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HomeMy WebLinkAboutC15-138 Lederhause Airport Facilities Lease Second Amendment SECOND AMENDMENT AND RESTATEMENT OF AIRPORT FACILITIES LEASE THIS SECOND AMENDMENT AND RESTATEMENT OF AIRPORT FACILITIES LEASE("Second Amendment")is made and entered into this 3 I day of Mb �,� ,2015,by and between the Board of County Commissioners, County of Eagle, State of Colorado,hereinafter referred to as the "Lessor" and Mike Lederhause, hereinafter referred to as"Lessee." Lessor and Lessee may be collectively referred to herein as the"Parties." WITNESSETH: WHEREAS,Lessor entered into the original Airport Facilities Lease on October 12, 1988 with Bill Duddy and Gene Lanham(the"Original Agreement"); and WHEREAS,by Amendment dated April 30,2013,the Original Agreement was amended and renewed for an additional five year term,with an expiration date of September 30,2017;and WHEREAS,contemporaneously with this Second Amendment, Lessor is consenting to an assignment of the Original Agreement from Bill Duddy and Gene Lanham to Lessee; and WHEREAS, Lessor and Lessee intend by this Second Amendment to extend the term of the Original Agreement and to restate the terms of the Original Agreement on terms and conditions acceptable to the Parties; and WHEREAS,the Parties intend for this Second Amendment to fully restate or replace the terms of the Original Agreement and where the provisions of this Second Amendment conflict with the terms of the Original Agreement,the Parties intend the terms of this Second Amendment shall prevail. NOW,THEREFORE, for and in consideration of the mutual covenants contained herein,the parties hereto do hereby agree as follows: SECTION ONE EXCLUSIVE USE OF LEASED HANGAR SITE A. Lessor grants Lessee the exclusive use of the hangar site located at 0525A Airport Road, Gypsum, Colorado and described in Exhibit "A" attached hereto and incorporated herein by this reference, hereinafter referred to as the "Leased Hangar Site." Lessee agrees that ownership of all improvements on or about the Leased Hangar Site which are constructed or affixed to the realty shall revert to Lessor upon the termination of this lease. B. Lessee shall use the Leased Hangar Site for the purpose of storing and maintaining aircraft and purposes reasonably incidental thereto, excluding uses for commercial purposes. Any change in purpose shall be only with the consent of the Lessor and upon the terms described by the Lessor. C. Lessee may, at its expense, make such exterior alterations in the improvements as it shall desire and that comply with Airport design and development standards, but shall first obtain the written consent of the Lessor, which shall not be unreasonably withheld. SECTION TWO USE OF AIRPORT AND AIRFIELD ACCESS CONTROL A. Lessee is granted the use, in common with others similarly authorized, of the Airport, including, but not limited to, the landing field and any extensions thereof or additions thereto, roadways, aprons, taxiways, floodlights, landing lights, beacons, control tower, signals,radio aids,and all other conveniences for flying, landings,and takeoffs. B. Lessee shall not install or maintain fences, gates and such other equipment on the Leased Hangar Site to control access to the Airfield on and across the Leased Hangar Site unless in accordance with the Authority's airfield access control plan as it now exists or may hereafter be adopted or amended (the "Access Plan"), and with written approval from Eagle County Regional Airport (hereinafter referred to as the Airport, EGE or the Eagle County Regional Airport). Gate controllers installed and maintained by Lessee shall remain compatible with those specified for use on the Airport by the Access Plan. Lessee agrees that it shall inform all employees and contractors of the requirements of the Access Plan, and shall at all times comply with the Access Plan in its operations on the Leased Hangar Site and the Airport. Access shall be permitted for Lessee's guests, in accordance with the Airport Security Program and FAA and TSA regulations. Each individual desiring access to the airfield shall obtain an access card from the Eagle County Airport(EGE) Administration in compliance with Eagle County Airport(EGE)'s Rules and Regulations and Department of Homeland Security and TSA regulations,policies and directives. SECTION THREE RIGHT OF INGRESS AND EGRESS Lessee shall have at all times the full and free right of ingress to and egress from the Leased Hangar Site and facilities referred to herein for Lessee, its employees, customers, passengers, guest, and other invitees SECTION FOUR TERM Subject to earlier termination as hereinafter provided,the initial term of this agreement shall expire on December 31,2017. Lessee shall have the exclusive option to renew this agreement for an additional term of seventeen(17)years under the same terms and conditions and subject to the same rentals, fees, and charges as provided herein for the initial