HomeMy WebLinkAbout04-22-2004 Airport Commission RECREATED FROM
COMMISSION
MEMBER
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IOWA CITY AIRPORT COMMISSION
AIRPORT TERMINAL BUILDING
1801 S. RIVERSIDE DRIVE
THURSDAY, APRIL 22, 12:00 P.M.
I!' Determine Quorum
11/ Public Discussion—Items Not on Agenda
III./ Items for Discussion/Action:
,Flight Training agreement—United hanger office
Aviation Commerce agreement—Iowa Realty 1
llr. Chairperson's report m S rwr,,vita a_ K S 30 f `t -
V. Adjournment
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0 IOWA CITY MUNICIPAL AIRPORT
1801 South Riverside Drive Iowa City, Iowa 52246
Office Phone (319) 356-5045
April 14, 2004
Ms. Kim Brogan-Coleman
2194 Hill Drive NE
Solon, Iowa 52333
Dear Ms. Brogan-Coleman:
Attached is a proposed lease for the office space at 1701 South
Riverside Drive. The format is based on the proposal presented to the
Airport Commission at the April 8th Commission meeting. The rent plan
is different than what you presented, but is similar in the average
monthly amount.
Because a flight school is one of the aeronautical activities addressed in
the Airport's Minimum Standards, all criteria in the Standards apply and
have been incorporated into the agreement. A copy of the Minimum
Standards is attached.
At your request to expedite the process, the Commission has scheduled
a meeting for April 22, 2004 at 12:00 p.m. to discuss the lease. It will be
in the Airport Terminal meeting room. Please be available to answer
any questions. The Commission will have the proposed lease prior to
the meeting to review it.
If you would like to discuss the lease or want additional information
before the meeting on the 22nd, please contact me at (319) 356-5045.
Sincerely,
Ronald J. O'Neil
Airport Manager
Cc: Airport Commission
Sue Dulek, Assistant City Attorney
To: Randy Hartwig
From: Kim Brogan-Coleman
Re: Clarifications, modifications, amendments, etc. of lease agreement
Randy:
The following are areas in the proposed lease agreement that I would like to have
addressed at the Commission meeting scheduled for 04/22/2004:
In regard to paragraph 5 of the lease,
Issue#1: I have become an approved test center for Computer Assisted Testing Service
(CATS). CATS delivers computer-based examinations for Sponsors and Agencies
involved in educational, licensing, or certification testing including the Federal Aviation
Administration. All FAA Airman Knowledge test are taken at either a CATS or
LaserGrade test center. As part of my agreement with CATS, I need to allow people to
take a computer test they handle even if it is non aviation related. This is normal&
customary and is a featured component of many larger flight schools.
Issue#2: Upon completion of a review of the Minimum Performance Standards for IC
Airport, I believe the verbiage in this paragraph should be amended to reflect my entity as
being engaged in multiple commercial activities. While the activity is to be primarily a
flight training school, I also wish to be permitted to engage in aircraft rental and organize
a commercial flying club. These activities are, again,normal and customarily associated
with flight schools as are sight-seeing rides, orientation flights, etc. Also, while I have no
desire to conduct maintenance commercially at this time, I would like to reserve the right
to perform maintenance on aircraft under my operational control in the event a mutually
satisfactory arrangement can not be made with the FBO. Similarly, I would like to
reserve the right to buy and sell airplanes only to the extent that is necessary for the
maintenance and enhancement of my fleet. In summary, while the enterprise shall be
indisputably be described as a flight school, I believe it is more accurate to describe it as
engaged in multiple aeronautical activities. A separate agreement permitting a
commercial flying club and airplane rental will suffice. If these activities are not
permitted, I will be unable to agree to this lease.
Issue#3: In regard to Para 5C, I understand that the Commission can not foretell the
future. I require assurance that I will not be inheriting a tax on that property. Further, I
am unaccustomed to a lessee paying property taxes. Are property taxes currently
assessed against lessees of this property?
Issue#4 In regard to Para 5D, I would like an opinion from the Commission. Would
hosting fly-ins, open-houses,BBQs, etc for the purpose of socializing and promoting the
entity require the permission of the Commission? If yes, are their guidelines above and
beyond compliance with local, state and federal ordinances?
