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HomeMy WebLinkAboutMorris Communications Corporation Augusta Richmond GA DOCUMENT NAME: ('(\o'(n'S, CcxYJIYUO\ CDtICJ1s CoIf?J'(OJ-\\.<:Yj DOCUMENT TYPE: Le.. Q CS~ YEAR: Ci G BOX NUMBER: D'd FILE NUMBER: \~~~q NUMBER OF PAGES: ~ .-J. ./ STATE OF GEORGIA LEASE , RICHMOND COUNTY THIS LEASE AGREEMENT, made and entered into, tJs /1:15 day of December, 1996, by and between Richmond County, Georgia, a political subdivision of the State of Georgia and successor by consolidation to The City Council of Augusta, Georgia, acting by and through the Augusta Aviation Commission, hereinafter called "Lessor", and MORRIS COMMUNICATIONS CORPORATION, a corporation organized and existing under the laws of the State of Georgia, hereinafter called "Lessee" . WIT N E SSE T H WHEREAS, Lessor is the owner of Bush Field, Augusta Municipal Airport (the "Airport"), which is under the direction and control of the Lessor, said Bush Field being located in the County of Richmond, State of Georgia; and WHEREAS, the Lessor wishes to enter into a Lease for a certain portion of the Airport premises in the interest of furthering and carrying out its purpose of the operation of the Airport and in the promotion of aviation in the interest of the public, and the Lessee desires to obtain a Lease for certain premises of the Airport as hereinafter described and to terminate an existing lease at the Airport to Southeastern Newspapers Corporation, a subsidiary of Lessee. NOW, THEREFORE, the parties hereto, for and in consideration of the mutual promises herein contained, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, DO HEREBY AGREE, each for itself and its successors and assigns, as follows: 1. Premises. Lessor, duly authorized, does hereby lease unto Lessee, and the Lessee does hereby lease and obtain for the purposes herein set forth from the Lessor, for Lessee's exclusive use, the area described in the attached Exhibit "A" (hereinafter called "Leased Premises") 2. Term. Lessor hereby rents, leases and lets unto Lessee, and Lessee hereby rents and leases from Lessor, for the rental and upon and subject to the terms and conditions set forth herein, the property described and set forth on Exhibit "A" for an initial term of twenty (20) years, commencing upon substantial completion of the Hangar as hereinafter provided. This lease shall, however, for all other purposes set forth herein, be effective upon execution by the parties. Lessee shall have an option to renew this Lease for an additional term of ten (10) years. The option must be exercised by written notice to Lessor given not less than six (6) months before the termination of the initial term. This Lease shall create a usufruct only and not an estate for years. 3. Demolition. Lessor shall demolish and remove the existing improvements on Hangar No.2, including the paving. Such demolition work shall begin immediately and shall proceed with due diligence until the work is completed and all debris removed from the Leased Premises, Lessor shall prepare a detailed account of all reasonable direct costs and expenses of such demolition and removal and provide a copy to Lessee. Subj ect to delays beyond Lessor's control, the demolition and clearing shall be completed by December 31, 1996. 4. Construction. Lessee shall construct a new aircraft hangar on the Leased Premises, which shall be a building approximately one hundred forty-five (145) feet by one hundred twenty-two (122) feet, with a ceiling height in the 1 aircraft storage area of not less than required to accommodate a Gulfstream II aircraft (the "Hangar"). The Hangar shall also include other improvements, including space for aircraft repair and maintenance, offices and passenger waiting area, as shown on the attached sketch marked Exhibit "B". Lessee shall design the hangar and specifications; provided, however, Lessor (through the Aviation Commission) shall have the right to approve the design and specifications, which approval shall not be unreasonably withheld. The construction work shall begin upon completion of the demolition and removal required by Paragraph 3 hereof and shall proceed with due diligence until completed. Promptly upon completion of the Hangar, Lessor agrees to reimburse Lessee for all reasonable direct Construction Costs (as hereinafter defined) upon receipt from Lessee of a detailed account of such costs of construction and expenses, plus costs of architectural and engineering fees previously paid by Lessee. For purposes of this Paragraph, the terms "costs of construction and "Construction Costs" shall include: (a) all sums paid by the Lessee for utilities, equipment rental, permits and services utilized construction of the Hangar pursuant to above-referenced plans