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Home My WebLink AboutC23-148 Plane Fun_hanger leasePage 1 HANGAR GROUND LEASE BETWEEN EAGLE COUNTY, COLORADO AND PLANE FUN, LLC, A COLORADO LIMITED LIABILITY COMPANY THIS LEASE (hereinafter the “Lease”), is made and entered into effective as of this 1st day of May, 2023, between Eagle County, Colorado, acting by and through its Board of County Commissioners ("Lessor" or “County”), and Plane Fun, LLC, a Colorado limited liability company ("Lessee" or “Company”) WITNESSETH: WHEREAS, the County of Eagle, State of Colorado (the “County”) is the owner and operator of the Eagle County Regional Airport (“Airport”) together with the land on which said Airport is situated, which real property is located at 217 Eldon Wilson Road, Gypsum, Colorado. WHEREAS, Lessor is duly authorized by law to administer and govern the Airport and has the right to lease portions of the Airport property and to grant operating privileges thereon subject to the terms and conditions hereinafter set forth; WHEREAS, Lessee desires to lease a tract of land on said Airport property for the purpose of maintaining and operating an aircraft hangar as more fully described in this Lease. NOW, THEREFORE, in consideration of the mutual covenants set forth herein, the parties agree as follows: 1. Leased Hangar Site: A. Lessor grants Lessee the exclusive use of a 2,011 square foot Airport hangar site located at 0525B Airport Road, Gypsum, Colorado, with the location of the hangar site being described on Exhibit A attached hereto and incorporated herein by this reference (the “Leased Hangar Site”). B. The existing hangar (“Hangar”) and all improvements, fixtures and personal property located on the Leased Hangar Site (collectively the “Improvements and FFE”) shall be owned by Lessee during the Term of this Lease. In exchange for a one-time payment from Lessee to Lessor in the amount of $8,600.00, to be paid upon execution of this Lease, Lessor has conveyed the Improvements and FFE to Lessee by separate Bill of Sale dated of even date herewith. 2. Term: A. The term of this Lease (the “Term” or “Lease Term”) shall commence on May 1, 2023 (the “Commencement Date”). Subject to earlier termination as hereinafter provided, the Term shall be for a period of fifteen years, and shall expire shall expire on May 1, 2038. DocuSign Envelope ID: 3F26E101-45B4-45B9-BD80-55E8AD9AF1A5 Page 2 B. Option Periods. Lessee shall have the option to extend the Term of this Lease for two (2) separate and successive option periods of five (5) years (each, an "Option Period") commencing the day immediately following the expiration of the initial Term or the immediately preceding Option Period. Lessee shall exercise this option by giving written notice to Lessor in accordance with Section 20 below not before one hundred eighty (180) days prior and not later than ninety (90) days prior to the expiration of the initial Term or the immediately preceding Option Period. Rent for any Option Period will be determined as provided in Section 3.B. below. 3. Rental Rate and Other Fees: A. The initial annual Rent is eight hundred twenty-five dollars ($825.00), payable annually in advance on or before the Commencement D ate of this Lease (the “Rent”). The Rent was calculated by multiplying the two-thousand eleven (2,011) square foot Leased Hangar Site by forty-one cents ($0.41) per square foot The Rent will be adjusted annually, as set forth herein. B. The Rent will be increased by three percent (3%) effective the first day of the month in which falls the first anniversary of the commencement of the Lease, and annually thereafter on the anniversary of the first adjustment, during the initial Term and any Option Period. C. Any Rent overdue for more than thirty (30) days will have an additional fee added to cover extra administrative costs. The additional fee will equal 10% of the then current Rent. In the event the Lessor is required to initiate any collection procedures or costs to collect any unpaid Rent from Lessee, the Lessee shall pay all of the Lessor's expenses in connection therewith upon demand, including but not limited to reasonable attorney's fees. D. Lessee will be responsible for all costs to extend utility services to the Leased Hangar Site, including all costs associated with connection fees, tap fees, meter fees, and any other fees that may be charged by the utility companies associated with the Lessee's hangar. 