term. Lessee shall notify Lessor in writing of Lessee's intention to exercise the renewal option not less than six months before the expiration of the term hereof. SECTION FIVE RENTALS AND CHARGES 2 3 -.2f1 A. The initial annual Rent is one thousand one hundred twenty two dollars ($1,122), payable as provided herein. The initial annual rent was calculated by multiplying the four-thousand four-hundred eighty-eight (4,488) square foot Leased Hangar Site by twenty-five cents ($0.25)per square foot. The per square foot rent will be adjusted effective January 1, 2016, and annually thereafter on the anniversary of the first adjustment, as set forth herein. B. Annual Increase. On January 1, 2016 and on the same date each year thereafter of the initial term or any renewal term, the annual rent shall increase by three percent (3%) over the rent for the previous year, except in years in which the annual rent is adjusted as set forth in Section S.C. C. Property Reappraisal. Commencing January 1, 2020, the annual base rent set forth in Section 5.A of this Lease shall be reestablished on January 1 of every calendar year ending in a zero (0)or a five (5) ("reestablishment date")to the fair market rental rate of the Leased Hangar Site under the terms, conditions,and procedure set forth in this Section S.C. i. The term "fair market rental rate" means the most probable annual lease rate in terms of money which the Leased Hangar Site, including only those improvements thereon owned or extended by Lessor,would bring if exposed for lease in the open market, with a reasonable time allowed to find a Lessee, and with full knowledge of the highest and best use to which the Leased Hangar Site could be put consistent with the then most current Airport Master Plan, County Comprehensive Plan,and Federal Aviation Administration("FAA")regulations. ii. Lessor shall obtain an independent appraisal of the Leased Hangar Site, and the amount determined by the appraisal shall be the fair market rental rate of the Leased Hangar Site. No later than three months prior to each reestablishment date (i.e. October 1st),Lessor shall notify Lessee of the reestablished annual base rent to be effective on the reestablishment date. Upon request, Lessor shall provide a copy of the appraisal to Lessee. iii. If the Lessee disputes the fair market rental rate set by the Lessor, the Lessee shall provide the Lessor with fifteen (15) days written notice of the dispute. The Parties shall thereafter have fifteen (15) days to agree upon the identity of a professional MAI real estate appraiser familiar with the commercial rental values at the Airport to determine the fair market rental value consistent with Section 5 C.i. The expense of the appraiser shall be shared equally by Lessee. In the event that the Parties cannot agree upon an appraiser, then the appraiser shall be selected by the Lessee and Lessee shall pay the full cost of the appraisal. All other disputes shall be determined in a court of law. iv. The annual increase set forth in Section5.B shall resume in the years following each reestablishment date and shall be based on the new base rent effective on each reestablishment date. D. The initial annual rent (as set forth above) shall be prorated for the number of days between the effective date of this Second Amendment and December 31,2015 and shall be due upon execution of this Agreement by both parties. Thereafter, annual rent payments shall be due and payable on January 1 of each year, commencing on January 1, 2016 and continuing through the expiration or earlier termination of this Lease. 3 anI331 )5" E. Any rent overdue for more than thirty (30) days will have an additional fee added to cover extra administrative costs. The additional fee will equal 10% of the current monthly rental. In the event the Airport is required to initiate any collection procedures or costs to collect any unpaid rent from Lessee,the Lessee shall pay all of the Airport's expenses in connection therewith,including reasonable attorney's fees. F. Lessee will be responsible for all costs to extend utility services to the Leased Hangar Site, including all costs associated with connection fees,tap fees,meter fees, and any other fees that may be charged by the utility companies associated with the Leased Hangar Site. G. Lessee agrees that all improvements on or about the Leased Hangar Site which are constructed or affixed to the realty are the property of Lessee and shall become property of the Lessor upon the termination of this lease. SECTION SIX RIGHTS AND PRIVILEGES In its use of the Airport and related facilities, Lessee is granted the rights and privileges accorded all other Lessees of Airport space and users of the Airport facilities similarly situated as from time-to-time determined by the Lessor. SECTION SEVEN TAXES AND ASSESSMENTS Lessee agrees to pay all property assessments, general and special and all other legally imposed obligations, ordinary and extraordinary of every kind and nature