HomeMy WebLinkAbout2016 Airport Commission Resolutions RESOLUTIONS -- 2016
RES. NO. SUBJECT DATE
A16-01 RESOLUTION ACCEPTING THE WORK FOR THE FUEL 1/21/16
SYSTEM REHAB AND TANK COATING PROJECT
A16-02 RESOLUTION SETTING A PUBLIC HEARING ON 1/21/16
FEBRUARY 18, 2016 FOR THE PLANS,
SPECIFICATIONS, FORM OF CONTRACT, AND
ESTIMATE ON COST FOR THE CONSTRUCTION OF
"2016 TERMINAL APRON EXPANSION" PROJECT, AND
DIRECTING CITY CLERK TO PUBLISH NOTICES OF
SAID HEARING, AND DIRECTING THE CHAIRPERSON
TO PLACE SAID PLANS ON FILE FOR PUBLIC
INSPECTION
A16-03 RESOLUTION AWARDING CONTRACT AND 2/2/16
AUTHORIZING AIRPORT SPECIALIST TO SIGN
CONTRACT FOR HANGAR F BOILER REPLACEMENT
AND ASSOCIATED WORK
A16-04 RESOLUTION GIVING NOTICE OF INTENT TO RENEW 2/2/16
A GROUND LEASE WITH THE UNITED STATES FOR
GROUND ADJACENT TO THE U.S. ARMY RESERVE
CENTER AND SETTING A PUBLIC HEARING ON SAID
PROPOSAL FOR FEBRUARY 18, 2016
A16-05 RESOLUTION GIVING NOTICE OF INTENT TO 2/18/16
EXECUTE A GROUND LEASE WITH TERRY EDMONDS
FOR GROUND LOCATED AT THE IOWA CITY
MUNICIPAL AIRPORT AND SETTING A PUBLIC
HEARING ON SAID PROPOSAL FOR MARCH 17, 2016
A16-06 RESOLUTION APPROVING PLANS, SPECIFICATIONS, 2/18/16
FORM OF CONTRACT, AND ESTIMATE ON COST FOR
"2016 TERMINAL APRON EXPANSION"
CONSTRUCTION PROJECT AT THE IOWA CITY
MUNICIPAL AIRPORT
A16-07 RESOLUTION AUTHORIZING THE CHAIRPERSON TO 2/18/16
EXECUTE AND THE SECRETARY TO ATTEST TO A
LAND LEASE BETWEEN THE AIRPORT COMMISSION
OF THE CITY OF IOWA CITY, IOWA, AND THE UNITED
STATES GOVERNMENT
A16-08 RESOLUTION AUTHORIZING THE CHAIRPERSON TO 3/17/16
EXECUTE AND THE SECRETARY TO ATTEST TO A
LAND LEASE BETWEEN THE AIRPORT COMMISSION
OF THE CITY OF IOWA CITY, IOWA, AND TERRY
EDMONDS
A16-09 RESOLUTION TO ADOPT 2016 AIRPORT EMERGENCY 3/17/16
PLAN
C,
201$ Resolutions
Page 2
A16-10 RESOLUTION AUTHORIZING THE CHAIRPERSON TO 4/21/16
SIGN THE ANNUAL NATIONAL MUSEUM OF THE
UNITED STATES AIR FORCE STATIC DISPLAY LOAN
PROGRAM AGREEMENTS
A16-11 RESOLUTION AUTHORIZING THE CHAIRPERSON TO 4/21/16
SIGN AND THE SECRETARY TO ATTEST A CONTRACT
FOR ELECTRICAL TRANSFORMER INSTALLATION IN
THE SOUTH T-HANGAR AREA
A16-12 RESOLUTION AUTHORIZING THE CHAIRPERSON TO 4/21/16
SIGN AND THE SECRETARY TO ATTEST A CONTRACT
FOR GAS MAIN INSTALLATION IN THE SOUTH T-
HANGAR AREA
A16-13 RESOLUTION AUTHORIZING THE CHAIRPERSON TO 4/21/16
SIGN AND THE SECRETARY TO ATTEST A CONTRACT
FOR ELECTRICAL SERVICE INSTALLATION IN THE
SOUTH T-HANGAR AREA
A16-14 RESOLUTION ACCEPTING BIDS AND AUTHORIZING 4/21/16
THE CHAIRPERSON TO SIGN AND THE SECRETARY
TO ATTEST A CONTRACT FOR 2016 TERMINAL
APRON EXPANSION
A16-15 RESOLUTION RECOMMENDING COUNCIL GRANT A 5/19/16
UTILITY EASEMENT TO MIDAMERICAN ENERGY, INC.
