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HomeMy WebLinkAbout07-15-2003 Airport Commission CO? 1 IOWA CITY AIRPORT COMMISSION AIRPORT TERMINAL BUILDING 1801 S. RIVERSIDE DRIVE TUESDAY, JULY 15, 2003-5:45 P.M. I. Determine Quorum II. Changes/Amendments to Minutes of the June 12, 2003 meeting III. Payment of Expenditures IV. Public Discussion—Items Not on Agenda V. Items for Discussion/Action: a. Aviation Commerce Park(ACP)- Iowa Realty July report b. Hangar#31 lease c. Environmental Assessment(consultant-H.R. Green Co.) d. Strategy/business plan project (consultant ABS) e. Obstruction mitigation project(consultant-Stanley Engineering) f. United hangar disposition g. Building H—underground fuel tank h. Iowa City Schools System land lease VI. Chairperson's Report VII. Commission Members' Reports VIII. Administrative Report IX. Set Next Regular Meeting for August 14, 2003 at 5:45 p.m. X. Adjournment airyglGceeaga.doe • C-Pt3'3TQD Io .3“L03 P.n Agenda summary- 15 July 2003 a. Aviation Commerce Park-Tracy Overton will present his monthly marketing report to the Commission.I would recommend that unless there is something new to report, Overton would not need to attend every meeting. I would still recommend a written report every month. b. Hangar#31 lease—The subcommittee of Mascari and Hartwig met with Harry Hinckley, the tenant for hangar#31,to negotiate a lease for hangar#31 and present the Commission with a recommendation on the lease. The lease in the packet is the lease negotiated with the subcommittee. I met with the tenant on July 9,and he had some additional comments. I included only the latest version because there are at least 8 different versions that have been proposed at some time. If the Commission is ready to act on the lease, it will require a resolution. c. Environmental Assessment— H.R.Green is addressing the comments from the FAA and is ready to send their revisions to the FAA. I spoke with Todd Madison,the FAA planner on July 9 and he would like the EA completed as soon as possible. Someone from H.R. Green will be at the meeting to answer any questions the Commission may have about the project. d. Strategy/business plan—The information ABS has requested has been sent to them. The Commission should schedule a work session with the Council in August to discuss the draft of the plan. e. Obstruction mitigation project—Stanley Consultants have met with several owners of property where there are obstructions. A list has been generated prioritizing the obstructions and cost to mitigate each. I am meeting with Stanley on July 14 to review the list. It will be available for the Commission at the meeting. Stanley will report on their progress at the meeting. f. United hangar disposition—H.R. Green devised a worksheet to assist the Commission in deciding what to do with the hangar. Green will also provide the Commission with a proposal to estimate costs for each of the options. g. Building H—Underground fuel tank—There are several costs associated with maintaining and operating the underground fuel tank located between Buildings G and H. The Commission should discuss whether or not they want to continue to maintain the tank. Some of the costs include$ 500 per year for insurance and$ 500 per year for a leak detection test. Every three years,the cathodic protection must be tested. It did not pass this year and there will be additional costs associated with repairing the cathodic protection. Income in the form of a flowage fee from the tank is minimal. h. School System lease—The Iowa City School System leases about one acre of property in the northeast corner of the Airport. This is part of lot#5 of the Aviation Commerce Park. If the Commission acts on the lease,a resolution will be required. MINUTES IOWA CITY AIRPORT COMMISSION THURSDAY,JUNE 12,2003—5:45 P.M. IOWA CITY AIRPORT TERMINAL MEMBERS PRESENT: Alan Ellis, Randy Hartwig, Rick Mascari, Baron Thrower STAFF PRESENT: Sue Dulek,Ron O'Neil CALL TO ORDER: Chairperson Ellis called the meeting to order at 5:48 p.m. APPROVAL OF MINUTES: The minutes of the May 6,2003,Commission meeting were approved as submitted. AUTHORIZATION OF EXPENDITURES: Mascari made a motion to pay the bills. Thrower seconded the motion.The motion passed 4-0, with Robnett being absent. PUBLIC DISCUSSION—ITEMS NOT ON AGENDA: Ellis introduced Randy Bisgard and Bobbi Thompson,from Airport Business Solutions,to the members of the Commission and staff. Ron Duffe,from Jet Air, said Jet Air has hired three more mechanics. He said the volume of maintenance has increased. He said he would like to work out an agreement to use t-hangars on a temporary basis when long-term tenants are not using them. O'Neil will work with Duffe on an agreement. Dick Blum, from H.It Green,said he would like to remind the Commission that Fly Iowa 2003 will be in Cedar Rapids on July 4, 5,and 6. ITEMS FOR DISCUSSION/ACTION: a. Aviation Commerce Park(ACP)-Tracy Overton, from Iowa Realty,presented his monthly report. He said there was not a lot to add to the report. He said commercial real estate sales are slow for everyone. He said there was an offer for the entire property but the offer was not enough to be considered a serious offer. Mascari asked about national advertising. O'Neil said Michael Hodges, from ABS,was going to contact Overton on where he thought it would be best advertise nationally. Thrower asked about the marketing plan from Iowa Commercial. Ellis said it was his recollection that Iowa Realty was selected with the understanding that the marketing would be regional instead of national. The Commission did not have additional funding to advertise nationally. Thrower asked what type of regional advertising is done? Overton said he meets with the Cedar Rapids office weekly,it is on their web site,and every quarter he sends an e-mail to 1 3200 commercial brokers. Thrower asked if there is a direct mailing part of their marketing? Overton said they have not made any direct mailing. O'Neil said Cedar Rapids Airport has a marketing person and they could be contacted to see hoe Cedar Rapids markets their property. Overton said he called a commercial broker in Joplin,Missouri. Joplin has a similar development to Iowa City. Overton said the realtor told him that commercial sales were slow. He said he is trying to get information from other people in the area and what their marketing plan is. O'Neil said the Joplin lease was reviewed when the lease for the ACP was being developed. Mascari made a motion to send a recommendation to the Council to terminate the agreement with Iowa Realty. Thrower seconded the motion. Ellis said he thought Mascari not giving Overton enough time. He said the entire commercial market was slow. He said ABS was hired to help the Airport and Iowa Realty. Thrower said some representations have been made by Iowa Realty and he did not think they had been fulfilled. Hartwig said because he is relatively new to the Commission,he was not ready to change realtors. Mascari said he has nothing personal against Iowa Realty or Overton,but since none of the property has been sold,he thinks a change should be made. He does not think Iowa Realty is being aggressive enough. He said he understands the market is slow,but he wants someone that is more aggressive. Ellis said that before the Commission selected Iowa Realty,Iowa Realty told the Commission it would be a ten-year project. Mascari said that if they hired another firm and they sold only one lot,that would be a 100%improvement. He said there have been no new contacts. He said he could have done as good of a job. O'Neil said the Commission needs to review the contract. Dulek said there is one contract that provides for leasing and sales. Ellis called for the vote. Mascari and Thrower voted for the motion to recommend to Council to terminate the contract Ellis and Hartwig voted against the motion. The motion was defeated for lack of a majority. b. Hangar#31 lease- Harry Hinckley,the tenant for hangar#31,was present to discuss the lease. Mascari asked Hinckley what specific changes he would like to make to the lease? Hinckley said he thought the whole lease should be changed. He said social engineering should not be done in a lease. He said it is a t-hangar lease modified to try to conform to a corporate hangar. He said the old lease form was better and more accurate for a corporate hangar. Hinckley said he would like to sit down with the Commission or a subcommittee and discuss the lease. Ellis said the Commission is not going back to the old lease. Hinckley asked specifically what the Commission thinks is wrong with the old lease? Ellis said the Commission is attempting to make all leases on the Airport more uniform. Hinckley said the Commission needs to take the time to read both leases and they will see the original lease is better. Ellis said there is nothing specifically wrong with the old lease. Mascari and Hartwig will meet with Hinckley to discuss the lease. The subcommittee will recommend a lease to the Commission for action at the July meeting. 