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HomeMy WebLinkAboutMCAIR AVIATION LLCAUGUSTA REGIONAL AIRPORT AT BUSH FIELD HANGAR, RAMP, AND /OR OFFICE SPACE LEASE State of Georgia County of Richmond LEASE AGREEMENT THIS LEASE AGREEMENT, made and entered into this May 1, 2010 by and between, AUGUSTA GEORGIA, a political subdivision of the State of Georgia, acting through the AUGUSTA AVIATION COMMISSION, whose address is 1501 Aviation Way, Augusta Regional Airport at Bush Field, Augusta, Georgia 30906 -9600, hereinafter called "Lessor ", and MCAIR AVIATION LLC ., whose address is 3608 Barbados Dr., Augusta Georgia, 30909 hereinafter called "Lessee ". In and for the promises and mutual covenants contained herein, the sufficiency of which is hereby acknowledged, the parties intending to be legally bound do agree as follows: 1. Leased Premises Lessor does hereby lease and the Lessee, for its exclusive use, does hereby lease from Lessor: a. 486 square feet of office space located in Hangar One, identified as Suite E, rooms 7 and 8, and b. Ramp space (tie -down) on Augusta Regional Airport for parking of four aircraft (one Piper Arrow (N3910T), two Cessna 172 (N6704E and N20965), and one Piper Seneca (N5423F) type aircraft). C. Should offices or aircraft identified above in paragraph la and lb change, rental fees identified below will be adjusted accordingly. 2. Term: The term of this lease shall be for a period of five (5) years commencing on the above date. a. Either party may terminate this Agreement upon giving ninety (90) days written notice of the intent to cancel. b. Airport reserves the right to relocate McAir Aviation LLC's offices to another location of comparable space should the need arise during the term of this Agreement. C. Lessee and Lessor shall agree not later than ninety (90) days prior to termination of lease to terminate or to renew lease. 3. Rental As rental for the Premises, Lessee agrees to pay Lessor the sum of $680.00 per month itemized as follows: $86.00 Office rent (Hangar 1, room 23), $196.00 Office rent (Hangar 1, room 24), $73.00 Utilities (Hangar 1, Room 23), $165.00 Utilities (Hangar 1, Room 24), $40.00 Aircraft Ramp space (tie- down), Piper Arrow (N391OT) type aircraft, $40.00 Aircraft Ramp space (tie- down), Cessna 172 (N6704E) type aircraft, $40.00 Aircraft Ramp space (tie- down), Cessna 172 (N20965) type aircraft, and $40.00 Aircraft Ramp space (tie- down), Piper Seneca (N5423F) type aircraft. Rent is payable in advance no later than the first day of the month for which rental is due. Rental shall be paid to Lessor at the herein above address. AUGUSTA REGIONAL AIRPORT AT BUSH FIELD HANGAR, RAMP, AND /OR OFFICE SPACE LEASE Page 2 4. Interest; Attorney's Fees Any rental payment or other payment required to be paid by Lessee hereunder, if not paid within 5 days of the due date, shall bear interest from the date the same became due until the date payment is received by Lessor at the rate of 1.5% per month (18% per annum). If Lessee fails to pay any rental payment or any other payment required to be paid by Lessee hereunder and the same is collected through the services of an attorney at law, Lessee shall pay to Lessor attorney's fees in the amount of 15% of the total amount due from Lessee and all reasonable expenses of the litigation. 5. Utilities When applicable, the costs of utilities (electricity and water) are included as a separate item. Lessee shall pay for all utilities used and required in connection with the leased aircraft storage and/or office space. Lessor shall have the right to prorate utility charges to Lessee on a fair and equitable basis. Said proration is to be based upon the herein leased office or storage space as expressed in the number of square feet as it applies to the total area of the hangar, less that area designated for the storage of aircraft, common areas, and unimproved areas. 6. Fee Adjustment It is understood and agreed that the foregoing office rental fee, utility fee, and aircraft storage fee are subject to annual adjustment. Such adjustment may be made annually upon agreement effective date. 7. Use of Premises a. In connection with the exercise of its rights under this Agreement, Lessee shall not: 1) Do or permit its agents, employees, directors, or officers to do anything on or about the Airport that may interfere with the effectiveness or accessibility of the drainage and sewage system, electrical system, air conditioning system, fire protection system, sprinkler system, alarm system, and fire hydrants and hoses, if any, installed or located on or within the premises of the Airport. 