whatsoever, levied or assessed upon the Leased Hangar Site or any part thereof or upon any of the building or improvements at any time situated thereon. SECTION EIGHT MAINTENANCE AND UTILITIES A. Lessee shall provide for and supply, at its sole expense, all janitor services with respect to the Leased Hangar Site and shall provide for and pay for all heat, light, gas, electricity,water used by it on or in connection with the same. B. Lessor hereby grants to Lessee such reasonably nonexclusive easements as are necessary to provide utilities to the hangar. C. Lessee, at its expense, shall keep the Leased Hangar Site, and all improvements thereon, in good repair and maintenance, and in a safe, sanitary, orderly condition, in accordance with standards established by Lessor for similar buildings and premises under Lessor's control at the Airport, all at its own risk and expense; including by way of example and not limitation; with respect to structures, periodic painting in a color approved by the Lessor, electrical, plumbing, roof and structural repair and window replacement; and with respect to surface areas, paving and sealing, landscaping,mowing and weed control, parking lot and ramp lights, graveling and/or dust control, snow and ice plowing and removal, access control fences and gates, blast fences and the like. Lessor may, in its discretion, provide snow removal on paved portions of Leased Hangar Site, not closer than six feet(6') from buildings,based on order of airport operational priority, and personnel 4 3 31 » and equipment availability. Lessee shall be responsible for snow removal from all paved areas of Leased Hangar Site in accordance with the Eagle County Regional Airport Snow Removal Plan and the Airport Rules and Regulations, except that Lessor shall be responsible for snow removal from taxiways. D. Snow removal and mowing from Leased Hangar Site is the responsibility of Lessee, however may be performed by Lessor as a courtesy and is not an obligation of the Lessor. Lessor may cease to provide snow removal and mowing to Lessee or snow removal may not be provided on a particular occasion, at Lessor's sole discretion. Lessor may opt to provide the service only for a fee. Lessee acknowledges that unless Lessee demands in writing that Lessor cease any such snow removal or mowing, Lessor shall have no liability whatsoever for any damage to the Leased Hangar Site caused by such snow removal or mowing. Lessor shall conduct snow removal in accordance with the approved Airport Snow and Ice Control Plan and Airport Certification Manual. E. Snow removed from Leased Hangar Site shall not be windrowed or piled in a manner in which propellers, engines, wings or any other part of an aircraft may contact and be damaged when being taxied or towed on pavement surfaces. SECTION NINE OPTION TO LEASE ADDITIONAL SPACE No option is granted to lease additional space. SECTION TEN RULES AND REGULATIONS Lessee agrees to observe and obey reasonable rules and regulations with respect to use of the Leased Hangar Site, including the Eagle County Regional Airport Regulations; provided, however, that such rules and regulations shall be consistent with safety and with rules, regulations, and orders of the Federal Aviation Administration with respect to aircraft operations at the Airport and provided further, that such rules and regulations shall not be inconsistent with the provisions of this agreement or the procedures prescribed or approved from time to time by the Federal Aviation Administration with respect to the operation of Lessee's aircraft at the Airport. SECTION ELEVEN DAMAGE OR DESTRUCTION OF HANGAR A. If the hangar is partially damaged by fire, the elements, the public enemy, or other casualty, such hangar shall be repaired with due diligence by Lessee at its sole cost and expense. If the damage is so extensive as to render such hangar untenantable, but capable of being repaired in forty-five (45) days, the hangar shall be repaired with due diligence by Lessee at its sole cost and expense, and the rent payable hereunder shall be proportionally reduced for the time the hangar was untenantable until the time as the hangar shall be fully restored. If such hangar is completely destroyed or is so damaged that it remains untenantable for more than forty-five (45) days, Lessee shall repair or reconstruct the hangar with due diligence at its own cost and expense,rent for that hangar to be adjusted as set forth above; provided, however, that Lessee or Lessor may, at its option, cancel this agreement, such cancellation to be effective as of the date the hangar was destroyed or damaged. 