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HomeMy WebLinkAboutC10-134 Continental Airlines Terminal Lease AgreementFIRST AMENDMENT TO THE TERMINAL BUSINESS LEASE BETWEEN THE EAGLE COUNTY AIR TERMINAL CORPORATION AND CONTINENTAL AIRLINES, INC. This FIRST AMENDMENT to the Terminal Business Lease between the Eagle County Air Terminal Corporation, a nonprofit corporation of the State of Colorado ( "Corporation ") and Continental Airlines, Inc., a corporation authorized to do business in the State of Colorado, ( "Airline ") (hereinafter "First Amendment ") is made and entered into this day of September, 2009. RECITALS WHEREAS, the Parties entered into a Terminal Business Lease dated March 14, 2007 ( "Original Agreement "); and WHEREAS, the Parties desire to extend the Original Agreement for a period of three (3) years; and WHEREAS, the Parties desire to amend exhibits to the Original Agreement; and WHEREAS, Section 16.19 of the Original Agreement provides that it may be amended in whole or in part upon mutual written consent of Corporation and Airlines. THEREFORE, in consideration of the mutual covenants contained herein and in the Original Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Corporation and Airline agree as follows: SECTION 2.1 Term shall be deleted in its entirety and replaced with the following effective upon the execution of this First Amendment: "Section 2.1 Term. The Term of this LEASE (the "Term ") shall begin on December 1, 2009 ( "Commencement Date ") and shall terminate in thirty -six (36) consecutive months thereafter (except as it may be terminated or extended in accordance with this LEASE), and the rentals, fees and charges shall be effective on the Commencement Date, but only in the event that the AIRLINE PREMISES are then tendered to AIRLINE ready for use and occupancy in accordance with the terms and provisions of this LEASE." EXHIBIT A shall be deleted in its entirety and replaced with the Exhibit A attached hereto. EXHIBIT B shall be deleted in its entirety and replaced with the Exhibit B attached hereto. ND -13t Corporation and Airline agree that, except as expressly altered, modified and changed in this First Amendment, all terms and provisions of the Original Agreement shall remain in full force and effect, and hereby are ratified and confirmed in all respects as of the date hereof. If any conflict exists between the provisions of this First Amendment and the Original Agreement, the provisions of this First Amendment shall control. This First Amendment shall be binding on the parties hereto, their heirs, executors, successors, and assigns. IN WITNESS WHEREOF, the parties hereto have executed this First Amendment effective as of the date first written above. TION: y Air T in Iri .I AIRLINE: Continental Airlines, Inc. / By: I Inc: Staff Vice President Global Real Estate Continental hirlines, inc; ||: (jn , ! 2© e~ . � ^ ^�� .ƒ \ i / / »\ \i . � § . } . ]]� ]� !\ « \ \ \ <e ) \§ m§ () w§ $ § \\ ;• |§ / \Eg /: } ¥K!!� ) \ \))' ■ IN ,| ;§§ §) �( \�) ! ; ;!! §§ §| !§ §!! §§]2G §\ 2� \ A . / .� � \ !\ « \ \ \ <e ) \§ m§ () w§ $ § \\ ;• |§ / \Eg /: } ¥K!!� ) \ \))' ■ IN ,| ;§§ §) �( \�) ! ; ;!! §§ §| !§ §!! §§]2G §\ 2� 0 LL j U `I�' _ p W F- a Z w ail �i 0E— Z= W X i� Ili 19 ° W Z W W - Z Q Z O J LU it rI I. 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D ~ U m N Q E m 0 0 0 �' O O O Z Z L U d M W f m m m O1 o o = Q @ @ .