Issue#5: In regard to Para 5e, I would like an opinion regarding the feasibility of
expanding the hard surfaced parking area? Is parking on the grass immediately adjacent
to the hard surfaced area satisfactory?
In regard to Paragraph 9,
I have many issues with this paragraph. Firstly, I don't believe it is enforceable in its
entirety. I don't believe that I can legally grant a valid and first lien on all equipment.
Leased equipment must be completely excluded from this paragraph as must equipment
that secures financing. I am quite agreeable to granting a first and valid lien limited to
the equity interest in any equipment used on the premises.
Also, I think the default clause is excessive. As an alternative, I propose that in the event
of default on the lease that I pay three months rent(2months current rent and you retain
the last month).
Lastly, In regard to Paragraph 12, I wish to confirm that the insurance requirements are
limited to use and operations on the premises and do not extend to listing Iowa City and
the Commission as also-insureds for aircraft mishaps that occur at a location other than
the leased premises or Iowa City Airport.
Thank you for the opportunity to present this for your review. I am also anxious to
propose renting part of the hangar adjoining the office space. I am prepared to answer
any questions the questions the Commission has in regard to the proposed lease or an
expanded or separate lease that includes use of a portion of the United hangar.
Sincerely,
Kim Brogan-Coleman
"�,,�•.� IOWA CITY
04 I � MUNICIPAL AIRPORT
`:Awdo 1801 SOUTH RIVERSIDE DRIVE
��---� IOWA CiIY,IOWA 52246
(319) 356-5045
Memo
To: Airport Commission
From: Ron O'Neil
Date: 21 April 04
Re: Response, Brogan agreement
In response to the e-mail Randy sent to you yesterday, here are some comments:
In regard to paragraph 5 of the lease,
Issue#1: I have become an approved test center for Computer Assisted Testing Service(CATS).
CATS delivers computer-based examinations for Sponsors and Agencies involved in educational,
licensing, or certification testing including the Federal Aviation Administration. All FM Airman
Knowledge test are taken at either a CATS or LaserGrade test center. As part of my agreement with
CATS, I need to allow people to take a computer test they handle even if it is non aviation related. This
is normal&customary and is a featured component of many larger flight schools.
The agreement can be revised to allow for non-aviation related testing.
Issue#2: Upon completion of a review of the Minimum Performance Standards for IC Airport, I believe
the verbiage in this paragraph should be amended to reflect my entity as being engaged in multiple
commercial activities. While the activity is to be primarily a flight training school, I also wish to be
permitted to engage in aircraft rental and organize a commercial flying club. These activities are, again,
normal and customarily associated with flight schools as are sight-seeing rides,orientation flights, etc.
Also,while I have no desire to conduct maintenance commercially at this time, I would like to reserve
the right to perform maintenance on aircraft under my operational control in the event a mutually
satisfactory arrangement can not be made with the FBO. Similarly, I would like to reserve the right to
buy and sell airplanes only to the extent that is necessary for the maintenance and enhancement of my
fleet In summary,while the enterprise shall be indisputably be described as a flight school, I believe it
is more accurate to describe it as engaged in multiple aeronautical activities. A separate agreement
permitting a commercial flying club and airplane rental will suffice. If these activities are not permitted, I
will be unable to agree to this lease.
•Page 1
The agreement can be changed to reflect all of the commercial aeronautical activities
proposed. The minimum standards for each category will have to be met
Maintenance can be performed on her own aircraft as long as it is by her own
employees or the mechanics have a written agreement with the Airport Commission.
In reviewing the minimum standards, hangar space or tie down space must be leased
from the Commission or subleased from the FBO.
Issue#3: In regard to Para 5C, I understand that the Commission can not foretell the future. I require
assurance that I will not be inheriting a tax on that property. Further, I am unaccustomed to a lessee
paying property taxes. Are property taxes currently assessed against lessees of this property?
No taxes are currently due on the property and no taxes are currently being assessed
to the property.
Issue#4 In regard to Pam 5D, I would like an opinion from the Commission. Would hosting fly-ins,
open-houses, BBQs,etc for the purpose of socializing and promoting the entity require the permission
of the Commission? If yes,are their guidelines above and beyond compliance with local,state and
federal ordinances?