2 c. Environmental Assessment project(consultant-Howard R Green)—The Commission agreed to discuss this issue with item(f). d. Strategy/business plan project(consultant ABS)—Thompson said they would review and comment on the corporate hangar lease as soon as information was sent to them. Otherwise, they were just there to observe and collect information while they were in Iowa City. O'Neil will send copies of the lease to ABS. e. Obstruction mitigation project(consultant Stanley Engineering)-Mike Donnelly,from Stanley,said they had made several contacts with obstruction owners. He said contacts were made by letter,phone and personal interviews. He said a list is being prepared that will let the Commission know how many obstructions they can mitigate for the money they have. Donnelly said he had contacted Menards. They have a corner of their building that is an obstruction and they would be willing to light it. O'Neil said Menards applied for an airspace study and were suppose to design the building so it would not be an obstruction. It should not be an obstruction if they built it according to plans. Donnelly said Menards said they couldn't find their copy of the airspace study. Donnelly said he has discussed several other ways to mitigate some of the obstructions and he thinks many of the obstructions will be mitigated. O'Neil said the obstructions need to be mitigated,regardless of whether or not the airport would get a precision approach. Donnelly said there is an unknown liability by the owners of the obstructions. The obstructions are a violation of federal airspace. Donnelly said that he has spoken with Gary Nagle,from the University of Iowa, and informed him that the University was required to do an airspace study before they placed the flagpole on the Old Capital dome. The University was not aware they needed a federal study. Donnelly will follow-up with the University. f. United Hangar disposition- Dick Blum,from H.R. Green, said he met in Kansas City last week with the FAA to discuss the EA. The disposition of the United hangar was discussed in connection with the extension of Runway 07. Joe'Mika said that the FAA had some questions about the noise contours that were included in the draft EA report. He said another question was that of rerouting or putting Willow Creek in a culvert. Trnka said the United hangar would need to be removed. It is an obstruction. Tmka said it would be about$20,000 to document the building before it is torn down. He said it could be moved and restored or moved and not restored. The FAA will pay for relocation,but not for restoration of the building. They would pay 90%of the site preparation if the building were moved. O'Neil said he had additional information that may be helpful and left the meeting to get the additional information. Blum said that in conjunction with doing the EA,the question was raised concerning what to do to reroute Willow Creek so it would not be in the runway safety area. The ALP has a design that would reroute the creek to the west. Blum suggested installing a culvert,with an overflow swail on top. • 3 To best accommodate the culvert,the runway elevation would be reduced by about 7 feet. This would mean less fill over the culvert and less fill for the runway extension. If the creek is put in a culvert, the creek would not be considered to be rerouted and that should reduce the time to receive approval from the various agencies. Blum said all the design and construction work is eligible for funding through the FAA AIP program. Blum said O'Neil could contact the FAA to see if they would agree to pay for the revision of the ALP. Ellis asked what the alternative would be? Blum said the alternative is to design the culvert with the runway elevation as it is currently shown on the ALP. Mascari asked if this was addressed when the 1996 ALP was completed? Blum said he thought there was discussion on rerouting the creek,but there were not a lot of questions on how McClure intended to reroute it. O'Neil will contact Todd Madison to see if the FAA would fund the additional planning. The discussion returned to the United hangar. Trnka said the Commission would need to decide whether they wanted to tear down the hangar or move it. If it were moved,would it be restored for use,or restored back to historic condition? Mascari said he would like to move it. He said the decision should be made on where it could be moved. O'Neil said one possible site would be east of Building H. A new service road would need to be constructed for the hangar and Building H. It would also access the buildings to the south. O'Neil said this location would not affect the two potential commercial lots on Riverside Drive. The FAA would participate in moving the hangar,to include site preparation. Restoration of the building would not be eligible. Thompson asked if there had been any cost/benefit analysis done on moving the hangar as opposed to tearing it down? She asked how much interest there was from the community to save the building and was there local funding to assist in restoration? Blum said RR Green has not done any cost analysis. He said Green would be willing to give the Commission a quote on doing a cost/benefit analysis. Blum said that several years ago, someone interested in moving the hangar to the ACP got an estimate of$20,000 to move the hangar. This did not include the brick office on the east side of the building. Ellis said this would be on the agenda for the July meeting. g. FY 2004 budget update-Ellis said he is not sure if the Commission wants a general discussion or if there were specifics the Commission wanted to discuss. Ellis said that in light of the cuts at the State level,he thought the Commission should review the budget again. He said they have reviewed the operating budget several times and did not think there was anything left to cut. Ellis said the City Manager had made a couple of suggestions and he would like to wait until the report is received from ABS before addressing his suggestions. O'Neil said he has reviewed the budget. He said because of the concern from Council last summer,the Commission dedicated more time to the budget than would normally be expected. O'Neil said that from an operations perspective,this is one of the tightest budgets he has had in the 15 years he has been at the Airport. Mascari asked how much money was being spent on the vehicle replacement fund? O'Neil said he thought it was about$12,000 a year for all the vehicles. Mascari said he would like to cut that vehicle replacement by half. O'Neil explained how the vehicle replacement 4 system worked. He said if the Commission wanted to reduce the dollar amount,they could amortize the vehicles for a longer time period. He said currently, airport vehicles are not automatically replaced at the end of their amortization schedule. They are assessed at the end of the schedule. O'Neil said he thought it was important that the Commission discuss the budget. He suggested a letter be sent from the Commission to the Mayor, outlining their discussion. He suggested the letter explain that the Commission has ABS looking into both expenditures and revenues. O'Neil said the operations expenditures have not changed dramatically over the years. The problem developed with the drop in revenue that started with the past FBO. O'Neil said Robnett had suggested at an earlier meeting that what needs to be done is that the budget should stay intact and that the Manager watch the expenditures even closer than in past years. Thrower said he has looked at the report from the City Manager and looked to see what other departments were doing to cut budgets. He said that if they can come up with any cuts, even if it is a small part of the budget,it would be helpful. Mascari made a motion to reduce the contribution to the vehicle replacement fund and to remove the line item for window coverings for the second floor of the Terminal building. Thrower seconded the motion and it passed 4—0,with Robnett being absent. Ellis said he will sent a letter to the Mayor,offering these cuts. CHAIRPERSON'S REPORT: Ellis said he had nothing additional to discuss. COMMISSION MEMBERS'REPORTS: Thrower reminded the Commission of the open house on June 14. He said Cable TV was going to film the event and run it on the public access channel. Mascari said he wanted to thank Hills Bank and Jet Air for their participation with the open house. Mascari said Mark Anderson told him about an airport he was at that held a city public works day at the airport. Mascari said he would like to look into doing that. ADMINISTRATIVE REPORT: O'Neil asked the Commission members if they knew of anyone that would be interested in being a member of the Airport Zoning Commission or the Airport Zoning Board of Adjustment. There have been vacancies for a long time. O'Neil said he would be advertising for an engineering firm for phase II and phase III of the Runway 07 extension project. O'Neil said an engineering firm should be selected to be ready to go when a grant is received. The RFP needs to include all projects that the Airport wants the firm to do. Firms know that they will not receive any money unless a grant is received. O'Neil said the FAA has a mobile unit to use for training for aircraft fires. It costs about$ 7000 for the training. He is working with the Fire Department to see where funding could be raised. 