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HomeMy WebLinkAboutC96-125 Eagle County Air Terminal Corporation19'961257 a
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Sara J. Wisher Eagle County Clerk & Recorder U.UU
GROUND LEASE BETWEEN
THE COUNTY OF EAGLE, STATE OF COLORADO
AND
EAGLE COUNTY AIR TERMINAL CORPORATION
This Ground Lease (the "Lease") entered into effective.
the 1st day of June, 1996, by and between the County of Eagle,
State of Colorado, a body politic and corporate, acting by and
through its Board of County Commissioners ("County"), and
Eagle County Air Terminal Corporation ("Terminal
Corporation").
WITNESSETH:
WHEREAS, the County now owns, controls and operates the
Eagle County Regional Airport (the "Airport") located between
the towns of Eagle and Gypsum in the County of Eagle, State of
Colorado; and
WHEREAS, the County is duly authorized by law to adminis-
ter and govern the property known as the Eagle County Regional
Airport; and .
WHEREAS, commercial aviation has grown dramatically in
the past five years and is -expected to continue to grow in the
future; and
WHEREAS, the County has determined that commercial
passenger terminal facilities at the Airport are inadequate
for the current levels of use as well as for expected growth
in commercial aviation; and
WHEREAS, passenger terminal facilities are essential to
the.proper accommodation of commercial aviation at the r.b,
Airport; and
WHEREAS, Terminal Corporation is a non-profit corporation C
organized for the benefit of Eagle County for the purpose of
constructing a commercial passenger terminal and related
improvements at the Airport;
WHEREAS, Terminal Corporation intends to issue and sell
bonds to finance the construction of the commercial passenger
terminal and related improvements at the Airport, and in
1
GROUND LEASE BETWEEN
THE COUNTY OF EAGLE, STATE OF COLORADO
AND
EAGLE COUNTY AIR TERMINAL CORPORATION
This Ground Lease (the "Lease") entered into effective
the 1st day of June, 1996, by and between the County of Eagle,
State of Colorado, a body politic and corporate, acting by and
through its Board of County Commissioners ("County"), and
Eagle County Air Terminal Corporation ("Terminal
Corporation").
WITNESSETH:
WHEREAS, the County now owns, controls and operates the
Eagle County Regional Airport (the "Airport") located between
the towns of Eagle and Gypsum in the County of Eagle, State of
Colorado; and
WHEREAS, the County is duly authorized by law to adminis-
ter and govern the property known as the Eagle County Regional
Airport; and
WHEREAS, commercial aviation has grown dramatically in
the past five years and is -expected to continue to grow in the
future; and
WHEREAS, the County has determined that commercial
passenger terminal facilities at the Airport are inadequate
for the current levels of use as well as for expected growth
in commercial aviation; and
WHEREAS, passenger terminal facilities are essential to
the proper accommodation of commercial aviation at the
Airport; and
WHEREAS, Terminal Corporation is a non-profit corporation
organized for the benefit of Eagle County for the purpose of
constructing a commercial passenger terminal and related
improvements at the Airport;
WHEREAS, Terminal Corporation intends to issue and sell
bonds to finance the construction of the commercial passenger
terminal and related improvements at the Airport, and in
1
connection therewith to enter into a Trust Indenture with a
trustee on behalf of the bondholders governing the terms of
the bonds and to secure the indebtedness in part with its
interest -in this Lease;
NOW, THEREFORE, in consideration of the premises and the
mutual covenants contained in this Lease, the parties hereby
agree as follows:
ARTICLE ONE
TERM
The term of this Lease shall be for a period of thirty
(30) years, commencing on the 1st day of June, 1996, and
continuing through the 31st day of May, 2026 (the "Termination
Date"), unless earlier terminated under the provisions of this
Lease.
Notwithstanding the foregoing, this Lease shall terminate
automatically upon the defeasance of the bonds sold to finance
the construction of the original improvements pursuant to the
Trust Indenture to be entered into by Terminal Corporation on
or about June 28, 1996. Upon that termination, title to the
land and all improvements thereto, and all personal property
therein owned by Terminal Corporation, shall vest exclusively
in County.
ARTICLE TWO
LEASED PREMISES AND EASEMENTS
A. The County does hereby lease to Terminal Corporation
the property described in the legal description and on the map
attached hereto respectively marked as Exhibits "A" and "B"
and which are incorporated herein by this reference.
B. For the purposes of construction of the improvements
required by the terms of this Lease, the County hereby grants
Terminal Corporation an easement on, upon and about the
Airport, including (i) within the boundaries of the Terminal
Project as outlined on Exhibit "C" attached hereto and
incorporated herein by this reference and extending 50' beyond
each of the exterior boundaries of the project as outlined
thereon; (ii) an approximately 50' wide area across the
Airport to its northern boundary as necessary for the
construction of a sewer line; and on County's easement north
of the Airport for construction of the sewer line.
. C. . Phase II, III, IV, V Parking Areas. County hereby
grants Terminal Corporation a license to use Parking Areas II,
III, IV and V as shown on Exhibit "C." This license is
limited to the use and rights set forth -herein.
Terminal Corporation shall establish traffic patterns and
parking layouts in the Parking Areas, subject to the County's
prior written approval of such patterns and layouts. Terminal
Corporation may allocate spaces to its rental car agency
tenants for rental car return parking in the Phase V Parking
Area and for rental car ready parking in the Phase IV Parking
Area. Terminal Corporation allocate spaces to tenant
employees in the Employee Parking portion of the Phase III
Parking Area. Allocations shall be reported annually to the
County before December 1 of each year, and changes in
allocations shall be reported when made.
In allocating spaces within the Parking Areas, Terminal
Corporation shall leave adequate spaces for non -tenant users
of the terminal. Specifically, Terminal Corporation shall
provide adequate space in Parking Areas IV and V and in
Parking Area III-Emloyee Parking for rental car agencies
having valid use Agreements with the County who are not
terminal tenants to accommodate their authorized rental car
business activities at the terminal. The adequacy of the
allocations is subject to approval by the County.
The licenses granted hereby shall be void and of no
affect if, and to the extent that, the licenses, or Terminal
Corporation's use of the licenses, are determined by FAA or
any other agency of competent jurisdiction to violate PFC
rules and regulations applicable tothe terminal project.
ARTICLE THREE
USE AND CONCESSION
This Lease is entered into solely for the purpose of
constructing and operating a commercial air passenger
terminal.
All Terminal Corporation subleases and licenses shall
include the requirement that the sublessee or licensee enter
into a use agreement with County permitting its activities at
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the Airport. Terminal Corporation shall not in any event
contract with, or accommodate the commercial activities of,
any entity engaging in commercial activities on the Airport
which has not entered into a use agreement with the County
applicable to those activities, or whose use agreement has
exprired or otherwise been terminated.
ARTICLE FOUR
USE OF COMMON AREAS
Terminal Corporation is granted the use, in common with
others similarly authorized, of the Airport, together with all
facilities, equipment, improvements, and services which have
been or may hereafter be provided at or in connection with
the Airport from time to time, including, but not limited to,
the landing field and any extensions thereof or additions
thereto, roadways, aprons, taxiways, flood lights, landing
lights, beacons, control tower, signals, radio aids, and all
other conveniences for flying, landings, and take -offs.