� m xm c m c morn 1 1n 1n 1n w _ c ou Z `m xo H D C m VI U C m E m O E 'p N m m C_ O m 5 Z R R m 5 m m o `n ii r ro ro m m m E y 0_ i r i C C � m �p m m N N N N N ECAT 2009 -10 RTS.123 EAGLE COUNTY AIR TERMINAL CORPORATION Eagle County, Colorado Calculation of Terminal Building Rent for 2009 -10 Schedule 2 - Calculation of Terminal Building Rental Rates Terminal Buildino Airline Rented Space Airline Exclusive Use Space - Ticket Counters, Queuing Area, Curbside Checkin, Operations Space, Baggage Offices and Office Space (Sq Ft): - American Airlines - United Air Lines Carriers - Delta Air Lines /Northwest - Continental Airlines Total Exclusive Use Space Airline Joint Use Space (Sq Ft): - Passenger Holdrooms - Baggage Claim Area - Baggage Conveyor Belts - Baggage Cart Loading /Unloading Total Joint Use Space Total Airline Rented Space Terminal Buildina Total Rental Requirement Terminal Building Budgeted Operations & Maintenance Expenses (Reference Schedule 5) Terminal Building Debt Related Costs: Amortization of Debt Issue Costs and Capitalized Interest $87,108 Series 2006A Principal 475,000 Series 2006A Interest 153,435 Series 20068 Principal 105,000 Series 20068 Interest 184,367 Series 2001A Principal 185,000 Series 2001A Interest 540,506 Less PFC Revenues Applied to Debt Service (1,083,949) Total Terminal Building Debt Related Costs Total Terminal Building Space Costs Rentable Space (Sq Ft): - Rented Airline Exclusive Use and Joint Use Space 45,448 - F &B Concession Space 3,901 - N &G Concession Space 1,137 - RAC Concession Space 2,303 - Ground Transportation Space 1,099 - TSA Office & Breakroom Space 616 Total Rentable Space Full Cost Recovery Terminal Building Rental Rate Per Sq Ft Per Year Less Terminal Rent Subsidy for 2009 -10 (22.1%) Subsidized Terminal Rental Rate Per Square Foot Per Year for 2009 -10 Airline Rented Space Terminal Building Total Space Rent Joint Rent for Commercial Passenger Service Rights Purchase: Series 2001 B Principal Series 2001 B Interest Terminal Building Total Rental Requirement EXHIBIT B 19- Aug -09 4,716 2,761 1,167 1,827 10,470 Sq Ft 16,159 9,174 1,887 7,758 34,978 Sq Ft 45 448 Sq Fl $1,654,482 646,467 $2,300,949 54,504 Sq Ft $42.22 ($9.33) $32.89 x 45,448 Sq Fl $1,494,785 $320,000 313,541 $2 128 325 EAGLE COUNTY AIR TERMINAL CORPORATION Eagle County, Colorado ECAT_2009- 10_RTS.123 EXHIBIT B 19- Aug -09 Calculation of Terminal Building Rent for 2009 -10 Schedule 3 - Allocation of Terminal Building Joint Rentals Joint Use Space Rent Allocation Terminal Building Rental Rate Per Sq Ft Per Year $32.89 Commercial X Debt Total Joint Use Space 34,978 Sq Ft Purchase Total Joint Use Space Rent: Series 2001 B $1,150,426 American Airlines 51.5% $633,541 $325,995 United Air Lines Carriers 18.3% $633,541 115,703 Joint Use 17.0% 20% Equal 2009 Estimated Market 80% Allocated Space 84,109 Share Enplanements Share Share Rent American Airlines $57,521 93,668 51.5% $473,571 $531,092 United Air Lines Carriers 57,521 33,245 18.3% 168,082 225,603 Delta Air Lines /Northwest 57,521 30,955 17.0% 156,504 214,025 Continental Airlines 57,521 24,167 13.3% 122,185 179,706 Totals $230,085 182,035 100.0% $920,341 $1,150,426 Joint Rent Allocation for the Purchase of Commercial Passenger Service Rights 100.0% $633,541 Commercial Pax Service Debt Rights Market Service Purchase Share Series 2001 B Joint Rent American Airlines 51.5% $633,541 $325,995 United Air Lines Carriers 18.3% $633,541 115,703 Delta Air Lines /Northwest 17.0% $633,541 107,733 Continental Airlines 13.3% $633,541 84,109 100.0% $633,541 ECAT 2009 -10 RTS.123 EAGLE COUNTY AIR TERMINAL CORPORATION Eagle County, Colorado Calculation of Terminal Building Rent for 2009 -10 Schedule 4 - Terminal Building Rent by Airline American Airlines: Exclusive Use Space Rent Allocated Joint Use Space Rent (20% Equal Shares) Allocated Joint Use Space Rent (80% Enplanements) Allocated Commercial Pax Rights Purchase Joint Rent (100% Enplanements) Total American Airlines Rent EXHIBIT B 19- Aug -09 Four Equal Rental Payments Annual Due 1211, 1/1, 2/1 and 311 $155,093 57,521 473,571 325,995 $1,012,180 $253 045 United Air Lines Carriers: Exclusive Use Space Rent $90,794 Allocated Joint Use Space Rent (20% Equal Shares) 57,521 Allocated Joint Use Space Rent (80% Enplanements) 168,082 Allocated Commercial Pax Rights Purchase Joint Rent (100% Enplanements) 115,703 Total United Air Lines Carriers Rent Delta Air Lines /Northwest $432,101 $108.025 Exclusive Use Space Rent $38,384 Allocated Joint Use Space Rent (20% Equal Shares) 57,521 Allocated Joint Use Space Rent (80% Enplanements) 156,504 Allocated