of the Town of Marana find- that the best
interests of Marana and its citizens are served by entering into the proposed lease
agreement.
NC-)W j I ERE FORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF
THE TOW-N Of'q
MARANA, that the Marana Regional Airport Lease Agreement with
Maricopa Aircraft Service, Inc., attached to this resolution as Exhibit A, is hereby
approved, and the Mayor is authorized to execute it for and on behalf of the Town of
Mctra.i-w.
IT IS FURTHER RESOLVED that the Town Manager and staff are hereby
directed and authorized to undertake a.11 other and further tasks required or beneficial
to carry out the terms, obligations, conditions and objectives of the agreement.
PASSED AND ADOPTED by the Mayor and Council of the Town of Marana,
Arizona, this 16th day of January, 2018.
e
Mayor E HoneaV
ATTEST: APPR D A 0 FORM:
o c e yy inronson, Towri Clerk F nk C y, Town ttornev
A
00055479.DOCX/1 MARANA AZ
Marana Resolution No.2018-007 FS TA 111-1 1,,H F D I q 7 7
MARANA REGIONAL AIRPORT
LEASE AGREEMENT
This LEASE AGREEMENT (this "Lease") is made and entered into by and between the
TOWN of MARANA, an Arizona municipal corporation (the "Town"), and MARICOPA
AIRCRAFT SERVICE, INC., an Arizona corporation (the "Lessee"). The Town and Lessee
are sometimes collectively referred to as the "Parties," either one of which is sometimes
individually referred to as a "Party."
RECITALS
A. The Town is the owner of the Marana Regional Airport located at 11 700 W. Avra
Valley Road, Marana,Arizona 85653 (the "Airport").
B. Lessee desires to lease a portion of the Airport property.
C. The Town is willing to lease the property to Lessee on the terms and conditions
specified herein.
AGREEMENT
Now, THEREFORE, in consideration of the foregoing recitals, which are 'incorporated
into this Lease as though fully restated here, and the mutual covenants set forth in this
Lease, the Parties hereby agree as follows:
Article 1. Leased Property
The Town hereby leases to Lessee that certain real property at the Marana Regional
Airport, consisting of approximately two acres generally located on the northwest side
of the Airport on a portion of Pima County Assessor's Parcel No. 215-04-001E (the
"Property"). The Property is more particularly described in the location map and legal
description, together attached to and incorporated in this Lease as Exhibit A.
Article 2. Lease;Privileges;Restrictions
2.1. So long as Lessee timely pays rent and performs all other obligations under this
Lease, the Town grants to Lessee exclusive use of the Property for commercial aeronau-
tical uses, as those uses are defined and approved by the United States Federal Aviation
Administration CTAA").
2.2. Subject to Lessee's compliance with all applicable rules and regulations, as set
forth in Article 22 below, and Lessee's payment of all applicable airport fees, rates and
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charges, the Town grants to Lessee the following non-exclusive additional privileges,
uses and rights:
2.2.1. The general use of all public facilities and improvements which are now or
may hereafter be constructed at the Airport, including the runways, approach areas,
taxiways and navigational aids.
2.2.2. The right of ingress and egress from the Property over and across designat-
ed Airport property, public roadways serving the Airport, and the public parking
areas, to be utilized by the Lessee, its agents, employees and invitees.
2.3. Lessee shall not use the Property, nor permit any assignee to use the Property,
for any purposes other than for aeronautical uses, as defined and approved by the FAA,
including the storage of aircraft or other aviation equipment (including simulators).
Lessee is specifically prohibited from using the Property for storage of non--aircraft-
related parts or pieces, furniture,junk, and vehicles. Lessee shall not engage in activities
that interfere with the use of the Airport and facilities for airport purposes.
Article 3. Term
3.1. The term of this Lease shall be for a period of two years commencing on Octo-
ber 1, 2017 (the "Effective Date") and terminating on September 30, 2019, unless sooner
terminated pursuant to the provisions contained herein.
3.2. Any holding over after the expiration of the Lease term, with the consent of the
Town, shall be construed to be a tenancy from, month to month at two tinges the rents
herein specified (prorated on a monthly basis). The provisions of this Lease shall apply
to any such holding over period.
Article 4. Rent
4.1. From the Effective Date of this Lease, Lessee's rent shall be $0.15 per square foot
per year, for a rent amount of $13.068.00 per year, which rent shall be paid without
notice and free from all claims, deductions or set-offs against the Town.
4.2. Lessee shall pay one-twelfth of the annual rent due for the then current lease
year, in advance, on the first day of each month. Each payment shall be delivered to the
office of the Airport Director.
4.3. If Lessee fails to pay any rent in full on or before the due date, Lessee is respon-
sible for a late fee in the amount of$50.00. Any amounts paid later than 15 days after
the due date will also bear interest on the unpaid principal balance at the rate of 18%
per annum from the due date until payment in full is made.
Article 5. Utilities
Lessee shall pay for all utilities used in its operations at the Airport.
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Article 6. Improvements
6.1. Lessee shall make no improvements or modifications to the Property without
the prior written consent of the Town. Before commencing any improvements or modi-
fications, Lessee shall submit detailed construction plans and specifications to the
Town, and upon completion of any improvements or modifications, Lessee shall fur-
nish to the Town two complete sets of detailed plans and specifications of the work as
completed. Prior to the start of any construction of improvements or modifications to
the Property, Lessee shall secure all applicable building permits and approvals from.the
Town. In addition, Lessee shall furnish any additional information concerning any
proposed improvements or modifications which the Town may deem necessary with
regard to the safety of the Property and/or compatibility with the general use of the
Airport.
6.2. Lessee's development plans, construction plans, and specifications shall comply
with the airport master plan, the airport layout plan, and the airport architecture &
landscape design standards as currently existing or as may be amended or adopted, all
of which are hereby incorporated in this Lease.
6.3. The Town may require modifications to the Property necessary for the safety of
air navigation. If any improvements or modifications to the Property made by Lessee
should interfere with any FAA navigational aid, Lessee shall be responsible for remov-
ing the interference at its sole cost.