4. Improvements and Use: A. Lessee’s Use. Lessee shall use the Leased Hangar Site for the purpose of storing and maintaining general aviation aircraft and purposes reasonably incidental thereto, excluding uses for commercial purposes (“Lessee’s Use”). Lessee’s Use may include the right to have office facilities located within the Hangar. Except as provided herein, storage of non-aviation related items is prohibited without prior written consent of the Lessor (acting through the Aviation Director). No outside aircraft storage is allowed. It is specifically understood that the Leased Hangar Site shall not be used for living quarters, aviation fixed base operations, unapproved commercial aviation uses, or other non-aviation related activity. Lessee shall be entitled to sublease the Leased Hangar Site to others in accordance with Section 17.B. below, for use in accordance with this Lease. Any change in purpose shall be only with the written consent of the Lessor and upon the terms described by the Lessor. Lessee shall have no right to utilize the Leased Hangar Site or any improvement thereon, other than as specifically allowed under this paragraph. B. Automobiles and other ground transportation vehicles may be left on the Leased Hangar Site or Airport property only while vehicle owner is present or their aircraft is in flight or absent from the Airport; provided, however, that a vehicle or vehicles may be stored in the hangar when an aircraft is also stored in the hangar so long as there is adequate room for such storage entirely within the hangar when the hangar door is closed. Lessee shall not park or leave aircraft on the taxiways or on pavement adjacent to the hangar in a manner which unduly interferes with or obstructs access to adjacent hangars. Parking of any aircraft, vehicles, or other equipment shall not be permitted in unpaved areas without prior written consent of the Aviation Director. DocuSign Envelope ID: 3F26E101-45B4-45B9-BD80-55E8AD9AF1A5 Page 3 C. At all times during the Term of this Lease, Lessee and all occupants of the Leased Hangar Site and their guests and invitees shall have the right of ingress and egress over the Airport to and from the Leased Hangar Site, by routes of travel designated from time to time by Lessor and subject to such security rules as may, from time to time, be imposed by Lessor, Federal Aviation Administration (“FAA”), DHS/TSA, or other entity that governs or may govern Airport operations. Such access shall at all times be reasonable in light of the use of the Leased Hangar Site and shall include access necessary for construction and operation of the Leased Hangar Site for Lessee's Use. D. Connection to electric, gas, water, sanitary sewer or septic tank and telephone/internet shall be the responsibility of the Lessee. Lessee will be responsible for all costs to extend such utility services to the Leased Hangar Site, including all costs associated with connection fees, tap fees, meter fees and any other fees that may be charged by the utility companies for utilities associated with Hangar and/or the Leased Hangar Site. All new electric, cable TV, gas and telephone lines shall be placed underground. Upon completion of construction, a plot plan showing the exact location of all Lessee installed utilities shall be given to the Aviation Director. No trenching or excavation shall commence until all pipes and lines in the area have been located. The Aviation Director and utility companies shall be contacted for locations. The Lessee shall be responsible for any damage to existing utilities or communications lines. E. The storage and accumulation of flammable, explosive liquids or solids, waste, debris or other hazardous materials is not permitted within the Hangar or on the Leased Hangar Site with the exception of up to two (2) cases of aircraft engine oil or similar fluids. Lessee shall maintain the Leased Hangar Site in accordance with all applicable laws, orders, rules, ordinances and regulations of any agency having jurisdiction over environmental risks, materials handling, and wastes, including but not limited to the Gypsum Fire Protection District, State of Colorado and Environmental Protection Agency. The Lessee shall be responsible for all costs associated with mitigating any contamination of the soil, improvements, or Airport property thereon which is caused by Lessee. G. Improvements. Lessee may, at its expense, make such exterior alterations in the Improvements and FFE as it shall desire and that comply with Airport design and development standards, but shall first obtain the written consent of the Lessor, which shall not be unreasonably withheld. Specifications for all such improvements, along with a statement of the time required to complete such improvements shall be submitted to and approved in writing by Lessor before construction work commences. Approval by Lessor (acting through the Aviation Director) shall extend to and include consideration of architectural and aesthetic matters, and Lessor (acting through the Aviation Director) expressly reserves the right to reasonably reject any designs submitted and to require Lessee to resubmit design and layout proposals until they meet with Aviation Director’s reasonable approval. Improvements may not be constructed on Airport property, unless also approved by the Lessor for conformance with the current Airport Layout Plan, all applicable building restriction lines and height restrictions, and interference with any Airport or Federal Aviation Administration (“FAA”) radio or guidance equipment due to location or type of structural material. All plans, reports and specifications for development of improvements addressed within this section shall be prepared by, or under the direct supervision of, a Professional Engineer, licensed in the State of Colorado. Final improvement plans, reports, and specifications shall bear the seal and signature of the Professional Engineer responsible for their