Open houses, BBQ's,fly-ins, etc.would be considered as part of promoting the flight
school business and commercial flying club. To make the procedure less
cumbersome,this paragraph can be changed to require authorization from the Airport
Manager instead of the Commission.
Issue#5: In regard to Pam 5e, I would like an opinion regarding the feasibility of expanding the hard
surfaced parking area? Is parking on the grass immediately adjacent to the hard surfaced area
satisfactory?
It may be possible to expand the land side hard surfaced parking area to the south.
This could be done with approval of the Commission or Airport Manager. As stated in
Paragraph 5,to meet minimum standards,tie down areas or hangar space will need to
be leased. Space will be found to accommodate tie downs on the grass.
In regard to Paragraph 9,
I have many issues with this paragraph. Firstly, I don't believe it is enforceable in its entirety. I don't
believe that I can legally grant a valid and first lien on all equipment Leased equipment must be
completely excluded from this paragraph as must equipment that secures financing. I am quite
agreeable to granting a first and valid lien limited to the equity interest in any equipment used on the
premises.
Also, I think the default clause is excessive. As an alternative, I propose that in the event of default on
the lease that I pay three months rent(2months current rent and you retain the last month).
The default language is the standard default language used in the other Airport leases.
Lastly, In regard to Paragraph 12, I wish to confirm that the insurance requirements are limited to use
and operations on the premises and do not extend to listing Iowa City and the Commission as also-
insureds for aircraft mishaps that occur at a location other than the leased premises or Iowa City
Airport.
The insurance required is for premise liability.
•Page 2
Thank you for the opportunity to present this for your review. I am also anxious to propose renting part
of the hangar adjoining the office space. I am prepared to answer any questions the questions the
Commission has in regard to the proposed lease or an expanded or separate lease that includes use
of a portion of the United hangar.
The request to rent the hangar will be reviewed. Jet Air verbally requested to rent the
hangar several months ago. Because of the condition of the hangar and the
uncertainty of how long the building would be available, I was reluctant to rent the
hangar space. If Jet Air does notwant the hangar space or the Commission can not
come to terms with them,an agreement would be negotiated to lease the hangar.
Cc: Sue Dulek,Assistant City Attorney
•Page 3
1
To: Randy Hartwig, Chairman
And Commissioners
Iowa City Airport Commission
From: Kim Brogan-Coleman
Re: Clarifications, modifications, amendments, etc.
To lease agreement and April 8, 2004 Proposal
Date: April 22,2004
The following are areas in the proposed lease agreement that I would like to have
addressed at the Commission meeting scheduled for 04/22/2004:
In regard to paragraph 2 of the lease,
Issue#1: To facilitate the ease of billing for the Airport a rent schedule similar to what is
proposed in Exhibit"A"has been developed in Attachment"A." The rent plan is
different than what you proposed, but is similar in the average monthly amount.
In regard to paragraph 5 of the lease,
Issue#1: I have become an approved test center for.Computer Assisted Testing Service
(CATS). CATS delivers computer-based examinations for Sponsors and Agencies
involved in educational, licensing, or certification testing including the Federal Aviation
Administration. All FAA Airman Knowledge test are taken at either a CATS or
LaserGrade test center. As part of my agreement with CATS, I need to allow people to
take a computer test they handle even if it is non aviation related. This is normal&
customary and is a featured component of many larger flight schools.
Issue#2: Upon completion of a review of the Minimum Performance Standards for IC
Airport,I believe the verbiage in this paragraph should be amended to reflect my entity as
being engaged in multiple commercial activities. While the activity is to be primarily a
flight training school,I also wish to be permitted to engage in aircraft rental and organize
a commercial flying club. These activities are, again, normal and customarily associated
with flight schools as are sight-seeing rides, orientation flights,etc. Also, while I have no
desire to conduct maintenance commercially at this time,I would like to reserve the right
to perform maintenance on aircraft under my operational control in the event a mutually
satisfactory arrangement can not be made with the FBO. Similarly, I would like to
reserve the right to buy and sell airplanes only to the extent that is necessary for the
maintenance and enhancement of my fleet. In summary,while the enterprise shall be
indisputably described as a flight school, I believe it is more accurate to describe it as
engaged in multiple aeronautical activities. A separate agreement permitting a
commercial flying club and airplane rental will suffice. If these activities are not
permitted,I will be unable to agree to this lease.