FOR UTILITIES AT THE IOWA CITY MUNICIPAL
AIRPORT.
A16-16 RESOLUTION TO AMEND THE IOWA CITY AIRPORT 5/19/16
COMMISSION BY LAWS TO REFLECT A JULY 1ST
START DATE FOR COMMISSIONER TERMS
A16-17 RESOLUTION RECOMMENDING COUNCIL GRANT A 5/19/16
UTILITY EASEMENT TO MIDAMERICAN ENERGY, INC.
FOR UTILITIES AT THE IOWA CITY MUNICIPAL
AIRPORT
A16-18 RESOLUTION GIVING NOTICE OF INTENT TO 8/5/16
EXECUTE A GROUND LEASE WITH JET AIR, INC. FOR
GROUND LOCATED AT THE IOWA CITY MUNICIPAL
AIRPORT AND SETTING A PUBLIC HEARING ON SAID
PROPOSAL FOR AUGUST 18, 2016.
A16-19 RESOLUTION SETTING A PUBLIC HEARING FOR 8/5/16
LEASE OF HANGAR M
A16-20 RESOLUTION SETTING A PUBLIC HEARING FOR AN 8/5/16
AMENDMENT TO THE FIXED BASED OPERATORS
AGREEMENT
A16-21 RESOLUTION AUTHORIZING CHAIRPERSON TO 8/18/16
ACCEPT IOWA DEPARTMENT OF TRANSPORTATION
GRANT
2016 Resolutions
Page 3
A16-22 RESOLUTION AUTHORIZING THE CHAIRPERSON TO 8/18/16
SIGN A PURCHASE AGREEMENT FOR HANGAR
BUILDING "M"
A16-23 RESOLUTION AUTHORIZING THE CHAIRPERSON TO 8/18/16
EXECUTE AND THE SECRETARY TO ATTEST A
HANGAR LEASE BETWEEN THE AIRPORT
COMMISSIOn OF THE CITY OF IOWA CITY, IOWA, AND
JET AIR, INC.
A16-24 RESOLUTION AUTHORIZING THE CHAIRPERSON TO 8/18/16
EXECUTE AND THE SECRETARY TO ATTEST TO A
LAND LEASE BETWEEN THE AIRPORT COMMISSION
OF THE CITY OF IOWA CITY, IOWA, AND JET AIR, INC.
A16-25 RESOLUTION AMENDING THE FIXED BASED 8/18/16
OPERATORS AGREEMENT
Prepared by: Michael Tharp, Operations Specialist, 1801 S. Riverside Dr, Iowa City IA 52246 319-350-5045
RESOLUTION NO. a i‘ "�l
RESOLUTION ACCEPTING THE WORK FOR THE FUEL SYSTEM REHAB
AND TANK COATING PROJECT
WHEREAS, the Commission's consultant for the Fuel Tank Rehabilitation Project, Aecom, Inc.,
has recommended that the work associated has been completed by Pospisil Painting, Inc., and
be accepted as complete.
WHEREAS, the final contract price is $58,212.09. Which is established from the original
contract cost of $52,881.00.00 and $5,331.09 change order #1 to adjust final constructed
quantities.
NOW, THEREFORE, BE IT RESOLVED BY THE IOWA CITY AIRPORT COMMISSION THAT:
Said improvements are hereby accepted by the Iowa City Airport Commission.