5 O'Neil said it would be valuable training for the volunteer departments in surrounding towns. There is no money in the Airport budget for this. O'Neil said he met with Ellis and a developer concerning property west of the Airport. O'Neil told the developer that nothing would be done until the Environmental Assessment is completed. There is some property that may be available for lease. The Commission indicated they would be willing to look at leasing property. O'Neil said he received an application from the national Deaf Pilots Association. They would like to hold their national meeting in Iowa City in July of 2005. O'Neil said the main down side to the convention is that the pilots do not use radios. Duffe,from Jet Air, said he thought it would be a good event for the Airport. The consensus of the Commission was that they would be in favor of the event. O'Neil said he sent a letter to Double Check,explaining they were still responsible for maintenance for another year on the fuel farm system. He has not heard back from them. The bids for the Mormon Trek project were due May 20. The bids were all under the engineer's estimate. O'Neil said the Commission would need to decide what to do about the fuel tank in between Buildings G and H. There are several costs associated with maintaining the fuel tank. This will be on the agenda at the next meeting. • SET NEXT MEETING: The next regular Airport Commission meeting is scheduled for July 15,2003,at 5:45 p.m. ADJOURNMENT: The meeting was adjourned at 8:44 p.m. Alan Ellis, Chairperson 6 IOWA CITY AIRPORT COMMISSION July 2003 Airport Expenditures Account 46110 Amount 119155 Commercial Towel May service 116.92 119156 PES Cathodic&leak test,Bldg H fuel tank 1161.75 119157 Chambers Electric Wiring—Bldg D 1250.06 119158 Walker Welding Hangar repair#48 47.00 119159 Midwest Janitorial June service 185.00 119160 City of Iowa City Sewer&water—Jun 194.34 119161 Chambers Electric Bldg D 315.00 119162 Backflow Prevention Annual test-Bldg E 170.00 The above listed expenditures were approved for payment at the Iowa City Airport Commission meeting on July 15,2003. Chairperson Vice-chairperson AVIATION COMMERCE PARK NM IOWA REALTY COMMERCIAL Status Report By Tracy K. Overton, 319-354-0989 July, 2003 Executive Summary: I received a couple of requests for information this month from local brokers. No sincere interest at this time. I spoke with Michael Hodges and he advised me of a couple of national publications to check into. He also suggested speaking with a real estate company called"Airport Property Specialists". Administrative Issues: New Issues 1. I feel we should check into the feasibility/cost of installing the access-way from ACP to the actual airport taxiways. This will be important if an Aviation related company should have an interest. 2. I would like to purpose a possible joint marketing effort between Iowa Realty Commercial and Airport Property Specialists. If they would have an interest in handling all national marketing and allow us to handle all local marketing I would recommend combining the effort. I have not explored the above with Airport Property Specialists and therefore not sure of the overall feasibility at this time. Marketing Issues: Advertising Aviation International News Readership—40,000 Ad Size-5"x 7" Monthly Cost: 4-color $3,800.00 per month 2-color $2,600.00 per month B&W $1,800.00 per month Business &Commercial Aviation Readership—50,000 Ad Size - 5"x 7"(Classified Section) Monthly Cost: B&W $4,200.00 per month Prospects No strong prospects at this time. June 17, 2003 • Mr. Michael A. Hodges Airport Business Solutions 365 Arroyo Drive Roswell, Georgia 30075-1258 RE: Aviation Commerce Park, Iowa City, Iowa Dear Mr. Hodges: As you and your team move forwardon the Iowa City Airport assignment,I wanted to let you know that I am looking forward to your insight as to the above referenced. With a lagging national economy and soft local real estate market, I am very open and receptive for advice on any and all marketing suggestions or strategies for the Aviation Commerce Park. Also,please feel free to contact me anytime should you need any information or wish to discuss the marketing and sales program for Aviation Commerce Park. I know Aviation Commerce Park represent only a portion of the overall assignment, but, if appropriate, and your schedule allows I would like to discuss with you, in detail, how "through-the-fence" arrangements typically work and who would be responsible for bridging the drainage way and installing taxiways between Aviation Commerce Park and the Airport. Additionally, I would like to discuss your thoughts on how best to market the Commerce Park to the aviation industry. Once again please feel free to contact me anytime regarding the above. I look forward to hearing from you and to further discussing your ideas and strategies regarding Aviation Commerce Park. Sincerely, NAI Iowa Realty Commercial Tracy K. Overton Regional Director CC: Steve Atkins Ron O'Neil DRAFT 09 JUL 03 HANGAR LEASE This HANGAR LEASE ("Lease") , applicable only for activities on the Iowa City airport property, entered into by and between the Iowa City Airport Commission ("Commission") and Interwest Equities ("Tenant"). In consideration of the mutual covenants contained herein, and for other good and valuable consideration, the parties hereby agree as follows: 1. Lease of the Hangar Space. The Commission hereby leases to Tenant hangar space in Hangar # 31 (the "Hangar Space") located at the Iowa City Municipal Airport (the "Airport") and described as follows: Building G, corporate hangar with a 48' bifold door and attached office area. The Hangar Space shall be used and occupied by Tenant principally for the storage or construction of the following aircraft: Aircraft Make & Model Aircraft Registration Number Aircraft Registered Owner Name Registered Owner Home and Business Telephone Numbers Tenant shall promptly notify the Commission in writing of any change in the information furnished above. Tenant may request permission to store a substitute aircraft in the Hangar Space by making a written request to the Commission. In the event Tenant is permitted to store a substitute aircraft in the Hangar Space, all provisions of this Lease applicable to the Aircraft shall also be applicable to the substitute aircraft. 2. Term. The term of this Lease shall commence on , and shall end on the last day of the month of Tenant agrees to notify the Commission 45-days prior to the expiration of the existing term if the Tenant does not intend to negotiate another term. In the event Tenant shall continue to occupy the Hangar Space beyond the term of this Lease without executing a Lease for another term, such holding over shall not constitute a renewal of this Lease but shall be a month-to-month tenancy only. 3. Rent For use of the Hangar Space, Tenant shall pay the Commission the amount of$365.50 per month, payable in advance on the first day of each month. A 1.5% late fee (which is $5.50 per day) for rent not received by the Commission will be charged after the fifteenth (15) day of each month. 4. Security Deposit. At the time of execution of this Lease, Tenant shall pay to the Commission in truSt the sum of one month's rent to be held as a rental deposit. In the event that the tenant renews the lease, the deposit will be held for the next lease term. If the tenant does not continue on with a renewed lease, the Commission shall return the deposit to the Tenant, less any amounts due the Commission for rent and damages to the Hangar Space. The deposit is waived for the term of this lease. 