2
Issue#3: In regard to Para 5B,I understand that the Commission can not foretell the
future. I require assurance that I will not be inheriting a tax on that property. Further,I
am unaccustomed to a lessee paying property taxes. Are property taxes currently
assessed against any lessee of other airport properties?
Issue#4: In regard to Para 5D,I would like an opinion from the Commission. Would
hosting fly-ins, open-houses, BBQs, etc for the purpose of socializing and promoting the
entity require the permission of the Commission? If yes, are their guidelines above and
beyond compliance with local, state and federal ordinances?
Issue#5: In regard to Para 5E,I would like an opinion regarding the feasibility of
expanding the hard surfaced parking area? Is parking on the grass immediately adjacent
to the hard surfaced area satisfactory?
Issue#6: In regard to Para 5F,I am receiving no Airport or City funds to improve this
property which includes City water supply to this building. I am bearing significant
expense for these lease hold improvements, approximately$15,000 to $25,000.
Therefore, I will need to recoup my investment through the removal and sale of these
hems upon completion of this lease.
In regard to Paragraph 9,
I have many issues with this paragraph. First,I don't believe it is enforceable in its
entirety. I don't believe that I can legally grant a valid and first lien on all equipment.
Leased equipment must be completely excluded from this paragraph as must equipment
that secures financing. I am quite agreeable to granting a first and valid lien limited to
the equity interest in any equipment used on the premises.
Also, I think the default clause is excessive. As an alternative, I propose that in the event
of defauh on the lease that I pay three months rent(2months current rent and you retain
the last month).
3
Lastly,In regard to Paragraph 12,I wish to confirm that the insurance requirements are
limited to use and operations on the premises and do not extend to listing Iowa City and
the Commission as also-insureds for aircraft mishaps that occur at a location other than
the leased premises or Iowa City Airport.
Thank you for the opportunity to present this for your review. I am also anxious to
propose renting part of the hangar adjoining the office space. I am prepared to answer
any questions the questions the Commission has in regard to the proposed lease or an
expanded or separate lease that includes use of a portion of the United hangar.
Sincerely,
Kim Brogan-Coleman, CFI-I
2194 Hills Dr.
Solon, IA 52333
kimbcfi@lycos.com
Home: 319-624-1338
Cell: 319-631-3042
4
Attachment"A"
June 2004 through November 2004 $450.09 per month
December 2004 through May 2005 $600.00 per month
June 2005 through November 2005 $750.09 per month
December 2005 through May 2006 $900.00 per month
To Mr. Randal Hartwig, Chair&
Airport Commissioners
From: Kim Brogan-Coleman
Date: April 22,2004
Re: Comparative Analysis of Jet Air and Proposed Lease Expenses and Fees
Jet Air Sq. Ft. Brogan Sq. Ft.
Terminal Bldg
Offices 2,496 United Bldg Office 1,620
Corporate hangar 16,800
Total 19,296 Total 1,620
Average Monthly Average Monthly
Rent(1s` 5 yrs lease) $2,500 Rent(1s`2 yrs lease) $687.50
Cost per Sq. Ft. $0.13 Cost per Sq.Ft. $0.42
First month Rent $0 First Month Rent $450
Initial Lease hold Any necessary to Initial Lease hold $25,000 necessary
Improvements meet City code? Improvements to meet City code
United Bldg Hangar 8,000
To: Additional Proposal to Iowa City Airport Commission
Date: Apri122, 2004
Sirs:
Thank you for addressing the concerns expressed in regard to leasing the office space
attached to the United hangar.
At this time, I would like to make an additional proposal for use of the United hangar
itself.
It is evident and agreed that at least some access and means of ingress/egress to the
hangar is necessary for the functioning of the flight school and access to the ramp areas,
taxiways and runways. I propose three alternatives for renting floor space which could
either be incorporated into the office space lease or a separate lease.
