HomeMy WebLinkAboutC15-509 Tim Benedickt Leasei � e AIRPORT FACILITIES LEASE ,JHIS LEASE ( "Lease" or "Lease Agreement ") is made and entered into thist h day of 6 , 2015, by and between Ea le Coup Colorado, a body corporate and politic, hereinafter referred to as the "Lessor" an hq _ ,rjjijpd, hereinafter referred to as "Lessee." Lessor and Lessee may be collectively referred to herein as the "Parties." WITNESSETH: WHEREAS, Lessor owns and operates the Eagle County Regional Airport (hereinafter referred to as "Airport") located in Eagle County, Colorado; and WHEREAS, Lessor owns a hangar located on the north side of the Airport, at 0545 Airport Road, Gypsum, Colorado, as more particularly identified in Exhibit A attached hereto and incorporated herein by reference (the "Hangar "); and WHEREAS, the Lessor, pursuant to Sections 30- 11- 107(1)(J), 414-101, 41-4 -106 and 41-4- 112, C.R.S., has the authority with respect to the operation of said Airport to lease space for the purpose of providing aircraft housing through hangars to individuals and/or entities and to exact the required fees therefore; and WHEREAS, said leasing is declared to be a public governmental function, exercised for a public purpose, and is declared a matter of public necessity; and WHEREAS, Lessee is desirous of leasing a portion of the Hangar for the purpose of storing/parking an aircraft owned and operated by Lessee, for storage of related supplies and equipment and for maintenance of the aircraft by Lessee, Lessee's contractors or agents and employees of Lessee; and NOW, THEREFORE, for and in consideration of the mutual covenants contained herein, the parties hereto agree as follows: SECTION ONE EXCLUSIVE USE OF LEASE OF HANGAR AREA A. Lessor grants Lessee the exclusive use of that portion of the Hangar known as Hangar Area No. 2 , as shown in the Hangar layout drawing attached as Exhibit B, together with any and all improvements, wall space and storage space currently in said space (the "Leased Premises "). Lessee acknowledges that the office space located within the Hangar shall be divided equitably among tenants of the Hangar. In the event tenants of the Hangar cannot agree as to an equitable sharing of such office space, Lessor shall make an equitable division and shall assign use of such space to the tenants within the Hangar. B. Lessee shall use the Leased Premises solely for the purpose of storing/parking an airworthy aircraft, for preventative maintenance of the aircraft and for general aviation related storage, such as storage of lockboxes, bins, boxes, tools, parts and other articles necessary for Lessee's maintenance of the aircraft. Maintenance of the aircraft shall not be done in a manner that would be unsafe, unsightly or detrimental to the efficient use of the Airport facilities by others. Lessee will dispose of used oil or hazardous waste only in r 1 4Eae RO / AS By: By: County Attorney's O Vice C15 -509 Eagle County Commissioners' Office approved receptacles. Lessee shall not use the Leased Premises for any commercial purposes (including but not limited to any aeronautical service provided to the public or Fixed Base Operator activities). Any change in permitted uses shall be only with the prior written consent of the Lessor and upon the terms described by the Lessor. C. The aircraft assigned to the Leased Premises is described below. Such aircraft must be owned by Lessee. Lessee agrees to notify Lessor within thirty (30) days of any change in ownership of the aircraft described herein. Aircraft make: /' iG�6 0 f } Aircraft model: bL- Aircraft Year: _ ie Aircraft registration number: Aircraft serial number: C Aircraft registered owners: =17X Aircmft owner Address and Phone Number: Quantity and ID of Airport access keys: SECTION TWO TERM A. Subject to earlier termination as hereinafter provided, the term of this Lease Agreement shall expire one year from the first date listed above (the "Term "). If the Term hereof shall commence or end upon a day other than the first day of a calendar month, the Rent for the fractional month at the beginning of the Tenn shall be appropriately prorated. B. Lessee shall have the option to extend the Term for two successive additional one (1) year periods (which shall each be referred to herein as the "Extension Period ") beginning at noon on the expiration date of the initial period of the Term as set forth in Section 2.A. and ending at noon on such expiration date one year later. Each such option shall be exercised by Lessee delivering written notice of exercise no more than six months and no less than three months prior to the expiration date of the then current term. Such notice shall be effective only if, on the date