5 0.10t 3 -31 -IS- B. In the event the Airport is rendered untenantable or unusable, there shall be reasonable and proportionate abatement of the rentals, fees, and charges provided for herein during the period that the same are so untenantable or unusable. C. In the event that gas or electrical utilities are severed from the Leased Premise by Lessor,Lessor shall provide replacement utility at no cost to Lessee. SECTION TWELVE INSURANCE A. Lessee agrees to secure at its own expense, and to keep in force at all times during the Term hereof,Comprehensive General Public Liability Insurance and Property Insurance in the minimum limits set forth below. The required insurance coverage also shall include Personal Injury and Blanket Contractual Coverage for this Agreement. i. Comprehensive General Public Liability Insurance Minimum limits: General Aggregate $2,000,000 Each Occurrence Limit $1,000,000 Premises Medical Expense(each person) $5,000 ii. Property Insurance: Building Insured Value $350,000 per occurrence Business/Personal Property other than Aircraft: $As needed to cover value of items All aircraft stored in the hangar shall be insured at the fair market value of the aircraft, with minimum Liability Limits of$1,000,000 to include the premises where the aircraft is stored. Owners of aircraft stored in the hangar will name the Lessee and Lessor(if applicable)as additional insureds. Property insurance shall be written on a Covered Cause of Loss-Special Form,replacement cost coverage,including coverage for flood and earth movement. The Lessor shall be named as a loss payee on property coverage for tenant improvements and betterments. A Waiver of Subrogation applies for Lessor for any Lessor property. Coverage for the Lessor's Fixtures 100%replacement cost. Coverage for Loss of Rents amount equal to all Minimum annual rent other sums payable under the Lease. iii. Auto coverage with limits of liability not less than$200,000 each accident combined bodily injury and property damage liability insurance,including coverage for owned,hired,and non-owned vehicles. 6 6)4A. 2 3 -13- B. The polices of insurance set forth above shall be endorsed to include the following additional insured language: "Eagle County and their respective associated and/or affiliated entities, successors or assigns, elected officials,employees, agents and volunteers shall be named as additional insureds with respect to liability arising out of the Lessee's use or occupancy of the Leased Hangar Site." C. A Waiver of Subrogation shall apply in favor of Eagle County, its respective associated and/or affiliated entities, successors or assigns,elected officials,employees,agents and volunteers. D. A certificate or certificates evidencing such insurance coverage shall be filed with Lessor within ten(10)days after execution of this Second Amendment, and said certificate(s)shall provide that such insurance coverage will not be canceled or reduced without at least thirty(30)days prior written notice to Lessor. At least ten(10)days prior to the expiration of said insurance policy or policies, a certificate showing that such insurance coverage has been renewed or extended shall be filed with Lessor. If such coverage is canceled or reduced,the Lessee shall within seven(7)days of notice of cancellation or reduction,but in any event more than fifteen(15)days before the effective date of said cancellation or reduction,file with Lessor a certificate showing that the required insurance has been reinstated in full, or provided through another insurance company or companies. E. In the event that the Lessee shall at any time fail to provide Lessor with the insurance required under this section,Lessor may terminate this Agreement with ten(10) days' notice to Lessee. F. The insurance carried by the Lessee,as required by this Agreement, shall be primary over any insurance carried by the Lessor for the Lessor's own protection. Facsimile stamped signature on the Certificate will not be accepted. The Certificate must be signed by the insurance company's authorized representative. SECTION THIRTEEN INDEMNIFICATION OF LESSOR A. Lessee agrees to indemnify and hold harmless Lessor, the Board of County Commissioners,the individual members thereof,commissions and/or agencies of the County, its officials, agents servants, and/or employees, from any and all claims, demands, charges, actions,costs and expenses of any nature in any manner arising from: i. Lessee's airport operations hereunder; or ii. The operations of any person or corporation acting by, through or under Lessee or any or its renters,Lessees, or customers hereunder. B. Lessor shall give to Lessee prompt and timely notice of any claim made or suit instituted which in any way directly or indirectly, contingently or otherwise, affects or might affect Lessee, and Lessee shall have the right to compromise and defend the same to the extent of its own interests. 7 c).