5. Use of the Hangar Space and office a. The Hangar Space shall be used for storage, amintenance, repair and/or construction of the listed Aircraft consistent with FAR and the Minimum Standards. 2 b. Tenant may park his/her car in the Hangar Space during such time that Tenant is using the Aircraft. c. This provision is not to be construed as a prohibition for storage of maintenance materials, cleaning materials, tools, parts, spares, and other aircraft components. d. Only aviation-related activities shall be conducted by Tenant in, from or around the Hangar Space unless prior approval is received from the Commission, as stated in the Minimum Standards. e. No maintenance of non-Isited Aircraft shall be performed in the Hangar Space or anywhere on the Airport without the prior written approval of the Commission. f. Tenant shall be responsible and liable for the conduct of its invitees, and in and around the Hangar Space. Tenant shall keep the Hangar Space clean and free of debris at all times. g. In utilizing the Hangar Space during the term of this Lease, Tenant shall comply with all applicable ordinances, rules, and regulations established by controlling agencies. h. Tenant shall dispose of used oil only in approved receptacles. At no time shall Tenant start or run his/her Aircraft engine(s) within the Hangar or Hangar Space. j. On the termination of this Lease, by expiration or otherwise, Tenant shall immediately surrender possession of the Hangar Space and shall remove, at its sole expense, the Aircraft and all other property therefrom, leaving the Hangar Space in the same condition as when received, ordinary wear and tear excepted. k. Tenant shall be liable for any and all damage to the Hangar or to the Hangar Space caused by Tenant's use, including, but not limited to, bent or broken interior walls, damage due to fuel spillage, or damage to doors due to Tenant's improper or negligent operation. I. Tenant agrees, at its own expense, to pay for the monthly costs of all utilities, except water and sewer, for the hangar and office. Commission agrees to furnish monthly water and sewer service at no expense to the Tenant. Tenant is responsible for his own refuse disposal. 6. Rights and Obligations of Tenant a. Tenant shall have at all times the right of ingress to and egress from the Hangar Space, except as provided in Paragraph 12. To ensure this right, the Commission shall make all reasonable efforts to keep adjacent areas to the Hangar Space free and clear of all hazards and obstructions, natural or manmade. b. Tenant shall be responsible to maintain the interior of the Hangar Space to include janitorial services, maintaining all interior lights, keeping faucets closed so as to prevent waste of water and flooding of the premises, to promptly take care of any leakage or stoppage in any of the water, gas, or waste pipes inside the hangar building, to repair any damage to electrical circuits due to overloading, cleaning of snow within two (2) feet of the hangar, disposing of any debris or waste materials, and maintaining any Tenant constructed structures and equipment. Tenant agrees to maintain adequate heat to prevent freezing of pipes and is responsible for minor plumbing repairs. The Commission shall be the sole judge of the maintenance undertaken by the Tenant, and may upon 3 written notice, require specific maintenance work to be completed. If such • maintenance is not completed within a reasonable time period, the Commission shall have the right to perform such due maintenance, and Tenant shall reimburse the Commission for the cost of such maintenance upon presentation of a billing. Tenant, at its own expense may paint and carpet the office space. Tenant shall make no structural alterations or improvements without first obtaining the Commission's written approval of the plans and specifications. c. Lessee shall provide and maintain a hand fire extinguisher for the interior of the Hangar Space of the building in accordance with applicable safety codes. Extinguisher must be mounted and be rated at least 2A 40BC. d. Tenant shall not store any materials outside the Hangar Space. e. Tenant shall notify the Manager, of any repairs needed, if repairs are not addressed in a timely manner. Tenant will notify the Commission in writing. 7. Rights and Obligations of the Commission. a. The Commission shall at all times operate and maintain the Airport as a public airport consistent with and pursuant to the Sponsor's Assurances given by Authority to the United States Government under the Federal Airport Act. b. The Commission shall not unreasonably interfere with the Tenant's use and enjoyment of the Hangar Space. c. The Commission shall maintain and keep the Hangar and Hangar Space in good repair except for the maintenance obligations of Tenant set forth in the Lease. In no event, however, shall the Commission be required to maintain or repair damage caused by the negligent or willful act of Tenant, its agents, servants, invitees, or customer. Tenant is responsible for the damage of its agent, servants, invitees or customers. d. Snow shall be removed from in front of Hangar Space to within at least two (2) feet of the Hangar. Snow removal closer than two (2) feet is the responsibility of the Tenant. e. The Commission shall ensure appropriate grounds keeping is performed year round. 8. Sublease/Assignment. Tenant shall not sublease the Hangar Space or assign this Lease without the prior written approval of the Commission. 9. Condition of Premises. Tenant shall accept the Hangar Space in its present condition with supplied mechanical facilities in a good state of repair without any liability or obligation on the part of the Commission to make any alterations, improvements or repairs of any kind on or about said Hangar Space. 10. Alterations. Tenant shall not install any fixtures or make any alterations, additions or improvements to the Hangar Space without the prior written approval of the Commission. All fixtures installed or additions and improvements made to the Hangar Space shall, upon completion of such additions and improvements, become Commission property and shall remain in the Hangar Space at the expiration or termination of this Lease, however 4 terminated, without compensation or payment to Tenant. Fixtures include, but are not limited to, locks, brackets for window coverings, plumbing, light fixtures, luminaries, and any item permanently attached to the wall, floor, or ceiling of the Hangar Space by means of concrete, plaster, glue, nails, bolts, or screws. This does not include equipment or personal items. 11. Hazardous Materials. a. No "hazardous substance,"as defined in Iowa Code section 4556.411 (2001), may be stored, located, or contained in the Hangar Space in proper storage containers. b. Tenant shall handle, use, store and dispose of fuel petroleum products, and all other non-"hazardous substances"owned or used by it on the Airport in accordance with all applicable federal, state, local and airport statutes, regulations, rules and ordinances 12. Special Events. During special events at the Airport, Tenant acknowledges that the standard operating procedure at the Airport may be altered such that egress and ingress to the Hangar Space may be altered by the Commission. Tenant's failure to comply with the altered procedure is a default of this Lease, and the Commission may proceed to terminate this Lease. 13. Airport Rules and Regulations. Tenant agrees to be subject to Airport rules and regulations upon adoption by the Commission or provide 30-days notice to terminate this Lease. Commission shall provide Tenant with a copy of said and regulations 30-days prior to their effective date. All tenants will receive prior notification any public hearings directly affecting the lease. 