the notice is given, Lessee is not in default hereunder. If Lessee fails to deliver any such notice in a timely manner, Lessee shall be considered to have waived Lessee's option to extend the Term and the Term shall end on the expiration date of the then current Term. If Lessee fails to timely and properly exercise the first such option, it shall have no further options to renew. Upon the giving of such notice by Lessee, the Term shall be automatically extended for the Extension Period covered by such notice and the definition of "Term" set forth in Section 2.A. shall include such Extension Period. Such Extension Period shall be upon all of the terms, covenants and conditions of this Lease in effect during the initial period of the Term as set forth in Section 2.A. except that Lessee shall have no further right to extend the Term after the expiration of the second Extension Period or the then current term if notice is not given. As of the date each Extension Period begins, this Lease shall be deemed modified in the manner set forth above without further action by Lessor or Lessee, however both parties nevertheless agree to execute a document amending this Lease in order to reflect such modifications if requested by either party. SECTION THREE RENTALS AND CHARGES A. The monthly rent for the Leased Premises is two hundred and fifty dollars ($250) ( "Rent "), payable on in advance and without demand on the first day of the month for each and every month during the Term of this Agreement. B. A security deposit equal to one month's Rent must be paid upon execution of this Lease Agreement. Such deposit will be returned without interest within thirty (30) days of termination of this Lease Agreement and upon a determination by the Airport Manager that no cleaning or damage repair is required and further upon a determination that payments have been paid in full. All or part of the deposit may be retained by Lessor to pay for cleaning or repairs or unpaid fees and costs. C. Lessee will be responsible for its proportionate share of all utility consumption costs incurred during the Term of the Lease in connection with Lessee's use and occupancy of the Leased Premises. Utility costs will be billed monthly in arrears and divided equally among all Lessees occupying the Hangar during the utility billing period. Payment shall be due thirty days from date of invoice. Utilities include electricity and natural gas. Notwithstanding the foregoing, Lessee shall not be responsible for more than one -third of the monthly utility consumption costs incurred during the Term of this Lease in connection with Lessee's use and occupancy of the Leased Premises. Lessor shall not be liable to Lessee for damages and there shall be no abatement of Rent if any utility becomes unavailable from any public utility company or other utility supplier or distributor, or in the event of any interruption in utility service caused by the making of any necessary repairs or improvements or by any cause beyond Lessor's reasonable control, and the same shall not constitute a termination of this Lease or any eviction of Lessee. D. Any Rent not received by the 10a` of the month will be subject to a late fee of ten percent (10 %) of the unpaid rent. Any utility payment 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 County is required to initiate any collection procedures or costs to collect any unpaid rent from Lessee, the Lessee shall pay all of the County's expenses in connection therewith, including reasonable attorney's fees. E. All payments, charges and fees due and payable under this Lease Agreement shall be payable to the order of Eagle County and shall be submitted and/or delivered to: Eagle County Regional Airport P.O. Box 850 Eagle, Colorado 81631 F. The monthly Rent for the Leased Premises during an Extension Period, if any, shall be $250.00 payable in advance and without demand on the first day of the month. SECTION FOUR LESSEE COVENANTS A. Lessee shall not use the Leased Premises for major repair or overhauling of any aircraft or other equipment. preventive maintenance services for aircraft stored in the Leased Premises shall be performed in accordance with the Eagle County Regional Airport Rules and Regulations, as may be amended from time to time. Lessee shall be responsible for the cleanup of any hazardous or other material spills from Lessee's aircraft, vehicles or containers. Lessee shall be responsible for payment to Lessor of any damage to Hangar pavement floor caused by fuel/oil spillage, maintenance tools, repair equipment, or associated careless acts. B. Lessee shall not attach any hoisting or holding mechanism to any part of the Hangar or pass any mechanism through