6.4. All improvements and modifications made by Lessee shall be constructed in a
good, workmanlike manner by licensed contractors, and in compliance with all appli-
cable building codes.
6.5. Prior to the commencement of any construction on the Property, Lessee or Les-
see's Contractor shall provide the Town with payment and performance bonds in
amounts equal to the full amount of the written construction contract pursuant to which
such construction is to be done. The payment bond shall be solely for the protection of
claimants supplying labor or materials for the required construction work, and the
performance bond shall be solely for the protection of the Town, conditioned upon the
faithful performance of the required construction. work. Each bond shall include a
provision allowing the prevailing party in a suit on such bond to recover as part of its
judgment such reasonable attorney's fees as may be fixed by the court. Each bond shall
be executed by a surety company duly authorized to do business in Arizona and ac-
ceptable to the Town. Each bond shall be filed with the Town immediately upon execu-
tion thereof.
6.6. Prior to the commencement of any construction on the Property, Lessee shall de-
liver to the Town copies of documentation that Lessee has submitted to Lessee's lender
to secure financing for the improvements. If the Town is satisfied that Lessee's docu-
mentation provides adequate security for the construction of the improvements, the
Town will not require any further security from Lessee. If Lessee's documentation is
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not satisfactory to the Town, Lessee shall deliver to the Town funds in an amount de-
termined based on the Town's reasonable estimate of the total cost to construct the
improvements, plus a reasonable contingency, which funds are referred to in this Lease
as the "Cash," to be used or released only pursuant to the terms of this Lease.
6.6.1. The Town shall return the Cash to Lessee only upon Lessee's satisfactory
completion and the Town's acceptance of the improvements, or Lessee's tender and
the Town's acceptance of substitute assurances for completion of the improvements.
6.6.2. The Town may authorize a release of a portion of the Cash to Lessee, if the
Town determines that the remaining Cash is sufficient to construct the improve-
ments plus a reasonable contingency.
6.6.3. In addition to any other remedies, if Lessee defaults on its obligations un-
der this Lease, the Town may at its sole discretion use the Cash to construct all or
any portion of the planned improvements. The Town shall give 30 days' notice to
Lessee before initiating any action to construct the planned improvements.
6.7. Lessee shall keep the Property and all improvements thereon free of any me-
chanic's or materialmen's liens or liens of any kind or nature for any work done, labor
performed, or material furnished on or to the Property. If any lien is filed, Lessee shall,
at its sole cost, cause such lien to be removed from.the Property within 30 days of notice
or becoming aware of the lien.
6.8. All improvements and modifications made by Lessee which become fixtures to
the Property shall become the property of the Town, at no cost to the Town, upon the
expiration or termination of this Lease, free of any security interest or claims of any
kind from or through Lessee; provided that if Lessee is not in default of any of its obli-
gations under this Lease and can remove any of its trade fixtures at its own expense
without materially damaging the Property, Lessee may remove such trade fixtures at
the termination or expiration of this Lease.
Article 7. Acceptance;Maintenance; Repairs
7.1. Lessee warrants that it has inspected the Property and accepts possession of the
Property and the improvements thereon "as is" in its present condition and subject to
all limitations imposed upon the use thereof by the FAA and by ordinances of the
Town, and Lessee acknowledges the suitableness and sufficiency of the Property for the
uses permitted hereunder. Except as may otherwise be specifically provided for herein,
the Town shall not be required to maintain or to make any improvements, repairs or
restorations upon or to the Property or to any of the improvements presently located
thereon. Under no circumstances shall the Town have any obligation to repair, main-
tain or restore any improvements placed upon the Property by Lessee.
7.2. Lessee shall be solely responsible, at its cost, for all repairs and maintenance
whatsoever on the Property and shall maintain all improvements thereon in a safe and
serviceable condition and in accordance with the minimum standards for maintenance
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and operation required by applicable federal, state and local agencies, including but not
limited to the United States Department of Transportation ("DOT,") and the FAA,
whether such repair or maintenance is ordinary or extraordinary, structural or other-
wise. Additionally, Lessee,without limiting the generality hereof, shall:
7.2.1. Keep at all times, in a clean and orderly condition and appearance, the
Property, including all grounds and landscaping, all improvements thereon, and all
of Lessee's fixtures, equipment and personal property which are located on any part
of the Property. Lessee shall be responsible for all janitorial services on the Property;
and
7.2.2. Be responsible for the maintenance and repair of all utility services lines
placed on the Property and used by Lessee exclusively;and
7.2.3. Repair any damage caused by Lessee, or its agents, employees or invitees,
to the Airport caused by any hazardous materials, including oil, gasoline, grease,
lubricants or other flammable liquids and substances having a corrosive or detri-
mental effect on the Property or Airport.
7.3. If Lessee fails to maintain, clean, repair, replace, rebuild or repaint within a peri-
od of 30 days after written notice, the Town may terminate this Lease or, at its option,
enter the Property, without such entering causing or constituting a termination of this
Lease or any interference with the possession of the Property, and maintain, repair,
replace, rebuild or paint any part of the Property or any improvements thereon, and do
all things reasonably necessary to accomplish the work required with all costs thereof
payable to the Town by Lessee on demand; provided that if in the opinion of the Town,
Lessee's failure to perform any such maintenance or other work endangers the safety of
the public, the employees or property of the Town or other tenants at the Airport, and
the Town so states in its notice to Lessee, the Town may, in its sole discretion, elect to
perform such maintenance or other work at any time after the giving of such notice, and
Lessee shall pay to the Town all costs of such work on demand. If the Town,its officers,
employees or agents undertake any work hereunder, Lessee hereby waives any claim
for damages, consequential or otherwise, resulting therefrom except for claims for dam-
ages arising from the Town's sole negligence. The foregoing shall in no way affect or
alter the primary obligations of Lessee as set forth in this Lease and shall not impose
upon the Town any obligations not clearly stated in this Lease.