ARTICLE FIVE
RENT AND LICENSE FEE
A. The area base rent shall be sixteen cents ($0.16)
per square foot per year, or a total annual base rent of
Thirty-two Thousand One Hundred Forty -Two Dollars ($32,142.00)
per year payable in twelve equal monthly installments of Two
Thousand Six Hundred Seventy -Eight and 50/100 Dollars
($2678.50). Rent shall commence upon the completion of the
improvements and the commencement of the term of any sublease
to an commercial aviation subtenant. The rent shall be
payable by the first day,of each month for which it is due.
The annual area "base rent" shall be indexed commencing
with the rental payment in January, 1998, as follows:
1. the month of January, 1997, shall be the "base
month" and the denominator;
2. the month of January of each succeeding year
shall be the "anniversary month" and the numerator;
3. the index shall be the Denver -Boulder, Colorado
Consumer Price Index for All Urban Consumers, All
4
Items (1967=100) published by the U.S. Bureau of
Labor Statistics, 303-837-2467; and
4. the "anniversary rent" shall be determined by
multiplying the "base rent" times a fraction, the
numerator being the particular "anniversary month"
index and the denominator being the "base month"
index. If the "anniversary month" or "base month"
is an unpublished month, the previous index nearest
to the anniversary date shall be used.
B. The base license fee for the Parking Areas shall be
sixteen cents ($0.16) per square foot per year, or a total
annual base fee of Forty Thousand Eight Hundred Dollars
($40,800.00) per year payable in twelve equal monthly
installments of Three Thousand Four Hundred Dollars
($3,400.00). The fee shall commence at the same time as rent
commences.
The annual "base fee" shall be indexed commencing with
the fee payment in January, 1998, as follows:
1. the month of January, 1997, shall be the "base
month" and the denominator;
2. the month of January of each succeeding year
shall be the "anniversary month" and the numerator;
3. the index shall be the Denver -Boulder, Colorado
Consumer Price Index for All Urban Consumers, All
Items (1967=100) published by the U.S. Bureau of
Labor Statistics, 303-837-2467; and
4. the "anniversary fee" shall be determined by
multiplying the "base fee" times a fraction, the
numerator being the particular "anniversary month"
index and the denominator being the "base month"
index. If the "anniversary month" or "base month"
is an unpublished month, the previous index nearest
to the anniversary date shall be used.
C. For the use of the other airport facilities,
Terminal Corporation shall pay to the County such fees as are
charged to other users of the Airport facilities similarly
situated as from time to time are determined by the County.
D. Delinquency Charge: A delinquency charge of two (2)
percent per month shall be added to payments required herein-
above, which are rendered more than ten days days delinquent.
E. Place of Payment: All payments due the County from
Terminal Corporation shall be delivered to a place in Eagle
County designated in writing by the County.
F. Annual Statement. Within sixty (60) days after the
close of its fiscal year audit, and in no event later than
June 30 of each year, beginning in 1998, Terminal Corporation
shall furnish to County a.statement of its operations for the
fiscal year. The County reserves the right to audit said
statement and Terminal Corporation's books and records,
including examination of the general ledger and all other
supporting material, at any reasonable time during business
hours, for the purpose of verifying the statement.
Should Terminal Corporation sublet any concessions on the
Airport premises, it will require such concessionaires to also
permit the examination of their books for the purposes of
determining the gross receipts of such concessionaires'
business.
G. Utilities.
1. The County agrees to provide the following
utilities to, at or near the lot line of the Leased
Premises:
a. Electric,
b. Gas, and
c. Water.
2. In the event the sewer system cannot be
connected to the terminal building or is delayed,
Terminal Corporation shall provide its own septic
system or other waste system as part of the
construction of its facility.
3. Terminal Corporation shall arrange and pay for
its own trash removal.
4. Terminal Corporation agrees to pay the cost of
all utilities. In the event Terminal Corporation
fails to pay any utility bills when due, the County
may, at its option, pay the same and collect from
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Terminal Corporation the amounts so disbursed, plus
interest at the rate of 2% per month or fraction
thereof.
ARTICLE SIX
ORIGINAL IMPROVEMENTS
Terminal Corporation shall construct at its sole expense:
A. A commercial passenger terminal that shall be
permanent in nature and will contain approximately 30,000
square feet, in accordance with the design of Van Sant Group
as reflected in its drawings SD1 and Al -A8, dated May 9, 1996.
B. Associated improvements including extending and
relocating Eldon Wilson Drive and parking areas, as depicted
on Isbill Associates Terminal Area Development drawing EGE-
1840. In the first phase of construction Terminal Corporation
shall complete Eldon Wilson Drive, the Phase I parking paving,
and the grading and graveling of the Phases II, III, IV and V
parking areas. Terminal Corporation shall pave and complete
the Phases II, III, IV and V parking areas in accordance with
the Terminal Area Development Plan, as and when financially
feasible, provided that it maintains such areas properly -
graveled until then.
C. The parking area included within Phase I shall be
constructed within the Leased Premises to the extent
reasonably feasible, but may extend outside the Leased
Premises onto County property, with County's prior written
consent, and County hereby grants Terminal Corporation an
easement to the extent of such approved encroachment for the
purpose of constructing, maintainng and operating such parking
area during the term of this Lease.
D. The improvements to Eldon Wilson Drive, to parking
designated as Phases II, III, IV and V, and to Phase I parking
areas insofar as they are not on the Lease Premises, and the
sewer line shall, upon completion and acceptance by the
County, be and shall thereafter remain the property of the
County
E. All paving and building shall be of permanent
construction and shall be in consistent with the design,
materials and landscaping specifications approved by the Board
of County Commissioners prior to construction.
7
F. Landscaping is required. Terminal Corporation shall
provide a plan for landscaping, to be approved by the Airport
Manager.
G. • Any substantial changes in the concept or design of
the improvements materially affecting the exterior appearance
or capacity of the improvements shall require the prior
approval of the County.
H. Materials and Labor Payment Bond. Prior to begin-
ning construction, Terminal Corporation shall supply to the
County in a form satisfactory to the County Attorney's office,
a Materials and Labor Payment Bond to insure that all
contractors, materialsmen, suppliers, subcontractors, etc.,
are paid for their activities and materials used on
construction of Terminal Corporation's facilities on the
leased premises; and to insure no claim is made against the
County and that no lien shall attach to the County's property.
This paragraph applies also to the improvements constructed
pursuant to Article Three hereof.