preparation. These plans must contain details pertaining to site drainage, specific site layout, construction details, utility improvement plans, building design, architectural profiles showing shape and colors, and any other specific items as may be reasonably required by the Lessor. The improvements shall be constructed in a good and workmanlike manner and in accordance with the applicable resolutions, rules and regulations of the Airport. Lessee shall obtain all necessary permits and approvals before beginning construction, including but not limited to, a building permit issued by the Town of Gypsum. H. Lessee agrees not to remove or demolish the Improvements and FFE without the prior DocuSign Envelope ID: 3F26E101-45B4-45B9-BD80-55E8AD9AF1A5 Page 4 written consent of the Lessor, which consent may be withheld at Lessor’s sole discretion. I. The provisions of this Lease applicable to the use of the Leased Hangar Site by individuals shall be enforceable by Lessor directly against any sublessee, occupant or owner of aircraft hangar space within the Leased Hangar Site, and Lessor may take direct action against such parties in the event of breach of these provisions, including action to evict such sublessee, occupant or owner in accordance with the reasonable and consistently applied rules and regulations of the Airport. Each sublessee of hangar space shall execute and record an acknowledgement of this right on behalf of Lessor upon its acquisition of hangar space, which acknowledgment shall be recorded. 5. Maintenance Obligations: A. Lessee, at its sole expense, shall keep the Improvements and FFE on the Leased Hangar Site in good repair and maintenance, and in a safe, sanitary, orderly condition, all at its own risk and expense; including by way of example and not limitation; with respect to structures, periodic painting in a color approved by the Lessor, electrical, plumbing, roof and structural repair; and with respect to surface areas, paving and sealing, landscaping, mowing and weed control and ramp lights, graveling and/or dust control, snow and ice plowing and removal. B. Lessee shall be responsible for snow removal from all paved areas of the Leased Hangar Site in accordance with the Eagle County Regional Airport Snow Removal Plan, except that Lessor shall be responsible for snow removal from taxiways. Lessor may, in its sole discretion, provide snow removal on paved portions of the Leased Hangar Site, not closer than six feet (6’) from buildings, based on order of Airport operational priority, and personnel and equipment availability. Lessor may cease to provide snow removal to Lessee or snow removal may not be provided on a particular occasion, at Lessor's sole discretion. Lessor may opt to provide the service only for a fee. Lessee acknowledges that unless Lessee demands in writing that Lessor cease any such snow removal, Lessor shall have no liability whatsoever for any damage to the Leased Hangar Site caused by such snow removal. C. It is the responsibility of the Lessee to maintain the entire ramp area, taxiway and parking areas in a manner which is safe and clean of debris so as not to cause danger or unsafe conditions for taxiing aircraft and Airport users. All construction and on-going maintenance debris, materials, and trash shall be promptly disposed of at an approved off Airport disposal site. 6. Title to Improvements: Removal of Equipment: A. All Improvements and FFE on the Leased Hangar Site are and shall be permanently and inseparably attached to the real property described on Exhibit A hereto and title to same shall be vested in the Lessee during the Term of this Lease, including all amendments hereto, and shall vest in the Lessor upon the expiration or termination of this Lease. B. Notwithstanding the foregoing, Lessee may remove from any building constructed on the Leased Hangar Site tools and equipment used in conjunction with the storage and maintenance of Lessee's aircraft, including, but not limited to, such items as compressors, cranes and lifts, so long as Lessee repairs any damage to the Leased Hangar Site occasioned by such removal, and does not cause any structural damage or remove items permanently attached to the Hangar building. Such removal and restoration as set forth in this Section 6.B. shall occur within 30 days of the expiration or termination of this Lease. 7. Signs: A. Lessee shall not erect, paint or maintain any signs whatsoever upon the Leased Hangar Site without first securing the such approvals as are required by the Eagle County Regional Airport Rules and DocuSign Envelope ID: 3F26E101-45B4-45B9-BD80-55E8AD9AF1A5 Page 5 Regulations & Minimum Standards, and all amendments thereto, consistently applied. Any such signs shall comply with all regulations of the FAA, and any standards which might be developed by Eagle County Regional Airport and the FAA. B. Lessee shall affix an approved sign identifying the address of the Leased Hangar Site as assigned by the governmental entity having jurisdiction. 