Article 8. Additional obligations of Lessee
8.1. Lessee shall at all times employ and designate a manager to supervise and man-
age its operations hereunder and shall provide the Town with the manager's name and
contact information within 48 hours of designation by Lessee. Lessee shall employ a
sufficient number of trained personnel on duty to provide for the efficient and proper
compliance with its obligations under this Lease. Upon request of the Airport Director,
Lessee shall provide, and its employees shall wear or carry, badges or other suitable
means of identification.
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8.2. Lessee shall conduct its operations hereunder in an orderly and proper planner,
considering the nature of such operation, so as not to unreasonably annoy, disturb,
endanger or be offensive to others.
8.3. Lessee shall take all reasonable measures to reduce to a minimum vibrations
tending to damage any equipment, structure or building.
8.4. Lessee shall comply with all reasonable written instructions of the Town in dis-
posing of its trash and refuse and shall use a system of refuse disposal approved by the
Town.
8.5. Lessee shall not do, nor permit to be done, anything which may interfere with
the effectiveness or accessibility of the drainage system, sewerage system, fire protec-
tion system, sprinkler system, alarm system and fire hydrants and hoses, if any, in-
stalled or located on the Property.
S.G. Lessee shall take measures to ensure security in accordance with generally ac-
cepted security procedures and shall employ any additional security as requested in
writing by the Airport Director. All security costs are at Lessee's expense.
8.7. Lessee shall not do,nor permit to be done,any act or thing upon the Property:
8.7.1. Which may constitute a hazardous condition so as to increase the risks at-
tendant upon the operations permitted by this Lease; or
8.7.2. which will invalidate or conflict with any fire insurance policies or regula-
tions, Uniform. Fire Code, N.F.P.A. Standard No. 409, or any subsequent amend-
ments, for operation of aircraft, and other provisions as applicable to the Property or
other contiguous premises at the Airport.
8.8. Lessee shall provide prompt written notice to the Town of any person or entity
performing aircraft maintenance work, flight instruction, air taxi, aircraft charter or
aircraft leasing of any sort on the Airport for commercial purposes without a valid
permit from the Town.
8.9. Lessee shall not overload any floor, structure or structural member on the Prop-
erty, or any paved area on the Airport, and shall repair at Lessee's expense any floor,
structure,structural member or any paved area damaged by overloading.
8.10. All possible care, caution and precaution shall be used to minimize prop or jet
blast interference to aircraft operations, or to buildings, structures and roadways now
located on, or which in the future may be located on, areas adjacent to the Airport.
Article 9. Ingress and Egress
The Town may, at any time, temporarily or permanently, close or consent to or re-
quest the closing of, any roadway or taxiway at the Airport and any other way at, in or
near the Property presently or hereafter used as such, so long as a reasonable means of
ingress and egress remains available to Lessee. Lessee hereby releases and discharges
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the Town, its officers, employees and agents, and all other governmental authorities
from all claims, demands, or causes of action which Lessee may at any time have
against any of the foregoing, arising out of the closing of any roadway or other area,
provided that a reasonable means of access to the Property remains available to Lessee.
Lessee shall not do or permit anything to be done which will interfere with the free
access and passage of others to space adjacent to the Property or to any roadways near
the Property.
Article 10, Assignment and Subletting
Lessee shall not assign or sublease any of its interest under this Lease, nor permit
any other person to occupy the Property.
Article 11. Advertising Signs
Lessee may install on the Property, subject to the Town's sign code or ordinances,
signs identifying its business. The number, general type, size, and location of signs
must be approved in writing by the Airport Director prior to installation.
Article 12. Default;Remedies by Town
12.1. The Town may terminate this Lease by giving Lessee 30 days' written notice af-
ter the happening of any of the following events:
12.1.1. The failure of Lessee to perform any of its obligations under this Lease, if
Lessee fails to cure its default within the 30-day notice period, or such longer period
of time as may be reasonably required to cure a matter which, due to its nature, can-
not reasonably be remedied within 30 days;
12.1.2. The taking of possession for a period of ten days or more of substantially
all of the personal property used on the Property belonging to Lessee by or pursuant
to lawful authority of any legislative act, resolution, rule, order or decree or any act,
resolution, rule, order or decree of any court or governmental board, agency, officer,
receiver,trustee or liquidator;
12.1.3. Tb.e filing of any lien against the Property because of any act or omission
of Lessee which is not discharged within 30 days of receipt of actual notice by Les-
see.
12.1.4. Payment of rent later than 15 days after the due date four or more times
within any calendar year.
12.2. The Town may place Lessee in default of this Lease by giving Lessee 30 days'
written notice of Lessee's failure to timely pay the rent provided for in this Lease or any
other charges required to be paid by Lessee pursuant to this Lease. During said 30-day
notice period, Lessee shall cure said default; otherwise, the Town may elect to terminate
this Lease or do any of the following:
12.2.1. Institute action(s) to enforce this Lease;
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12.2.2. Take possession of the Property, together with improvements, fixtures,
and equipment therein contained without terminating this Lease, and on behalf of
Lessee relet the same or any part thereof for a term, shorter, longer, or equal to the
then unexpired remainder of the Lease term. The Town may at any time after taking
possession terminate this Lease bygiving notice to Lessee, and sue for damages;
12.2.3. Terminate this Lease, without further notice to Lessee, re-enter the Proper-
ty and recover damages, including but not limited to, all costs of repossession and
reletting and brokerage commissions for services performed by or for the Town;
12.2.4. Exercise the "Remedies of Landlord" as set forth in Arizona Revised Stat-
utes,Title 33;
12.2.5. Exercise any other remedy allowed by later or equity.
12.3. If Lessee at any time fails to maintain all insurance coverage required by this
Lease, the Town shall have the right, upon written notice to Lessee, to immediately
terminate this Lease or to secure the required insurance at Lessee's expense.
12.4. Upon the termination of this Lease for any reason, all rights of Lessee shall
terminate, including all rights of Lessee's creditors, trustees, and assigns, and all others
similarly situated as to the Property, provided that the Town has given any known
creditors, trustees or assigns of Lessee notice and an opportunity to cure any default, as
provided in this Article 12.