14. Access and Inspection. The Commission has the right to enter and inspect the Hangar Space at any reasonable time during the term of this Lease upon at least 24 hours notice to the Tenant for any purpose necessary, incidental to or connected with the performance of its obligations under the Lease or in the exercise of its governmental functions. In the case of an emergency, the Commission may enter the Hangar Space without prior notice but will provide notice to the Tenant after the fact. The Commission shall not, during the course of any such inspection, unreasonably interfere with the Tenant's use and enjoyment of the Hangar Space. At a minimum, the Hangar Space will be inspected annually. Upon execution of this Lease, the Tenant wants to change the lock to the Hangar Space, he or she shall provide written notice to the Airport Manager before he or she does so and shall provide a key to the Manager within twenty-four hours of changing the lock. 15. Insurance. a. Tenant shall at its own expense procure and maintain general liability and casualty insurance in a company or companies authorized to do business in the State of Iowa, in the following amounts: Type of Coverage Comprehensive General (or Premises)Liability- Each Occurrence $1,000,000 b. Tenant's insurance carrier shall be A rated or better by A.M. Best. Tenant shall name the Commission and the City of Iowa City, as additional insured. The Commission and Tenant acknowledge that a Certificate of Insurance is 5 attached to this Lease. Tenant shall provide fifteen (15) days notice to the Commission before cancellation of said insurance. 16. Casualty. In the event the Hangar or Hangar Space, or the means of access thereto, shall be damaged by fire or any other cause, the rent payable hereunder shall not abate provided that the Hangar Space is not rendered untenantable by such damage. If the Hangar Space is rendered untenantable and Commission elects to repair the Hangar or Hangar Space, the rent shall abate for the period during which such repairs are being made, provided the damage was not caused by the acts or omissions of Tenant, its employees, agent or invitees, in which case the rent shall not abate. If the Hangar or Hangar Space is rendered untenantable and Commission elects not to repair the Hangar or Hangar Space, this Lease shall terminate. 17. Indemnity. Except as to any negligence of the Commission, arising out of roof and structural parts of the building, Lessee will protect, indemnify and save harmless the Commission, the Commission's employees and the City of Iowa City from and against any and all loss, costs, damage, and expenses occasioned by, or arising out of, any accident or other occurrence, including fire, causing or inflicting injury and/or damage to any person or property, happening or done, in, upon or about the leased premises, or due directly or indirectly to the tenancy, use or occupancy thereof, or any part thereof by Lessee or any person claiming through or under Lessee. 18. Disclaimer of Liability. The Commission hereby disclaims, and Tenant hereby releases the Commission from any and all liability, whether in contract or tort (including strict liability and negligence) for any loss, damage or injury of any nature whatsoever sustained by Tenant, its employees, agents or invitees during the term of this Lease, including, but not limited to, loss, damage or injury to the Aircraft or other property of Tenant that may be located or stored in the Hangar Space, unless such loss, damage or injury is caused by the Commission's gross negligence or intentional willful misconduct. The parties hereby agree that under no circumstances shall the Commission be liable for indirect consequential, special or exemplary damages, whether in contract or tort (including strict liability and negligence), such as, but not limited to, loss of revenue or anticipated profits or other damage related to the leasing of the Hangar Space under this Lease. 19. Attorney Fees. If the Commission files an action in district court to enforce its rights under this Lease and if judgment is entered against the Tenant, Tenant shall be liable to and shall pay for the Commission's attorney fees incurred in enforcing the Lease and in obtaining the judgment. 20. Event of Default. This lease shall be breached if: (a) Tenant fails to make the rental payment; or (b) Tenant or the Commission fails to perform any other covenant herein and such default shall continue for five (5) days after the receipt by the other party of written notice. Upon the default by Tenant, or at any time thereafter during the continuance of such default, the Commission may take any of the following actions and shall have the following rights against Tenant: a. Termination. Commission may elect to terminate the lease by giving no less than thirty (30) days prior written notice thereof to Tenant and upon passage of time specified in such notice, this lease and all rights of Tenant hereunder shall terminate as fully and completely and with the same effect as if such date were 6 • the date herein fixed for expiration of the Term and Tenant shall remain liable as provided in this paragraph. b. Eviction. Commission shall have the immediate right upon Termination of this lease to bring an action for forcible entry and detainer. c. Tenant to remain liable. No termination of this lease pursuant to this paragraph, by operation or otherwise, and no repossession of the hangar space or any part therof shall relieve Tenant of its liabilities and obligations hereunder, all of which shall survive such termination, reposssession or reletting. d. Damages. In the event of any termination of this lease or eviction from or repossession of the hangar space or any part thereof by reason of the occurrence of an Event of Default, Tenant shall pay to the Commisison the rent and other sums and charges required to be paid by Tenant for the period to and including the end of the Term. 21. Security. Tenant acknowledges that the FAA or Homeland Security or subdivision may enact laws or regulations regarding security at general aviation airports such that the Commission may not be able to comply fully with its obligations under this Lease, and Tenant agrees that the Commission shall not be liable for any damages to Tenant that may result from said non-compliance. 22. Thirty (30) Days Termination. Either party to this Lease shall have the right, with cause, to terminate this Lease by giving thirty (30) days' prior written notice to the other party. 23. Non-Discrimination. Tenant 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, marital status or age. "Employment" shall include but not be limited to hiring, accepting, registering, classifying, promoting, or referring to employment. "Public accommodation" shall include but not be limited to providing goods, services,facilities, privileges and advantages to the public. 24. FAA Provisions. a. Tenant, 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, lessee, 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. Tenant, for itself, personal representatives, 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 Tenant, shall use the premises in 7 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 is 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. This Lease shall be subordinate to the provisions of any outstanding or future agreement between the Commission and the United States govemment or the Commission and the State of Iowa relative to the maintenance, operation, or development of the Iowa City Municipal Airport. Tenant acknowledges and agrees that the rights granted to Tenant in this Lease will not be exercised so as to interfere with or adversely affect the use, operation, maintenance or development of the Airport d. Tenant 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 Tenant may make reasonable and non-discriminatory discounts, rebates, or other similar types of price reductions to volume purchasers. e. The Commission reserves the right (but shall not be obligated to Tenant) 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 Tenant in this regard. f. The 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 Tenant, and without interference or hindrance. g. The 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 Tenant 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. h. During time of war or national emergency, the 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. It is understood and agreed that the rights granted by this Lease 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 8 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. 25. Remedies Cumulative. The rights and remedies with respect to any of the terms and conditions of this Lease shall be cumulative and not exclusive, and shall be in addition to all other rights and remedies available to either party in law or equity. 