8. Right of Inspection: A. The Lessor reserves the right to enter the Leased Hangar Site during reasonable business hours and after prior notice (if reasonably possible) for the purpose of inspecting and protecting such premises, and of doing any and all things which the Airport may deem reasonably necessary for the proper general conduct and operation of the Airport, and in the exercise of Eagle County’s and said Airport's police powers for purposes of property management and safety practices. No such right of entry shall unreasonably interfere with the use or occupancy of the Leased Hangar Site. 9. Taxes and Licenses: Lessee covenants and agrees to pay promptly all valid taxes and other government charges, of whatever nature, applicable to the Leased Hangar Site or to Lessee's operation on the Leased Hangar Site. 10. Liens: A. Lessee covenants and agrees not to permit any mechanic's or material man’s lien to be foreclosed upon the Leased Hangar Site or improvements thereto and thereupon, or any part or parcel thereof, by reason of any work or labor performed or materials furnished by a mechanic or material man. Lessee further covenants and agrees to pay promptly when due all bills, debts and obligations incurred by it in connection with its operations on the Leased Hangar Site, and not to permit the same to become delinquent, and to suffer no lien, mortgage, judgment or execution to be filed against said property or improvements thereon which will be in any way an impairment of the rights of Lessor under this Lease. 11. Indemnification. Lessee assumes the risk of loss or damage to the Leased Hangar Site, all Improvements and FFE, the contents thereof and all other personal property, whether from windstorm, fire, earthquake, snow, water run-off, or 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, arising from or growing out of the use of the Leased Hangar Site by Lessee, its contractors, agents, members, stockholders, employees, invitees, servants, sub-tenants, successors and assigns, including any workman's compensation claims, except to the extent such demands, claims, causes or action, judgments, or expenses arise out of the negligent or intentional act or omission of Lessor or its contractors, agents, employees, invitees, servants, successors or assigns. 12. Insurance and Bonding: A. At all times during the Term of this Lease, Lessee agrees that it will, at its own cost and expense, have and keep in force insurance, listing Eagle County as additional insured, with coverage for: i. Property damage insurance for full market value of all improvements and airplanes stored on the Leased Hangar Site; ii. Public liability insurance in a reasonable amount as determined from time to time by the Lessor and Lessee but no less than one million $1,000,000 per occurrence or other limits as may be set for governments by the Colorado Governmental Immunity Act. DocuSign Envelope ID: 3F26E101-45B4-45B9-BD80-55E8AD9AF1A5 Page 6 B. Lessee shall insure the Leased Hangar Site and all Improvements and FFE unless the same are covered separately by a sub-lessee's policy containing the same provisions as this Article 12. Lessee shall provide Lessor certificates of insurance and copies of the bonds demonstrating such coverage not later than the Commencement Date, and upon issuance of each certificate of occupancy for each hangar building, which shall be updated upon all renewals and changes in coverage. The certificate(s) shall provide that the insurance may not be materially changed, altered, or canceled by the insurer without first giving ten (10) days written notice by certified or registered United States mail, return receipt requested, to the Lessor. C. Lessee shall not violate the terms or prohibitions of any insurance policy herein required to be furnished by Lessee. 13. Damage or Destruction: If any Hangar building is partially damaged or destroyed by fire, the elements, the public enemy, or other casualty, such Hangar building shall be repaired with due diligence by Lessee at its own cost and expense, so long as adequate insurance proceeds are received to rebuild. Such damage or destruction shall not be grounds for abatement of Rent. 14. Surrender and Holding Over: On the expiration or other termination of this Lease Agreement, Lessee’s rights to use of the Leased Hangar Site shall cease, and Lessee shall vacate the premises without unreasonable delay. Lessor shall have the right on termination of this Lease Agreement to enter upon and take possession of the Leased Hangar Site, with or without process of law, without liability for trespass. Should Lessee hold over, with the approval of Lessor, such holding over shall be deemed merely a tenancy for successive monthly terms upon the same terms and conditions as provided in this Lease. However, said Rent due for the hold over period shall be 150% of the final term year rental amount set forth herein prorated for the months of occupancy. 15. Inconvenience During Construction 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 therefore, 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 of Lessor. The provisions of this Section 15 shall not limit or impair other rights of Lessee provided in this Lease that relate to extensions of time or otherwise resulting from activities at the Airport. 