12.5. Failure by the Town to take any authorized action upon default by Lessee of
any of its obligations hereunder shall not constitute a waiver of said default nor of any
subsequent default by Lessee. Acceptance of rent and other fees by the Town under the
terms hereof for any period after a default by Lessee of any of its obligations shall not
be deemed a waiver or estoppel of the Town's right to terminate this Lease for any
subsequent failure by Lessee to comply with its obligations.
Article 1.3. Remedies by Lessee
13.1. Lessee may exercise all rights or remedies under the law or at equity (*including
without limitation, terminate the Lease) if the Town fails to satisfy its obligations under
this lease, by giving the Town 30 days' written notice after the happening of any of the
following events:
13.1.1. Issuance by a court of competent jurisdiction of an injunction in any way
preventing or restraining Lessee's use of any substantial portion of the Property and
the remaining in force of such injunction for a period of 30 consecutive days.
13.1.2. The inability of Lessee to use any substantial portion of the Property for a
period of 30 consecutive days, due to the enactment or enforcement of any law or
regulation or because of fire, earthquake or similar casualty, or Acts of God or the
public enemy.
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13.1.3. The lawful assumption by the United States Government of the operation,
control, or use of the Airport or any substantial part of it for military purposes in
time of war or national emergency.
13.2. Lessee may also terminate this Lease upon 60 days' written notice to the Town.
Article 14. Indemnification
Lessee shall defend, indemnify and hold harmless the Town and its elected or ap-
pointed officials, agents, boards, commissions and employees (hereiafter referred to
collectively as the ""Town" in this Article) from all loss, damages or claims of whatever
nature, including attorney's fees, expert witness fees and costs of litigation, which arise
out of any act or omission of Lessee or its agents, employees and invitees (hereinafter
referred to collectively as "Lessee" in this Article) in connection (i) with Lessee's opera-
tions at the Airport and which result directly or indirectly in the injury to or death of
any persons or the damage to or loss of any property, or (ii) arising out of the failure of
Lessee to comply with any provisions of this Lease. The Town shall in all instances,
except for loss, damages or claims resulting from the sole negligence of the Town, be
indemnified by Lessee against all such loss, damages or claims, regardless of whether
the loss, damages or claims are caused in part by the negligence, gross negligence or
fault of the Town. The Town shall give Lessee prompt notice of any claim made or suit
instituted which may subject Lessee to liability under this Article, and Lessee shall have
the right to compromise and defend the same to the extent of its own interest, The
Town shall have the right, but not the duty, to participate in the defense of any claire Or
litigation with attorneys of the Town's selection without relieving Lessee of any obliga-
tions hereunder. Lessee's obligations hereunder shall survive any termination of this
Lease or Lessee's activities at the Airport.
Article 15. Insurance
15.1. Lessee shall maintain insurance with carriers acceptable to the Town through-
out the term of this Lease with the following required minimum coverages and limits:
15.1.1. Commercial general liability, including broad form contractual, personal
injury, premises, completed operations, independent contractors and subcontractors,
and fire legal liability, in an amount of $2,000,000 per occurrence; hangarkeeper's li-
ability if storing aircraft in the amount of$2,000,000 per Occurrence or $3,000,000 per
occurrence if Lessee operates the facility as a commercial hangar; chemical and envi-
ronmental clean-up liability in the amount of$1,000,000 per occurrence; and aircraft
flight operations liability coverage in an amount of$1,000,000 aggregate with a sub-
seat limit of$100,000 if providing flight operations, sales, or schools.
15.1.2. Automobile liability insurance for all owned, non-owned or hired vehicles
in an amount of not less than$2,000,000 combined single limit per occurrence.
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15.1.3. Fire and extended casualty coverage for all improvements and fixtures on
the Property in an amount of not less than the full replacement value, to the extent
Lessee has an insurance interest in the Property.
15.1.4. Worker's compensation coverage in the amounts required by law, and
employer's liability coverage in the amount of$100,000 each accident.
15.2. The insurance must also include contractual liability coverage for the obliga-
tion of indemnity assumed in this Lease.
15.3. Lessee shall deliver one or more certificates of insurance evidencing coverage
as described in this Article to the Town upon execution of this Lease. Lessee shall also
deliver new certificates of insurance each time the policy(s) is updated. Certificates
shall be delivered to the Airport Director.
15.4. The Town shall be named as an additional insured on the commercial general
liability insurance policies required by section 15.1.1 above. As an additional insured,
the Town shall be provided coverage for any liability arising out of operations per-
formed in whole or in part by or on behalf of Lessee. Lessee shall deliver additional
insured endorsement(s) along with the certificate(s) of insurance required by section
15.3 above. The additional insured endorsement form identification number shall also
be included within the description box on the certificate of insurance and the applicable
policy number shall be included on the endorsement.
15.5. All policies required pursuant to this Article shall be endorsed to contain a
waiver of transfer of rights of recovery (subrogation) against the Town, its agents, offic-
ers, officials, and employees for any claims arising out of Lessees use of the Property.
Endorsements evidencing this waiver of subrogation shall be provided to the Town
along with all other insurance documentation required by this Article.
15.6. The coverage requirements specified in this Article may not be changed or
modified except by written agreement signed by all Parties.
15.7. Lessee shall give the Town at least 30 calendar days' written notice prior to a
planned cancellation or reduction of any coverage required by this Article. Lessee shall
give the Town immediate notice of any other cancellation or reduction of any coverage
required by this Article. Cancellation or reduction of any coverage required by this
Article is grounds for termination of the Lease by the Town.
15.8. The Town may establish other insurance requirements necessary for Lessee's
operations. Insurance requirements are subject to periodic review and adjustment by
the Town and such adjustment shall not require an amendment to this Lease.
15.9. If Lessee fails to satisfy the insurance requirements set forth in this Lease, the
Town upon written notice to Lessee, may but is not required, to secure the required
insurance at the cost and expense of Lessee or may terminate this Lease.
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15.10. Town and Lessee agree that if destruction or damage to the improvements on
the Property, or any part thereof and as often as the improvements shall be destroyed to
the extent of less than 50%, the Town and Lessee shall continue this Agreement and
Lessee shall cause the improvements to be reconstructed, repaired or replaced with due
diligence. If any building, structure or improvements comprising the improvements is
destroyed to the extent of 50% or more, the Town and Lessee shall agree as to whether
or not the improvements shall be reconstructed,repaired or replaced.