ARTICLE SEVEN
COMPLIANCE WITH LAW, REGULATIONS, AND REQUIREMENTS
A. Terminal Corporation shall use the Leased Premises
solely for the purposes as set forth herein, and in so doing
shall enforce and comply with all applicable laws of the State
of Colorado and the United_States of America; and the rules,
regulations, ordinances and resolutions of the County as well
as of any and all bureaus, departments and agencies of said
County, State of Colorado and the United States of America, as
they may be amended from time to time. Terminal Corporation
agrees to faithfully observe and obey and to compel its
employees, invitees, and those doing business with it to
observe and obey all of the following:
1. All Eagle County Regional Airport Rules and
Regulations, which shall be deemed to include but
not be limited to the Security Manual;
2. If the County revises "The Minimum Standards for
Commercial Aeronautical Services and Activities at
the Eagle County Regional Airport" to include
commercial aviation services and activities, any
such provisions of the Minimum Standards; and
8
3. All rules and regulations of the Federal Avia-
tion Administration now in effect and such further
rules and regulations as may from time to time be
adopted by it relative to the operation of airports
of the type and character of the Eagle County
Regional Airport.
B. Airport Rules and Regulations and Minimum Standards,
if applicable, shall be deemed incorporated in this Lease by
reference. They may be amended and expanded from time to time
in the sole discretion of County, and, upon notice of any such
change to Terminal Corporation, such amended and new Rules and
Regulations and Minimum Standards shall apply to Terminal
Corporation and be incorporated in this Lease as though set
forth in full in this Lease.
C. Notification and Review Requirements. Terminal
Corporation agrees to comply with the notification and review
requirements covered in part 77 of the Federal Aviation
Regulations in the event any future structure or building is
planned for the leased premises, or in the event of any
planned modification or alteration of any present or future
building or structure situated on the leased premises.
D. Terminal Corporation shall timely report to the
County all violations in the Airport Rules and Regulations
which are observed and/or known to Terminal Corporation.
9
ARTICLE EIGHT
LEASE PROVISIONS REQUIRED OR SUGGESTED BY
THE FEDERAL AVIATION ADMINISTRATION
A. Terminal Corporation agrees to operate the Leased
Premises _for the use and benefit of the public, more
specifically as follows:
1. To furnish good, prompt, and efficient services
adequate to meet all the demands for its services at
the Airport,
2. To furnish said services on a fair, equal, and
non-discriminatory basis to all users thereof, and
3. To charge fair, reasonable, and non-discrimina-
tory prices for each unit of sale or service,
provided that Terminal Corporation may be allowed to
make reasonable and non-discriminatory discounts,
rebates, or other similar types of price reductions
to volume purchasers.
B. Terminal Corporation, for itself, its 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 otherwise be subjec-
ted to discrimination in the use of said facilities.
2. In the construction of any improvements on, over
or under such land and the furnishing of services
thereon, no person on the grounds of race, color, or
national origin shall be excluded from participation
in, denied the benefits of, or otherwise be subjec-
ted to discrimination.
3. Terminal Corporation shall use the 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
10
Rights Act of 1964, as said Regulations may be
amended.
In the event of breach of any of the above non-discriminatory
covenants, the County shall have the right to terminate the
Lease and to re-enter and repossess the Leased.Premises and
the facilities thereon, and hold the same as if said Lease had
never been made or issued. This provision does not become
effective until the procedures of 49 CFR Part 21 are followed
and completed, including expiration of appeal rights.
D. It is understood and agreed that nothing herein
contained shall be construed to grant or authorize the grant-
ing of an exclusive right prohibited.by federal law, including
grant assurances with respect to FAA grants to the County for
Airport development.
E. Affirmative Action.
1. Terminal Corporation 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 ground of race, creed, color,
national origin, or sex, be excluded from
participating in any employment, contracting, or
leasing activities covered in 14 CFR Part 152,
Subpart E. Terminal Corporation 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 County assures that it will require
that its covered organizations provide assurance to
the grantee that they similarly will undertake
affirmative action programs and that they will
require assurances from their suborganization, as
required by 14 CFR Part 152, Subpart E, to the same
effect.
2. Terminal Corporation agrees to comply with any
affirmative action plan or steps for equal
employment opportunity required by 14 CFR, Part 152,
Subpart E, as part of the affirmative action program
or by any Federal, state or local agency or court,
including those resulting from a conciliation Lease,
a consent decree, court order, or similar mechanism.
Terminal Corporation agrees that state or local
affirmative action plan will be used in lieu of any
affirmative action plan or steps required by 14 CFR
11
Part 152, Subpart E, only when they fully meet the
standards set forth in 14 CFR 152.409. Terminal
Corporation agrees to obtain a similar assurance
from its sub -lessees' covered organizations, and to
cause them to require a similar assurance of their
covered suborganizations, as required by 14 CFR Part
152, Subpart E.
F.� The County reserves the right to further develop or
improve the landing area of the Airport as it sees fit,
regardless of the desires or view of Terminal Corporation, and
without interference or hindrance.
G. The County reserves the right 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 Terminal Corporation in
this regard.
H. During the time of war or national emergency, the
County shall have the right to lease the landing area or any
part thereof to the United States Government for military or
naval use, and, if such lease is executed, the provisions of
this instrument insofar as they are inconsistent with the
provisions of the lease to the Government, shall be suspended.
I. The County 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 Terminal Corporation from erecting, or permitting to
be erected, any building or other structure on or adjacent to
the Airport which, in the opinion of the County, would limit
the usefulness of the Airport or constitute a hazard to
aircraft.
J. This Lease shall be subordinate to the provisions of
any existing or future Lease between the County and the United
States relative to the operation or maintenance of the
Airport, the execution of which has been or may be required as
a condition precedent to the expenditure of Federal funds for
the development of the Airport.
ARTICLE NINE
OBLIGATIONS OF TERMINAL CORPORATION
A. Terminal Corporation shall provide for the adequate
and sanitary handling and disposal, away from the Airport, of
12
all trash, waste and other materials, including but not
limited to used oil, solvents, and other waste. The piling or
storage of crates, boxes, barrels and other containers will
not be permitted within the leased premises. Nothing in this
paragraph shall prevent the use of used oil in an appropriate
heater or furnace so long as the use of such device complies
with all applicable regulations.
B. Terminal Corporation shall provide a clean,
comfortable, well -lighted commercial aviation terminal,
building with furnishings.
C. Terminal Corporation will provide conveniently
located, heated and ventilated restrooms which are accessible
to the passengers, crews and terminal employees. These will
be maintained in a clean and sanitary manner. At least one
working telephone will be provided for public use.
D. Terminal Corporation shall maintain all its
facilities in a neat, clean and esthetically pleasing manner,
and in accordance with all Rules and Regulations of the
Airport.
E. Terminal Corporation shall keep its Leased Premises
in a clean, safe and sanitary condition, including the removal
of snow from such of its parking areas and sidewalks. Snow
removal shall be done promptly in a neat and workmanlike
manner to avoid leaving piles, windrows or ridges of snow or
ice which might be hazardous. Snow removal from apron areas
adjacent to the terminal building shall be performed by
County.
F. Parking. Terminal Corporation shall provide
adequate parking spaces upon -the Leased Premises for the use
of Terminal Corporation's employees, customers and passengers.