the structure therein. For purposes of this Lease Agreement, a hoisting or holding mechanism shall be deemed to include, but shall not be limited to, chain -ball, block and tackle, or other hoisting or winching devise. C. Lessee shall not store any solvents, explosives, flammable paints, or other flammables in the Leased Premises, except that Lessee may store up to two cases of aircraft engine oil in manufacturer's containers or other fluids necessary to comply with FAA maintenance regulations. All such materials must be stored in hazardous materials cabinets. Lessee shall not use any hazardous material within the Leased Premises. Lessee shall be responsible for all costs associated with mitigating any contamination which is caused by Lessee. D. Lessee shall coordinate the operation of the doors so as not to unduly or in an untimely fashion obstruct access to the adjacent hangars. E. Lessee shall not lock the Hangar or permit the same to be locked with any lock other than the lock mechanism supplied by the Airport unless prior written permission is received from the Lessor. If any additional locking device is used, Lessor will be given a key /combination to ensure access in the event of an emergency. F. Lessee shall not make any alterations, additions or improvements to the Leased Premises or to the Hangar without the prior written consent of the Lessor, which may be withheld in Lessor's sole discretion. G. Lessee shall not use any high wattage electrical equipment, heat lamps, or machinery in or about the Leased Premises or the Hangar, or modify existing wiring or install additional outlets, fixtures or the like therein unless authorized in advance in writing by the Lessor. H. Aircraft fueling may only be performed in accordance with the Eagle County Regional Airport Rules and Regulations, as may be amended from time to time. Self - fueling is not allowed on the Leased Premises. I. Lessee, and its agents, invitees, and guests, shall park vehicles at the Airport in accordance with the Eagle County Regional Airport Rules and Regulations, as may be amended from time to time. No more than one vehicle may be stored in the Leased Premises without the Aviation Director's written approval. SECTION FIVE 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 Hangar site or the Leased Premises in order to control access to the airfield. Lessee agrees that it shall at all times comply with the Access Plan in its operations on the Leased Premises and the Airport. Access to the airfield shall be permitted for Lessee's guests, in accordance with the Airport Security Program and FAA and TSA regulations. Each individual desiring unescorted access to the airfield shall obtain an access card from Airport Administration in compliance with the Airport Rules and Regulations and the Department of Homeland Security and TSA regulations, policies and directives. SECTION SIX RIGHT OF INGRESS AND EGRESS Lessee shall have the right of ingress to and egress from the Leased Premises in a manner that does not interfere with the Lessor's use of the Airport and does not conflict with any access rules and regulations adopted by Eagle County or any other agency with the authority to control access to the Eagle County Regional Airport. Lessee understands that the Airport may be closed on a temporary basis and/or that airport restrictions may be imposed, from time to time, for reasons including, but not limited to, hazardous conditions, special events, safety, security, noise and environmental issues. SECTION SEVEN 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 EIGHT TAXES AND ASSESSMENTS Lessee agrees to pay its proportionate share of all property assessments, general and special and all other legally imposed obligations, ordinary and extraordinary of every kind and nature whatsoever, if any, levied or assessed upon the Hangar or any part thereof by the Town of Gypsum, the State of Colorado, the United States, or any other governmental entity or agency. SECTION NINE MAINTENANCE AND UTILITIES A. Lessee shall provide for and supply, at its sole expense, any desired janitor services with respect to the Leased Premises. B. Lessor shall conduct snow removal in accordance with the approved Airport Snow and Ice Control Plan and Airport Certification Manual. Lessor may provide snow removal on paved areas adjacent to the Hangar, not closer than six feet (6') from the exterior of the Hangar, based on the order of Airport operational priority, and personnel and equipment availability. C. Snow removed from the area surrounding the Hangar by Lessee 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. D. During the term of this Lease and any renewal thereof, Lessee shall maintain