15.11. If the Town and Lessee agree that the improvements will not be reconstructed,
repaired or replaced, this Agreement shall be considered terminated and insurance
proceeds shall be divided as follows:
15.11.1. The Town's Improvements - All proceeds to the Town.
15.11.2. Lessee's Improvements - Proceeds divided as follows:
15.11.2.1. Lessee's Share - Pro-Rata share equal to the percentage determined
by the time remaining from date of loss to end of Lease term to the full term of
the Lease.
15.11.2.2. The Town's Share - Pro-Rata share equal to the percentage deter-
mined by the time elapsed from beginning of Lease tern,to date of loss to the full
term of the Lease.
Article 16. Quiet Enjoyment
So long as Lessee shall timely pay the rent required under this Lease and perform all
of its other obligations under this Lease, Lessee shall peaceably have and enjoy the
exclusive use of the Property, subject to the Town's right to inspect, and all the privileg-
es granted herein for use of the Airport.
Article 17. Surrender of Possession
Upon the expiration or termination of this Lease,. Lessee's right to occupy the Prop-
erty and exercise the privileges and rights herein granted shall cease, and it shall sur-
render the same and leave the Property in good condition, normal wear and tear ex-
cepted. Unless otherwise provided herein, all trade fixtures, equipment, and other
personal property installed or placed by Lessee on the Property shall remain the prop-
erty of Lessee, and Lessee shall have the right at any time during the term of this Lease,
and for an additional period of ten days after its expiration, to remove the same from
the Property; provided that Lessee is not in default of any of its obligations hereunder
and that Lessee shall repair, at its sole cost, any damage caused by such removal. Any
property not removed by Lessee within said ten-day period shall become a part of the
Property, and ownership thereto shall vest in the Town.
00054655.ooCX/1 10/24/17
MARANA REGIONAL AIRpoizr LEASE AGREEMEN'r:MARICGPA AIRCRAFT SERVICE,INC.
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Article 1.8. Notice
All notices required or permitted to be given under this Lease may be personally de-
livered or mailed by certified mail, return receipt requested, postage prepaid, to the
following addresses:
TO THE TOWN: Marana Regional Airport
Attention: Airport Director
11700 W. Avra Valley Road
Marana, AZ 55653
With a copy to: Marana Town Attorney
11555 W. Civic Center Drive
Marana, AZ 85653
To LESSEE: Maricopa Aircraft Service, Inc.
Attention: President
1662 N. Painted Hills
Tucson, AZ 85745
Article 19. Severability
Should any provision of this Lease be declared invalid by a court of competent ju-
risdiction, the remaining terms shall remain effective, provided that elimination of the
invalid provision does not materially prejudice either Party with regard to its respective
rights and obligations.
Article 24. Taxes and Licenses
20.1.. Lessee shall pay any leasehold tax, possessory interest tax, sales tax, personal
property tax, transaction privilege tax or other exaction assessed or assessable as a re-
sult of its occupancy of the Property or conduct of business at the Airport under author-
ity of this Lease, including any such tax assessable on the Town. In the event that laws
or judicial decisions result in the imposition of a real property tax on the interest of the
Town, such tax shall also be paid by Lessee for the period this Lease is in effect.
20.2. Lessee acknowledges that it may be a "prime lessee," as defined in A.R.S. Sec-
tion 42-6201, and that it may be subject to excise tax liability under this Lease pursuant
to A.R.S., Title 42, Chapter 6 as a prime lessee of a government property improvement.
Lessee further acknowledges that any failure by Lessee to pay taxes due under A.R.S.,
Title 42, Chapter 6 after notice and an opportunity to cure shall constitute a default that
could result in divesting Lessee of any interest in or right to occupancy of the Property.
20.3. Lessee shall, at its own cost, obtain and maintain *n full force and effect during
the term of this Lease all licenses and permits required for its business purposes.
00054655.DOCx/1 10/24/17
MARANA REGIONAL AIRPORT LEASE AGREEMENT:MARICoPA AIRCRAFT SERVICE,INC.
-12-
Article 21. Litigation
This Lease shall be governed by the laws of the State of Arizona and venue for any
legal proceedings shall be in the Superior Court for the County of Pima, Arizona. In the
event of any litigation or arbitration between the Town and Lessee arising under this
Lease, the successful Party shall be entitled to recover its attorney's fees, expert witness
fees and other costs incurred in connection with such litigation or arbitration.
Article 22. Rules and Regulations
Lessee shall at all times comply with all federal, state or local government agree-
ments, laws, ordinances, rules, regulations, and grant assurances applicable to the Air-
port, and with the orders of any and all governmental authorities and agencies concern-
ing the Airport or the Property or the use thereof,including, without limitation, order of
the DoT, FAA, the United States Department of Homeland Security ("DHS") and the
United States Environmental Protection Agency ("EPA") (collectively ""Laws, Rules and.
Regulations") which are applicable to its operations, the Property (including the Ameri-
cans with Disabilities Act), or the operation, management, maintenance or administra-
tion of the Airport, including all Laws, Rules and Regulations adopted after the Effec-
tive Date of this Lease. Lessee shall display to the Town, upon request, any permits,
licenses, or other evidence of compliance with such laws. All rules and regulations and
minimum operating standards for the Airport, as currently existing or as may be
amended or adopted, are hereby incorporated in this Lease.
Article 23. Right of Entry Reserved;Right to Inspect
23.1. The Town shall have the right at all reasonable times to enter upon the Proper-
ty for any lawful purpose, provided such action does not unreasonably interfere with
Lessee's use, occupancy or security of the Property.
23.2. The Town may enter and inspect the Property and any improvements to the
Property at any time for the purpose of ensuring Lessee's compliance with its obliga-
tions under this Lease.