26. Notices. Any notice, for which provision is made in this Lease, shall be in writing, and may be given by either party to the other, in addition to any other manner provided by law, in any of the following ways: a. by personal delivery to the Airport Manager or the Commission Chairperson b. by service in the manner provided by law for the service of original notice, or c. by sending said Notice by certified or registered mail, return receipt requested, to the last known address. Notices shall be deemed to have been received on the date of receipt as shown on the return receipt. If to the Commission, addressed to: Iowa City Airport Commission Attn: Airport Manager Iowa City Municipal Airport 1801 S. Riverside Drive Iowa City, IA 52246 If to Tenant, addressed to: Interwest Equities 886 Park Place Iowa City, Iowa 52245 27. Airport Manager. The Airport Manager is the person designated by the Commission to manage the Hangar Space and to receive and deliver all notices and demands upon the Commission, to receive keys to the Hangar Space as provided in Paragraph 14, and to perform inspections as provided in Paragraph 14. 28. Integration. This Lease constitutes the entire agreement between the parties, and as of its effective date supersedes all prior independent agreements between the parties related to the leasing of the Hangar Space. Any change or modification hereof must be in writing signed by both parties. 29. Waiver. The waiver by either party of any covenant or condition of this Lease shall not thereafter preclude such party from demanding performance in accordance with the terms hereof. 30. Successors Bound. This Lease shall be binding and shall inure to the benefit of the heirs, legal representatives, successors and assigns of the parties hereto. 31. Severability. If a provision hereof shall be finally declared void or illegal by any court or administrative agency having jurisdiction over the parties to this Lease, the entire Lease shall not be void, but the remaining provisions shall continue in effect as nearly as possible in accordance with the original intent of the parties. 9 IOWA CITY AIRPORT COMMISSION By: Title: Date: Interwest Equities Approved: By: City Attorney's Office Title: Date: a Q'O 12 IOWA CITY MUNICIPAL AIRPORT 1801 South Riverside Drive Iowa City, Iowa 52246 Office Phone(319) 356-5045 3 June 13, 2003 Airport Business Solutions Ms Bobbi Thompson 17040 Pleasure Road Cape Coral, Florida 33903 Dear Bobbi: I have started on the list of information you and Randy requested. Included in this information is: 1. A list of 2003 leases 2. A typical T-hangar lease 3. The old FBO lease with Iowa City Flying Service 4. The current FBO lease with Jet Air 5. Three versions of the lease for corporate hangar#32 that were discussed at the meeting you attended. The first one is similar to the lease the tenant was familiar with, with just the term dates and rent changed from the last lease. The second one is a lease the Commission approved in January and the third is the same as the second, with comments from the tenant incorporated. I will work on the rest of your list when I get back from vacation. If you have questions about this information, please contact me at (319) 356-5045 or e-mail at ron-oneil(a�iowa-city.orq Sincerely 0 .O Ronald J. O'Neil Airport Manager Cc: Airport Commission • IOWA CITY MUNICIPAL AIRPORT—FY 2003 LEASES 1. LEASEE—GREAT PLAINS AERO, INC. (BLDG G) Nature of Lease-Corporate hangar No. 33. Term of Lease-March 1, 2003 through February 28, 2006. Rent Received -$ 358.00 per month. 2. LEASEE -CITY OF IOWA CITY. Nature of Lease-The City of Iowa City leases approximately one third (1/3) of an acre of property in the northeast quadrant of the Airport and has constructed a storage facility for the Housing Rehabilitation Program. Term of Lease—Month to month. Rent Received-$ 116/month 3. LEASEE -JIM DANE Nature of Lease-Mr. Dane farms approximately 20 acres of agricultural property. Term of Lease-March 1, 2003 through February 28, 2004. Rent Received-The property is leased on a cash rent per acre basis. 4. LEASEE-GORDON AIRCRAFT, INC. (BLDG H) Nature of Lease-Corporate hangar No. 35 and office space. Term of Lease-January 10, 2002 through December 31,2006. Rent received-$ 1250 per month, plus$.06/gal.flowage fee. 5. LEASEE—DON GURNETT(BLDG G) Nature of Lease-Corporate hangar No. 34 Term of Lease—March 1, 2003 through February 28, 2006. Rent Received-$298.00 per month. 6. LEASEE -INTERWEST EQUITIES, INC. (BLDG G) Nature of Lease-Corporate hangar No. 31. Term of Lease-March 1, 2003, through February 28, 2006. Rent Received -$ 358.00 per month. 7. LEASEE—IOWA CITY AIRCRAFT REPAIR(BLDG G) Nature of Lease-Corporate hangar No. 32. Term of Lease—October 1, 2001 through September 30, 2003. Rent Received -$450.00 per month. 8. LEASEE-IOW Aero, INC (BLDG D) Nature of Lease—Building D Term of Lease—December 1, 2001 through December 31, 2004. Rent Received -$500.00 per month. 9. LEASEE -IOWA CITY COMMUNITY SCHOOL DISTRICT Nature of Lease-The school district leases approximately one (1) acre of property in the • northeast quadrant of the Airport. This area is used for storage of equipment. Term of Lease-August 1, 2002 through July 31, 2003. Rent Received-$3886.00 10. LEASEE-IOWA NATIONAL GUARD Nature of Lease-Approximately one half(1/2) acre for vehicle storage. Term of Lease-September 1, 2001 through August 31, 2004. Rent Received-$2884 annually. 11. LEASEE-JET AIR, INC (BLDGS E& F) Nature of lease-Jet Air is a fixed base operator at the Airport. Areas leased include: a. Office space in the Terminal Building (Bldg E) b. Multi-plane hangar(Bldg F) Term of Lease-January 1, 2002 through December 31, 2006. Rent Received-$0, month 1 -3, $ 1000, Month 4- 12, $ 1500, month 13-24, $3000, month 25 and thereafter. 12. LEASEE-MENARD, INC. Nature of Lease-Menard, Inc. has an easement for a drainage pipe for their water detention area. Term of Lease -Indefinite until property is required for aviation purposes. Rent Received -$45.60 annually 13. LEASEE-NORTH T-HANGAR BUILDING (BLDG A) Nature of Lease-Ten individual T-hangars, 870 Sq. ft. each. Term of Lease- (1) year lease with one-month deposit. Rent Received-$ 110.00 monthly. 14. LEASEE -NORTH T-HANGAR BUILDING (BLDG B) Nature of Lease-Ten individual T-hangars, 886 sq. ft. each. Term of Lease-(1) year lease with one-month deposit. Rent Received-$ 120.00 monthly. 15. LEASEE -NORTH T-HANGAR BUILDING (BLDG C) Nature of Lease-Ten individual T-hangars, 884 sq. ft. each. Term of Lease-(1)year lease with one-month deposit. Rent Received-$ 120.00 monthly. 16. LEASEE -SOUTH T-HANGAR BUILDING (BLDG J) Nature of Lease-Ten individual T-hangars, 1071 sq. ft. each. Term of Lease-(1)year lease with one-month deposit. Rent Received -$ 130.00 monthly. 17. LEASEE—SOUTHEAST T-HANGAR BUILDING (BLDG I) Nature of Lease—ten individual T-hangars, 1071 sq. ft. each. Term of Lease—(1)year lease with one-month deposit. Rent received-$ 130.00 monthly. 18. LEASEE -SOUTHWEST T-HANGAR BUILDING(BLDG K) Nature of Lease-nine individual T-hangars Term of lease-(1) year lease with one-month deposit. Rent received - Rents vary from $ 135/month to$250/month, depending on hangar size. 19. LEASEE -UNITED STATES ARMY RESERVE Nature of Lease-Approximately 24,000 square feet of land directly west of the Army Reserve Center on the east side of Airport property, adjacent to South Riverside Drive. Term of Lease-August 15, 2002 through July 31, 2007. Rent Received-$2,475.60 annually. 20. LEASEE-WALMART STORES, INC. Nature of Lease -Approximately .57 acres in the northwest quadrant of the Airport, used as a storm water detention basin. Term of Lease-January 25, 1991 through January 24, 2071. Rent Received -$ 1,875 annually. 21. LEASEE-TOM AND KAREN WILLIAMS Nature of Lease- Mr. Williams farms approximately 160 acres of agricultural property. Term of Lease-March 2003 through February 2004. Rent Received-The property is leased on a cash rent per acre basis. 22. LEASEE—MITCHELL-JIRSA, INC. Nature of Lease—Property directly south of the Mormon Trek intersection is leased for a parking lot. Term of Lease—Month to month Rent Received-$ 120.00/month Iowa City Airport Commission Iowa City Municipal Airport June 12, 2003 Obstruction Mitigation Work Sheet—"Old United Hangar" The issue: The Old United Hangar (OUH) is in a location on the airport inside of the required safety area surrounding Runway 25. This area must be clear of non-required structures. Since OUH is old enough, and significant historically, it is eligible as an historic building for listing in the National Register of Historic Places. Thus any action taken to mitigate the obstruction is subject to certain federal requirements for dealing with historic property. Options: 1. Redesign the runway to eliminate OUH from the safety area. 2. Demolish OUH 3. Relocate OUH to a location elsewhere on the airport 4. Relocate OUH to a location off of the airport 5. Other Discussion issues: 1. The planned design for Runway 25 is contemplated in the FAA approved Airport Master Plan, and although it would be possible to revise the plan, it would be unlikely that the plan's aviation goals can be met while retaining OUH in its present location. 