and labor, materials, or provided in the and specifications; (b) all sums paid by the Lessor (not to exceed $15,500) or by Lessee for architectural and engineering services heretofore or hereafter provided in the design of said Hangar or in connection with supervision of the construction of the same together with any and all other services reasonably required to be provided by the architect or engineer employed by Lessee in connection with the construction of said Hangar including specifically but not exclusively the solicitation and evaluation of bids for such construction and the obtaining of the necessary certificate of occupancy; and (c) any other fees and expenses reasonably required to be paid by Lessee in connection with the completion of construction of said Hangar; and Said Construction Costs, exclusive of interest, shall not exceed $1,500,000.00 without the mutual written consent of the parties hereto. In the event that Lessee in good faith concludes that the cost of construction will exceed $1,500,000.00, the parties hereto shall confer with the architect and agree upon reasonable modifications to the plans and specifications which will reduce the Construction Costs so as to not exceed such maximum limit set forth herein without unreasonably restricting the ability of the Lessee to utilize said Hangar for the purposes intended. The sum of the demolition and removal costs, as provided in Paragraph 3, and the Construction Costs shall be the basis for the computation of the rental payments. 5. Rental. During the initial term, Lessee agrees to pay Lessor as monthly rental during the first two hundred forty (240) months of the term of this Lease a sum sufficient to amortize the costs incurred pursuant to Paragraphs 3 and 4 hereof, together with interest from the date possession of the Leased Premises is delivered to Lessee at the rate equal to 5.718%, plus an additional Five Hundred ($500) Dollars per month as the agreed lease value of the land; if the option to renew is exercised, monthly rental during the one hundred twenty (120) months of the option term hereof shall be twenty-five per cent (25%) of the base amount during the initial term. Monthly payments shall be made no later than the tenth (lOth) day of the month for the month in which said rental is due. 2 6. 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 attorneys' fees in the amount of 15% of the total amount due from Lessee and all reasonable expenses of litigation. 7. Utilities. Lessee shall pay all charges for electricity, gas, water, telephone, sewer service, sewer treatment, telephone and any other communication or utility service used in or rendered or supplied to the Leased Premises throughout the term of this Agreement and shall indemnify Lessor and hold it forever harmless against any and all liability or damages related thereto. 8. Use of the Premises. Lessee shall use the Premises herein leased only for the purpose of storing, dispatching, repairing and receiving aircraft owned, leased, rented or otherwise under the direct control of the Lessee or Lessees guests and used for providing service to the Lessee, its affiliates and guests. The intent of this Agreement shall not be construed as authorizing the conduct of a commercial business or providing service to others (except guests) on the Leased Premises by Lessee or other persons. Lessee's occupancy and use of the Premises herein leased shall at all times be conducted in such a manner as not to create a hazard or limit the use of the Airport by others. 9. Repairs and Maintenance. Lessee shall maintain the exterior surfaces of the Premises. Lessee agrees to maintain all interior areas of the Leased Premises, including any alterations, additions and changes made by Lessee as provided in Paragraph 10 hereof, in a condition comparable to that when initially constructed, normal wear and tear excepted. 10. Alterations, Additions and Chanqes. Lessee shall not, without the prior written consent of Lessor, make any alterations, changes or additions, structural or otherwise, in or upon any part of the Leased Premises. The foregoing shall also apply to any exterior signs, notices, placement of machinery or equipment either attached or placed outside of the Leased Premises. 11. Title to Equipment and Improvements. It is mutually understood and agreed that title to the Hangar, 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 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 within ten (10) days after the expiration of the term or any renewal hereof provided that the Lessee shall repair and restore any damage to the Leased Premises occasioned by such removal. If at the expiration of said ten (10) days such equipment, furnishings and trade equipment have not been removed from the Leased Premises, same shall become the property of Lessor. 