2) Bring, keep or store, at any time, flammable or combustible liquids on the premises, except in storage containers especially constructed for such purposes in accordance with federal, state, and county laws, including the Uniform Fire Code and the Uniform Building Code. For the purposes of this Lease, flammable or combustible liquids shall have the same definitions as set forth in the most recent Uniform Fire Code. b. Lessee shall use the Premises herein leased only for the purpose of aircraft storage and offices as established by the applicable Minimum Standards for Aeronautical Activities at Augusta Regional Airport. Lessee's occupancy and use of the Premises herein leased shall at all times be conducted in such a manner as will not create a hazard or limit the use of the Airport by others. C. No major or minor maintenance work may be performed on Lessee's aircraft on or about the herein Leased Premises without expressed Lessor's written approval. d. Preventive maintenance, routine aircraft servicing and minor repairs to make aircraft airworthy and/or to ferry to a maintenance facility may be performed within the Leased Premises (see insurance requirements below). e. Conduct of a Commercial Operator as regulated under FAR Part 135 providing services to others on the Leased Premises by Lessee or other persons is not authorized. AUGUSTA REGIONAL AIRPORT AT BUSH FIELD HANGAR, RAMP, AND /OR OFFICE SPACE LEASE Page 3 Office Space When leasing office space, Lessee accepts the herein above described office space in its present condition and agrees to maintain the Premises in a comparable condition as existed at the time of the execution of this Lease. Lessee shall not, without prior written consent of Lessor, make any additions, alterations, changes, or improvements, structural or otherwise, in or upon any part of the Premises except interior wall decor. Lessee shall not attach or cause to be attached any signs, pictures, posters, or other notices to any exterior walls or entrances to Lessee's office space without prior written approval of the Lessor. 9. Inspection by Lessor Lessor, its authorized officers, employees, agents or representatives shall have the right to enter upon the premises to make inspections during regular business hours when a representative of the Lessee is present, or at any time in case of emergency and /or to determine whether Lessee has complied with and is complying with the terms and conditions of this agreement; provided, however, that said inspection shall in no event unduly disrupt or interfere with the operation of the Lessee. 10. Title to Equipment and Improvements It is mutually understood and agreed that title to the Leased Premises, and all the buildings and structures and all other improvements of a permanent character that may be built upon the Leased Premises by the Lessee during the term of this Agreement pursuant to the approval and consent of Lessor shall remain the property of the Lessor and that fee simple title to the same shall be vested in Lessor. Equipment, furnishings and trade equipment shall remain the property of the Lessee and shall be removed no later than the expiration of the term or any renewal. Lessee shall repair and restore or reimburse Lessee to repair and restore any damage to the Leased Premises occasioned by such removal. If at the expiration of said lease, such equipment, furnishings and trade equipment have not been removed from the Leased Premises, same shall become the property of Lessor. 11. Hangar Tenant Badge a. Since Hangar Tenants and employees are required to operate unescorted in the secure Airport Operation Area (AOA), they are required to obtain an Airport's Hangar Tenant Badge prior to operating unescorted in the AOA. b. Lessee will ensure that all persons performing operations in the AOA and associated with tenant's activities shall be properly badged or escorted. C. Hangar Tenant Badge authorizes the bearer unescorted access to and transit between the footprint of Hangar One, aircraft, and fixed base operator (FBO) only. Hangar Tenant Badge does not authorize the individual to operate a vehicle in the AOA. d. To qualify for tenant badge, individual must satisfactorily completed both a background investigation and badge training. This may include collection of appropriate criminal history information, contractual and business associations and practices, employment histories, reputation in the business community and credit reports for the Lessee as well as Lessee's employees. Lessee consents to such an inquiry and agrees to make available to the Airport such books and records the Airport deems necessary to conduct the review. e. Lessee will pay cost associated with providing badge(s). f. Lessee shall ensure that all persons who will be driving vehicles in the AOA and associated with tenant's activities have completed Airport's Special Identification Area (SIDA) driving training classes and that vehicle is properly configured for ramp AUGUSTA REGIONAL AIRPORT AT BUSH FIELD HANGAR, RAMP, AND /OR OFFICE SPACE LEASE Page 4 operations in accordance with Airport rules and regulations prior to operating a vehicle with in the AOA. g. Lessee's failure to comply with Hangar Tenant Badge procedures is considered in default. 12. Security Deposit Lessee agrees to pay Lessor security deposit of cash, money order, or check payable with the first month's rent for Lessee's fulfillment of the conditions of this Lease. Security deposit is equivalent to the sum of the hangar storage fee and office rental fee exclusive of utilities. Said security deposit may be deposited by Lessor into an interest bearing account, with all interest being paid to Lessor. The security deposit will be refunded to Lessee within thirty (30) days after the initial lease is terminated, provided the following conditions are met: a. Original Lease term has expired and Lease has been terminated; and, b. All monies due Lessor have been paid by Lessee in full; and, C. Lessee is not in default under any of the conditions set forth in this Lease. 