2. Historic buildings can be demolished, but certain steps are required to do so, and not without cost. The building must be recorded first. This is generally done through the use of large-format photography, recordation of the building's design (as-builts or measured drawings), and a historic narrative that verbally describes the building and its historic importance. Costs of recording and demolishing are eligible under AIP guidelines. The cost for recording a building like the hangar could easily reach $20,000, depending upon the level of detail required and the amount of information that is already available. 3. It has been determined that relocation can be accomplished, but not without some difficulty. The hangar portion of the building is easier to move than the brick portion. The brick portion would likely first need to be tuck-pointed in order to stabilize the brick prior to moving the building. A site would need to be prepared to receive the building. Site preparation would include grading, foundation and floor surface (probably concrete,) drainage, sewer and water. Once relocated, the roof, windows, and doors of the brick portion would probably need to be restored to their historic appearance. The interior of the building may not need to be restored to its historic appearance, however, the building may require other interior work such as electrical, plumbing, flooring, etc. The FAA has indicated Howard R.Green Company O:\Prg1900110CSM-IO1MObstruction Discussion.doc that cost of moving the building, as well as cost of site preparation at the new location, are AIP eligible items. A. Although direct relocation costs are eligible, building rehabilitation costs not required as a part of the move are not. Painting, roofing, glass replacement, and similar costs would probably be categorized as rehabilitation. B. Continuing costs of maintaining the building, either for commercial or non- commercial use, are not eligible AIP items. C. Some Iowa money ($50,000?) might be available (70/30 split). D. Additional grant money might be available because of the historic nature of the structure. E. The building might still need to be recorded first since the movement of a historic building from its original location is considered to be an adverse effect, according to federal guidelines. 4. Moving the structure off of the airport may have some merit. Some of the cost might be eligible for reimbursement, but the historic value would probably be lost. Recording prior to such a move would likely be required. 5. Other discussion: • Howard R.Green Company O:\Proj\900110CSM-IOW\Obstruction Discussion.doc RESOLUTION NO. RESOLUTION AUTHORIZING THE CHAIRPERSON TO SIGN AND THE SECRETARY TO ATTEST A LEASE AGREEMENT BETWEEN THE IOWA CITY AIRPORT COMMISSION AND THE IOWA CITY COMMUNITY SCHOOL DISTRICT. WHEREAS, the Airport Commission of the City of Iowa City, Iowa and the Iowa City Community School District have negotiated a lease agreement for a parcel of Airport property approximately 100 feet by 400 feet, located in the northeast quadrant of Airport property, as shown in Exhibit A of the lease; and, WHEREAS,the term of the lease is for one (1)year, from August 1, 2003 to July 31, 2004; and, WHEREAS,the rent for the one year term is$4003.00. NOW, THEREFORE, BE IT RESOLVED BY THE AIRPORT COMMISSION OF THE CITY OF IOWA CITY, IOWA, that the Chairperson is hereby authorized to sign and the Secretary to attest said lease agreement with the Iowa City Community School District. It was moved by and seconded by the Resolution be adopted, and upon roll call there were: AYES NAYS ABSENT Mascari Thrower Ellis Robnett Hartwig Passed and approved this day of . 2003. Approved by CHAIRPERSON ATTEST: SECRETARY City Attorney's Office LEASE This lease agreement, executed in duplicate, is made and entered into this 15"' day of July, 2003, by and between the Iowa City Airport Commission (hereinafter called "LANDLORD"), whose address for the purpose of this lease is 1801 South Riverside Drive, Iowa City, Iowa 52246, and the Iowa City Community School District (hereinafter called 'TENANT'), whose address for the purpose of this lease is 509 S. Dubuque Street, Iowa City, Iowa 52240. WITNESSETH 1. PREMISES AND TERM. Landlord, in consideration of the rents herein reserved and of the agreements and conditions herein contained, leases unto Tenant and Tenant hereby rents and leases from Landlord, the following-described real estate, hereinafter "leased property", situated in Johnson County, Iowa, to wit: Commencing at a point 2,105 feet east of the northwest corner of the south half of the southeast quarter of Section 16, Township 79 North, Range 6 West of the 5th P.M. to the point of beginning, thence west along the north line of property of the Iowa City Municipal Airport 400.0 feet, thence south 100.0 feet, thence east on a line parallel to the north line to the westerly boundary of property of the Iowa City Community School District, thence north along said westerly boundary to the point of beginning. 2. TERM; RENEWALS. This lease shall be for a term of one year, commencing on the 1st day August, 2003, and expiring on the 31st day of July, 2004. Tenant shall have the right to renew this lease for two (2) additional one-year terms upon payment to Landlord of the yearly rental for each such renewal period. Such renewal right shall be exercised by payment of the rent prior to the expiration of the initial term, or any renewal term, as the case may be. However, Landlord may terminate this lease upon sixty (60) days written notice to Tenant. If the Landlord terminates the lease before July 31, 2004, the rent will be returned on a pro rata basis. 3. RENTAL. Tenant shall pay rent in the amount of $4,003.00, to be paid on or before August 1, 2003. If Tenant renews the lease for additional one-year terms, the rent shall be that as listed on "Exhibit A." All rent is to be paid to the landlord at the address stated in the first paragraph of this lease. 4. USE OF PROPERTY. Tenant covenants and agrees during the term of this lease to use and to occupy the Premises only for the storage of its equipment and supplies. Tenant agrees that the maximum height of any items located on the Premises shall not exceed the height limitation of any Airport Overlay Zone, which is now, or hereafter in effect with respect to the Iowa City Municipal Airport. Further, Tenant covenants and agrees that it shall not allow any activities on the Premises which are contrary to any Federal, State, or local codes or regulations and/or which cause dust or smoke. Tenant shall not install any lights causing electronic interference, or other adverse impacts on Airport operations. 2 Tenant shall fence the Premises with chain-link fence not to exceed eight (8) feet in height, and the north and west sides of such fence must have shielding. Such fence shall be located entirely upon the Premises. Tenant shall have the right to gravel the Premises, provided that within a period of thirty (30) days following termination of this lease, Tenant shall remove the gravel and fence if requested to do so by Landlord. No other structure will be erected upon the Premises without the prior written consent of Landlord. 5. INSURANCE AND SUBROGATION. Tenant covenants and agrees that it will at its own expense procure and maintain general liability and casualty insurance in a company or companies authorized to do business in the State of Iowa, in the following amounts: Type of Coverage a. Comprehensive General (or Premises) Liability- Each Occurrence $1,000,000 Tenant's insurance carrier shall be A rated or better by A.M. Best. Tenant shall name the Commission and the City of Iowa City, as additional insured. Tenant shall deliver to the Commission, within thirty (30) days of execution of this agreement, Certificates of Insurance or copies of said policies. Tenant shall provide fifteen (15) days notice to the Commission before cancellation of said insurance. 6. NON-DISCRIMINATION. The Tenant covenants, in consideration of the right to lease property at the Iowa City Municipal Airport, that the Tenant, 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, marital 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. The Tenant shall remain in compliance with all requirements of 49 CFR Part 21, Non-Discrimination in Federally Assisted Programs of the Department of Transportation. 