the Leased Premises in good repair, normal wear and tear excepted, according to the standards established for similar buildings and premises under Lessor's control at the Airport. Lessee shall not place or store any items or equipment in the area surrounding the exterior of the Hangar. E. Lessee shall be responsible for the repair of any damages to the Hangar or the Leased Premises caused by Lessee, its employees, agents, or invitees. Such repairs shall be undertaken by Lessor and Lessee shall be assessed the amount of the repairs, and shall reimburse Lessor for such amount upon demand. Rent shall not abate during the period of such maintenance or repairs. F. Lessee shall be responsible for the cleanup of any hazardous or other material spills from Lessee's aircraft, vehicles or containers. SECTION TEN OPTION TO LEASE ADDITIONAL SPACE No option is granted to lease additional space. SECTION ELEVEN RULES AND REGULATIONS Lessee agrees to observe and obey reasonable rules and regulations with respect to use of the Leased Premises, including the Eagle County Regional Airport Rules and Regulations and the Eagle County Airport Minimum Standards, as may be amended from time to time; 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 Lease 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. In addition, Lessee shall comply with any safety and security planning efforts reasonably adopted by Lessor. SECTION TWELVE DAMAGE OR DESTRUCTION OF HANGAR A. If the Leased Premises or the Hangar shall be so damaged by fire or other casualty as to render the Leased Premises untenantable, in the opinion of Lessor, and if such damage shall be so great that the Leased Premises cannot be made tenantable within 60 days from the happening of the fire or other casualty, or if the damage shall be such that the Leased Premises can be made tenantable within the 60 day period from the happening of the fire or other casualty but adequate insurance proceeds or adequate appropriations are not available to Lessor for repair of such damage, then this Lease may be terminated by Lessor by giving written notice to Lessee of such termination. Upon the giving of such notice, this Lease shall terminate as of the date of the occurrence of the fire or other casualty giving rise to such termination with the same consequences as a termination pursuant to the provisions of Section 17. B. If the Leased Premises or the Hangar shall be so damaged by fire or other casualty as to render the Premises untenantable, in the opinion of Lessor, but the Leased Premises can be made tenantable within the 60 day period from the happening of the fire or other casualty and adequate insurance proceeds or appropriations are available to Lessor for repair of such damage then, except as hereinafter provided, Lessor shall, with reasonable promptness, repair the damage so done except that Lessor shall not be required to repair, replace or restore the Lessee's trade fixtures or other improvements. Until such repair is substantially completed, the Rent shall be abated in proportion to the part of the Leased Premises which is unusable by Lessee in the reasonable conduct of its operations. If the damage to the Leased Premises or other parts of the Hangar is due to the fault or negligence of Lessee or Lessee's employees, agents or invitees, there shall be no abatement of the Rent. C. If the Leased Premises shall be damaged by fire or other casualty but not so as to render them untenantable, Lessor shall cause the damage to be repaired with reasonable promptness except that Lessor shall not be required to repair, replace or restore the Lessee's trade fixtures or other improvements. Until such repair is substantially completed, the Rent shall be abated in proportion to the part of the Leased Premises which is unusable by Lessee in the reasonable conduct of its operations. If the fire or other casualty causing damage to the Leased Premises is due to the fault or negligence of Lessee or Lessee's employees, agents or invitees, there shall be no abatement of the Rent. D. In the event the Airport is rendered untenantable or unusable, in the opinion of the Lessor, the Rent shall be abated in proportion to the part of the Leased Premises which is unusable by Lessee in the reasonable conduct of its operations during the period that the same are so untenantable or unusable. SECTION THIRTEEN INSURANCE A. Lessee agrees to secure at its own expense, and to keep in force at all times during the Term hereof, the following insurance: L Aircraft Liability Insurance, including Airport Premises liability coverage, Bodily Injury and Property Damage in the minimum limits set forth below: Aircraft Liability Insurance Minimum limits: Each Occurrence Limit $1,000,000 2. Automobile coverage with limits of liability not less than $500,000 each accident combined bodily injury and property damage liability insurance, including coverage for owned, hired, and non -owned vehicles for all vehicles operated on Airport property. B. The Aircraft Liability and Automobile policies 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 Premises." 