Proposal 1: I propose to rent 50% of the hangar (50 linear feet of door space minimum)
for the sum of$100.00 per month+3% of aircraft rental receipts and 3% of monthly club
membership dues.
Proposal 2: I propose to rent the entire hangar for$150.00 per month+3%of aircraft
rental receipts+3%of monthly club membership dues+20%of any sublet airplane
rental receipts.
Proposal 3: Proposal 3 is the first proposal with per diem charges for access to the
second half of the hangar. Access would be limited to aircraft haiigaring and social
events. I propose$2.35 per day for single engine airplanes and$3.00 per day for
multiengine airplanes and $50.00 per day for social events.
Thank you for your time and attention to this proposal.
Sincerely,
Kim Brogan-Coleman, CFI-I
2194 Hills Dr.
Solon, IA 52333
kimbcfi@lycos.com
Home: 319-624-1338
Cell: 319-631-3042
IOWA CITY MUNICIPAL AIRPORT
FLIGHT SCHOOL OPERATOR'S AGREEMENT
This agreement, is made and entered into this 22nd day of April, 2004, by and between the Iowa City
Airport Commission, (hereinafter " Commission"), whose address for the purpose of this lease is 1801
South Riverside Drive, Iowa City, Iowa, 52246, and Kim Brogan-Coleman, (hereinafter `B-C") whose
address for the purpose of this lease is 1701 South Riverside Drive, Iowa City, Iowa, 52246,
WITNESSETH THAT:
1. Term. This lease shall be in effect for two (2) years beginning the 1st day of June 2004, and
ending the 31st day of May 2006.
Hours of operation:Minimum of five(5)hours daily _.
2. Rent. B-C agrees to pay the Commission rent for the leased property as follows:
Rent will begin at$475.00 for the month of June 2004 and end at$925.00 for the month of May
2006. See attached Exhibit"A",which is attached and incorporated herein..
Rent is payable on the first day of each month during the term of this lease. Payments received
after the fifteenth(15TH)day of each month shall draw interest at 9%per annum from the date
due,until paid.
A first and last months rent,for a total of$ 1400.00,will be required for a damage and security
deposit,to be due at the time of possession of the premises,no later than June 1,2004.
3. Leased premises.
a. The Brick office area at 1701 South Riverside Drive,known as the United Hangar
office, consisting of 1620 square feet of office space.
b. All utilities are to be paid by B-C.
c. Fuel—B-C shall pay a$ .10 per gallon flowage fee for all fuel brought on the field.
This fuel flowage fee shall be paid monthly on the 1"day of each month for the previous
month's fuel deliveries. B-C shall provide copies of receipts for all fuel delivered and
hereby authorizes the Commission to request and receive copies of all receipts from B-
C's fuel supplier.Fuel stored on the field must be in a certified fueling vehicle and meet
Spill Prevention Control and Countermeasures standards.
4. Non-exclusive right. It is agreed that nothing herein contained shall be construed to grant or to
authorize the granting of an exclusive right prohibited by Section 308 of the Federal Aviation
Act of 1958, as amended, and the Commission reserves the right to grant to others the privilege
and right of conducting any activity of an aeronautical nature or otherwise.
5. Use of premises.B-C covenants and agrees during the term of this lease to use and occupy the
property, facilities, and improvements located on the property described as the United Hangar
office for the sole purpose of doing business as a Flight Training School. Maintenance of
property leased by B-C, including but not limited to the roof, interior and exterior walls, external
and internal doors, windows, plumbing and electrical circuits shall be the responsibility of B-C
and accepted "as is". Premises are to be kept reasonably clean. Without limiting the scope of B-
C's obligation herein, B-C agrees to keep faucets closed so as to prevent waste of water and
2
flooding of the premises, to promptly take care of any leakage or stoppage in any of the water,
gas, or waste pipes inside the buildings, to repair any damage to electrical circuits due to
overloading and to replace light bulbs. B-C agrees to maintain adequate heat to prevent freezing
of pipes. B-C, at her own expense, may make improvements but shall make no structural
alterations or improvements without first obtaining the Airport Manager's written approval of the
plans and specifications. B-C also agrees not to construct or attach any fixtures without first
obtaining the Manager's written approval.