Passed and approved this 24 day of 710.,,/LCti l , 2016.
CHAIRPERSON
Pjoved by
ATTEST:
S: RET Y City Attorney's Office
It was moved by ./er and seconded bythe Resolution be
adopted, and upon !VI call there were:
Ayes Nays Absent
c. / Assouline
Bockenstedt
Gardinier
/ Odgaard
Ogren
Prepared by: Michael Tharp,Operations Specialist, 1801 S.Riverside Dr.Iowa City,IA 52246(319)350 5045
RESOLUTION NO. /49 —G702.--
RESOLUTION
G2o2.RESOLUTION SETTING A PUBLIC HEARING ON FEBRUARY 18, 2016 FOR THE
PLANS, SPECIFICATIONS, FORM OF CONTRACT, AND ESTIMATE ON COST FOR
THE CONSTRUCTION OF "2016 TERMINAL APRON EXPANSION" PROJECT, AND
DIRECTING CITY CLERK TO PUBLISH NOTICES OF SAID HEARING, AND
DIRECTING THE CHAIRPERSON TO PLACE SAID PLANS ON FILE FOR PUBLIC
INSPECTION
BE IT RESOLVED BY THE AIRPORT COMMISSION OF THE CITY OF IOWA CITY:
1. That a pubic hearing on the plans,specifications, form of contract,and estimate of cost
for the construction of the above-mentioned project is to be held on the 18t day of
February,2016 at 6:00pm. in Iowa City Airport Terminal Building, 1801 S.Riverside
Drive,Iowa City,Iowa,or if said meeting is cancelled,at the next meeting of the Airport
Commission thereafter as posted by the City Clerk.
2. That the City Clerk is hereby authorized and directed to publish notice of the public
hearing for the above-named project in a newspaper published at least once weekly and
having a general circulation in the City,not less that four(4)nor more than twenty(20)
days before said hearing.
3. That the copy of plans,specifications, form of contract,and estimate of cost for the
construction of the above-named project is hereby ordered placed on file by the
Chairperson in the office of the City Clerk for public inspection
Passed and approved this 2,( day of ,,C,"4.Cf 3.2016.
41111111111."--
Approved By:
CHAIRPERSON /
ATTEST: 'O . r- 4'
�SE e ' ARY City Attorney's Office
Assouline
Bockenstedt
Gardiner
Odgaard
Ogren
(`QC, a4 Cfr- y1iD ' Se c( e9 y
t
Prepared by: Michael Tharp, Operations Specialist, 1801 S. Riverside Dr, Iowa City IA 52246 319-350-5045
RESOLUTION NO. ,4/1-17
.3
RESOLUTION AWARDING CONTRACT AND AUTHORIZING AIRPORT
SPECIALIST TO SIGN CONTRACT FOR HANGAR F BOILER
REPLACEMENT AND ASSOCIATED WORK.
WHEREAS, the Iowa City Airport Commission has received three quotes for the above named
services; and
WHEREAS, the recommendation from Iowa City Facilities Manager Scott Justason is to replace
both boilers and insulate the piping; and
WHEREAS, All Temp Refrigeration of Cedar Rapids, IA is the lowest responsive, responsible
quote.
NOW, THEREFORE, BE IT RESOLVED BY THE IOWA CITY AIRPORT COMMISSION, THAT:
1. The contract for the above-named project is hereby awarded to All Temp Refrigeration of
Cedar Rapids, Iowa.
2. The Airport Operations Specialist is authorized to sign the contract for the above-
described project, and proceed with the work.
3. The Airport Operations Specialist is authorized to execute reasonable change orders as
they may become necessary in the performance� of the above-named project.
Passed and approved this 2 day of �t--e4�t-N( , 2016.
i.r;e_..