23.3. without limiting the generality of the foregoing, the Town and any furnisher of
utilities and other services shall have the right, at its own cost, whether for its own
benefit or for the benefit of others at the Airport, to maintain existing and future utility,
mechanical, electrical and other systems and to enter upon the Property at all reasona-
ble times to make such repairs, replacements or alterations thereto which may, in the
opinion of the Town, be deemed necessary or advisable and from time to time to con-
struct or install over, in or under the Property such systems or parts thereof and, in
connection with such maintenance, use the Property for access to other parts of the
Airport otherwise not conveniently accessible; provided that in the exercise of such
right of access, repair, alteration or new construction, the Town shall not unreasonably
interfere with the actual use and occupancy of the Property by Lessee.
00054655.DOCX/1 10/24/17
MARANA REGIONAL AIRPORT LEASE AGREEMENT:MARICOPA AIRCRAFT'SERVICE,INC.
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23.4. If any personal property of Lessee shall obstruct the access of the Town or any
utility company furnishing utility service to any of the existing utility, mechanical,
electrical and other systems, and thus shall interfere with the inspection, maintenance
or repair of any such system., Lessee shall move such property, as directed by the Town
or utility company, in order that access may be had to the system for inspection,
maintenance or repair. If Lessee fails to move such property after direction from. the
Town or utility company to do so, the Town or the utility company may move it, and
Lessee shall pay the cost of such moving upon demand, and Lessee hereby waives any
claim for damages as a result therefrom, except for claims for damages arising from the
Town's sole negligence.
23.5. Exercise of any or all of the foregoing rights by the Town or others pursuant to
the Town's rights shall not constitute an eviction of Lessee, nor be made the grounds for
any abatement of rent or any claim for damages.
Article 24. Security Plan
Town reserves the right to implement an Airport Security Plan in a form acceptable
to the FAA limiting access of persons, vehicles and aircraft in and around the airside
and landside of the airport and to modify that plan from time to time as it deems neces-
sary to accomplish its purposes. Lessee shall at all times comply with the Security Plan.
Article 25. FAA Required Provisions
25.1. Lessee for itself, its heirs, personal representatives, successors in interest and
assigns, as part of the consideration hereof, does hereby covenant and agree as a cove-
nant running with the land that, in the event facilities are constructed, maintained or
otherwise operated on the Property for a purpose for which a DOT program or activity
is extended or for another purpose involving the provision of similar services or bene-
fits, maintain and operate such facilities and services in compliance with all other re-
quirements imposed pursuant to Title 49, Code of Federal Regulations ("CFR"), DOT,
Subtitle A, office of the Secretary, Part 21, Nondiscrimination in Federally-Assisted
Programs of the Department of Transportation-Effectuation of Title VI of the Civil
Rights Act of 1964, and any amendments thereto.
25.2. Lessee for itself, its heirs, personal representatives, successors in interest and
assigns, as part of the consideration hereof, does hereby covenant and agree as a cove-
nant running with the land that: (1) no person on the grounds of race,color, or national
origin shall be excluded from participation in, denied the benefits of or be otherwise
subjected to discrimination in the use of the Property; (2) in the construction of any
improvements on, over or under the Property and the furnishing of services thereon, no
person on the grounds of race, color, or national origin shall be excluded from participa-
tion in, denied the benefits of or otherwise be subject to discrimination; and (3) Lessee
N shall use the Property in compliance with all other requirements imposed by or pursu-
ant to Title 49,CFR, DoT,Subtitle A, office of the Secretary, Part 21, Nondiscrimination
00054655.DOCX/1 10/24/17
MARANA REGIONAL AIRPORT LEASE AGREEMENT:MARICOPA AIRCRAFF SERVICE,INC.
-14-
in Federally-Assisted Programs of the Department of Transportation-Effectuation of
Title VI of the Civil Rights Act of 1964,and any amendments thereto.
25.3. In the event of breach of any of the above nondiscrimination covenants, the
Town may terminate this Lease and reenter and repossess the Property and hold the
Property as if this Lease had never been made or issued. This provision does not be-
come effective until the procedures of 49 CFR Part 21 are followed and completed in-
cluding expiration of appeal rights.
25.4. Lessee shall furnish its accommodations and/or services on a fair, equal and
not unjustly discriminatory basis to all users thereof and it shall charge fair, reasonable
and not unjustly discriminatory prices for each unit or device; provided, that Lessee
may be allowed to make reasonable and nondiscriminatory discounts, rebates or other
similar types of price reductions to volume purchasers.
25.5. Noncompliance with section 25.4 above constitutes a material breach of this
Lease and in the event of noncompliance, the Town may terminate this Lease without
liability, or, at the election of the Town or the United States, either may judicially en-
force section 25.4.
25.6. Lessee shall insert the above five provisions, and any others required that may
be required by the FAA or other governmental entity, in any sublease or other docu-
ment by which Lessee grants a right or privilege to any person, firm, or corporation to
render accommodations and/or services to the public on the Property.
25.7. Lessee shall undertake an affirmative action program as required by 14 CFR.
Part 152, Subpart E, to insure that no person shall on the grounds of race, creed, color,
national origin or sex be excluded from participating in any employment activities
covered in 14 CFR Part 152, Subpart E. Lessee agrees that no person shall be excluded
on these grounds from participating in or receiving the services or benefits of any pro-
gram or activity covered by this section. Lessee shall require its covered suborganiza-
tions to provide assurances to Lessee that they similarly will undertake affirmative
action programs and that they will require assurances from their suborganizations, as
required by 14 CFR. 1.52,Subpart E. to the same effect.
25.8. The Town reserves the right to further develop, improve, or otherwise change
the Airport as it sees fit, regardless of the desires or view of Lessee, and Lessee shall not
interfere with, or hinder, the Town in this regard.
25.9. The Town 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-owned facilities of
the Airport, together with the right to direct and control all activities of Lessee in this
regard.
25.10. This Lease shall be subordinate to the provisions and requirements of any ex-
isting or future agreement between the Town and the United States relative to the de-
velopment, operation or maintenance of the Airport. Lessee shall do nothing in its
00054655.DOCX/1 10/24/17
MARANA REGIONAL AIRPORT LEASE AGREEMENT:MARICOPA AIRCRAFF SERVICE,INC.
performance of its obligations under the Lease that would cause any noncompliance
with such obligations of the sponsor. The Parties agree that, to the extent any provi-
sions of the Lease are in noncompliance with such obligations, the Parties shall take any
necessary corrective action in order to bring the Lease into compliance with such obliga-
tions.