If Terminal Corporation, at any time during this Lease, cannot
provide adequate parking upon the Leased Premises, Terminal
Corporation shall make arrangements with the County for
adequate parking located near the terminal building or such
other reasonable location as may be designated by the County
for the use of Terminal Corporation's employees, customers and
passengers. At such time arrangements for adequate parking
are made between the County and Terminal Corporation, the
County has the right to increase the rent in proportion to the
additional area utilized by Terminal Corporation for the
purpose of providing adequate parking, provided, however, that
no such rent increase shall apply with respect to parking
13
areas designated as Phases I, II, III, IV or V on the Airport
Development Plan attached hereto as Exhibit "C." Terminal
Corporation shall not be required to provide all the parking
that may be required to serve the needs of passengers of
scheduled or charter air carriers serving the Airport.
G. Phase I Parking Areas. The Phase I Parking Areas as
shown on Exhibit "C" hereto shall be used solely for van,
limousine, bus, taxi and other commercial ground
transportation parking, unless otherwise agreed by County.
Terminal Corporation shall allocate spaces in those Parking
Areas to its ground transportation tenants, provided that
spaces are also allocated to non -tenant ground transportation
companies having a valid use agreement with County adequate to
reasonably accommodate their ground transportation business
activity at the terminal.
ARTICLE TEN
OPERATING HOURS AND SERVICE
Terminal Corporation shall provide service each and every
day of the year during which commercial aviation users
schedule departures or arrivals to use the terminal building,
and at such times of the day appropriate to such departures
and arrivals. The terminal building shall be open for a
reasonable time before and following an arrival or departure
to accommodate passengers,. -guests, crew, and terminal
employees.
14
ARTICLE ELEVEN
GENERAL OPERATING PROVISIONS
A. Reservations of the County.
For the purposes of this Lease, "Public Aircraft
Facilities" shall mean (1) runways; (2) taxiways; (3)
passenger ramp and apron areas; and (4) any extensions or
additions to the above and any other space or facilities
provided by the County at the Airport for public and common
use by aircraft operators in connection with the landing and
taking off of aircraft, or in connection with operations
hereinafter authorized to be performed by aircraft operators
upon the aforesaid runways, taxiways, and public passenger
ramp and apron areas; but only as and to the extent that they
are from time to time provided by the County at the Airport
for public and common use by aircraft operators.
The County reserves the right to further develop or improve
the Airport as it sees fit, regardless of the desires or views
of Terminal Corporation, and without interference or hin-
drance, except that the County may not arbitrarily violate or
unreasonably diminish Terminal Corporation's rights as
provided elsewhere in this Lease except on a temporary basis,
or diminish its ability to perform the obligations undertaken
by it hereunder; provided, however, that any general or
partial closure of any public aircraft facilities for the
purpose and duration of construction or repair shall not be
considered a violation or diminishing of Terminal
Corporation's rights or ability to perform. County shall
suffer no liability by reason thereof, and such action shall
in no way alter or affect any of Terminal Corporation's
obligations under this Lease.
The County reserves the right to maintain and keep in repair
the public aircraft facilities of the Airport and all puAt icly
owned facilities of the Airport, together with the right to
direct and control all activities of Terminal Corporation in
this regard.
There is hereby reserved to the County, 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 Premises, together with the right to
cause in said airspace such noise as may be inherent in the
operation of aircraft, now known or hereafter used for naviga-
15
tion of flight in the air, using said airspace for landing at,
taking off from, or operating on the Airport.
The County 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
Terminal Corporation from erecting or permitting to be
erected, any building or other structure on or adjacent to the
Airport which when erected will be above a mean sea level
elevation of six thousand five hundred eighty-nine feet and/or
which would limit the usefulness of the Airport or constitute
a hazard to aircraft.
County shall have the right at any time to close, relocate,
reconstruct, change, alter, or modify any means of access,
ingress, and egress provided for Terminal Corporation's use
pursuant to this Agreement or otherwise, either temporarily or
permanently, provided that reasonable notice to Terminal
Corporation and a reasonably convenient and adequate means of
access, ingress, and egress shall exist or be provided in lieu
thereof. County shall use its best efforts to limit such
closing to the duration appropriate to the circumstances.
County shall suffer no liability by reason thereof, and such
action shall in no way alter or affect any of Terminal
Corporation's obligations under this Agreement.
The County reserves the right to direct and control all
activities of Terminal Corporation on the public aircraft
facilities area at the Airport in the event of an emergency or
if Terminal Corporation's operations are interfering with the
use by others of the public aircraft facilities of the
Airport, and to further develop and improve said Airport as
the County, in its sole discretion, may deem proper.
The County further reserves the right to inspect Terminal
Corporation's books and to procure such additional financial
information as may be deemed appropriate and necessary by the
County. Notices shall be provided to Terminal Corporation by
the County at least five days in advance to inspect Terminal
Corporation's books or records.
Non-compliance with this section shall constitute a breach or
default of this Lease and in the event of such non-compliance,
the County shall have the right to terminate this Lease, or at
the election of County or the United States or both of said
governments, shall have the right to enforce judicially this
subsection.
16
B. No Exclusive Rights Granted. It is understood and
agreed that nothing herein contained shall be construed to
grant or authorize the the granting of an exclusive right
within the meaning of Section 308 of the Federal Aviation Act.
The County reserves the right, at its sole discretion, to
grant others certain rights and privileges upon the Airport
which are identical in part or in whole to those granted to
Terminal Corporation. However, the County does covenant and
agree that:
1. It shall enforce all Rules and Regulations and
Minimum Standards adopted with respect to commercial
air passenger terminal activities and services.
2. It will not permit the conduct of any aeronauti-
cal or non -aeronautical endeavor or activity at the
Airport except under an approved lease and operating
agreement.
C. Subordination of Lease. This Lease shall be
subordinate to the provisions of any existing or future Lease
between the County and the United States, relative to the
operation or maintenance of the Airport, the execution of
which has been or may be required as a condition precedent to
the expenditure of federal funds for the development,
operation or maintenance of the Airport.
D. Parking Charges To General Public. Although
Terminal Corporation may sublease space in parking areas
(Phases I, II, III, IV or V) to transportation agencies (e.g.,
buses, limousines, taxis and rental cars), or allocate space
to terminal tenants, Terminal Corporation shall not charge the
general public for parking privileges in those parking areas.
E. County reserves the right to adopt Airport
Rules and Regulations governing or affecting parking in the
Parking Areas leased and licensed hereby, including governing
or affecting allocation or use of spaces within the Parking
Areas.
ARTICLE TWELVE
LEASEHOLD FINANCING
Notwithstanding anything to the contrary in this Lease,
Terminal Corporation shall have the right to mortgage its
leasehold interest herein demised on such terms, conditions
and maturity as Terminal Corporation shall determine, and to
17
enter into any and all extensions, modifications, amendments,
replacement(s) and refinancing of any such leasehold mortgage
as Terminal Corporation may desire; subject, however, to the
provisions of this Article Twelve.
A. Lease Mortgage. No mortgage or any extension
thereof made by Terminal Corporation shall extend to or affect
the estate and interest of the County in and to the premises
or any part thereof.