%, 3 -31 1.1 SECTION FOURTEEN TERMINATION BY LESSEE If Lessor fails to perform an act or acts or render any service required to be performed or rendered by Lessor under the terms of this agreement, and if Lessor fails to remedy any such default in a manner reasonably satisfactory to Lessee within thirty days following receipt from Lessee of written notice to remedy the same, Lessee may elect to terminate this agreement by giving thirty days written notice to the Lessor. SECTION FIFTEEN TERMINATION BY LESSOR A. Lessee agrees that if default be made by it in payment of rent when due and if said default continues for more than sixty days, the Lessor may elect to declare this lease forfeited, in which event Lessee shall surrender possession of the Leased Hangar Site peacefully to the Lessor. If Lessee shall default in any of the other covenants contained herein and shall continue in such default for a period of ninety days after notice hereof in writing for Lessor, the Lessor shall have the election to declare this lease forfeited and thereupon the Lessee shall surrender possession of said Leased Hangar Site peacefully. B. The said Lessee hereby waives any demand for the possession of said premises in the event of the forfeiture of this lease, and agrees that the written notice of default hereinbefore provided for may be mailed via certified mail by said Lessor to said Lessee or its legal representative or assigns,to such address in the United State as shall have been last furnished in writing by the Lessee to the Lessor, and the receipt thereof acknowledged by said Lessor; and that, if the Lessee shall not have so furnished an address as above specified,than such notice may be conspicuously posted for thirty consecutive days in the main entrance of in front of the Leased Hangar Site; and the giving of such notice in either of the ways above specified shall constitute a good and sufficient notice for the purpose of declaring a default of this lease under the terms and provisions thereof in all cases where by the terms of this lease a notice of default is required to be given by said Lessor. In any case where under any of the provisions of the lease, or in the opinion of the Lessor, or otherwise, it shall be or may become necessary or desirable to make,given, or serve any kind or character or for any purpose whatsoever,it shall be sufficient either. i. To deliver or cause to be delivered a copy of such declaration, demand, document,paper or notice to the Lessee,or ii. To send or cause to be sent a copy of any such declaration, demand, document,paper or notice by registered or certified mail,postage prepaid,properly addressed to the Lessee at such address as the Lessee may have heretofore furnished to the Lessor in writing for the declared and expressed purpose of receiving notices, receipt of which was acknowledged in writing by the Lessor. SECTION SIXTEEN SURRENDER OF POSSESSION A. On the expiration or other termination of this lease, ownership of the hangar and all rights respecting the Leased Hangar Site the shall revert back to the Lessor, and 8 010 P 33j--) Lessee's rights to use of the Leased Hangar Site,facilities, and services described herein shall cease, and Lessee shall vacate the Leased Hangar Site without unreasonable delay. B Except as otherwise provided in this agreement,the equipment, and other non- affixed personal property bought, installed, erected, or placed by Lessee in, on, or about the Airport and Leased Hangar Site, shall be deemed to be personalty and shall remain the property of Lessee. Lessee shall have the right at any time during the term of this agreement, or any renewal or extension hereof, and for an additional period of thirty (30) day period after the expiration or other termination of this agreement, to remove any and all such property from the Airport, subject, however, to Lessee's obligation to repair all damage, if any, resulting from such removal. Any and all property not removed by Lessee prior to the expiration of the aforesaid thirty day period shall thereupon become a part of the land on which it is located and title thereto shall thereupon vest in Lessor. SECTION SEVENTEEN INSPECTION BY LESSOR During the term hereof, the Lessor shall have the right to inspect said Leased Hangar Site, including the interior improvements thereon, either by its Commissioners or designated employees, at any or all reasonable times upon 24 hours prior notification of Lessee, or with no notice in the case of emergency. SECTION EIGHTEEN ASSIGNMENT AND SUBLETTING A. Lessee shall have the right to assign this Lease provided, however, that said Assignee shall be acceptable to Lessor in its reasonable discretion. Lessee may not convey any interest in the improvements independently from an assignment of the Lease pursuant to this Agreement. Furthermore, Lessee's rights under this Second Amendment shall be transferable upon death for the duration of the term. B. Lessee may sublease all or any portion of the Leased Hangar Site upon a written agreement, in a form pre-approved by Lessor (it being understood and agreed that Lessor need not thereafter consent to each individual sublease), between lessee and sub- lessee, a copy of which agreement is delivered to, kept on file, and subject to approval by Aviation Director. C. All subleases shall be subordinate to this Lease and shall contain the same substantive provisions as set forth