12. 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 an emergency 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 Lessee. 13. Taxes. Lessee shall pay all personal property taxes which may be assessed against its equipment or other property located on or about the Leased Premises and any fees or other taxes which may be imposed or assessed against Lessee or its leasehold interest. 3 14. Rules and Requlations. Lessee agrees that use of the Leased Premises shall be conducted in compliance with all local, state and federal laws, including but not limited to those of, or administered by, the Federal Aviation Administration or its successor, rules and regulations of the Airport, the ordinances of Augusta-Richmond County (including those ordinances in the Code of the City of Augusta and the Richmond County Code, as applicable), the rules and regulations of the Augusta-Richmond County Commission, and all rules and regulations of Lessor. It is understood and agreed that Lessor shall furnish a Manager of Bush Field Airport who at all times will be in full and complete charge of said Airport. Lessee further agrees to endeavor to conduct its business in such a manner as will develop and maintain the good will and active interest of the general public. Lessee specifically agrees that its operations shall be conducted in compliance with all federal, state and local environmental laws, rules and regulations, and agrees to indemnify and hold harmless Lessor (and each of Lessor's elected officials, officers, agents, employees and representatives), from and against any claims, actions, demands or liabilities of any kind arising out of or relating to Lessee's use of the Leased Premises and relating to environmental requirements. Lessee's obligations hereunder shall include, without limitation, and whether foreseeable or unforeseeable, all costs of any required or necessary repair, cleanup or detoxification or decontamination of the Leased Premises or the Hangar based ~n environmental requirements. 15. Indemnity; Insurance. Lessee agrees to indemnify and hold harmless Lessor from any and all claims in any way related to or arising out of any failure of Lessee to perform its obligations hereunder or related to or arising out of any damage or injury to property or persons, occurring or allegedly occurring in, on or about the Leased Premises during the period from the date of this agreement to the end of the Lease Term, including reasonable attorney's fees and expenses of litigation incurred by Lessor in connection therewith. Without limiting the foregoing, Lessee further agrees to maintain at all times during said period, at Lessee's expense, comprehensive and general public liability insurance coverage against claims for personal injury, death and/or property damage occurring in connection with the use and occupancy of the Leased Premises or arising out of their ownership, improvement, repair or alteration of the Leased Premises with limits of coverage of not less than $5,000,000.00 for personal injury (including death) per person and $5,000,000.00 per occurrence, and not less than $250,000.00 for property damage. 16. Fire and Other Casualty. Lessee shall purchase and maintain in effect during the term of this Lease Agreement, and any extension or renewal of this Lease Agreement, policies of insurance written by a company or companies qualified to do business in the State of Georgia, providing insurance coverage against fire and extended coverage to all alterations, modifications and improvements made by Lessee, which policies shall be in an amount equal and sufficient, subject to approval by Lessor, to cover the value of the alterations, modifications and improvements. Lessee shall increase the insurance coverage in an amount equal and sufficient to cover the value of any additional alterations, modifications or improvements on the' demised premises, in the event additional alterations, modifications or improvements are made during the term, or any extension or renewal, of this lease agreement. All policies providing insurance coverage required to be maintained by Lessee hereunder shall list Lessor, the Augusta-Richmond County Commission, Lessee and their officers, agents, members, employees and successors as named insureds, as their interests may appear, and shall be issued by an insurance carrier or carriers licensed to do business in the State of Georgia and reasonably acceptable to Lessor. All such policies shall provide that no act or omission of Lessee or its agents, servants, or employees shall in any way invalidate any insurance coverage for the other named insureds. No insurance 4 .