25.11. There is hereby reserved to the Town, for the use and benefit of the public, a
right of flight for the passage of aircraft in the airspace above the surface of the Proper-
ty. This public right of flight shall include the right to cause in said airspace any noise
inherent:in the operation of any aircraft used for navigation or flight through said air-
space or landing at, taking off from or operation on the Airport.
25.12. Lessee shall comply with the notification and review requirements covered in
Federal Aviation Regulations ("FAR") Part 77 in the event future construction of a
building is planned for the Property, or in the event of any planned modification or
alteration of any present or future building or structure situated on the Property.
25.13. Lessee shall not erect nor permit the erection of any structure or object, nor
permit the growth of any tree on the Property that exceeds the mean sea level elevations
contained in FAR Part 77 or amendments thereto, or interferes with the runway and/or
taxiway "line of sight" of the control tower. If these covenants are breached, the Town
reserves the right to enter upon the Property and to remove the offending structure or
object and cut the offending tree, all of which shall be at the expense of Lessee.
25.14. Lessee shall not make use of the Property in any manner which might inter-
fere with the landing and taking off of aircraft from the Airport or otherwise constitute
a hazard. If this covenant is breached, the Town reserves the right to enter upon the
.Property and cause the abatement of such interference at the expense of Lessee.
25.15. Lessee specifically understands and agrees that nothing contained in the Lease
shall be construed as granting or authorizing the granting of an exclusive right within
the meaning of 49 U.S.C. § 40103(e) and §47107(a)(4).
Article 26. Environmental Laws
Lessee, at its own expense, shall ensure that Lessee and Lessee's agents, employees,
contractors, and invitees comply with all present and hereafter enacted Environmental
Laws, and any amendments thereto, affecting operations on the Property. "Environ-
mental Laws" means any and all laws, rules, regulations, regulatory agency guidance
and policies, ordinances, applicable court decisions, and airport guidance documents,
directives, policies (whether enacted by any local, state or federal governmental author-
ity) now in effect or hereafter enacted that deal with the regulation or protection of the
environment (including the ambient air, ground water, surface water, waste handling
and disposal, and land use, including sub--strata land), or with the generation, storage,
disposal or use of chemicals or substances that could be detrimental to human health,
the workplace, the public welfare, or the environment.
00054655.DOCx/1 10/24/17
MARANA REGIONAL AIRPORT LEASE AGREEMENT:MARICOEA AIRCRA 7 SERVICE.INC.
- 16-
Article 27. Survival of Lessee's obligations
If this Lease is terminated by the Town in accordance with the provisions herein or if
the Town reenters or resumes possession of the Property as provided herein, all of Les-
see's obligations under this Lease shall survive such termination, re-entry or resump-
tion of possession and shall remain in full force and effect for the full term of this Lease,
and the amounts of damages or deficiencies shall become due and payable to the Town
to the same extent, at the same times, and in the sante manner as if no termination, re-
entry or resumption of possession had taken place. The Town may, at its option and at
any time, sue to recover the full deficiency for the entire unexpired term of this Lease.
The amount of damages for the period of time subsequent to termination (or re-entry or
resumption of possession) shall include all expenses incurred by the Town in connec-
tion with regaining possession, restoring the Property, acquiring a new lease for the
Property, putting the Property in order,maintenance and brokerage fees.
Article 28. Remedies to be Nonexclusive
All remedies provided in this Lease shall be deemed cumulative and additional,not
in lieu of or exclusive of, each other, or of any other remedy available to the Town or
Lessee at law or in equity, and the exercise of any remedy, or the existence herein of
other remedies, shall not prevent the exercise of any other remedy.
Article 29. Time is of the Essence
Time is of the essence with regard to the performance of all of the Parties' obliga-
tions under this Lease.
Article 30. Recording
This Lease shall not be recorded.. However, Lessor agrees to execute and deliver to
Lessee a Memorandum of Lease in the form attached to and incorporated by this refer-
ence in this Agreement as Exhibit B and acknowledges.Lessee's right at Lessee's sole
option and cost to record the Memorandum of Lease yin,the office o tlian�kCu
yryonty
Recorder.
,.
Article 31. MiscellaneoAs 1
This Lease constitutes the entire agreement between the Parties concerning the mat-
ters contained herein and supersedes all prior negotiations, understandings and agree-
ments between the Parties concerning such matters. This Lease shall be interpreted,
applied and enforced according to the fair meaning of its terms and shall not be con-
strued strictly in favor of or against either Party, regardless of which Party may have
drafted any of its provisions. No provision of this Lease may be waived or modified
except by a writing signed by the Party against whom such waiver or modification is
sought to be enforced. The terms of this Lease shall be binding upon and inure to the
benefit of the Parties' successors and assigns.
00054655.DOCx/1 10/24/17
MARANA REGIONAL AIRPORT LEASE AGREEMENT:MARICOPA AIRCRAPr SERVICE,INC.
-17-
IN WITNESS WHEREOF, the Parties have executed this Lease as of the last date set
forth below their respective signatures.
The""TOWN": The "LESSEE".
TOWN OF MARANA, an izona municipal MARICOPA AIRCRAFT SERVICE,INC.,an
cor orad � Arizona corporation
p � p
r
.
By: By,, .
Ed ne , Mayor William A. Demp , esident
Date: Date: 'M ,, -�
1i
ATTEST:
C. By.
iL
,�&celyn C Bronson, Town Clerk
Wendy XjDempsa�,�Qe President/
Secretary
APPRo AS To F M: Date:
F Cassidy,Town Attorney
STATE OF ARIZONA)
SS.
County of Pima }
The foregoing instrument was acknowledged before me on b
g g g y
William A. Dempsay, the President of MARICOPA AIRCRAFT SERVICE, INC., an Arizona
corporation, on behalf of the corporation.