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 Lease, 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 Lease Agreement with ten (10) days' notice to Lessee. F. The insurance carried by the Lessee, as required by this Lease 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 FOURTEEN RISK OF LOSS A. Lessee covenants and agrees that it will not hold Lessor or any of its agents, officers, employees or airport commission members responsible for any loss of property by theft or burglary from the Hangar or the Leased Premises or for any damage to person or property in the Hangar or the Leased Premises resulting from electric lighting, water, rain or snow, windstorm, lightening, negligence of other tenants in the Hangar or from any other cause whatsoever, whether said cause be the direct, indirect or merely a contributing factor in producing the loss to any aircraft, automobile, personal property, parts, surplus, or any other item that may be located on or about the Leased Premises or injury to any person or persons, including employees or agents of the Lessor, and Lessee agrees to make no claim for such loss or damage at any time, except for abatement of Rent or right to insurance proceeds. Lessee further covenants and agrees that it will indemnify and save harmless Lessor from all demands, claims, costs, causes of action or judgments, and from all expenses that be incurred, in investigating or resisting the same, arising from or growing out of the use of the Leased Premises by Lessee, its contractors, agents, members, stockholders, employees, invitees, servants, sub - tenants, successors and assigns. B. Lessee agrees that any aircraft or personal property or other items which are stored in or about the Leased Premises pursuant to this Lease Agreement are at Lessee's sole risk and Lessee shall possess adequate insurance to protect it from such risk. C. Lessee further acknowledges that the Hangar is shared with other tenants and assumes the risk of loss or damage to the Lessee's aircraft, contents, injury to any person or persons, whether from the negligence of other tenants, their agents, employees or invitees, or from any other causes whatsoever. Lessee covenants and agrees that it will indemnify and save harmless Lessor from all demands, claims, costs, causes of action or judgments, and from all expenses that are incurred, in investigating or resisting the same, arising from or growing out of the use of the Hangar by other tenants their contractors, agents, members, stockholders, employees, invitees, servants, sub- tenants, successors and assigns. SECTION FIFTEEN INDEMNIFICATION OF LESSOR Lessee hereby agrees to release and indemnify and save harmless Lessor, its officers, agents and employees from and against any and all loss of or damage to property, or injuries to or death of any person or persons, including property and employees or agents of the Lessor, and shall defend, indemnify and save harmless Lessor, its officers, agents and employees from any and all claims, damages, suits, costs, expense, liability, actions, penalties or proceedings of any kind or nature whatsoever, including worker's compensation claims, of or by anyone whomsoever, in any way resulting from, or arising out of, directly or indirectly, its use and occupancy of the Leased Premises or the Hangar or its use or occupancy of any portion of the Airport and including acts and omissions of officers, employees, representatives, suppliers, invitees, contractors, subcontractors, and agents of the Lessee; provided, that the Lessee need not release, indemnify or save harmless the Lessor, its officers, agents and employees from damages resulting from the negligence of the Lessor's officers, agents and employees. SECTION SIXTEEN TERMINATION BY LESSEE This Lease Agreement may be terminated by Lessee provided that the Rent for the Leased Premises, Lessee's proportionate share of utility costs for the Leased Premises and any other costs or expenses due pursuant to this Lease have been paid in full to Lessor to the date of such termination, and provided further that Lessee gives Lessor at least thirty (30) days written notice of its intention to terminate. SECTION SEVENTEEN TERMINATION BY LESSOR Lessor may terminate this Lease Agreement without cause by giving thirty (30) days