B. Mortgage Validity. No mortgage shall be valid or of
any force or effect unless and until (1) a photostatic copy of
the original of each instrument creating and effecting such
mortgage, certified by Terminal Corporation to be a true copy
of such instrument, and written notice containing the name and
post office address of the Mortgagee, shall have been
delivered to the County, and (2) the mortgage shall contain
the following provisions:
1. "This mortgage is executed upon the condition
that no purchaser at any foreclosure sale shall
acquire any right, title or interest in.or to the
lease hereby mortgage, unless the said purchaser, or
the person, firm or corporation to whom or to which
such purchaser's right has been assigned, shall, in
the instrument transferring to such purchaser or to
such assignee the interest of tenant under said
lease, assume and agree to perform all of the terms,
covenants and conditions of said lease required to
be observed or performed on the part of Terminal
Corporation, subject to the fact that no further or
additional mortgage of said lease shall be made
except in accordance with the provisions contained
in Article Twelve of said lease, and that a
duplicate original of said instrument containing
such assumption•Lease, duly executed and
acknowledged by such purchaser or such assignee and
in recordable form, is delivered to the County under
said lease immediately after the consummation of
such sale, or in any event, prior to taking
possession of the premises demised thereby.
2. "The mortgagee waives all right and option to
retain and apply the proceeds of any insurance or
the proceeds of any condemnation award toward
payment of the sum secured by this mortgage to the
extent such proceeds are required for the demoli-
18
tion, repair or restoration of the mortgaged prem-
ises in accordance with the provisions of the lease
hereby mortgaged.
3. "This mortgage and all rights of the mortgagee
hereunder are, without the necessity for the execu-
tion of any further documents, subject and subordi-
nate to the County's rights under the lease hereby
mortgaged, and subject to the provision of Article
Twelve of said lease, to the County's rights under
said lease as said lease may be modified, amended or
renewed. Nevertheless, the holder of this mortgage
agrees from time to time upon request and without
charge, to execute, acknowledge and deliver any
instruments reasonably requested by the County under
the lease hereby mortgaged to evidence the foregoing
subordination."
C. Mortgagee Rights.
1. Terminal Corporation Defaults. If Terminal
Corporation shall mortgage this Lease in compliance
with the provision of Article Twelve hereof, the
County shall give to each Mortgagee, at the address
of such Mortgagee set forth in the notice mentioned
herein, and otherwise in the manner provided by
Article Seventeen hereof, a copy of each notice of
Default by Tenant at the same time as, and whenever,
any such notice of Default shall thereafter be given
by the County to Terminal Corporation, and no such
notice of Default by the County shall be deemed to
have been duly given to Terminal Corporation unless
and until a copy thereof shall have been so given to
each Mortgagee. Each Mortgagee (a) shall thereupon
have a period of ten (10) days more, after such
notice is given to it, for remedying the Default, or
causing the same to be remedied, than is given
Terminal Corporation after such notice is given to
it, and (b) shall, within such period and otherwise
as herein provided, have the right to remedy such
Default, or cause the same to be remedied. The
County shall accept performance by a Mortgagee of
any covenant, condition or Lease on Terminal
Corporation's part to be performed hereunder with
the same force and effect as though performed by
Terminal Corporation.
19
2. Commencing Cure. Notwithstanding the provisions
of Section C.1 hereof, no Default by Terminal
Corporation shall be deemed to exist as long as
Mortgagee, in good faith, shall have commenced
promptly either (a) to cure the Default and to
prosecute the same to completion, or (b) if
possession of the Premises is required in order to
cure the Default, to institute foreclosure
proceedings and obtain possession directly,or
through a receiver, and to prosecute such proceed-
ings with diligence and continuity and, upon obtain-
ing such possession, commence promptly to cure the
Default and to prosecute the same to completion with
diligence and continuity, provided, however, that
the Mortgagee shall have delivered to the County, in
writing, its Lease to take the action described in
clause (a) or (b) herein, and that during the period
in which such action is being taken (and any
foreclosure proceedings are pending), all of the
other obligations of Terminal Corporation under this
Lease, to the extent they are susceptible of being
performed by the Mortgagee, are being duly per-
formed. However, at any time after the delivery of
the aforementioned Lease, the Mortgagee may notify
the County in writing that it has relinquished
possession of the Premises or that it will not
institute foreclosure proceedings or, if such
proceedings have been commenced, that it has discon-
tinued them, and in such event, the Mortgagee shall
have no further liability under such Lease from and
after the date it delivers such notice to County
(except for any obligations accruing prior to the
date it delivers such notice), and, thereupon, the
County shall have the unrestricted right to termi-
nate this Lease and to take any other action it
deems appropriate by reason of any Default by
Tenant, and upon any such termination the provisions
of Section D hereof shall apply.,
3. Lease Modification. The County and Terminal
Corporation agree that, from and after the date upon
which the County receives the notice mentioned in
Section B.1 hereof, they shall not modify or amend
this Lease in any respect or cancel or terminate
this Lease other than as provided herein without the
20
prior written consent of the Mortgagee which gave
such notice.
4. Limited Liability. Except as provided in
Section C.2 hereof, no Mortgagee shall become liable
under the provisions of this Lease unless and until
such time as it becomes, and then only for as long
as it remains the owner of the leasehold estate
created hereby.
D. New Lease With Mortgagee.
1. Upon Termination. In case of termination of
this Lease by reason of any Default or for any other
reason, the County shall give prompt notice thereof
to each Mortgagee under a Mortgage made in compli-
ance with the provisions of Article Twelve hereof,
which notice shall be given as provided in Section
C.1 hereof. The County, on written request of such
Mortgagee made any time within thirty (30) days
after the giving of such notice by the County, shall
execute and deliver a new lease of the Premises to
the Mortgagee, or its designee or nominee, for the
remainder of the Term, upon all the covenants,
conditions, limitations and Leases herein contained,
provided that the Mortgagee (a) shall pay to the
County, simultaneously with the delivery of such new
lease, all unpaid Rental due under this Lease up to
and including the date of the commencement of the
term of such new lease and all expense including,
without limitation, reasonable attorney's fees and
disbursements and court costs, incurred by the
County in connection with the Default by Terminal
Corporation, the termination of this Lease and the
preparation of the new lease, and (b) shall cure all
Defaults existing under this Lease.
2. Priority and Assignment. Any such new lease and
the leasehold estate thereby created shall, subject
to the same conditions contain in this Lease,
continue to maintain the same priority as this Lease
with regard to any mortgage, including any fee
mortgage, on the Premises or any part thereof of any
other lien charge or encumbrance thereupon whether
or not the same shall then be in existence. Concur-
rently with the execution and delivery of such new
lease, the County shall assign to Tenant named
21
therein all of its right, title and interest in and
to moneys (including insurance and condemnation
proceeds), if any, then held by or payable to the
County or Depositary which Terminal Corporation
would have been entitled to receive but for the
termination of this Lease, and any sums then held by
or payable to Depositary shall be deemed to be held
by or payable to it as Depositary under the new
lease. .