(Se
Notary public Stats of Arimm
Pima County
q0 Noefia M Monta&
My CwxNssm Efts 02/27*020 No ry Public
f
STATE OF }
SS.
County of }
The foregoing instrument w acknowledged bef re me on by
Wendy A. Dempsay, the ice President/Secreta of MARICOPA AIRC FT SERVICE,INC.,
an Arizona corpora ' , on behalf of the cor ation.
(Seal)
Notary Public
00054655.DOCx/i 10/24/17
MARANA REGIONAL AIRPORY LEASE AGREEMENT:MARICOPA AIRCRAFF SERVICE,INC.
-18 -
LIST of EXHIBITS
Exhibit A: Legal Description of Property
Exhibit B: Form of Memorandum.of Lease
00054655.DOCx/1 10/24/17
MARANA REGIQNAi.a AIRPORT LEASE AGREEMENT:MARIC7PA AIRCRAFT SERVICE,INC.
-19-
AZrEC
LAND SURWI r . INC
7320 N LA CHOLLA BLVD.154-127 TUCSON,ARIZONA
PHONE:(520)490-2027 FAX:(480)963-2147
EXHIBIT "All
LEGAL DESCRIPTION
LEASE PARCEL
THAT PORTION of Section 4, Township 12 South, Range 11 East, G&SRM, Pima County,
Arizona, described as follows:
Commencing at the West Quarter Corner of said Section 4;
Thence, upon the South Line thereof, North 89'25'57"East, a distance of 120.00 feet to a
line 120.00 feet East of and parallel to the West Line of the southwest Quarter of said
Section 4;
Thence, Upon said line, North 00"31'12"West, a distance of 764.49 feet to the Northwest
Corner of Parcel 1 of that Record of Survey recorded in book 25, at page 65 of the Pima
County Recorder's Office, Pima County,Arizona, and the Point of Beginning;
Thence, upon the North Line of said Parcel 1, South 44'53'38"East, a distance of 416.24
feet-,
Thence, continuing upon the North Line of said Parcel 1, North 45017'30"East, a distance of
209-30 feet;
Thence, North 44053'38"West, a distance of 416.24;
Thence, South 45'17'30"West, a distance of 209.30 feet to the Point of Beginning;
Containing 2.00 acres, more or less
Prepared by: AND
David A. Rhine, RLS
,\FICA r,
AZTEC Land Surveying, Inc. 24530
DAVID A.
RHINE
nod
EXPIRES 3/31/2019
PAGE 1 OF 2
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SURVEYORS STATEMENT
09 I,DAVID A.RHINE,A PROFESSIONAL
LAND SURVEYOR,REGISTERED IN
p, LARD THE STATE OF ARIZONA,HAVE
, � PREPARED THIS DOCUMENT FOR
4- EXHIBIT PURPOSES ONLY AND MAY
NOT BE SURVEYED/STAKED ON THE ��-
Wo.
245 �
ix DAVID A. GROUND.
�
-- �:z s,r�stf ." * '�� " f f 1 . 1` f , - LEASE SITE EXHIBIT DRA TVINC
�
RHINE �. � E s��oN v4,
�r A� A PORTION OF SECTION 4,T12S,R11 , *
_ 7'185, Rl+B1 GdeSR11C
nod IAZTEC smV NQ, G&SRM,PIMA CO.,ARIZONA,AS SHOWN ON PLmA coUNm "zONA
INC RECORD OF SURVEY RECORDED IN BK 25 AT Drn.DAR Ck d DAR
?320 N LA CHOLLA BLVD.,154..}�7 TUCSON,ARIZONA
PAGE 65, PIMA COUNTY,ARIZONA
Scale: 1" _ 150'
EXPIRES 313112019 PHONE:(520)490-2027 FAX:(480)963-2147
•z:�: f , r , r , ►, + , . 1 . f 1 . .t,L DATE: 11101120171 Job No. 05417 Sheet 2 of 2
Exhibit B to Marana Regional Airport Lease Agreement
When recorded,return to:
MARICOPA AIRCRAFT SERVICE,INC.
1662 N.PAINTED HILLS
TUCSON,AZ 85745
MEMORANDUM OF LEASE
» . APN:215-04-001E
THIS MEMORANDUM OF LEASE is entered into as of the day of , 2017, by and between the
Town of Marana, an Arizona municipal corporation, whose address is 11555 W. Civic Center Drive Marana,
AZ 55653 ("Landlord") and MARICOPA AIRCRAFT SERVICE, INC., an Arizona corporation, with its principal
place of business located at 1662 N. Painted Hills, Tucson, Az 85745 ("Tenant"). All of the following are
provided for more fully in the lease:
1. Landlord and Tenant entered into a Marana Regional Airport Lease Agreement ("Lease") dated as of
2017, for the purpose of Tenant using the Property for commercial aeronautical uses, as
those uses are defined and approved by the United States Federal Aviation Administration ("FAA").
2. The term of Tenant's tenancy under the Lease is for two years.
3. The leased Property, which is the property that is the subject of the Lease, is located on a portion of Pima
County Assessor's Parcel No. 21.5-04-001 E with an address of 11700 W. Avra Valley Road, in the Town of
Marana, County of Pima, State of Arizona, including appurtenant utility and vehicular access. The leased
Property is more particularly described in the legal description and map together attached hereto as
:Exhibit A.
IN WITNESS WHEREOF, the parties have executed this Memorandum of Lease as of the date first written
above.
TOWN OF MARANA, an Arizona municipal MARICOPA AIRCRAFT SERVICE, INC., an Arizona
corporation corporation
By: By:
Ed Honea, Mayor Name/Title:
Date: Date:
STATE Or
ATTEST:
ss
County of
The foregoing instrument was acknowledged before me on
Town Clerk 2017, by
the
APPROVED AS TO FORM: of MARICOPA AIRCRAFT SERVICE,
INC.,an Arizona corporation.
My commission expires:
Town Attorney
Notary Public
00054658.DOC 11 'Town of Marana/Maricopa Aircraft Service,Inc.Memorandum of Lease 10/24/17