CHAIRPERSO
#A__ Ap roved by
ATTEST: I...... l
SEC ETA City Attorney's Office
oiccc e-,
It was moved by and seconded by 0s/co--% the Resolution be
adopted, and upon roll call there were:
Ayes Nays Absent
Assouline
/ Bockenstedt
1 Gardinier
Odgaard
Ogren
0
Prepared by: Michael Tharp,Operations Specialist, 1801 S.Riverside Dr.Iowa City,IA 52246(319)350 5045
RESOLUTION NO. AM-.all
RESOLUTION GIVING NOTICE OF INTENT TO RENEW A GROUND LEASE WITH
THE UNITED STATES FOR GROUND ADJACENT TO THE U.S. ARMY RESERVE
CENTER AND SETTING A PUBLIC HEARING ON SAID PROPOSAL FOR
FEBRUARY 18,2016.
WHEREAS, the Commission owns ground adjacent to the U.S. Army Reserve Center which has
been leased previously to the U.S.Government;and
WHEREAS,the current lease is expiring,and the U.S.Government has requested a renewal;and
WHEREAS, the Airport Operations Specialist has negotiated a lease renewal with the U.S.
Government for a term of five(5)years;and
WHEREAS,a lease of this period of time requires the holding of a public hearing.
BE IT RESOLVED BY THE AIRPORT COMMISSION OF THE CITY OF IOWA CITY:
1. The Airport Commission of the City of Iowa City does hereby declare its intent to enter
into the above-referenced lease agreement.
2. A public hearing on said proposed lease agreement should be and is hereby set for
February 18,2016 at 6:00 p.m. in the Iowa City Airport Terminal Building, 1801 S.
Riverside Drive,Iowa City, Iowa,or if said meeting is cancelled,at the next meeting of
the Airport Commission thereafter as posted by the City Clerk.
3. That the City Clerk is hereby authorized and directed to publish notice of the public
hearing for the above-named project in a newspaper published at least once weekly and
having a general circulation in the City,not less that four(4)nor more than twenty(20)
days before said hearing.
4. That the copy of lease agreement is hereby ordered placed on file by the Chairperson in
the office of the City Clerk for public inspection
Passed and approved this 2 day of LG/ ^', 2016.
Approved By:
CHAIRPERSON
ATTEST: o�
RETARY City Attorney's Office
It was moved by � and seconded
conded by Sfi the
ResoIution be adopted, and upon roll call there were:
Ayes Nays Absent
i Assouline
Bockenstedt
r/ Gardinier
Odgaard
✓ Ogren
DACA45-5-16-00006
.OUR
U.S. GOVERNMENT LEASE FOR REAL PROPERTY
DATE OF LEASE LEASE NO. DACA45-5-16-00006
THIS LEASE,made and entered into this date, by and between the Iowa City Airport
Commission whose address is 1801 South Riverside Drive,Iowa City,Iowa 5224 which
administers land owned by the City of Iowa City,hereinafter called the Lessor, and the UNITED
STATES OF AMERICA,hereinafter called the Government:
WITNESSETH: The parties hereto for the considerations hereinafter mentioned, covenant and
agree as follows:
1. The Lessor hereby leases to the Government the following described premises:
Exclusive use of approximately 24,000 square feet of land, described as a level fenced in storage
area located: immediately to the West of the adjacent U.S. Army Reserve Center whose address
is 1913 South Riverside Drive, Iowa City, Iowa 5224 `as more particularly shown on Exhibit
"A", attached hereto and made a part hereof, to be used for Government purposes.
2. TO HAVE AND TO HOLD the said premises with their appurtenances for the term beginning
on 01 March 2016 through 28 February 2017, subject to termination and renewal rights as
may be hereinafter set forth. Nothing in this lease shall constitute, or be deemed to constitute, an
obligation of future appropriations by the United States or considered as implying that the
Congress will appropriate additional funds.