3.• Sublease. Upon the execution and delivery of a
new lease under this Section D, all Subleases which
theretofore may have been assigned to the County
thereupon shall be assigned and transferred, without
recourse, by the County to Tenant named in such new
lease. Between the date of termination of this
Lease and the date of execution and delivery of the
new lease, if a Mortgagee shall have requested such
new lease as provided in paragraph 1 of this Sec-
tion, the County shall not cancel any Subleases or
accept any cancellation, termination or surrender
thereof (unless such termination shall be effected
as a matter of law on the termination of this Lease)
without the consent of the Mortgagee, except for
default as permitted in the Subleases, and except
for the purpose of permitting the County to enter
into Subleases with other tenants who will occupy
not less than the same amount of space demised by
the cancelled Subleases at a rental rate per square
foot and for terms not less than the rental rates
per square foot and for at least the remainder of
the unexpired terms, respectively, of the cancelled
Subleases.
4. Multiple Mortgagees. If there is more than one
Mortgage, Landlord shall recognize the Mortgagee
whose Mortgage is senior in lien as the Mortgagee
entitled to the rights afforded by Sections C.1, C.2
and D hereof, provided that such Mortgagee shall
have complied with the requirements of Section B
hereof.
W
ARTICLE THIRTEEN
INSURANCE
Terminal Corporation shall obtain and maintain in effect
during the term of this Lease comprehensive public liability
and, property damage insurance covering all of Terminal
Corporation's activities, operations and facilities on or at
the Airport. Terminal Corporation shall maintain in force
•insurance for the full replacement cost of the terminal
building and associated improvements, including furnishings.
Liability insurance shall have a minimum coverage of the
greater of (a) $150,000 per person/$600,000 per occurrence,
and (b) the maximum liability of County specified in the
Colorado Governmental Immunity Act as the same may from time
to time be amended. The proceeds of property insurance shall
be used to repair any damage or destruction to the terminal
building or associated improvements.
All insurance shall name the County as an additional insured.
All insurance shall be maintained with a company or companies
approved by the County. A Certified copy of each insurance
policy obtained hereunder or a certificate evidencing the
existence of such insurance shall be delivered to the County
within ten (10) days after execution of this Lease. Each such
copy or certificate shall contain an endorsement by the
insurer obligating the carrier of such insurance to furnish
the County with thirty (30) days' notice of any intended
cancellation, termination or modification of such insurance.
Terminal Corporation further agrees to notify the County in
writing as to any amendment or cancellation of such policies.
The expense of such insurance shall be paid by Terminal
Corporation.
Terminal Corporation agrees to comply with all of the
provisions'of the laws of the State of Colorado and the United
States of America pertaining to Employer's Liability
Insurance, and further agrees that it will insure and keep
insured all liability for compensation under the Workmen's
Compensation Act of the State of Colorado.
The County acknowledges that Terminal Corporation may be
eligible for coverage through the C.A.P.P. or other pool, and
accepts such pool participation as the equivalent of
insurance.
23
ARTICLE FOURTEEN
INDEMNIFICATIONS AND NON -LIABILITY EXCEPTIONS
Terminal Corporation shall indemnify and hold harmless
the County, its Board of County Commissioners and the
individual members thereof, its commissions, agencies,
departments, officers, agents, employees or servants, and its
successors from any and all demands, losses, liabilities,
claims -or judgments, together with all costs and expenses
incident thereto which may accrue against, be charged to, or
'be recoverable from the -County, its Board of County
Commissioners, and its individual members thereof, its
commissions, agencies, departments, officers, agents,
employees or servants and its successors, as a result of the
acts or omissions of Terminal Corporation, its employees or
agents, in connection with Terminal Corporation's use and
occupancy of the Airport premises. The County shall give to
Terminal Corporation prompt notice of any claim made or suit
instituted which in any way, directly or indirectly, affects
or might affect Terminal Corporation and Terminal Corporation
shall have the right to compromise or participate in the
defense of any such action to the extent of its own interests.
Terminal Corporation shall likewise give prompt notice to the
County of any claim or suit which directly affects or might
directly affect Terminal Corporation's ability to operate
hereunder or which in any way affects or might affect the
County or the general operations of the Airport.
Except as otherwise provided within this Lease, the
parties mutually agree that nothing contained in this Lease,
nor the operations hereunder, shall in any way be construed to
constitute the parties hereto as partners or be construed that
Terminal Corporation is an employee or servant of the County,
and in no event shall the County become liable for any loss
which may result from the operations of Terminal Corporation
upon the leased property, nor for any indebtedness incurred by
Terminal Corporation in the operations of its business
conducted on the leased premises.
ARTICLE FIFTEEN
ASSIGNMENT
It is mutually understood by the respective parties
hereto that during the term of this Lease, Terminal
Corporation may not assign this Lease or grant additional
concessions without the written consent of the County, which
consent shall not be unreasonably withheld.
24
N. Subletting. Terminal Corporation'agrees to make
space available on a fair and equitable basis within the
terminal area of its facility. Terminal Corporation shall not
discriminate in favor of or against any scheduled air carrier.
This is not to imply that Terminal Corporation may not provide
quantity or volume_ discounts, nor guarantee that space may not
be all contracted out or sub -leased at some time, and addi-
tional space may not be available.
Space in Terminal Corporation's facility shall be sublet
only to air carriers and to concessionaires typical in•a
commercial passenger terminal for the purpose of providing
service to commercial passengers, air carriers, and the
employees of terminal Prior to subletting, the proposed
sublease shall be submitted to the County for approval. The
County shall not unreasonably refuse to approve any sublease
but may refuse to approve any sublease which would violate the
Airport rules and regulations; or which would result in
violation of minimum standards for commercial operations or
activities; or which fails to provide for required percentage
payments to the County; or which is not for aviation or
aviation related facility; or which would violate the terms of
any grant received by the County; or for any other legitimate
reason.
F. Signs. Terminal Corporation shall not erect,
maintain or display any external signs or other advertising on
the leased premises without first obtaining the written
approval of the County, which approval shall not be
unreasonably withheld, providing that any sign so requested
shall conform to requirements specified by the County.
Terminal Corporation shall remove, at its expense, all
lettering, signs, and placards erected on the premises at the
expiration of the term of this Lease.
ARTICLE SIXTEEN
COOPERATION
Terminal Corporation agrees
fair and reasonable way with all
operating on the Airport with the
the County.
25
that it shall cooperate in a
other persons and entities
permission and approval of
ARTICLE SEVENTEEN
NOTICES
Any notices provided for herein shall be in writing and
shall be delivered in person or mailed by certified or regis-
tered mail, return receipt requested, postage pre -paid, to the
party for whom intended at the address set forth below:
Eagle County Air Terminal Corporation
Attn: President
P.O. Box 850
Eagle, Co. 81631
The Board of County Commissioners
County of Eagle, State of Colorado
P.O. Box 850
Eagle, Colorado 81631
Attn: County Attorney
Either party may change its address by written notice to the
other party. Notices are deemed to have been given effective
as of the date of delivery if personally delivered, and as of
the third day after mailing, if mailed.