herein. Additionally, any sub-lease shall contain language requiring immediate termination upon any termination notice given under this Lease. All subleases shall be terminated prior the effective date of termination given herein. D. Prior to subleasing any improvements, Lessee shall provide, for approval by Lessor, lease documents, and the leasing and sale provisions that will accompany such transactions. A copy of final leases will be kept on file at the Office of the Eagle County Aviation Director. SECTION NINETEEN COSTS OF LITIGATION 9 ,' ► j3 '-3'1 Lessee covenants and agrees to and with the Lessor that in case the Lessor shall, without any default on its part,be made a party to any litigation commenced by or against the said Lessee with respect to the Leased Hangar Site and/or improvements thereon, then the Lessee shall and will pay all costs and reasonable attorneys' fees which may be incurred by said Lessor in enforcing the covenants and agreements of this lease. SECTION TWENTY NATIONAL EMERGENCY In the event possession of the Leased Hangar Site and the improvements thereon is assumed by the United States of America, or other authorized agency, under any emergency powers, the rent due under this lease shall abate for the period of such possession. In such event, Lessee shall not be responsible for any of the other covenants in this lease until possession by the United States of America shall terminate. In the further event that Lessee shall be reimbursed by the United States of America or other authorized agency, for its assumption of possession, then the rental provisions of this lease shall remain in effect; but provided further,however,that if said reimbursement is less than the amount of rental herein provided, the Lessee shall be required to pay to the Lessor only such amount of reimbursement as it shall receive from the United States of America or other authorized agency. SECTION TWENTY-ONE F.A.A.AND AIRPORT INSTRUMENTS The Federal Aviation Agency and Lessor are hereby granted the right and privilege by Lessor to place on and around the Leased Hangar Site, without cost to the Lessor, whatever instruments and equipment Lessor or the F.A.A. deems necessary for operation of the Airport. SECTION TWENTY-TWO AERIAL APPROACH The Lessor reserves the right to take any action it considers necessary to protect the aerial approaches of the Airport against obstruction, together with the right to prevent the Lessor from erecting or permitting to be erected, any building or other structure on the Airport, which in the opinion of the Lessor, would limit the usefulness of the Airport or constitute a hazard to aircraft. SECTION TWENTY-THREE SUBORDINATION This lease shall subordinate to the provisions of any existing or future agreement between the Lessor and the United States, relative to the operation or maintenance of the Airport, the execution of which has been or may be required as condition precedent to the expenditure of federal funds for the development of the Airport. SECTION TWENTY-FOUR RESERVATIONS OF COUNTY 10 ,, I3 -31-•J3 A. It is understood and agreed that nothing herein contained shall be construed to grant or authorize the granting of an exclusive right, except the exclusive right to use the Leased Hangar Site subject to the rights of the Lessor specified herein. B. The Lessor reserves the right to further develop or improve the Airport as it sees fit,regardless of the desires or views of Lessee,and without interference or hindrance. C. Lessor reserves the right,but shall not be obligated to Lessee,to maintain and keep in repair the landing area of the Airport and all publicly owned facilities of the Airport, together with the right to direct and control all activities of Lessee in this regard. D. There is hereby reserved to the Lessor,its successors and assigns, 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 Leased Hangar Site,together with the right to cause said noise as may be inherent in the operation of aircraft,now known or hereafter used for navigation at,taking off from or operation on the Airport. E. Non-compliance with this Section shall constitute a material breach or default of this agreement,and in the event of such non-compliance,the County shall have the right to terminate this agreement without liability therefore,or at the election of the County or the United State or both of said governments, shall have the right to enforce judicially this section. SECTION TWENTY-FIVE ADDITIONAL CONDITIONS A. Lessee shall use the Leased Premised solely for airport purposes as hereinabove set forth,and in so doing shall enforce and comply with all applicable laws of the State of Colorado and the United States of America;rules and regulations of the County of Eagle; as well as any and all bureaus, department and agencies of said County, State of Colorado or United State of America, as they may be amended from time to time. In addition,all structures located upon the Leased Hangar Site shall comply with