a. B-C shall not allow the premises or any improvements thereon to remain vacant or
unoccupied for a period of ten(10)or more consecutive days.
b. B-C shall be responsible for property taxes, if any,on said premises and
the improvements thereon. B-C acknowledges that the Commission does
not and cannot make any representation as to whether real estate taxes will be assessed
against the leased property or improvements thereon.
c. B-C shall provide,at a minimum,those services necessary to qualify as a
Flight Instruction under the Iowa City Municipal Airport Minimum Standards for
Commercial Aeronautical Activities ("Minimum Standards"). The Minimum Standards are
attached and incorporated herein. B-C shall not provide any aeronautical activities beyond
those set out in the Minimum Standards without the prior written consent of the Commission.
d. B-C shall not use the premises for any non-aeronautical services or activities. B-C
understands and agrees that no other non-aeronautical services or activies are permitted or
authorized at Iowa City Municipal Airport without the prior written authorization of the
Commission.
e. B-C shall not use or permit the premises to be used for any unlawful purpose. B-C shall
comply with all local, state and federal codes, including but not limited to the Iowa
Department of Transportation and Federal Aviation Administration rules and regulations.
Vehicle and equipment parking shall be limited to approved hard-surfaced areas and access
to other areas of the Airport shall not be obstructed.
£ All improvements to the leased property shall become the property of the City of Iowa City
upon the expiration or termination of the original term of this lease unless otherwise
provided for by separate agreement.
g. B-C will be responsible for snow removal of the sidewalks around her leased premises and
the parking area.
6. Rules and Regulations. B-C agrees that the Commission has the right to adopt and enforce
reasonable rules and regulations and that B-C and all her employees, agents and servants will
observe and comply will all rules and regulations as may be adopted by the Commission, City of
Iowa City,the State of Iowa,or the United States of America.
7. Commission rights. The Commission further reserves the right to take any action it considers
necessary to protect the aerial approaches of the Airport against obstructions, together with the
right to prevent B-C from erecting, or permitting to be erected,any building or other structure on
the Airport,which in the opinion of the Commission,would limit the usefulness of the Airport or
constitute a hazard to aircraft or violate any local, state,or federal laws or regulations.
3
B-C shall provide an annual financial statement (at the review level) if requested by the
Commission. This shall be provided no later than thirty (30) days after B-C receives a written
request from the Commission.
B-C shall not act as an agent or represent itself as an agent of the Commission in any matter,
including those between the Federal Aviation Administration and the Commission.
8. B-C rights. B-C shall have the non-exclusive right to the use of the landing field, including the
runways,taxiways, lighting system,ramp and tie down area.
B-C shall have the non-exclusive right to ingress, egress and unlimited access to the leased
premises and shall have peaceable possession and quiet enjoyment thereof during the term of this
lease.
B-C shall expect prompt response from the Commission on issues not anticipated in this lease.
9. Default of lease. If there be any default in the payment of fees as stated in this agreement, or if
B-C shall break any of the covenants and agreements contained herein, or shall willfully or
maliciously do injury to the premises or shall file a petition in bankruptcy or have an involuntary
petition in bankruptcy filed against it or seek any other relief from creditors through a court of
bankruptcy or make an assignment for the benefit of creditors, the Commission shall have the
right at any time thereafter, with notice, to declare that the tenant is in default and that this
Agreement has been breached. Upon default, B-C shall be liable to the Commission for all rent
due through the remainder of the terms of this Agreement. It is agreed that upon the occurrence
of any default by B-C under this lease, the Commission shall have the right to distraint for rent
and shall have a valid and first lien upon any equipment located upon said premises as security
for the payment of the rent and other obligations herein provided for. B-C agrees that after any
default, it will not remove from the premises any of its equipment, books of account or
possessions until the accounts of the Commission and B-C under this lease have been finally and
completely settled. No right or remedy herein conferred upon or reserved to the Commission is
intended to be exclusive or any other right or remedy, and each and every right and remedy shall
be cumulative and in addition to any other right or remedy existing at law or in equity or by
statute.