ARTICLE EIGHTEEN
DEFAULT AND TERMINATION
A. Termination by Terminal Corporation. This Lease
shall be subject to termination by Terminal Corporation in the
event of any one or more of the following events:
1. The abandonment of the Airport as an airport or
airfield -for any type, class or category of
aircraft.
2. The default by County in the,performance of any
of the terms, covenants or conditions of this Lease,
and the failure of the County to remedy or undertake
to remedy, to Terminal Corporation's satisfaction,
such default for a period of forty-five (45) days
after receipt of notice from Terminal Corporation to
remedy the same.
3. Damage to or destruction of all or a material
part of the premises or Airport facilities necessary
to the operation of Terminal Corporation's business.
26
4. The lawful assumption by the United States, or
any authorized agency thereof, of the operation,
control or use of the Airport, or any substantial
part or parts thereof, in such a manners as to
restrict substantially Terminal Corporation from
conducting business.operations for a period in
excess of 180 days.
B. Termination by the County. This Lease shall be
subject to termination by -the County in the event of any one
or more of the following events:
1. The default by Terminal Corporation in the
performance of any of the terms, covenants or
conditions of this Lease, and the failure of
Terminal Corporation to remedy, or undertake to.
remedy, to County's satisfaction, such default for a
period of forty-five (45) days after receipt of
notice from County to remedy the same.
2. Terminal Corporation files voluntary petition in
bankruptcy, including a reorganization plan, makes a
general or other assignment for the benefit of
creditors, is adjudicated as bankrupt or if a
receiver is appointed for the property or affairs of
Terminal Corporation and such receivership is not
vacated within forty-five (45) days after the
appointment of such receiver.
C. Exercise of the rights of termination set forth in
Paragraphs A and B above, shall be by notice to the other
party within thirty (30) days following the event giving rise
to the termination.
D. Removal of Property. Upon termination of this Lease
for any reason, Terminal Corporation, at its sole expense, may
remove from the premises all signs, trade fixtures, furnish-
ing, personal property, equipment and materials which Terminal
Corporation was permitted to install or maintain under the
rights granted herein.
E. Ownership of the terminal building and other
improvements to the real estate constructed on the leased
premises, shall pass to the County of Eagle, State of
Colorado, upon the expiration of this Lease or any termination
brought by forfeiture, except as provided in Article Twelve.
27
F. Causes of Breach; Waiver.
1. Neither party shall be held to be in breach of
this Lease because of any failure to perform any of
its obligations hereunder if said failure is due to
any cause for which -it is not responsible and over
which it has no control; provided, however, that the
foregoing provision shall not apply to failures by
Terminal Corporation to pay fees,.rents or other
charges to the County.
2. The waiver of any breach, violation or default
in or with respect to the performance or observance
of the covenants and conditions contained herein
shall not be taken to constitute a waiver of any
such subsequent breach, violation or default in or
with respect to the same or any other covenants or
condition hereof.
ARTICLE NINETEEN
DUTY TO OBTAIN REQUIRED PERMITS
Terminal Corporation shall, at its sole expense, obtain
and maintain in good standing all proper and necessary permits
and licenses necessary to carry out and perform its
obligations under this Lease.
ARTICLE TWENTY
RIGHTS OF SEIZURE
The County shall not be liable in any respect to Terminal
Corporation in the event of any seizure of all or any part of
the leased premises by -the United States of America or the
State of Colorado in time of war or other national emergency.
Rent otherwise payable to the County shall abate during such
period, to the extent that such seizure substantially inter-
feres with Terminal Corporation's ability to conduct its
operations.
28
ARTICLE TWENTY-ONE
FACILITY; LEASEHOLD IMPROVEMENTS
A. Prior Approval. All improvements (and alteration to
improvements) constructed by Terminal Corporation shall
receive prior structural, design and landscaping approval of
the County, which approval shall not be unreasonably withheld.
In the event the County requires modification -of the original
plans and specifications, Terminal Corporation shall have ten
(10) calendar days from the date of receipt of the proposed
revisions to resubmit the plans and specifications for the
County's approval. County has approved the plans and
specifications for the original improvements being constructed
pursuant to Article Seven except for those for the sewer.
C. Upon being given final County approval of the plans
and specifications, Terminal Corporation shall engage one or
more qualified contractors to construct said improvements.
Construction shall commence within thirty (30) calendar days
of Terminal Corporation's receipt of the County's final
approval of the plans and specifications and shall be
scheduled for completion not later than one hundred eighty
(180) calendar days after commencement of construction. It is
agreed and understood that improvements undertaken pursuant to
this provision shall become the property of County upon
expiration of the lease.
D. Materials and Labor Payment Bond. Prior to begin-
ning construction, Terminal Corporation shall supply to the
County in a form satisfactory to the County Attorney's office,
a Materials and Labor Payment Bond to insure that all
contractors, materialsmen, suppliers, subcontractors, etc.,
are paid for their activities and materials used on
construction of Terminal Corporation's facilities on the
leased premises; and to insure no claim is made against the
County and that no lien shall attach to the County's property.
This paragraph applies also to the improvements constructed
pursuant to Article Three hereof.
ARTICLE TWENTY-TWO
OPERATING STANDARDS
In providing any of the required and/or authorized
services or activities specified in this Lease, Terminal
29
Corporation shall operate for the use and benefit of the
public and shall meet or exceed the following standards:
A. Terminal Corporation shall furnish service on a
fair, reasonable and non-discriminatory basis to all users of
the .Airport.
Terminal Corporation shall furnish good, prompt and efficient
service adequate to meet all reasonable demands for its,
services at the Airport. Terminal Corporation shall charge
fair, reasonable, and non-discriminatory prices for each unit
of sale or service; provided however, that Terminal
Corporation may be allowed to make reasonable and non-
discriminatory discounts, rebates or other similar types of
price reductions to volume purchasers.
B. Terminal Corporation shall select and appoint a
full-time manager of its operations at the Airport. The
manager shall be qualified and experienced, and vested-with
full power and authority to act in the name of Terminal
Corporation with respect to the method, manner and conduct of
the operation of the fixed base services to be provided under
this Lease. The manager shall be available at the Airport
during regular business hours, and during the manager's
absence a duly authorized subordinate shall be in charge and
available at the Airport.
C. Terminal Corporation shall provide, at its sole
expense, a sufficient number of employees to provide
effectively and efficiently the services required or
authorized in this Lease.
D. Terminal Corporation shall control the conduct,
demeanor and appearance of its employees, who shall be trained
by Terminal Corporation and who shall possess such technical
qualifications and hold such certificates of qualification as
may be required in carrying out assigned duties. It shall be
the responsibility of Terminal Corporation to maintain close
supervision over its employees to assure a high standard of
service to customers of Terminal Corporation.
E. Terminal Corporation shall meet all expenses and
payments in connection with the use of the premises and the
rights and privileges herein granted, including taxes, permit
fees, license fees and assessments lawfully levied or assessed
upon the premises or property at'any time situate therein and
thereon. Terminal Corporation may, however, at its sole
expense and cost, contest any tax, fee or assessment.