the requirements of the Town of Gypsum,CO Building Code,Eagle County Regional Airport Rules and Regulations and any Eagle County Regional Airport Development Standards or other Guiding Documents of the Airport that may be in effect, including any revisions or amendments thereto. Further, Lessee shall comply with all applicable regulations and rules concerning water and sanitation. B. The lease is for use as a private hangar only and not for commercial use. A lease amendment would be required to conduct any commercial activity in the hangar as well as compliance with the Minimum Standards for Commercial Aeronautical Activities. C. In the event that a hundred percent of the entire interest of the Lessee becomes available for sale,those persons who have previously applied for permissions to construct a hangar or hangars shall have the right of first refusal in the order in which they had applied. If no one of these persons accepts within thirty(30)days of receipt of notice of sale at their last known address,then Lessee may sell the improvements and sublet or assign the entire ground lease upon the written approval by the Lessor,which approval shall not be unreasonably withheld. 11 D. Nothing contained herein shall be construed to prohibit or hinder Lessee from renting the Leased Hangar Site or a portion thereof,to any person or entity approved in writing by Lessor,which approval shall not be unreasonably withheld, for the purpose of storing aircraft. E. It is agreed that,with respect to any aircraft using the hangar within the Leased Hangar Site,adequate access to, and maneuvering room in front of hangar will forever and at all times be protected during the term of this lease. F. Lessee has express permission to utilize existing electrical lines in the ground which are located adjacent to the Leased Hangar Site,provided that Lessee obtains written approval from the rural electrical association of such utilization and procures a separate meter for the purpose of ascertaining Lessee's sole expenses. Upon request, Lessee shall provide Lessor with written proof of approval by the utility company and/or of the arrangement for separate metering. G. Said Lessee further covenants and agrees that the Lessee will save harmless said Lessor at all times during the continuation of this lease from all damages,claims,fines, penalties,costs and expenses whatsoever which may result from any Workman's Compensation claim. H. Any notices or consent provided for herein shall be in writing and shall be delivered in person or mailed by certified or registered mail,return receipt requested,postage prepaid,to the party for whom intended at the address set forth below: Lessor: Board of County Commissioners County of Eagle, Colorado PO Box 850 Eagle, Colorado 81631 Attn: Eagle County Attorney Lessee: Mike Lederhause 29633 Colorado River Road McCoy, CO 80463 970-653-9691 Either party may change its address by written notice to the other party. Notices or consents are deemed to have been given effective of the date of delivery, if personally delivered, and as of the third day after mailing,if mailed. I. This agreement shall be construed under the laws of the State of Colorado. Any covenant, condition,or provision herein contained that is held to be invalid by any court of competent jurisdiction shall be considered deleted from this agreement,but such deletion shall in no way affect any other covenant,condition,or provision herein contained so long as such deletion does not materially prejudice Lessor or Lessee in their respective rights and obligations contained in the valid covenants, conditions,or provisions of this agreement. J. All amendments to this lease agreement shall be made in writing by mutual agreement by the parties and no oral amendments shall be of any force or effect whatsoever. 12 K. The Lessor shall have no responsibility or liability to furnish any services to Lessee other than those specified in this lease. The Lessee may negotiate with Lessor for additional services and may request and shall pay for such additional services,the considerations to be so negotiated. However,Lessee shall receive any services that are now or may hereafter be provided by the Lessor to other like Lessees under identical terms. L. Lessor shall have no responsibility or liability to remove the snow on and/or near the Leased Hangar Site of the Lessee for the Lessee's sole use and benefit. M. The Lessee for himself,his personal representatives, successors in interest, and assigns, as a part of the consideration hereof,does hereby covenant and agree"as a covenant 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 said facilities; (2) that in the construction of any improvements on,over,or under such land and the furnishing of services thereon,no person on the grounds or race,color,or national origin shall be excluded from participation in, denied the benefits of,or otherwise be subjected to discrimination; (3) that the Lessee shall use the Leased Hangar Site