~ policy providing any insurance coverage required to be provided by Lessee hereunder shall be cancelable without at least 15 days advance written notice to Lessor. All insurance policies required hereunder, or duplicate copies thereof, shall be provided to Lessor by Lessee. The cost of premiums for all policies of insurance required by this Lease Agreement shall be paid by Lessee. Lessee or its contractor shall.furnish builders risk insurance during the period of construction, as provided in Paragraph 4 hereof, which shall insure the contractor, Lessor and Lessee, as their interests may appear. The fire and extended coverage insurance (other than the builder's risk insurance) shall be in an amount not less than the construction costs incurred pursuant to Paragraph 4 hereof. If the improvements to be constructed on the Leased Premises shall be damaged or destroyed by fire or other casualty, the same shall be repaired or replaced utilizing the proceeds of the insurance coverage required to be maintained by Lessee under the terms of this Agreement. In the event such damage or destruction renders the Leased Premises untenantable, the rent required to be paid hereunder shall nevertheless continue to be paid by Lessee without interruption during the period of repair or replacement. 17. Assiqnments. Lessee shall not, without the prior written consent of the Lessor, assign this Lease or any interest thereunder, sublet the Premises or any part thereof or permit the use of the Premises by any party other than Lessee. Any consent to one assignment or sublease shall not destroy or waive this provision, and all later assignments and subleases shall likewise be made only upon prior written consent of the Lessor. Subtenants or assignees shall become liable directly to the Lessor for all obligations of Lessee, without relieving Lessee's liability. 18. 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, the other party shall have the right for~hwith 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 Lease in default and proceed to enforce their rights in accordance with the law. 19. Ouiet Eniovrnent. Inqress and Eqress. 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 Lease 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. 20. Miscellaneous. 20.1 Notices. All notices, demands, and required to be given by either Lessor or Lessee to the and shall be deemed to have been properly given when registered or certified mail (with return receipt follows: requests which mayor are other shall be in writing sent postage pre-paid by requested) addressed as 5 . . . If intended for Lessee: MORRIS COMMUNICATIONS CORPORATION 725 BROAD STREET AUGUSTA, GEORGIA 30901 If intended for Lessor: AUGUSTA AVIATION COMMISSION BUSH FIELD AIRPORT 1501 AVIATION WAY AUGUSTA, GEORGIA 30906-9600 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. 20.2 Exculpation; Indemnity. Wherever in this Agreement Lessor's liability is limited, modified or exculpated or Lessee agrees to indemnify or hold Lessor harmless or have Lessor named as an additional insured, the term Lessor shall mean and include the Augusta Aviation Commission, the Augusta- Richmond County Commission and their members, officers, agents, servants, employees and successors in office. 20.3 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, 20.4 Governing Law. This Agreement shall be governed and interpreted by the laws of the state of Georgia. 21. Entire Aqreement. This Agreement 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. . 22. 1982 Lease. Southeastern Newspapers Corporation (referred to as "Southeastern Newspapers, Inc." in the 1982 lease described below), a subsidiary of Lessee, joins in the execution hereof solely to evince the fact that the Lessor and Southeastern have agreed upon the termination of the Lease of December 1, 1982, as renewed through November 30, 2002. The termination of the 1982 lease shall be effective on the date ten (10) days after the Hangar described in Paragraph 4 hereof is delivered to Morris Communications Corporation. IN WITNESS WHEREOF, the parties hereto have caused these presents to be executed, the day and year first above writt 6 By: As its: ft SOUTHEASTERN By: As its: (As to the provisions of Paragraph 22 only) 7 ""-- -, - ....... - r ---+----------- o ~~ rZ OQ C\J\ Z-\ ~O \1I'}l -< \1\0 ~~ '}l ~ .J c:::J ~ Ul~ II n o J Q. 11 .... o , I[ L.:In IlOO Z])J) C])ll Il-O ])Ul]) '<nIl ~O-4 ~:I111 , :II -CD lDzZ lD-Cl "JnIl DJ) -4 - o Z Ul n o ]) 1l o ]) Il -4 - o Z L trl ~ H t:d H t-3 t:d -, - ........ - -'-,..--.---.------.'----.---., I I I I I i I I I I I i I I I i ~ I I I i I I i I i I 1 i I i I I I I I , i i r '-In DoO Z]I:D C:DlJ D-O :DlJI:D "<nD t.,Jo-i t.,JJITI . ]J: -CD IDzZ ID-n ",nD DJI -i is z Ul n o JI 11 o ]I D -i is Z .~.- i I I i i .-. 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