13. Taxes Lessee shall pay all personal property taxes legally assessed against its equipment, furniture or other personal property located on the Premises. 14. Aviation Fuels It is understood and agreed by the parties hereto that Lessor has reserved unto itself exclusive control of the storage, sale and dispensing of all oil and aviation gasolines, kerosene, jet fuel or any other fuels now available, or that may become available during the term on this Lease, on or about Augusta Regional Airport including, but not limited to, the Premises herein leased. In addition, no oil, aviation gasoline, automobile gasoline, kerosene, jet fuel, shall be stored or brought upon the Leased Premises for use or resale by Lessee or its customers, guests or patrons, other than fuels and oils purchased from Lessor for Lessee's sole use. 15. Assignment and Subleasing Lessee shall not assign this Lease or any interest hereunder or permit the use of the Premises by any other person or persons other than Lessee. Upon any attempt to assign or sublease to the premises, Lessor may immediately terminate this Agreement. 16. Rules and Regulations a. Lessee shall use the Premises and the facilities of the Airport in accordance with published Airport rules and regulations. Said rules and regulations may be examined by Lessee at the office of Augusta Regional Airport Aviation Services. b. Lessee specifically agrees that its operations shall be conducted in compliance with all federal, state, and local environmental laws, rules, and regulations. C. In connection with the exercise of its rights under this Agreement, Lessee shall not: 1) Do or permit its agents, employees, directors, or officers to do any act or thing upon the Airport that will invalidate or conflict with any fire or other casualty insurance policies covering the Airport or any part thereof. 2) Do or permit its agents, employees, directors, or officers to do any act or thing upon the Airport that will jeopardize the Airport's Operating Certificate. 3) Do or permit its agents, employees, directors, or officers to do any act or thing in conflict with the Airport's Security Plan. AUGUSTA REGIONAL AIRPORT AT BUSH FIELD HANGAR, RAMP, AND /OR OFFICE SPACE LEASE Page 5 4) Use the Premises for any illegal purposes, nor in violation of Federal Aviation Administration (FAA), TSA and /or the Airport's rules or regulations, as amended from time to time, or any regulation of any other governmental entity. 5) Use the Premises in any manner that will create any nuisance or trespass with respect to other tenants; constitute any unreasonable annoyances, obstruction or interference with operations; or in any manner interfere with, obstruct, block or violate in any manner, the navigable airspace above the Airport in compliance with 14 C.F.R. § 77.5 and /or other regulations as implemented by the Airport, the FAA or as may be implemented by the TSA. 6) Cause or permit any hazardous materials to be placed, stored, generated, used, released, or disposed of in, on, under, about, or transported from any Airport premises by Lessee, its agents, employees, contractors, or other person unless it has complied with the following: with respect to hazardous materials other than oil, petroleum products, cleaning products, and/or flammable substances reasonably necessary in connection with Lessee's aeronautical activities, the prior written consent of the Airport Director shall be required, which shall not be withheld unreasonably. The Aviation Commission may impose, however, as a condition of such consent, such requirements as the Aviation Commission in its sole discretion may deem reasonable or desirable, including, without limiting the generality of the foregoing, requirements as to the manner in which, the time at which, and the contractor by whom such work shall be done, and Lessee must comply with all environmental laws and regulations (including compliance with all Environmental Protection Agency requirements concerning clean -up) , and with prudent business practices, with respect to such hazardous materials, and the presence of hazardous materials must be reasonably necessary for the operation of Lessee's business. 17. Insurance a. Lessee agrees to maintain insurance with an Insurer rated "A" or better by AM Best with: 1) Liability limits shall be no less than $1,000,000 to include Broad Form General Liability inclusive of Product Liability. 2) Lessee hereby agrees to maintain at all times at Lessee's expense, insurance, in addition to that specified above, for all liability for bodily injury or death to personnel in or about the facility and /or property damage to the facility and/or other aircraft stored in or about the Leased Premises resulting from Lessee's preventive maintenance, routine aircraft servicing, or minor repair activities. 3) Worker's Compensation must be carried as required by Georgia State Law. b. Lessee agrees to furnish an annual certificate of insurance to Lessor. C. Augusta Regional Airport at Bush Field, Augusta Aviation Commission, Augusta - Richmond County, and Augusta- Richmond County Commission must be added as additional named insured and be given a 30 -day notice of any cancellation or policy changes. 