written notice to the Lessee, except that Lessor may terminate this Lease without such notice if extenuating circumstances exist, in Lessor's sole determination. In the event such termination is without cause and Lessor has available other suitable Hangar space, Lessee shall have the right to enter into a lease agreement for the same. SECTION EIGHTEEN SURRENDER OF POSSESSION A. On the expiration or other termination of this Lease, Lessee's rights to use of the Leased Premises, facilities, and services described herein shall cease, and Lessee shall vacate the Leased Premises without unreasonable delay. Lessee shall be responsible to put the Leased Premises and equipment back to their original condition. Depreciation and wear from ordinary use for the purpose for which the Leased Premises were let need not be restored; however, any repair for which the Lessee is responsible shall be completed to the latest practical date prior to such surrender. B Except as otherwise provided in this Lease Agreement, the equipment, and other personal property bought, installed, erected, or placed by Lessee in, on, or about the Leased Premises 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 Lease, or any renewal or extension hereof, 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 or termination of the Lease shall thereupon become a part of the land on which it is located and title thereto shall vest in Lessor. C. Should Lessee fail to remove Lessee's aircraft or other property from the Leased Premises upon the expiration or termination of this Lease, Lessee agrees to pay the sum of five hundred dollars ($500.00) per month as Rent for a holdover tenant until the aircraft and other property of the Lessee are removed from the formerly Leased Premises. For purposes of this provision, the Rent shall not be prorated and any period up to and including thirty (30) days shall be deemed to be a month. Additionally, Lessor may exercise its rights of sale as set forth in Section 28 herein. D. Lessee further agrees to pay reasonable attorney's fees for collection of aforesaid holdover Rent or to compel removal of Lessee's aircraft or property from the Leased Premises after the expiration or termination of the Lease. E. Upon the expiration or termination of this Lease Agreement, Lessor shall have the right to enter upon and take possession of the Leased Premises, with or without process of law, without liability for trespass. SECTION NINETEEN ACCESS BY LESSOR During the term hereof, the Lessor shall have the right to access said Hangar and the Leased Premises at any or all reasonable times with or without notice to Lessee. SECTION TWENTY ASSIGNMENT AND SUBLETTING Lessee shall not, at any time, assign its rights under this Lease Agreement without the prior written consent of Lessor which consent Lessor may withhold at its sole discretion. No assignment shall release Lessee from its obligations under the Airport Rules and Regulations, 10 Airport Minimum Standards, or this Lease and its obligations to pay any and all of the rentals and charges set forth herein. SECTION TWENTY -ONE COSTS OF LITIGATION Lessee covenants and agrees that in case the Lessor shall, without any default on its part, be made a party to any litigation commenced by or against the Lessee with respect to the Leased Premises 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 -TWO NATIONAL EMERGENCY In the event possession of the Leased Premises 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 -THREE 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 Premises, without cost to the Lessor, whatever instruments and equipment Lessor or the F.A.A. deems necessary for operation of the Airport. SECTION TWENTY -FOUR AERIAL APPROACH The Lessor reserves the right to take any action it considers necessary to protect the aerial approaches of the Airport against obstruction. Lessee shall not erect or permit to be erected, any building or other structure on the Airport. SECTION TWENTY -FIVE 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. 