10. Advertising. B-C agrees that no signs or advertising material shall be placed or erected upon the
leased premises without the prior written consent of the Airport Manager. All signs and
advertising material shall be well maintained and in a readable condition. Any such sign or
advertising material that is determined by the Conunission or City of Iowa City not to be in
conformance with the City of Iowa City sign ordinances shall be removed upon receipt of written
notice.
11. Official notices.Notices to the Commission as herein provided shall be sufficient if sent by
certified mail or hand delivered,to the Airport Manager,Iowa City Municipal Airport, 1801
South Riverside Drive,Iowa City,Iowa, 52246. B-C shall give the Commission notice when:
a. There is any abandonment or expected abandonment of the leased building.
b. When there is or is expected any breakdown in services or reduction or increase of
services for a period of more than 72 hours.
4
c. When there is a change in the use of the leased premises or a planned or anticipated
change in the use of the leased premises.
d. When any condition exists that may lead to major maintenance and repair of B-C
facilities and equipment.
e. Any event in which the Commission may be subjected to a major loss, accident, inves-
tigation,or need of representation by a City official.
Notices to B-C shall be sufficient if sent by certified mail or hand-delivered to: Kim Brogan-
Coleman, 1701 South Riverside Drive,Iowa City,Iowa 52246.
12. Insurance.B-C shall procure and maintain for the duration of this agreement, insurance against
claims for injuries to persons or damages to property which may arise from or in connection with
B-C' operations and use of the leased premises.
Bodily Injury and Property Damage
B-C covenants and agrees that it will at its own expense procure and maintain general liability
and casualty insurance for bodily injury and property damage in a company or companies
authorized to do business in the State of Iowa, in the following amounts: $1,000,000 for each
Occurrence
B-C 's insurance carrier shall be A rated or better by A.M.Best. B-C shall name
the Commission and the City of Iowa City,as additional insured. B-C shall
deliver to the Commission,within thirty(30)days of execution of this agreement,
Certificates of Insurance or copies of said policies.The certification shall provide for 30
days notice of any material change or cancellation of the policies.
Workers'Compensation: Statutory as required by the State of Iowa.
13. Non-discrimination. B-C covenants, in consideration of the right to provide aeronautical
services at the Iowa City Municipal Airport, that B-C, its employees, and agents, shall not
discriminate against any person in employment or public accommodation because of race,
religion, color,creed, gender identity, sex,national origin, sexual orientation, mental or physical
disability, martial status, or age. "Employment" shall include but not be limited to hiring,
accepting, registering, classifying, upgrading, or referring to employment. "Public
accommodation" shall include but not be limited to providing goods, services, facilities,
privileges and advantages to the public. B-C shall remain in compliance with all requirements of
49 CFK Part 21, Non-Discrimination in Federally Assisted Programs of the Department of
Transportation.
14. Assignment or Transfer. B-C shall not assign or transfer this lease, or any interest herein,or
sublet the premises or any part thereof without the prior written consent of the Commission.This
agreement shall extend to and be binding upon the heirs,executors,administrators,trustees,
successors,receivers,and assigns of the parties hereto.
15. Changes to be in writing. This agreement shall not be modified,waived,or abandoned except in
writing duly executed by both parties. This agreement contains the whole agreement of the
parties,and is not assignable by either party without the written consent of the other.
5
16. Severability. In the event any portion of this lease is found invalid,the remaining portions shall
be deemed severable and shall remain in full force and effect.
17. Indemnification. To the fullest extent permitted by law,B-C and the Commission, its agents,
servants, and employees shall indemnify and hold harmless each of the
other parties against all claims,demands,and judgments, including attorney's fees,made or
recovered for damages to real or tangible personal property,or for personal injury,bodily injury,
or death to any person arising out of,or in connection with,any acts or omissions or use or
misuse of the leased premises by B-C,its agents,or sublessees or any one directly or indirectly
employed by any one of them.
18. Inspections. The Commission reserves the right to enter upon the leased premises at any
reasonable time for the purpose of making an inspection it may deem expedient. This may be
done at any time in case of an emergency and/or accompanied by an B-C employee during
regular hours of operation.