18. Indemni1y. a. Lessee agrees to indemnify and hold harmless Airport, the Augusta Richmond Board AUGUSTA REGIONAL AIRPORT AT BUSH FIELD HANGAR, RAMP, AND /OR OFFICE SPACE LEASE Page 6 of Commissioners and the Augusta Aviation Commission , and its members, officers, elected officials, agents, servants, employees and successors in office from any and all claims including reasonable attorney's fees and expenses of litigation incurred by Airport in connection therewith related to or arising out of any damage or injury to property or persons, occurring or allegedly occurring in, on or about Airport property which are in any way related to or arising out of any failure of Lessee to perform its obligations hereunder during the period from the date of this Lease to the end of the Lease Term. b. Lessee further agrees that the foregoing Contract to indemnify and hold harmless applies to any claims for damage or injury to any individuals employed or retained by Lessee in connection with any changes, additions, alterations, modifications and /or improvements made to the Premises, and hereby releases Airport from liability in connection with any such claims. 19. Default It is understood between the parties hereto that in the event of default by either of the parties during the term of this Lease agreement, the other party shall have the right forthwith to give notice thereof to the party in default, same to be in writing, and if such condition of default is not removed and restored within ten (10) days after receipt of such notice, then the other party shall forthwith have the option of declaring this Agreement in default and proceed to enforce their rights in accordance with the law. For purposes of this Section, an "event of default" includes but is not limited to: a. Lessee's failure to make any payment when it becomes due under this Agreement, where such failure continues for ten (10) days after the due date; b. Lessee's failure to perform, observe and /or comply with any provision of this Agreement, where such failure is not cured within ten (10) days of notice thereof from Airport; or C. Lessee's insolvency or inability to pay its debts as they become due, or Lessee's making of an assignment for the benefit of creditors, Lessor's application for or consent to the appointment of a receiver, trustee, conservator or liquidator of Lessor or of any of its assets, or Lessee's filing of a petition for relief under any bankruptcy, insolvency, reorganization or similar laws, or the filing of a petition in, or proceeding under, any bankruptcy, insolvency, reorganization or similar laws against Airport, which is not dismissed or fully stayed within ten (10) days after the filing or institution thereof. d. Lessee's failure to comply with Hangar Tenant Badge procedures, paragraph 11 above. 20. Agreement Termination a. Lessor may terminate this Agreement in the event of a default or failure to comply with the terms of this Agreement, which is not cured as set forth above, entitled "Default ". Lessor and Lessee agree that Lessor may terminate this Agreement or any work or delivery required hereunder, from time to time, either in whole or in part. Termination, in whole or in part, shall be effected by delivery of a Notice of Termination signed by the Executive Director of Augusta Regional Airport at Bush Field, specifically setting forth the effective date of termination. AUGUSTA REGIONAL AIRPORT AT BUSH FIELD HANGAR, RAMP, AND /OR OFFICE SPACE LEASE Page 7 b. Upon receipt of such Notice, described in subparagraph above, Lessee shall remove all property from the Airport not later than the effective date of termination and shall leave the premises in good condition, normal wear and tear excepted. C. d. Notwithstanding anything contained herein, either party may terminate this Agreement for any reason whatsoever by giving ninety (90) days written notice to the other party. In the event said written notice is given, said Agreement shall terminate ninety (90) days from receipt of said written notice by the other party and neither party shall have any further obligation hereunder to the other. 21. (Quiet Enjoyment, Ingress and Egress Lessor covenants and warrants that Lessee, so long as it shall pay the rentals herein stipulated and shall perform the duties and obligations herein agreed to be performed by it, shall peaceably and quietly have, hold and occupy and shall have the exclusive use and enjoyment of the Leased Premises during the term of this Agreement and any extensions thereof. Lessee, its invitees, guests, customers and employees shall have full right of ingress and egress to the Leased Premises at all times and without charge, toll or fee. 22. Covenants Bind and Benefit Successors and Assigns The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns; provided, however, that no one shall have any benefit or acquire any rights under this Agreement pursuant to any conveyance, transfer, or assignment in violation of any of its provisions. 23. Open Records The Lessee acknowledges that all records relating to this Agreement and the services to be provided under this Agreement may be a public record subject to Georgia's Open Records Act (O.C.G.A. § 50- 18 -70, et seq.). Lessee shall cooperate fully in responding to such request and making all records, not exempt, available for inspection and copying as provided by law. Lessee shall notify Lessor immediately of any request made under the Open Records Act and shall furnish Lessor with a copy of the request and the response to such request. 