3.The Government shall pay the Lessor annual rent of Four Thousand Four Hundred
Twenty-Five Dollars ($4,425.00) at the rate of Three Hundred Sixty Eight Dollars and
75/100 ($368.75)per month in arrears. Rent for a lesser period shall be prorated. All payments
by the Government under the terms of this lease shall be made payable to: Iowa City Airport
Commission, 1801 South Riverside Drive, Iowa City, Iowa 5224A via electronic funds transfer
(EFT) (as referenced in the General Clauses and Conditions.)
Payments shall be made by the Army Reserves 88th RSC, via
DFAS Indianapolis Center
8899 E. 56th Street
Attn: Dept. 3800
Indianapolis, IN 46249-3800
4. The Government may terminate this lease at any time by giving at least 30 days'notice in
writing to the Lessor and no rental shall accrue after the effective date of termination. Said
notice shall be computed commencing with the day after the date of mailing.
5. This lease shall be automatically renewed from year-to-year without further notice unless
and until the Government shall give notice of termination in accordance with clause 4;
provided that adequate appropriations are available from year-to-year for the payment of
rentals; and provided further, that this lease shall in no event extend beyond 28 February
2021.
STANDARD FORM 2(REV.6/2003) 1
DACA45-5-16-00006
6. The following are attached and made a part hereof:
a. The General Clauses, Conditions and Instructions (1-37)
b. Representations and Certifications (1-2)
c. Exhibit" A ", Site Plan
7. The following changes were made in this lease prior to its execution: NOTICES: Any
notice under the terms of this Lease is to be given in writing and delivered by "Certified
Mail, Return Receipt Requested" or registered mail, Express Mail or comparable
service, or delivered by hand and delivery, whether accepted or refused, attempted
delivery, or marked undeliverable, shall be deemed notice under the terms of this
Lease. Any notice given by the Lessor to the Government shall be addressed to:
Omaha District Commander, U.S. Army Engineer District, ATTN: CENWO-RE-M, 1616
Capitol Avenue, Suite 9000, Omaha, Nebraska 68102-4901; with reference to the
Lease number: DACA45-5-16-00006. Any notice given by the Government to the
Lessor or his agent shall be addressed to: Michael Tharp; Iowa City Airport
Commission, Iowa City, Iowa 522481'Email: Michael-Tharp@iowa-city.org and
Phone Number: (319)356-5045 Exe 5 For maintenance purposes notice shall be
addressed to: [Michael Tharp, (319)356-5045 Ext. 5, Michael-Tharp@iowa-city.org]
IN WITNESS WHEREOF, the parties hereto have hereunto subscribed.their names as of the date
first above written.
LESSOR: LESSOR:
MINNETTA GARDINIER JACOB ODGAARD
(Signature) (Signature)
GOVERNMENT:
DAVE V. CHIPMAN
Chief, Real Estate Division
Real Estate Contracting Officer
Fund Citation: 021 208010D16 131 R79QDPW 2320 M.0003043.18.328 021001
STANDARD FORM 2(REV.6/2003) 2
• DACA45-5-16-00006
General Clauses and Conditions: (8) strikes,
(9) freight embargoes,
1.DEFINITIONS (SEP 1999) (VARIATION) — (10) unusually severe weather, or
552.270-4: (11) delays of subcontractors or suppliers at
The following terms and phrases(except as otherwise any tier arising from unforeseeable causes beyond
expressly provided or unless the context otherwise the control and without the fault or negligence of
requires) for all purposes of this lease shall have the both the Lessor and any such subcontractor or
respective meanings hereinafter specified: supplier.
(a) "Casualty' means, but is not limited to, acts of (j) °Lessee" means"Government"
nature, such as fire, lightning, earthquakes, floods, or (k) "Lessor" means °Owner° or the sub-Lessor if
severe weather and acts of war or terrorism. this lease is a sublease.
(b) "Commencement Date" means the first day (I) "Lessor shall provide" means the Lessor shall
of the term. furnish and install at Lessor's Expense.