11 SECTION TWENTY -SIX RESERVATIONS OF COUNTY A. It is understood and agreed that nothing herein shall be construed to grant or authorize the granting of an exclusive right to Lessee, except the exclusive right to use the Leased Premises 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 Hangar, 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 Lease, and in the event of such non - compliance, the Lessor shall have the right to terminate this Lease without liability therefore, or at the election of the Lessor or the United State or both of said governments, shall have the right to enforce judicially this section. SECTION TWENTY -SEVEN DEPOSIT A. Lessee has deposited with Lessor the equivalent of one month's rent, and outlined in Section 5 as a security deposit for the faithful performance of and compliance with all the terms and conditions of this Lease. Notwithstanding the provisions of Section 5 should Lessee fail to comply with each and every term and condition of this Lease Agreement, or if Lessee damages the Leased Premises and/or equipment furnished by Lessor to Lessee, then the amount deposited as security furnished may, at the option of the Lessor, be retained by Lessor as fixed, liquidated and agreed damages for payment of disbursement, costs and expenses that Lessor may incur in restoring and repairing said Leased Premises and/or equipment. The retention and holding of the security deposit for the payment of such costs, disbursements and expenses shall not in any manner release Lessee from any of the obligations herein assumed. All rights of Lessor to the deposited funds or securities shall be in addition to the right of Lessor to pursue any and all legal remedies available in the event said deposited funds or securities are insufficient to cover the payment of disbursements, costs and expenses that Lessor incurs by reason of the damages caused by Lessee; to enforce payment of any amount due; and to all other rights to which Lessor may be entitled under this Lease Agreement. B. If all terms and conditions are fully complied with by Lessee, then the security deposit shall be returned to Lessee within 30 days of surrender of the Leased Premises in a good state and condition, reasonable use and wear thereof excepted, at the expiration of this Lease Agreement. 12 SECTION TWENTY -EIGHT LIEN Lessee hereby gives and grants to Lessor a lien upon, and hereby assigns to Lessor, all fixtures, chattels and personal property of every kind and description or hereafter to be placed, installed or stored by Lessee, at the Airport. In the event of any failure on the part of Lessee to comply with each and every one of the covenants and obligations hereof, Lessor shall notify the Lessee in writing of such breach and/or default of the provisions of this Lease Agreement. In the event Lessee does not cure such default and/or breach within thirty (30) days from the receipt of such notification from Lessor, Lessor shall have the right to take possession of and sell all fixtures, chattels and personal property of every kind and description now and hereafter placed, installed or stored by Lessee at the Airport in any manner provided by law and may credit the net proceeds upon any indebtedness due, or damage sustained by Lessor, without prejudice to further claims thereafter to arise under the term thereof. SECTION TWENTY -NINE ADDITIONAL CONDITIONS A. Lessee shall use the Leased Premised solely for general aviation storage and aircraft preventative maintenance 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 Premises shall comply with the requirements of the Town of Gypsum, Colorado 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. Lessee further agrees not to use the Leased Premises for any unlawful purpose, or for any purpose that may constitute a nuisance. B. The Lease is for general aviation storage and aircraft preventative maintenance purposes and not for commercial use. A lease amendment would be required to conduct any commercial activity in the Leased Premises as well as compliance with the Minimum Standards for Commercial Aeronautical Activities. C. Lessee recognizes that from time to time during the term of this Lease Agreement it will be necessary for the Lessor to initiate and carry forward programs of construction, reconstruction, expansion, relocation, maintenance and repair in order that the Airport and its facilities may be suitable for the volume and character of air traffic and flight activity which will require accommodation, and that such construction, reconstruction, expansion, relocation, maintenance, and repair may inconvenience or interrupt operations at the Airport. Lessee agrees that no liability shall attach to Lessor, its officers, agents, employees, contractors, subcontractors and representatives by reason of such inconvenience or interruption, and for and in further consideration of the premises, Lessee waives any right to claim damages or other consideration therefor, provided, however, that this waiver shall not extend to, or be construed to be a waiver of, any claim for physical damage to property resulting from negligence or willful misconduct. 13 D. It is agreed that, with respect to any aircraft stored in the Leased Premises, adequate access to, and maneuvering room in front of the Hangar will forever and at all times be protected during the Term of this Lease. E. 