16. Place and Manner of Payments: In all cases where Lessee is required by this Lease Agreement to pay any rentals, rates, fees or other charges or to make other payments to Lessor, such payments shall be made at the Administration office of the Eagle County Regional Airport (EGE), by mail to Eagle County Regional Airport (EGE), P.O. Box 850, Eagle, Colorado 81631, or at such other place as Lessor may hereafter designate by notice in writing to Lessee and shall be made in legal tender of the United States and any check shall be received by Lessor subject to collection. Lessee agrees to pay any bank charges made for the collection of any such checks. DocuSign Envelope ID: 3F26E101-45B4-45B9-BD80-55E8AD9AF1A5 Page 7 17. Assignments and Subletting A. Assignment. Lessee shall have the right to assign this Lease provided, however, that said Assignee shall be acceptable to Lessor in its reasonable discretion. Any assignment must be approved by Lessor in writing. Lessee may not convey any interest in the Improvements and FFE independently from an assignment of the Lease pursuant to this Agreement. B. Sublease. Lessee may sublease all or any portion of the physical Improvements and FFE upon a written agreement, in a form pre-approved by Lessor (it being understood and agreed that Lessor need not thereafter consent to each individual sublease), between lessee and sub-lessee, with a term of not less than a six month period, a copy of which agreement is delivered to, kept on file, and subject to approval by the Aviation Director. All subleases shall be subordinate to this Lease and shall contain the same substantive provisions as set forth herein. Additionally, any sub-lease shall contain language requiring immediate termination upon any termination notice given under this Lease. All subleases shall be terminated prior the effective date of termination given herein. Prior to subleasing any improvements, Lessee shall provide to Lessor lease documents, and the leasing and sale provisions that will accompany such transactions. A copy of final leases will be kept on file at the Office of the Eagle County Regional Airport Aviation Director. 18. Agreements with United States: This Lease Agreement is subject and subordinate to the terms, reservations, restrictions, provisions, and conditions of any existing or future agreement between the Lessor and the United States, relative to the operation or maintenance of the Airport and its appurtenant facilities, the execution of which has been or may be required as a condition precedent to the participation by any Federal Agency in the extension, expansions, or development of said Airport facilities. 19. Cancellation or Termination: A. If Lessee is in default of any obligation under this Lease and has not cured such default within a period of forty-five (45) days after written notice of such default and demand to cure is given by Lessor, Lessor at its option may terminate this Lease effective upon giving notice of termination. In the event Lessor is required to give said written notice of default, Lessor shall be entitled to charge a notice fee of $250.00 for each notice. Said fee shall be required to be paid as a part of any payment necessary to cure any default. Any breach of the Eagle County Regional Airport Rules and Regulations, Minimum Standards, security plan or other rule or regulation described in Section 24 below by Lessee or by any individual occupant of a hangar unit shall also constitute a default of the Lease subject to this Section 19. B. If Lessee abandons the Leased Hangar Site and has not cured such default within a period of forty-five (45) days after written notice of such default and demand to cure is given by Lessor, Lessor may at its option cancel and terminate this Lease, or may, without terminating the Lease, enter upon and take possession of the Lease Premises with or without process of law and without liability for trespass. C. Lessee hereby waives any demand for the possession of the Leased Hangar Site in the event of the termination of this Lease, and agrees that the written notice of default hereinbefore provided may be personally delivered, mailed via certified mail by Lessor to Lessee or its legal representative, or assigns, to DocuSign Envelope ID: 3F26E101-45B4-45B9-BD80-55E8AD9AF1A5 Page 8 such address in the United States as shall have been last furnished in writing by Lessee to Lessor, and that, if Lessee shall not have so furnished an address, then such notice may be conspicuously posted in the main entrance of the Hangar or in front of the Leased Hangar Site, and the giving of such notice in either of the ways specified shall constitute good and sufficient notice for the purposes of declaring a default of this Lease. It is also agreed that if the Leased Hangar Site is encumbered by a mortgage or trust deed, or otherwise by said Lessee, and if the Lessor shall be notified in writing of such mortgage or deed of trust, and of the name and address of the mortgagee or trustee named therein, notice of the default in the performance of the covenants in this Lease shall also be delivered to said mortgagee or trustee. D. Lessor reserves the right and Lessee agrees that Lessor acting by and through its Aviation Director, at its sole option and without any liability to Lessor whatsoever, may cancel