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HomeMy WebLinkAboutResolution 2024-079 Approving and Authorizing the Mayor to Sign the Fourth Amendment to the Master Development Lease MARANA RESOLUTION NO. 2024-079 RELATING TO MARANA REGIONAL AIRPORT; APPROVING AND AUTHORIZING THE MAYOR TO SIGN THE FOURTH AMENDMENT TO THE MASTER DEVELOPMENT LEASE AGREEMENT FOR THE LEASE OF REAL PROPERTY LOCATED AT THE MARANA REGIONAL AIRPORT, 11700 WEST AVRA VALLEY ROAD WHEREAS the Town of Marana and Pima Aviation, Inc. are parties to that certain lease agreement entitled, Master Development Lease Agreement (also known as the "73- Acre Lease") with a Commencement Date of June 1, 1999 (the "Lease"), as amended by (1) the First Amendment to the 73-Acre Lease recorded in the office of the Pima County Recorder on December 28,2001 at Sequence No.20012501214,(2) the Second Amendment to the Master Development Lease Agreement recorded in the office of the Pima County Recorder on June 12, 2018 at Sequence No. 20181630107, and (3) the Third Amendment to the Master Development Lease Agreement, recorded in the office of the Pima County Recorder on June 21,2024,at Sequence No. 20241730160,by which Lessor leases to Lessee a certain portion of real property located at the Marana Regional Airport (formerly the Avra Valley Airport), 11700 West Avra Valley Road, Town of Marana; and WHEREAS the Town and Pima Aviation now desire to amend the Lease further to extend it while the parties continue to negotiate the terms and conditions of a new lease or other negotiated resolution; and WHEREAS the Mayor and Council find this resolution is in the best interests of the Town and its citizens. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, AS FOLLOWS: the Fourth Amendment to Master Development Lease Agreement, substantially in the same form attached to and incorporated by this reference in this resolution as Exhibit A, is hereby approved, the Mayor is hereby authorized and directed to sign it for and on behalf of the Town of Marana, and the Town's Manager and staff are hereby directed and authorized to undertake all other and further tasks required or beneficial to carry out the terms, obligations, and objectives of the agreement. - 1 - Resolution No.2024-079 PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona, this 20th day of August, 2024. ?:61-4" LTh Mayor Ed Honea ATTEST: APPROVED AS TO FORM: __1\ ite ciz\f, I David L. Udall, Town Clerk Jane irall, Town Attorney 4IL - annia MAPANA AZ ESTABLISHED 1977 _ 2_ Resolution No.2024-079 FOURTH AMENDMENT TO MASTER DEVELOPMENT LEASE AGREEMENT THIS FOURTH AMENDMENT TO MASTER DEVELOPMENT LEASE AGREEMENT (this "Fourth Amendment") is made and entered by and between the TOWN OF MARANA, an Arizona municipal corporation,successor in interest to Pima County, ("Lessor") and PIMA AVIATION, INC.,an Arizona corporation("Lessee"). Lessor and Lessee are collectively referred to in this Fourth Amendment as the"Parties" and are sometimes referred to individually as a"Party." RECITALS A. Lessor and Lessee are parties to that certain lease agreement entitled, "Master Development Lease Agreement" (also known as the "73-Acre Lease") with a Commencement Date of June 1, 1999 (the "Original Lease") by which Lessor leases to Lessee a certain portion of real property located at the Marana Regional Airport(formerly the Avra Valley Airport), 11700 West Avra Valley Road, Town of Marana, County of Pima,State of Arizona (the "Premises"). B. On September 4, 2001, the Parties entered into the "First Amendment to the 73-Acre Lease," recorded in the office of the Pima County Recorder on December 28, 2001, at Docket 11705, Page 5244 (Sequence No.20012501214), (the "First Amendment") by which the Parties amended the Original Lease to revise the legal descriptions of the Premises. C. On June 5, 2018, the Parties entered into the "Second Amendment to the Master Development Lease Agreement," recorded in the office of the Pima County Recorder on June 12, 2018, at Sequence No. 20181630107, (the "Second Amendment"), by which the Parties amended the Original Lease to(1) again revise the legal descriptions of the Premises, (2) revise Articles 12 ("Rules and Regulations"), 14 ("Reservation of Easement"), and 20 ("General Provisions") of the Original Lease, and (3) clarify that the effective date of the Original Lease for all purposes is the same as the Commencement Date of June 1, 1999. D. For reference purposes, a true and correct copy of the Original Lease was attached to the Second Amendment and recorded in the office of the Recorder of Pima County,Arizona with the Second Amendment. E. The Premises are more particularly described as follows: 1. Parcel One as described in the legal description and map attached as Exhibit B to the First Amendment to 73-Acre Lease dated September 4, 2001, recorded in the office of the Recorder of Pima County, Arizona, on December 28,2001,at Docket 11705,Page 5244(Sequence No.20012501214) 2. Parcel Two as described in the legal description and map attached as Exhibit 2 to the Second Amendment to Master Development Lease Agreement, dated June 5, 2018, recorded in the office of the Recorder of Pima County, Arizona, on June 12, 2018,at Sequence No. 20181630107 3. Parcel Three as described in the legal description and map attached as Exhibit 1 to the Second Amendment to Master Development Lease Agreement, dated June 5, 2018, recorded in the office of the Recorder of Pima County, Arizona, on June 12, 2018, at Sequence No. 20181630107 F. On June 18, 2024, the Parties entered into the "Third Amendment to the Master Development Lease Agreement," recorded in the office of the Pima County Recorder on June 21,2024, at Sequence No.20241730160, (the "Third Amendment"),by which the Parties amended the Original Lease to (1) retroactively extend the term of the Original Lease from June 1, 2024, until August 31, 2024, while the Parties continued to negotiate the terms of a new lease or other resolution of issues between the Parties, and (2)revise Paragraph 21.1 of the Original Lease to update the Parties' contact information. G. Article 2 of the Third Amendment provides that the Parties may extend the Original Lease beyond August 31,2024,for the purpose of continued negotiations so long as Lessor agrees to do so in writing. H. The Parties are still negotiating regarding the terms of a new lease or other resolution, and Lessee has continued to occupy the Premises and pay rent on the Premises as Lessee did prior to the expiration of the Original Lease. I. Paragraph 20.5 of the Original Lease provides that the Original Lease may not be enlarged, modified, or altered except in writing by the Parties. J. The Parties desire now to amend the Original Lease to extend the term of the Original Lease to provide the Parties additional time to negotiate and finalize a resolution of the issues between the Parties. AGREEMENT Now, THEREFORE, in consideration of the recitals set forth above and the mutual covenants,conditions, and agreements set forth in the Original Lease,the First Amendment, 2 IN WITNESS WHEREOF, the Parties have executed this Fourth Amendment as of the last date set forth below their respective signatures. LESSOR: LESSEE: TOWN OF MARANA,an Arizona municipal PIMA AVIATION,INC.,an Arizona corporation corporation I, 101, B By: Att Ed Honea,Mayor Gary •Abrams,President Date: Z —Z V Date: ATTEST: Davi . Udall,Town Clerk APPROVED AS TO FORM: Jane airall,Town ttomey STATE OF ARIZONA ) )ss: County of Pima ) The foregoing instrument was acknowledged before me this 45- day of August, 2024, by Gary Abrams, the President of Pima Aviation, Inc., an Arizona corporation, on behalf of the corporation. Notary Public NK OLEIMEINING My Commission Expires: 169' 19 " o��o "�' troNI OLE eora G • - PIMA couNr t ;( CommissionCommission�., \, = Comon s ago 5 0(,F Expires December 10,2026