19. FAA Provisions.
(a) B-C,for itself,heirs,personal representatives,successors in interest,and assigns,as a part
of the consideration hereof,does hereby covenant and agree as a covenant running with the
land that in the event facilities are constructed,maintained,or otherwise operated on the
said property described in this(license, lease,permit, etc.)for a purpose for which a
Department of Transportation program or activity is extended or for another purpose
involving the provision of similar services or benefits,the(licensee,B-C,permittee,etc.)
shall maintain and operate such facilities and services in compliance with all other
requirements imposed pursuant to 49 CFR Part 21,Nondiscrimination in Federally
Assisted Programs of the Department of Transportation,and as said Regulations may be
amended.
(b) B-C, for itself, its personal representative, successors in interest, and assigned, as a part of
the consideration hereof, does hereby covenant and agree as a covenant running with the
land that: (1)no person on the grounds of race, color, or national origin shall be excluded
from participation in, denied the benefits of, or be otherwise subject to discrimination in
the use of said facilities, (2) that in the construction of any improvements on, over, or
under such land and the furnishing of services thereon, no person on the grounds of race,
color, or national origin shall be excluded from participation in, denied the benefits of, or
otherwise be subject to discrimination, (3)that B-C, shall use the premises in compliance
with all other requirements imposed by or pursuant to 49 CFR Part 21,Nondiscrimination
in Federally Assisted Programs of the Department of Transportation, and as said
Regulations may be amended.
(c) It in understood and agreed that nothing herein contained shall be construed to grant or
authorize the granting of an exclusive right within the meaning of Section 308 of the
Federal Aviation Act of 1958 or current revisions thereof..
(d) B-C agrees to furnish service on a fair,equal and not unjustly discriminatory basis to all
users thereof, and to charge fair,reasonable and not unjustly discriminatory prices for each
unit or service; provided,that B-C may make reasonable and non-discriminatory discounts,
rebates,or other similar types of price reductions to volume purchasers.
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(e) Commission reserves the right(but shall not be obligated to B-C)to maintain and in repair
the landing area of the airport and all publicly-owned facilities of the airport,together with
the right to direct and control all activities of the B-C in this regard.
(f) Commission reserves the right further to develop or improve the landing area and all
publicly-owned air navigation facilities of the airport as it sees fit,regardless of the desires
or views of B-C,and without interferences or hindrance.
(g) Commission reserves the right to take any action it considers necessary to protect the aerial
approaches of the airport against obstructions,together with the right to prevent B-C from
erecting,or permitting to be erected,any building or other structure on the airport which in
the opinion of Commission would limit the usefulness of the airport or constitute a hazard
to aircraft.
(h) During time of war or national emergency Commission shall have the right to enter into an
agreement with the United States Government for military or naval use of part or all of the
landing area, the publicly-owned air navigation facilities and/or other areas or facilities of
the airport. If any such agreement is executed, the provisions of this instrument, insofar as
they are inconsistent with the provisions of the agreement with the Government, shall be
suspended.
(i) It is understood and agreed that the rights granted by this agreement will not be exercised
in such a way as to interfere with or adversely affect the use, operation, maintenance or
development of the airport.
(j) There is hereby reserved to the Commission, its successors and assigns, for the use and
benefit of the public, a free and unrestricted right of flight for the passage of aircraft in the
airspace above the surface of the premises herein conveyed, together with the right to
cause in said airspace such noise as may be inherent in the operation of aircraft, now
known or hereafter used for navigation of or flight in the air,using said airspace or landing
at,taking off from,or operating on or about the airport.
•
(k) The lease shall become subordinate to provisions of any existing or future agreement
between the Commission and the United States of America or any agency thereof relative to
the operation,development,or maintenance of the airport,the execution of which has been
or may be required as a condition precedent to the expenditure of federal funds for the
development of the airport.
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IN WITNESS WHEREOF,the parties hereto have executed this lease as of the day and year
first above written.
IOWA CITY AIRPORT COMMISSION KIM BROGAN-COLEMAN
By: By:
Randy Hartwig,Chairperson Kim Brogan-Coleman
By:
Attest
Date: Date:
Approved by:
Date:
City Attorney's Office
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EXHIBIT"A"
June 2004 through November 2004 $475.00 per month
December 2004 through May 2005 $625.00 per month
June 2005 through November 2005 $775.00 per month
December 2005 through May 2006 $925.00 per month