Commercial Pax Rights Purchase Joint Rent (100% Enplanements) 107,733 Total Delta Air Lines Rent $360,143 $90,036 Continental Airlines: Exclusive Use Space Rent $60,087 Allocated Joint Use Space Rent (20% Equal Shares) 57,521 Allocated Joint Use Space Rent (80% Enplanements) 122,185 Allocated Commercial Pax Rights Purchase Joint Rent (100% Enplanements) 84,109 Total Continental Airlines Rent Total Airline Rent $323,902 $80,975 Exclusive Use Space Rent $344,358 Allocated Joint Use Space Rent (20% Equal Shares) 230,085 Allocated Joint Use Space Rent (80% Enplanements) 920,341 Allocated Commercial Pax Rights Purchase Joint Rent (100% Enplanements) 633,541 Total Airline Rent $2,128,325 $532,081_ ECAT_2009- 10_RTS.123 EAGLE COUNTY AIR TERMINAL CORPORATION Eagle County, Colorado Calculation of Terminal Building Rent for 2009 -10 Schedule 5 - Budgeted Operations & Maintenance Expenses EXHIBIT B 19- Aug -09 Building Maintenance Spring Terminal Service Actual Estimated Budgeted Operations & Maintenance Expenses FY 2008 FY 2009 FY 2010 Supplies: 25,658 20,500 30,000 Janitorial $1,904 $2,000 $15,000 Office 117 500 500 Medical 787 500 500 Miscellaneous 651 100 100 Total Supplies _ $3,459 _ $3,100 _ $16,100 Annual Growth Rate - -10.4% 419.4% Professional Services: $102,740 $98,000 $158,000 Accounting $7,926 $15,000 $5,000 Consulting 7,862 5,000 15,000 Advertising Services 755 2,500 10,000 Legal 5,541 15,000 15,000 County Management Fee 205,695 211,860 218,220 Trustee Fees 6,500 9,000 9,000 Other Professional Services 0 0 35,000 Total Professional Services $234,279 $258,360 $307,220 Annual Growth Rate - 10.3% 18.9% Security Expenses: Personnel $0 $0 $0 Alarm System Monitor 2,188 3,500 3,500 Total Security Expenses $2,188 $3,500 $3,500 Annual Growth Rate - 60.0% 0.0% Building Maintenance Spring Terminal Service $0 $0 $0 Building Repairs 20,445 30,000 66,000 Baggage Handling 25,658 20,500 30,000 Electrical 4,820 5,000 7,000 Plumbing 6,068 5,000 5,000 HVAC Service 20,088 20,000 25,000 Signage 6,892 7,500 10,000 Doors & Windows 17,069 10,000 10,000 Permits & Other 1,700 0 5,000 Total Building Maintenance $102,740 $98,000 $158,000 Annual Growth Rate - -4.6% 61.2% Utilities: Natural Gas $73,793 $71,145 $71,145 Electric 140,270 110,000 110,000 Telephone 2,804 2,040 2,040 Water& Sewer 12,774 12,504 12,504 Trash 20,758 12,000 12,000 Total Utilities $250,399 $207,689 $207,689 Annual Growth Rate - -17.1% 0.0% 1 of 2 ECAT 2009 -10 RTS.123 EAGLE COUNTY AIR TERMINAL CORPORATION Eagle County, Colorado Calculation of Terminal Building Rent for 2009 -10 Schedule 5 - Budgeted Operations & Maintenance Expenses Operations & Maintenance Expenses Grounds Maintenance: Snowplowing Landscaping Maintenance & Repairs Irrigation Repair Total Grounds Maintenance Annual Growth Rate Janitorial Services: Janitorial Contract Service Other Janitorial Services Total Janitorial Services Annual Growth Rate Other Purchased Services and Expenses: Insurance Equipment Repair Pavement Maintenance Seasonal Improvements Fire Alarm Monitoring & Repair Vehicle Expense Miscellaneous Repairs HVAC Repair Training Total Other Purchased Services and Expenses Annual Growth Rate Customer Service Annual Growth Rate Ground Lease Annual Growth Rate Other Expenses: Depreciation - ECAT Funded Minor Capital Outlay Total Other Expenses Annual Growth Rate Total Operations & Maintenance Expenses Annual Growth Rate EXHIBIT B 19- Aug -09 Actual Estimated Budgeted FY 2008 FY 2009 FY 2010 $17,028 $2,000 $2,000 110 20,000 22,000 17.646 25,000 31,000 0 0 0 $34,784 $47,000 $55,000 - 35.1% 17.0% $273,048 $286,060 $293,926 0 0 0 $273,048 _ $286,060 $293,926 4.8% 2.7% $8,487 $20,000 $30,900 5,949 13,000 13,000 0 14,400 35,000 8,121 0 0 8,861 8,000 10,000 9,356 10,800 10,800 611 0 10,000 0 0 0 0 0 0 $41,385 $66,200 $109,700 60.0% 65.7% 9,542 $15,000 $0 57.2% - 100.0% $137,394 $141,480 $146,400 3.0% 3.5% $226,780 $291,947 $326,947 9,991 60,000 30,000 236,771 351,947 356,947 - 48.6% 1.4% $1,325,989 $1,478,336 $1,654,482 11.5% 11.9% 2of2