(c) °Common area° means "that part of the (m) "Notice°. Unless otherwise stated or in case
premises provided, designated, and maintained by of an emergency or threat to health, safety, and
the Lessor for the common use of all tenants; security, "Notice" means written notice sent by
including but not limited to, private streets and certified or registered mail, Express Mail or
driveways, curbs, parking areas, service alleys, comparable service, or delivered by hand. Notice
loading areas, retaining walls, sidewalks, shall be effective commencing on the day after the
landscaping, lighting, hallways, restrooms, stairwells, date the notice is mailed.
and elevators.° (n) "Premises" means the space described on
(d) "Contract" and "Contractor" means "Lease" the U.S. Government Lease for Real Property lease
and "Lessor,"respectively. form.
(e) °Contracting Officer°° or "Government" (o) "Substantially complete" and "substantial
means a person with the authority to enter into, completion" means that the work, the common and
administer, and/or terminate contracts and make other areas of the building, and all other things
related determinations and findings. The term necessary for the Government's access to the
includes certain authorized representatives of the premises and occupancy, possession, use and
Government acting within the limits of their authority enjoyment thereof, as provided in this lease, have
as delegated by the Government. been completed or obtained, excepting only
(f) "Delivery Date" means the date specified in such minor matters as do not interfere with or
or determined pursuant to the provisions of this materially diminish such access, occupancy,
lease for delivery of the premises to the possession, use or enjoyment.
Government, improved in accordance with the (p) "Usable square feet" means the usable office
provisions of this lease and substantially complete, area or the area where a tenant normally houses
as such date may be modified in accordance with personnel and/or furniture, for which a measurement
the provisions of this lease. is to be computed."
(g) "Delivery Time" means the number of days (q) 'Work" means all alterations, improvements,
provided by this lease for delivery of the premises to modifications, and other things required for the
the Government, as such number may be modified preparation or continued occupancy of the premises
in accordance with the provisions of this lease. by the Government as specified in this lease.
(h) "Effective Date" means the date on which the
lease is signed by the Government. 2. ALTERATIONS: The Government shall have the
(i) "Excusable Delays" mean delays arising right during the existence of this lease to make
without the fault or negligence of Lessor and alterations, attach fixtures, and erect additions,
Lessor's subcontractors and suppliers at any tier, structures or signs in or upon the premises hereby
and shall include,without limitation: leased. Upon Government request, the Lessor
(1) acts of God or of the public enemy, shall be required to obtain bids for the said work
(2) acts of the United States of America in and to provide the bids to the Government Any
either its sovereign or contractual capacity, work to be performed through the Lessor will be
(3) acts of another contractor in the implemented by supplemental agreement. The
performance of a contract with the Government, Government's portion of the expense will be paid on
(4) fires, a reimbursable basis. Such fixtures, additions, or
(5) floods, structures shall be and remain the property of the
(6) epidemics, Government, and may be removed prior to the
(7) quarantine restrictions,
3
DACA45-5-16-00006
expiration or termination of this lease or abandoned deficiencies. The provisions of this clause are without
in place. prejudice to any rights the Lessor may have to make
a claim under applicable laws for any other damages
3. RESTORATION: than provided herein.
a. The Lessor may, upon no less than ten (10)
days written notice to the Government before 5. WARRANTY: The Lessor certifies the
termination or expiration of the lease, require mechanical equipment, building systems, and the
restoration of the leased premises, subject to the utilities to be in good serviceable and operating
exceptions to restoration stated below in paragraph b. condition and meet all building code requirements.