7. INDEMNIFICATION. The Tenant agrees to defend, indemnify and save harmless the Landlord, its officers, employees, and agents, together with the City of Iowa City, Iowa and its officers, employees, and agents, from any and all liability or claims of damages arising under or by reason of the terms of this lease, including but not limited to the Tenant's use of the Leased Property. 8. NOTICES AND DEMANDS. Notices as provided for this lease shall be given to the parties hereto at the respective addresses designated in the first paragraph of this lease, unless either party notifies the other, in writing, of a different address. 9. DEFAULTS._ Upon default in payment of rental herein or upon any other default by Tenant in accordance with the terms and provisions of this lease, this lease may at the option of the Commission be terminated. Waiver as to any default by Tenant shall not constitute a waiver by the Commission of any subsequent default or defaults. 3 10. SUCCESSORS AND ASSIGNS. Each and every covenant and agreement herein contained shall extend to and be binding upon the respective successors and assigns of the parties hereto. 11. ASSIGNMENT AND SUBLET. Any assignment of this lease or any subletting of the Leased Premises or any part thereof, without the written consent of the other is prohibited. 12. GRANT ASSURANCES. This agreement shall be subordinate to the provisions of any outstanding or future agreement between the Commission and the United States government or the Commission and the State of Iowa relative to the maintenance, operation, or development of the Iowa City Municipal Airport. Tenant acknowledges and agrees that the rights granted to Tenant in this agreement would not be exercised so as to interfere with or adversely affect the use, operation, maintenance or development of the Airport. 13. FAA PROVISIONS, For purposes of paragraphs (a) through (k) below, the Commission shall be referred to as the Landlord and School District shall be referred to as the Tenant. (a) The Tenant, for himself, his 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, Tenant, 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) The Tenant, for himself, his 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 the Tenant 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. 4 (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. (d) Tenant 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 Tenant may make reasonable and non-discriminatory discounts, rebates, or other similar types of price reductions to volume purchasers. (e) Landlord reserves the right (but shall not be obligated to Tenant)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 Tenant in this regard. (f) Landlord 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 Tenant, and without interference or hindrance. (g) Landlord reserves the right to take any action it considers necessary to protect the serial approaches of the airport against obstructions, together with the right to prevent Tenant from erecting, or permitting to be erected, any building or other structure on the airport which in the opinion of Landlord would limit the usefulness of the airport or constitute a hazard to aircraft. (h) During time of war or national emergency Landlord 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 (name or Landlord), 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 Landlord 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. 5 IN WITNESS WHEREOF, the parties hereto have duly executed this Lease in duplicate as of the day and year first above written. IOWA CITY COMMUNITY SCHOOL DISTRICT IOWA CITY AIRPORT COMMISSION By: By: Chairperson ATTEST: ATTEST: Secretary Date: Date: Approved by City Attorney's Office 1rFr?flflfl1?r a JUN 2 3 2003 Hills Bank --1Lic wu U 131 Main Street Hills, Iowa 52235 and Trust Company 319-679-2291 June 17, 2003 Ron O'Neil Iowa City Airport 1801 S Riverside Dr Iowa City IA 52240 Dear Ron, On behalf I want to thank you all the help in making the airport open house successful. The weather was great and the variety of planes was very good. I have gotten many good responses back from customers about the event. I appreciate your time and help in putting this together. I have learned a lot about what goes at the airport that I was not aware of before—that was the purpose of the event. Many Thanks, 4- Lary Blake, Cashier • Hills • Iowa City• Coralville • North Liberty • Kalona • Cedar Rapids • Lisbon • Mount Vernon • Marion www.hillsbank.com 1-800-445-5725 rr' ritir 0 JUN 19 2003 - • ' 16 . Memorandum U.S. Department of Transportation FAA Federal Aviation 2525 Wright Bros. Blvd W Administration Cedar Rapids, IA 52404 Subject INFORMATION: Temporary Control Tower Date: June 11, 2003 • From: Air Traffic Manager, Cedar Rapids ATCT Reply to N Cain: Attn.of: 319-364-2344 FAX: 319-362-7438 To: All Airport Managers Please find enclosed the Letter to Airmen for the temporary Air Traffic Control Tower at Iowa City, Iowa. The Iowa City airport will be having their annual Fly-in on August 24, 2003. Airport managers of public-use airports, please distribute the Letter to Airmen to other tenants at your airport, or display it at locations frequented by pilots. • Private airport owners, the Letter to Airmen is to advise you of the temporary control tower at the Iowa City airport. Please use caution if transiting through the area. The Letter to Airmen will also be available,from the Des Moines FSDO website at: • http://www.faa.gov/fsdo/dsmfsdo • fir Norman Cain • I - DEPARTMENT OF TRANSPORTATION - FEDERAL AVIATION ADMINISTRATION AIRPORT TRAFFIC CONTROL TOWER 2525 WRIGHT BROTHERS BOULEVARD W CEDAR RAPIDS, IOWA 52404 ISSUED: June 15, 2003 EFFECTIVE: August 24, 2003 CEDAR RAPIDS TOWER LETTER TO AIRMEN NO. 03-003 SUBJECT: TEMPORARY AIRPORT TRAFFIC CONTROL TOWER CANCELLATION: August 25, 2003 Iowa City Airport(IOW), located 17 miles south of the Cedar Rapids Airport, will be the site of the annual IOW fly-in breakfast, air show;and other day-long activities. Temporary Control Tower. The Federal Aviation Administration will operate a control tower at the Iowa City,Iowa Airport. Tower Name Iowa City Tower Location Iowa City Airport(Grassy area west of terminal) Date August 24,2003 Hours 7:00a.m. to 2:00p.m. Operating Frequency 120.2 Separation. A waiver has been issued reducing same runway separation between arriving and departing Categories I and II aircraft. (Primarily Single Engine and Light Twin Engine) ARRIVAL PROCEDURES 1. VFR aircraft remaining outside the Cedar Rapids Approach Control Class C Airspace and not in contact with approach control, contact"Iowa City Tower"on 120.2 MHz, 5 (five)miles from Iowa City Airport. 2. VFR aircraft in contact with Cedar Rapids Approach will be advised when to contact"Iowa City Tower". • 3. Non-radio Aircraft. a. Remain clear of the Cedar Rapids Approach Class C Airspace. b. Determine the direction of landing, circle the airport to the left, pick out an aircraft on downwind leg, and follow that aircraft. •_ . c. Watch the temporary tower(vehicle on grass west of terminal) for appropriate light- gun signals. Landing aircraft will receive their light-gun signal while on downwind. If no signal to land is received, execute a right 360 and re-enter the downwind.Use extreme caution at all times. d. After landing, follow directions to parking. Clear the runway promptly. IFR ARRIVALS - 1. If VFR flight is not practical, expect vectors to the instrument approach in use. 2. Weather permitting, IFR aircraft will be vectored to VFR conditions. DEPARTURE PROCEDURES 1. Before taxiing, call"Iowa City Tower"on 120.2 MHz for departure information. If Tower is busy,monitor the frequency for departure information, then taxi. 2. During busy departure periods, call "Iowa City Tower"when you ate number one for takeoff. 3. Non-radio aircraft check with the control tower before taxiing or follow the flow. 4. Non-radio aircraft must abide by non-radio procedures and must receive a green light-gun signal from the Tower for takeoff clearance. 5. Remain clear of the CID Class C Airspace. If Class C service is needed, contact Cedar • Rapids Departure Control on 119.7 MHz after departure. IFR DEPARTURES 1. File at least one hour before departure. (no airfiles) 2. Depart VFR. 3. After clearing the traffic pattern, establish communications with Cedar Rapids Departure on 119.7 for IFR clearance. 4. If VFR flight is not practical, contact the Cedar Rapids Clearance Delivery on 119.05 for clearance and further instructions. Norman Cain Manager, Cedar Rapids Tower