and terminate this Lease for the purpose of implementing any present or future master plan for the development of or expansion of the Airport, including, but not by way of limitation, runway or taxiway relocation, clear zone changes, roadways, or more suitable land use needs; provided, that Lessor shall give Lessee not less than 180 days prior written notice of termination for this purpose. In the event of such termination as provided in this Section 19.D, Lessor may provide to Lessee suitable alternate land at the Airport for the relocation of the Improvements and FFE. In such event, Lessee shall be responsible for the cost of relocating the Improvements and FFE to the alternative land. Such alternative land shall be to the extent possible similar to the Leased Hangar Site as to size and general location. Lessee reserves the right to terminate this Lease if Lessor’s determination of suitable substitute facilities is not adequate for Lessee’s operations upon 60 days written notice after Lessor notifies Lessee of the alternative land site. 20. Notices: All notices required to be given to Lessor hereunder shall be in writing and be personally delivered or sent via US Mail, postage prepaid, to: Eagle County Regional Airport Attention: Aviation Director P.O. Box 850 Eagle, Colorado 81631 -or- Via ground Shipping Methods, prepaid, to: Eagle County Regional Airport Attention: Aviation Director 0219 Eldon Wilson Road Gypsum, Colorado 81637 With a copy to: Eagle County Attorney 500 Broadway P.O. Box 850 Eagle, CO 81631 Telephone: (970) 328-8685 DocuSign Envelope ID: 3F26E101-45B4-45B9-BD80-55E8AD9AF1A5 Page 9 All notices required to be given to Lessee hereunder shall be in writing and personally delivered or sent by first class mail, postage prepaid, addressed to: Contact info: Denis and Pamela Beaudin Lessee’s name: Plane Fun, LLC Lessee’s Mailing Address: PO Box 1832 1610 Winslow Road Edwards, Colorado 81632 Lessee’s Phone #: 970.376.7396 The parties, or either of them, may designate in writing from time to time subsequent or supplementary persons or addresses in connection with said notices. The effective date of service of any such notice shall be the date such notice is delivered or postmarked. 21. Compliance with Laws and FAA Requirements: In occupying the Leased Hangar Site, including constructing improvements thereon, Lessee, its successors, assigns, employees, officers, agents and invitees shall comply with all laws, orders, rules, ordinances and regulations applicable to the occupancy, in addition to the environmental laws previously mentioned. In addition to the requirements of Section 24 below, Lessee shall comply with all FAA Lease Requirements, attached hereto as Exhibit B and incorporated herein by reference. 22. Airport Access Control Lessee shall not install or maintain fences, gates and such other equipment on the Leased Hangar Site to control access to the Airport on and across the Leased Hangar Site unless in accordance with the Airport’s Airfield Access Control Plan as it now exists or may hereafter be adopted or amended (the "Access Plan"), and with written approval from the Aviation Director. Gate controllers installed and maintained by Lessee shall remain compatible those specified for use on the Airport by the Access Plan. Lessee agrees that it shall inform all employees and contractors of the requirements of the Access Plan, and shall at all times comply with the Access Plan in its operations on the Leased Hangar Site and the Airport. Each individual desiring access to the airfield shall obtain an access card from the Aviation Director in compliance with the Airport’s Rules and Regulations, security plan and Department of Homeland Security and TSA regulations, policies and directives, as may be amended from time to time. 23. De-icing operations De-icing operations shall be conducted only at locations and in the manner specified by the Lessor. Should Lessor or any governmental authority with jurisdiction impose operational, capital or other requirements on the Lessor with respect to de-icing operations on the Airport, or the collection and/or recycling of used de-icing fluids or their residue, Lessee shall timely comply with such requirements at its cost and expense with respect to its de-icing operations. 24. Rules and Regulations and Security Plan Lessee, its manager, officers and employees shall observe and obey all applicable laws, rules, regulations and standards, including but not limited to the Airport Rules and Regulations and Minimum Standards, the Lessor's storm water management plan and the Access Plan , as they now exist or may hereafter be promulgated or amended. Lessee shall also comply with the terms, requirements and limitations of any plans, permits or licenses which it may be required to obtain or comply with pursuant to any such laws, rules, regulations and/or standards. Lessee shall additionally cause its contractors, agents and employees to comply with any and all existing and future security regulations or security plan adopted by the County or the Eagle County Air Terminal Corporation pursuant to requirements of the Transportation DocuSign Envelope ID: 3F26E101-45B4-45B9-BD80-55E8AD9AF1A5 Page 10 Security Administration or Part 107, Federal Air Regulations of the FAA, as it may be amended from time to time. 25. Lease Subordinate This Lease shall be subordinate to any existing or future Lease between the Lessor and the United States or the State of Colorado relative to the operation or maintenance of the Airport, the execution of which has been or may be required as a condition to the expenditure of federal or state funds for development of the Airport. 