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HomeMy WebLinkAboutC23-206 Benson and Hangar 9_second amendment airport leaseSECOND AMENDMENT TO AIRPORT FACILITIES LEASE BETWEEN EAGLE COUNTY, COLORADO AND JAMES BENSON AND HANGAR 9, LLC THIS SECOND AMENDMENT ("Amendment") is effective as of the _____________, by and between Eagle County, Colorado, a body corporate and politic (“Lessor” or “Eagle County”) and James Benson (“Benson”) and Hangar 9, LLC, a Georgia limited liability company (“Hangar 9”). Benson and Hangar 9 shall hereinafter be collectively referred to as “Lessee.” RECITALS WHEREAS, Lessor and SBS Partnership, consisting of Lester Streeter, Trevor Bradway and Barry Stott, entered into an Airport Facilities Lease on October 7, 1980 (the “Lease”), for purposes of SBS constructing a hangar (the “Hangar”) and ramp on the Demised Premises; and WHEREAS, on August 20, 1997, Lessor consented to an assignment of the Lease to Tom Harned, Kevin Clair and Charles H. Rosenquist, who assumed jointly and severally all obligations of SBS Partnership under the Lease; and WHEREAS, on September 29, 2004, Tom Harned sold his interest in the Hangar located on the Demised Premises to Kevin Clair; and WHEREAS, on March 16, 2010, Margaret R. Rosenquist, as personal representative of the Estate of Charles H. Rosenquest, assigned the Rosenquest interest in the Lease to Airplane Hangar, LLC, a Colorado limited liability company; and WHEREAS, on July 31, 2012, Kevin Clair assigned all of his rights and interests in the Lease to Benson, and Airplane Hangar, LLC assigned all of its rights and interests in the Lease to Red Bird Aircraft, Inc., a Florida corporation (“Red Bird”); and WHEREAS, on November 1, 2020, by a First Amendment to the Lease, parties Benson, Red Bird and Eagle County extended the Term of the Lease for an additional five-year period, through October 31, 2025, and amended Section 7 of the Lease concerning Rentals and Charges; and WHEREAS, on June 13, 2023, Red Bird assigned all of its rights and interest in the Lease, as amended, to Hangar 9; and WHEREAS, as a result of the transfers above referenced, as of June 13, 2023 all rights and interests in the Lease, as amended, and all rights and interest in the Hangar constructed upon the Demised Premises are held by Benson and Hangar 9; and DocuSign Envelope ID: 72F53DB8-1966-4355-BEBF-31896265795C 6/20/2023 2 WHEREAS, the parties now desire to further amend the Lease to extend the Term for an additional fifteen-year period and to amend Section 7 of the Lease Concerning Rentals and Charges, all on the terms and conditions set forth below. SECOND AMENDMENT NOW, THEREFORE, in consideration of the foregoing and the mutual rights and obligations as set forth below, the parties agree as follows: 1. SECTION SIX, TERM, of the Lease as amended by the First Amendment is deleted in its entirety and replaced with the following language: Term. The term of this Lease (“Term” or “Lease Term”) commenced on October 31, 1980. Subject to earlier termination as hereinafter provided, the Term of this Agreement shall end on the 31st day of October 2040 (the “Expiration Date”). Holding Over. If Lessee holds possession of the Demised Premises after the Expiration Date, with the permission of Lessor, Lessee shall become a tenant from month-to-month, upon the terms and conditions of this Lease. No such holdover shall be deemed to operate as a renewal or extension of the Term. Such month-to-month tenancy may be terminated by Lessor or Lessee by giving thirty (30) days’ notice of termination to the other at any time. 2. SECTION SEVEN, RENTALS AND CHARGES, of the Lease as amended by the First Amendment is deleted in its entirety and replaced with the following language: Lessee agrees to pay Lessor for the use of the premises, facilities, rights, services and privileges granted hereunder rentals and charges according to the following schedule: a. For the exclusive use of the hangar area described on Exhibit A and A-1 of the Lease (the “Hangar Area”), Lessee hereby covenants and agrees to pay Lessor as base rent the sum of $0.37 per square foot of land for a total of 5,160 square feet, or $1,806.00 (the “Base Rent”), which sum was paid on or about April 1, 2023, and all subsequent annual installments shall be due and payable on the anniversary of the initial payment each and every year thereafter. The Base Rent shall be subject to an annual increase of three percent (3%) of the Base Rent paid in the preceding lease year, commencing with the annual installment due in 2024. b. In the event Lessee desires to utilize additional land designated on Exhibit A and A-1 of the Original Agreement which is not part of the Hangar Area, for such purposes as, including, but not limited to, rental of tie-down spaces, Lessor shall have the right to increase the Base Rent annually paid at the rate of $0.36 per square foot for the additional space used plus the annual percentage increase as set forth in Section 2.a. DocuSign Envelope ID: 72F53DB8-1966-4355-BEBF-31896265795C 3 c. For use of other Airport facilities (landing and takeoff fees, etc.), Lessee shall pay Lessor or its concessionaire such fees as are charged to other uses of Airport facilities similarly situated as from time to time determined by Lessor. 3. Capitalized terms in this Second Amendment will have the same meaning as in the Lease. To the extent that the terms and provisions of the Second Amendment conflict with, modify or supplement portions of the Lease, the terms and provisions contained in this Second Amendment shall govern and control the rights and obligations of the parties. 4. Except as expressly altered, modified and changed in this Second Amendment, all terms and provisions of the Lease shall remain in full force and effect, and are hereby ratified and confirmed in all respects as of the date hereof. 5. This Second Amendment shall be binding on the parties hereto, their heirs, executors, successors, and assigns. IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment effective as of the date written above. COUNTY OF EAGLE, STATE OF COLORADO, By and Through Its BOARD OF COUNTY COMMISSIONERS By: ______________________________ Kathy Chandler-Henry, Chair Attest: By: _________________________________ Regina O’Brien, Clerk to the Board DocuSign Envelope ID: 72F53DB8-1966-4355-BEBF-31896265795C DocuSign Envelope ID: 72F53DB8-1966-4355-BEBF-31896265795C DocuSign Envelope ID: 72F53DB8-1966-4355-BEBF-31896265795C