In this event, prior to the expiration or termination of
this lease, or a reasonable time thereafter, the 6. HAZARDOUS TOXIC WASTES:
Government shall, at its sole election, either, a.The Lessor represents and certifies as part of
(1) Restore the premises to the same the terms of this Lease that the site, building, and
condition as that existing at the time of entering into building space which are being leased to the
the lease, or, Government, to the best of his or her knowledge, are
(2) Make appropriate settlement to the not properties or structures with known or potential
Lessor representing either the diminution in the fair environmental contamination including asbestos,
market value of the property due to the failure to radon, or hazardous or toxic
restore, or the actual cost of restoration, whichever is materials/substances/wastes and such substances
the lesser amount. have not been used on the said premises. This
b. The Government shall not restore the certification is a material representation of fact upon
premises, either physically or by payment in lieu which the Government relies when entering into the
thereof, for damages as a result of reasonable lease. If it is later determined that environmental
ordinary wear and tear, the elements or contamination is present, the Government reserves
circumstances over which the Government has no the right to require the Lessor, at no cost to the
control, or alterations, or damages thereto, which the Government, to (1) remove such properties or
Government installed at its expense or the Lessor structures or contaminated materials, substances, or
installed and was reimbursed by the Government wastes contained therein and restore the premises
through payment thereof. to the satisfaction of the Government, or (2) to take
c. CONDITION REPORTS: A joint physical the necessary action to mitigate the hazardous or
survey and inspection of the demised premises shall toxic waste condition or other environmental
be made as of the delivery date contained in this contamination, in accordance with local, state, and
lease, reflecting the then present condition, and will Federal laws, or (3) in the alternative, the
be documented on behalf of the parties hereto. Upon Government, at its option, may terminate the lease
expiration or termination of this lease, a final effective upon notification without any penalty
inspection shall be conducted by representatives of whatsoever. In addition to the rights under (1), (2),
both the Lessor and the Government. If restoration of and (3) above, if it is determined that the Lessor has
damages is required, they shall be in written form made a willful misrepresentation, the Lessor shall
signed on behalf of both parties and this lease also be responsible for all costs and expenses of
amended by supplemental agreement. relocating to another location in the event the
Government in its discretion determines it necessary
4. DAMAGES: The Lessee shall be liable only for to relocate to other premises.
damages resulting from negligence or misconduct of b. The Lessor shall immediately notify the
Lessee personnel. The Lessee shall not be liable for Government of any hazardous or toxic conditions or
any loss, destruction or damages to the premises other environmental contamination in any part of the
beyond the control and without the fault or negligence leased premises upon obtaining knowledge of the
of the Lessee, including but not restricted to, acts of same.
nature, such as fire, lightning, earthquakes, floods, or
severe weather and acts of war or terrorism. The
parties agree that settlement of damages by the
Lessee, if any, shall be done at termination of the
lease. The Government's liability under this clause
may not exceed appropriations available for such
payment and nothing contained in this agreement
may be considered as implying that Congress will at a
later date appropriate funds sufficient to meet
4
• DACA45-5-16-00006
Performance clause of this lease, elect to reduce the
rent payments.
11. DEFAULT IN DELIVERY—TIME EXTENSIONS
(SEP 1999)(VARIATION)-552.270-18
7. CHANGE OF OWNERSHIP: a. With respect to Lessor's obligation to deliver
a. If,during the term of this lease, including any the premises substantially complete by the delivery
renewals or extensions, title to this property is date, time is of the essence. If the Lessor fails to
transferred to another party either by sale, work diligently to ensure its substantial completion
foreclosure, condemnation, assignment, or other by the delivery date or fails to substantially complete
transaction, the Lessor (transferor) shall promptly the work by such date, the Government may by
notify the Government of said transfer. The notice to the Lessor terminate this lease. Such
following information shall accompany such termination is effective the day after the date notice
notification: is mailed to the Lessor.The Lessor and the Lessor's
(1) A copy of the deed or other appropriate sureties, if any, are jointly and severally liable for
instrument transferring title or sufficient interest to any damages to the Government resulting from such
lease to the property from the transferor to the new termination, as provided in this clause.
owner. b. The Government shall not terminate this
(2) The new owner's tax identification or lease under this clause nor charge the Lessor with
social security number. damages under this clause, if (1) the delay in
b. The foregoing information must be received substantially completing the work arises from
not later than twenty (20) days after the effective excusable delays and (2) the Lessor within 10 days
date of transfer of title. In any instance, failure to from the beginning of any such delay (unless
submit the documentation required for a transfer of extended in writing by the Government) provides
title will result in a suspension of rental payments notice to the Government of the causes of delay.