26. Availability of Governmental Facilities In the event the existence, maintenance or operation of air navigation aids or other facilities supplied or operated by the United States, the State of Colorado, or the Airport at or in conjunction with the Airport are discontinued, the Lessor shall have no obligation to furnish replacement of such facilities. 27. Miscellaneous: A. This Lease shall be binding on the assigns, transferees, heirs, executors, successors, and trustees of the parties hereto. B. No failure to strictly enforce the terms of this Lease shall be deemed a waiver by Lessor unless such waiver is in writing executed by the Eagle County Board of Commissioners. No waiver by the Lessor of any failure by Lessee to comply with any term or condition of this Lease shall be construed to be a waiver of any other failure by Lessee to comply with the same or any other term or condition of this Lease. C. In the event possession of the Leased Hangar Site and the improvements thereon is assumed by the United States of America, or other authorized agency, under any emergency powers, the Rent due under this Lease shall abate for the period of such possession. In such event the 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 Rent provisions of this Lease shall remain in effect, but provided further, however, that if said reimbursement is less than the amount of Rent 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. D. The FAA and Lessor are hereby granted the right and privilege by Lessee to place on and around the above-described premises, without cost to the Lessor, whatever instruments and equipment they desire during the terms of this Lease, so long as said instruments or equipment do not interfere with the intended use of the Leased Hangar Site by the Lessee. E. All amendments to this Lease must be made in writing executed with the same formality as this original Lease; no oral amendments shall be of any force of effect whatsoever. F. Lessor shall have no responsibility or liability to furnish any services to Lessee other than those specified in this Lease, but Lessee may negotiate with Lessor for any additional services it may request and shall pay for such additional services the consideration so negotiated. G. This Lease shall be construed under the laws of the State of Colorado. Venue for any action shall be in the Fifth Judicial District. Any covenant, condition, or provision herein contained that is held to be invalid by any court of competent jurisdiction shall be considered deleted from this agreement, but such DocuSign Envelope ID: 3F26E101-45B4-45B9-BD80-55E8AD9AF1A5 Page 11 deletion shall in no way affect any other covenant, condition, or provision herein contained so long as such deletion does not materially prejudice Lessor or Lessee in their respective rights and obligations contained in the valid covenants, conditions, or provisions of this agreement. H. If either Lessor or Lessee commences any action or other proceeding against the other arising out of this Lease or the Leased Hangar Site, the prevailing party will be entitled to recover from the other party, in addition to any other relief, its reasonable attorneys' fees. A trial judge shall award such fees as a component of the judgment in favor of the prevailing party. I. This Lease may be recorded by Lessee in the real property records of Eagle County, Colorado. J. The parties acknowledge and agree that the provisions herein constitute the entire agreement and that all representations made by any officer, agent or employee of the respective parties unless included herein are null and void and of no effect. No alterations, amendments, changes or modifications, unless expressly reserved to the Aviation Director herein, shall be valid unless executed by an instrument in writing by all the parties with the same formality as this Agreement. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed as of the day and year first above written. LESSOR: COUNTY OF EAGLE, STATE OF COLORADO, By and Through Its BOARD OF COUNTY COMMISSIONERS By: Kathy Chandler-Henry, Chair ATTEST: Regina O’Brien Clerk to the Board of County Commissioners LESSEE: PLANE FUN, LLC, a Colorado limited liability company By: Denis Beaudin, Manager DocuSign Envelope ID: 3F26E101-45B4-45B9-BD80-55E8AD9AF1A5 Page 12 EXHIBIT A LEASED HANGAR SITE LEGAL DESCRIPTION DocuSign Envelope ID: 3F26E101-45B4-45B9-BD80-55E8AD9AF1A5 DocuSign Envelope ID: 3F26E101-45B4-45B9-BD80-55E8AD9AF1A5 Page 13 EXHIBIT B FAA Standard Terms and Conditions 1. Civil Rights Non-Discrimination 1.1. COMPANY agrees to comply with pertinent statutes, Executive Orders and such rules as are promulgated to ensure that no person shall, on the grounds of race, creed, color, national origin, sex, age, or disability be excluded from participating in any activity conducted with or benefiting from Federal assistance. If COMPANY transfers its obligation to another, the transferee is obligated in the same manner as COMPANY. This provision obligates COMPANY for the period during which the property is used or possessed by COMPANY and the COUNTY remains obligated to the FAA. This provision is in addition to that required by Title VI of the Civil Rights Act of 1964. 