30
l
F. Terminal Corporation shall comply'with all Federal,
state and local laws, rules and regulations which may apply to
the conduct of the business contemplated, including rules and
regulations promulgated by the County, and Terminal
Corporation shall keep in effect and post in a prominent place
all necessary and/or required.licenses or permits.
G. Terminal Corporation shall be responsible for the
maintenance and repair of the premises and shall keep and
maintain the premises in good condition, order and repair, and
shall surrender the same upon the expiration of this Lease, in
the condition in which they are required to be kept,
reasonable wear and tear and damage by the elements not caused
by Terminal Corporation's negligence excepted.
H. It is expressly understood and agreed that, in
providing required and authorized services pursuant to this
Lease, Terminal Corporation shall have the right to choose, in
its sole discretion, its vendors and suppliers.
ARTICLE TWENTY-THREE
RIGHT OF INGRESS AND EGRESS
Terminal Corporation shall have at all times the full and
free right of ingress to and egress from the premises and
facilities referred to herein for Terminal Corporation, its
employees, customers, passengers, guests, and other invitees.
Such right shall also extend to persons or organizations
supplying materials or furnishing services to Terminal
Corporation, to include vehicles, machinery, and equipment
reasonably required by such persons or organizations.
ARTICLE TWENTY-FOUR
SURRENDER OF POSSESSION
On the expiration or other termination of this lease,
Terminal Corporation's right to use of the premises,
facilities, and services described herein shall cease, and
Terminal Corporation shall vacate the premises without
unreasonable delay.
The terminal, fixtures, improvements, and other property
bought, installed or erected by Terminal Corporation in, on,
or about the Airport and premises leased hereunder shall be
31
deemed to become the property of the County upon conclusion of
the Lease term or other termination of the Lease. Any and all
personal property not removed by Terminal Corporation within a
30 -day period after the expiration or other termination of the
Lease shall thereupon become a part of the land on which it is
located, and title thereto shall thereupon vest in the County.
ARTICLE TWENTY-FIVE
INSPECTION BY COUNTY
During the term hereof, the County shall have the right
to inspect said premises either by its Commissioners or
designated employees, at any or all reasonable times upon
adequate prior notification to Terminal Corporation.
ARTICLE TWENTY -SI%
DAMAGE OR DESTRUCTION OF TERMINAL
If the is partially damaged by fire, the elements, the
public enemy, or other casualty, it shall be repaired with due
diligence by Terminal Corporation at its own cost and expense.
If the damage is so extensive as*to render the terminal
untenantable, but capable of being repaired within 90 days, it
shall be repaired with due diligence by Terminal Corporation
at its own cost and expense, and the rent payable hereunder
with respect to Terminal Corporation's exclusive space in such
hangar shall be proportionately paid up to the time of such
damage and shall thenceforth cease until such time as the
hangar shall be fully restored. If such hangar is completely
destroyed or is so damaged that it will remain untenantable
for more than 90 days, Terminal Corporation 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.
ARTICLE TWENTY-SEVEN
F.A.A. AND AIRPORT INSTRUMENTS
The Federal Aviation Agency and the County are hereby
granted the right and privilege by Terminal Corporation to
place on and around the above-described premises, without cost
to Terminal Corporation, whatever instruments and equipment
they desire during the term of this Lease, so long as said
32
instruments or equipment do not interfere with the intended
use of the premises by Terminal Corporation.
ARTICLE THIRTY
NO PRIVATE CAUSE OF ACTION
The rights herein contracted for shall inure solely to
the benefit of the parties to this Lease, and nothing herein
shall be construed to grant a cause of action to non-parties
claiming as third party beneficiaries or otherwise.
ARTICLE TWENTY-EIGHT
ADDITIONAL CONDITIONS
A. All the covenants, conditions, and provisions in
this Lease shall extend to and bind the legal representatives,
successors, and assigns of the respective parties hereto.
B. This Lease 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, 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 the County or
Terminal Corporation in their respective rights and
obligations contained in the valid covenants, conditions, or
provisions of this Lease.
C. All amendments to this Lease must be made in writing
by mutual agreement of the parties, and no oral amendments
shall be of any force or effect whatsoever.
D. The clause headings appearing in this Lease have
been inserted for the purpose of convenience and ready
reference. They do not purport to, and shall not be deemed
to, -define, limit or extend the scope or intent of the clauses
to which they appertain.
E. Lessee and Terminal Corporation. For purposes of
this Lease the terms "Lessee" and "Terminal Corporation" are
one and the same meaning and refer to Eagle County Air
Terminal Corporation, its successors or assigns.
F. Lessor and County. For purposes of this Lease the
terms "Lessor" and "County" are one and the same meaning and
33
refer to the County of Eagle, State of Colorado, or its
successor or assigns.
G. This Lease supersedes all previous communications,
negotiations and/or contracts between the respective parties
hereto, either verbal or written, and the same not contained
herein are hereby withdrawn and annulled.
IN WITNESS WHEREOF, the parties hereto have executed this
Lease on the year and date first above written.
COUNTY OF EAGLE, STATE OF
COLORADO, By and Through Its
Board of County Commissioners
By: Zz:t2� Z-4&4
George or. Gates, Chairman
ATTEST:
JA -A-
a•A is
Clerk to the goard of Coun
Commissioners
EAGLE COUNTY AIR TERMINAL
CORPORATION
Vi ne . P esident
James Hartmann, Secretary
34
STATE OF COLORADO )
) ss
County of Eagle )
The foregoing instrument was acknowledged before me this
day of June 1996 by James P. Elwood as President of Eagle
County Air Terminal Corporation.
My commission expires
Notary Public
STATE OF COLORADO )
) ss
County of Eagle )
The foregoing instrument was acknowledged before me this
day of June, 1996, by James Hartmann, as Secretary of
Eagle County Air Terminal Corporation. 4,%
35
LEGAL DESCRIPTION
EAGLE COUNTY AIRPORT
NEW TERMINAL LEASE
A parcel of land located in Tract 57, Section 3, TSS, R85W, of
the 6th P.M., Eagle County, Colorado 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 contained herein being relative to a bearing of
N0002110011E on the line from the Witness Corner for Angle Point
No. 3 of tract 57 (2.5" G.L.O. brass cap - 1918) to Angle Point
No. 2 of tract 56 (3" aluminum monument - P.L.S. 13901). Said
parcel of land being more particularly described as follows:
Beginning at the corner common to tracts 55, 56, 58, and 59;
Thence S3002512911E, 2,017.68 feet to the N.E. corner of the new
terminal lease and the true Point of Beginning; Thence
S810501291 -W, 467.50 feet; Thence S0800913111E, 70.00 feet; Thence
S8105012911W, 318.71 feet; Thence S0800913111E, 212.50 feet; Thence
N81050129"E, 403.85 feet; Thence S6701114311E, 23.32 feet; Thence
N810501291 -E, 69.40 feet; Thence N5402914611E, 26.12 feet; Thence
N8105012911E, 269.75 feet; Thence N0800913111W, 282.50 feet to the
Point of Beginning. Containing 4.619 acres (200,887 square feet)
more or less.
Date
Lloyd Powers,
Surveyor
Eagle County
PLS 13901
Engineering Department
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