24. Governing Law This Agreement shall be governed and interpreted by the laws of the State of Georgia. 25. Venue All claims, disputes and other matters in question between the Lessor and the Lessee arising out of or relating to the Agreement, or the breach thereof, shall be decided in the Superior Court of Richmond County, Georgia. The Lessee, by executing this Agreement, specifically consents to venue in Richmond County and waives any right to contest the venue in the Superior Court of Richmond County, Georgia. 26. Entire Agreement This Lease contains the entire agreement of the parties and no representations, inducements, promises or agreements, oral or otherwise, between the parties not embodied herein shall be of any force or effect. No failure of either party to exercise any power given it hereunder, or to insist upon strict compliance by either party of any obligations hereunder and no custom or practice of the parties at variance with the terms hereof shall constitute a waiver of either party's right to demand exact compliance with the terms hereof. This Agreement may only be amended upon writing signed by both parties. AUGUSTA REGIONAL AIRPORT AT BUSH FIELD HANGAR, RAMP, AND /OR OFFICE SPACE LEASE Page 8 27. Breach Upon the failure of Lessee to observe or comply with any of the provisions of this Agreement, Lessor may immediately terminate this Agreement and institute such actions necessary to recover the property and evict Lessee. 28. Notices All notices, demands, and requests which may or are required to be given by either Airport or Lessee to the other shall be in writing and shall be deemed to have been properly given when sent postage pre -paid by registered or certified mail (with return receipt requested) addressed as follows: If intended for Lessor: Augusta Aviation Commission Attn: Executive Director 1501 Aviation Way Augusta, GA 30906 If intended for Lessee: McAir Aviation LLC. Attn. Mr. James P. McMakin 3608 Barbados Dr. Augusta Georgia, 30909 Either party may change the address and name of addressee to which subsequent notices are to be sent by notice to the other given as aforesaid. 29. Miscellaneous Provisions. a. No purported or alleged waiver of any of the provisions of this Lease shall be valid or effective unless in writing signed by the party against whom it is sought to be enforced. b. Captions herein are for convenience or reference only and in no way define, limit or expand the scope or intent of this Lease. Whenever the context hereof shall so require, the singular shall include the plural, the male gender shall include the female, and vice versa. C. Counterparts. This Lease may be executed in two or more counterparts, all of which together shall constitute but one and the same Lease. In the event that one or more of the provisions hereof shall be held to be illegal, invalid or enforceable, such provisions shall be deemed severable and the remaining provisions hereof shall continue in full force and effect. d. Nothing contained in this Agreement shall be construed to be a waiver of the County's sovereign immunity. e. It is specifically agreed between the parties executing this Lease that it is not intended by any of the provisions of this Lease to create in the public or any member thereof, third party beneficiary status in connection with the performance of the obligations herein. f. Nothing contained in this Agreement shall be construed to be a waiver of any individual's qualified good faith immunity. g. Lessee understands that all operations, uses and occupancy of the Premises must be in strict compliance with all TSA, FAA, Airport rules and regulations, grant requirements, rules and regulations, and related provisions for airport use and operations without restrictions or limitations. Lessee further agrees that, in the event there is a question of interpretation, it will comply with the Landlord's interpretation of such requirements, rules, laws and regulations, as and when notified by the Lessor of its interpretation, time being of the essence. This provision supersedes any other provision of this Lease which may be in conflict therewith. Any default by Lessee r AUGUSTA REGIONAL AIRPORT AT BUSH FIELD HANGAR, RAMP, AND /OR OFFICE SPACE LEASE Page 9 shall permit the Landlord to immediately terminate the Lease as a non - exclusive remedy. h. All leased property shall be maintained in such condition of repair, cleanliness and general maintenance as shall be acceptable to the Airport. i. Lessee's refusal to comply with the rules and regulations of the Airport shall, after written request to do so by the Airport, shall be requested to leave the Airport. IN WITNESS WHEREOF, the parties hereof have caused this Lease to be executed as of the day and year first above written. Lessor Lessee AUGUSTA AVIATION COMMISSION MCAIR AVIATION LLC. Karlton L. Howard James P. McMakin P 'nted Name 'nted Name Signature ignature Chairperson Title President and Chief Fliizht Instructor Title �Sv -Ol Date Date AUGUSTA RICHMOND COUNTY, GEORGIA BY: �. AS ITS: _MAY R ATTEST: LE F I SI N ATTEST: CLERK (BALANCE OF PAGE LEFT BLANK INTENTIONALLY)