in compliance with all other requirements imposed by or pursuant to Title 49 Code of Federal Regulations, Department of Transportation, 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 as said Regulations may be amended. (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 service;provided that the Lessee may be allowed to make reasonable and nondiscriminatory discounts,rebates or other similar type of price reductions to volume purchasers. (5)Lessee shall make its accommodation and/or services available to the public on fair and reasonable terms without unjust discrimination on the basis of race,color, religion, sex,age or national origin. (6)Non-compliance with the above provisions of this sub-section shall constitute a material breach hereof and in the event of such non-compliance the Lessor shall have the right to terminate this lease and the estate hereby created without liability therefor, or at the election of the Lessor or the United States, either or both said Governments shall have the right to judicially enforce said provisions. (7)The Lessee assures that it will undertake an affirmative action program as required by 14 CFR Part 152, Subpart E,to ensure 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 Page 152, Subpart E. The Lessee assures that no person shall be excluded on these grounds from participating in or receiving the services or benefits of 13 avt j 3 3 / )0- any program or activity covered by this subpart. The Lessee assures that it will require that its covered sub organizations provide assurances to the Lessee that they similarly will undertake affirmative action programs and that will require assurances from their sub organizations,as required by 14 CFR Part 152, Subpart E,to the same effect. (8)Lessee agrees that it shall insert the above provisions of this subsection in any lease(agreement,contract,etc.)by which said Lessee grants a right or privilege to any person,firm or corporation to render accommodations and/or services to the public on the Leased Hangar Site. N. All the covenants,conditions,and provisions in this agreement shall extend to and bind the legal representatives, successors,and assigns of the respective parties hereto. O. Each Party acknowledges that this Second Amendment was fully negotiated by the Parties and,therefore,no provision of this Agreement will be interpreted for or against either Party because such Party or its legal representative drafted such provision. IN WITNESS WHEREOF,the parties hereto have executed this agreement on the year and date first above written. COUNTY OF EAGLE, STATE OF COLORADO,By and Through Its BOARD OF COUNTY COMMISSIONERS 1// � BY: , IJ 4 i■ ?ii / . .Ar athy handler-Henry,Chairman Attest: (0* y A By: , .y. c* Teak J. Simonton, lerk to the Boar. " ' LESSEE: MIKE LEDERHAUSE By: 014'k -4,Axlvi.---,9— . Mike Lederhause State of C oAor xk-a ) ) County of ) The foregoing instrument was acknowledged before me this 31 day of -k i ck. , 201 by !A\\c c 1 de v-\vim (name of person acknowledged) NOTARY PUBLIC Print Name: \�5 -,k .. ysgA ROp. My commission expires: (s0TAA),\, g 14 4,y 10p ie My Commission Expires 05/04/2016 . • Exhibit "A" '- _ ' TRACT 55 -• . EAGLE COUNTY AIRPORT BOUNDARY _ f N^. P.0.8. • 8.° '00"E 4 7' Found Reber a Alum. Cap LS No.TIr234— in t1 N awl o, ,.a s; a ft' V' 0 o� 0.1030 acres co (0. • SCALE: I' 20' w 4488 sq. ft. rlr� w o Coco 0 • Tract 59 G • 0 0 0 0 0 O • 0 z N Set Reber a Alum. .W 47.18' N89°57 17 W 47.18 Found Reber a Alum. . N89°5717' ' Cop LS No.11204 Cap LS No. 12566 � (Typical) C.S0O°00'OO"E 2.00' . LEGAL DESCRIPTION A parcel of land located within and along the northerly boundary of the Eagle County Airport as described in Book 442 at Page 435 of the Eagle County Records, located in Tract 55, Section 3, Township 5 South, Range 85 West of the 6th Principal Meridian according to the Independent Resurvey of said Township and Range as approved by the U.S. Surveyor General's Office in Denver. Colorado on June 20, 1922. All bearings are relative to a bearing of X.00°21'00"E. from a brass cap set as a witness corner for Angle Point 3 of Tract 57 to a brass cap set for Angle Point 2 of Tract 57. Said parcel being more particularly described as follows: Beginning at a point on the northerly boundary line of said Eagle County Airport from which an existing brass cap marking Angle Point 4 of Tract 59 bears S.41°27'14"W. 2295.05 feet distant; thence departing said boundary line 5.00°00'00"E. 45.90 feet; thence N.89°57'17"W. 47.18 feet; thence 3.00°00'00"E. 2.00 feet; thence :k.89°57'.17"W. 47.18 feet; thence \.00°O0'00"E. 49.23 feet to a point on the northerly boundary line of said Eagle County Airport; thence along said boundary line S.89°09'00"E. 94.37 feet to the point of beginning. Said parcel contains 0.1030 of an acre, more or less. 1 .4 t i e.► \.• Ai I' int, t o'T.uN. DATE ,l hn L. MacKown, P.E. & P.L.S. 12566 89/041 ...wont* _ 12566 .off«....p�g • is . .s MS= MacKwxn Surveying &Engineering,Inc. 1 • 3. N5