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, Imes, penalties, costs and expenses whatsoever which may result from any Workman's Compensation claims. F. 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: Eagle County Attention: Aviation Director 500 Broadway Post Office Box 850 Eagle, CO 81631 Telephone: 970 - 328 -2680 Facsimile: 970 - 328 -2687 E -Mail: ecair @eaglecounty.us With a copy to: Eagle County Attorney 500 Broadway Post Office Box 850 Eagle, Co 81631 Telephone: 970 - 328 -8685 Facsimile: 970 - 328 -8699 E -Mail: atty @eaglecounty.us LESSEE: . eDlve4 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. G. This Lease 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 Lease 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 14 Lessee in their respective rights and obligations contained in the valid covenants, conditions, or provisions of this Lease Agreement. H. 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. I. 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. J. Lessor shall have no responsibility or liability to remove the snow on and/or near the Hangar or the Leased Premises for the Lessee's sole use and benefit. K. 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 Premises 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. 15 (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 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 Premises. L. All the covenants, conditions, and provisions in this Lease Agreement shall extend to and bind the legal representatives, successors, and assigns of the respective parties hereto. M. Aircraft shall be kept movable in order to not block entry /egress by other aircraft. Other accommodation shall be made by Lessee for an aircraft that is not movable to provide ingress/egress by other aircraft in the Hangar. N. This Lease Agreement constitutes the entire agreement between the parties. No statements, promises, or inducements made by any party to this Lease Agreement, or any agent or employees of either party, which are not contained in this written contract shall be valid or binding. O. It is specifically agreed between the parties executing this Lease Agreement that it is not intended by any of the provisions of this Lease Agreement to create in the public or any member thereof, third party beneficiary status in connection with the performance of the obligations herein. P. Either party's failure to enforce any provision of this Lease Agreement against the other party shall not be construed as a waiver thereof so as to excuse the other party from future performance of that provision or any other provision. Q. In the event any portion of this Lease Agreement is found to be unconstitutional, illegal, null or void, by a court of competent jurisdiction, it is the intent of the parties to sever only the invalid portion or provision, and that the remainder of the Lease Agreement shall be enforceable and valid, unless deletion of the invalid portion would defeat the clear purpose of the Lease Agreement, or unless deletion of the invalid portion would produce a result inconsistent with the purpose and intent of the parties in entering into the Lease Agreement. R. By entering into this Lease Agreement, Lessor does not waive governmental immunity or any of the protections available to it under Colorado law and further does not waive the limitations on liability which are provided to it under the Colorado Governmental Immunity Act, C.R.S. 24 -10 -101 et. seq. 16 f r S. The Lessor's financial obligations, if any, under this Lease Agreement are contingent upon sufficient appropriations and authorizations being made by Eagle County for the performance of this Lease Agreement in accordance with a budget adopted by the Board of County Commissioners in compliance with Article 25, title 30 of the Colorado Revised Statutes, the Local Government Budget Law (C.R.S. 29 -1 -101 et. seq.) and the TABOR Amendment (Colorado Constitution, Article X, Sec. 20). The County's decision as to whether sufficient appropriations are available shall be accepted by the other parties to this Lease Agreement and shall be final. 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 C MMISSIONERS * * By: a ath andler -He Chairman Oio y my, Attest: By: eak J. Simonton, C erk to the Board LESSEE: By: State of ( C-)I�>- E; County of�cac�( ) t I The foregoing instrument was acknowl ed before me this '1 day of O, 20_j_,�: '(v0 L A (name of person acknowledged) NOTARY PUBLIC Print Name: Z k2y�L�� My commission expires: �' 2fJ 12U 6 Vil 17 JUANA PALACIOS iVOTi4RY PUBLIC STATE OF COLORADO r,,4,! commission Expires 6/20/2016 W4111:3 W1 LOCATION OF HANGAR 18 EXHIBIT B LOCATION OF LEASED PREMISES 19