1.2. During the performance of this Agreement, COMPANY for itself, its assignees, and successors in interest, agrees to comply with the following non-discrimination statutes and authorities: Title VI of the Civil Rights Act of 1964 (42 USC § 2000d et seq., 78 stat. 252); 49 CFR part 21 (Non- discrimination in Federally-assisted programs of the Department of Transportation—Effectuation of Title VI of the Civil Rights Act of 1964); the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 USC § 4601); Section 504 of the Rehabilitation Act of 1973 (29 USC § 794 et seq.), as amended, and 49 CFR part 27; the Age Discrimination Act of 1975, as amended (42 USC § 6101 et seq.); the Airport and Airway Improvement Act of 1982 (49 USC § 47123), as amended; the Civil Rights Restoration Act of 1987 (PL 100-209); Titles II and III of the Americans with Disabilities Act of 1990 (42 USC §§ 12131 – 12189) as implemented by U.S. Department of Transportation regulations at 49 CFR parts 37 and 38; Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations; Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency; and Title IX of the Education Amendments of 1972, as amended. 2. Subordination 2.1. This Agreement is subject and subordinate to the provisions of any agreements heretofore or hereafter made between COUNTY and the United States, relative to the operation or maintenance of the Airport, or to the expenditure of federal funds for the improvement or development of the Airport, including the expenditure of federal funds for the development of the Airport in accordance with the provisions of the Federal Aviation Act of 1958, the Federal Aid to Airport Act, the Airport DocuSign Envelope ID: 3F26E101-45B4-45B9-BD80-55E8AD9AF1A5 Page 14 and Airway Development Act of 1970 and the Airport and Airway Improvement Act of 1982, as such acts have been amended or replaced from time-to-time. 2.2. This Agreement is subordinate to any bond ordinance, indenture or covenant made by COUNTY with respect to the Airport prior to or during the term hereof and, in the event of a conflict, the requirements of the ordinance, indenture or covenant shall control. 2.3. This Agreement and all the provisions hereof shall be subject to whatever right the United States Government now has or in the future may have or require affecting the control, operation, regulation, and taking over of the Airport. 3. Protection of the Airport 3.1. 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 the COMPANY, and without interference or hindrance. 3.2. COMPANY shall comply with the notice requirement contained in 14 C.F.R. Part 77 (Safe, Efficient Use, and Preservation of the Navigable Airspace), as the same may be amended from time to time (“FAR Part 77”). If the COUNTY provides notice to the FAA pursuant to FAR Part 77 in connection with the Agreement, COMPANY shall cooperate fully by, for example and without limitation, providing all relevant information as may be required by the COUNTY or FAA in connection with the notice. 3.3. COMPANY shall not construct, erect or install any structure or equipment determined by the FAA pursuant to FAR Part 77 to constitute an obstruction or hazard to air navigation. COMPANY acknowledges that an obstruction or hazard may be found based on the height of structures and also based on, for example and without limitation, aeronautical effects on air traffic control radar, direction finders, air traffic control line-of-sight visibility, and physical or electromagnetic effects on air navigation, communication facilities, and other surveillance systems. COMPANY shall comply with any conditions, limitation, supplemental notice requirements, and marking and lighting recommendations issued by the FAA pursuant to FAR Part 77. 3.4. COUNTY reserves for the use and benefit of the pubic the right of flight for the passage of aircraft in the airspace above the leased premises. This public right of flight shall include the right to cause noise, vibration and other impacts inherent in the operation of aircraft. COMPANY agrees that the normal operation of the Airport and aircraft shall not constitute interference with COMPANY’s rights hereunder. DocuSign Envelope ID: 3F26E101-45B4-45B9-BD80-55E8AD9AF1A5 Page 15 3.5. COMPANY by accepting this Agreement expressly agrees for itself, its successors, and assigns that it will not make use of the leased premises in any manner which might interfere with the landing and taking off of aircraft from the Airport or otherwise constitute a hazard. In the event the aforesaid covenant is breached, COUNTY reserves the right to enter upon the Premises and cause the abatement of such interference at the expense of the COMPANY. DocuSign Envelope ID: 3F26E101-45B4-45B9-BD80-55E8AD9AF1A5