until such time as all documentation is received by The Government shall ascertain the facts and the
the Government. extent of delay. If the facts warrant, the Government
shall extend the delivery date, to the extent of such
c. When the title to premises leased to the delay at no additional costs to the Government. A
Government is transferred, a supplemental time extension is the sole remedy of the Lessor.
agreement shall be entered into by the old
(Transferor) and new (Transferee) owners and the 12. ACCEPTANCE OF SPACE (SEP 1999) -
Government to reflect such change of ownership. 552.270-29
a. When the Lessor has completed all
8. CHANGES (SEP 1999) (VARIATION) - 552.270- alterations, improvements, and repairs necessary to
14 meet the requirements of the lease, the Lessor shall
The Government may at any time, by written notify the Government. The Government's
supplemental agreement, make changes or designated representative may promptly inspect the
variations to the original lease agreement. space.
b. The Government will accept the space and
9. INVOICE REQUIREMENTS (SEP 19991 the lease term will begin after determining that the
(VARIATION)-552.232-70 space is substantially complete and contains the
(This clause applies to payments other than rent.) required square footage as indicated in the site plan
Invoices shall be submitted in an original only, attached as Exhibit "A", or floor plan attached as
unless otherwise specified, to the designated billing Exhibit"B".
office specified in this lease or order, including the
lease number and address of the leased premises.
10. DELIVERY AND CONDITION (SEP 1999) -
552.270-17
The space must be delivered ready for occupancy
as a complete unit. The Government reserves the
right to determine when the space is substantially
complete. If the premises do not in every respect
comply with the provisions of this lease the
Government may, in accordance with the Failure in
5
DACA45-5-16-00006
13. EFFECT OF ACCEPTANCE AND the Lessee, the Lessee may immediately perform or
OCCUPANCY (SEP 1999) - 552.270-21 Neither have performed such maintenance and repairs and
the Government's acceptance of the premises for deduct all costs thereof from the rental or other
occupancy or the Government's occupancy thereof, charges due or to become due under the terms of this
shall be construed as a waiver of any requirement of lease.
or right of the Government under this Lease, or as
otherwise prejudicing the Government with respect 15. FIRE AND CASUALTY DAMAGE (SEP 19991
to any such requirement or right. -552.270-7 If the entire premises are destroyed by
fire or other casualty, this lease will immediately
14. MAINTENANCE OF BUILDING AND terminate. In case of partial destruction or damage,
PREMISES—RIGHT OF ENTRY (SEP 1999) - so as to render the premises untenantable, as
552.270-6 determined by the Government, the Government
a. Except in case of damage arising out of the may terminate the lease by giving written notice to
willful act or negligence of a Government employee, the Lessor within 15 calendar days of the fire or
Lessor shall maintain the premises, including the other casualty; if so terminated,no rent will accrue to
building, building systems,and all equipment,fixtures, the Lessor after such partial destruction or damage;
and appurtenances furnished by the Lessor under this and if not so terminated, the rent will be reduced
lease, in good repair and condition so that they are proportionately by supplemental agreement hereto
suitable in appearance and capable of supplying such effective from the date of such partial destruction or
heat, air conditioning, light, ventilation, safety damage.
systems, health conditions, access and other things Nothing in this lease shall be construed as relieving
to the premises, without reasonably preventable or Lessor from liability for damage to or destruction of
recurring disruption, as is required for the property of the United States of America caused by
Government's access to, occupancy, possession, use the willful or negligent act or omission of Lessor.
and enjoyment of the premises as provided in this
lease. For the purpose of so maintaining the 16. COMPLIANCE WITH APPLICABLE LAW
premises, the Lessor, its agents, representatives, !SEP 1999)-552.270-8
contractors and assigns may at reasonable times a. Lessor shall comply with all Federal, state
(within 24 hours notice) enter the premises with the and local laws applicable to the Lessor as owner or
approval of and accompanied by the authorized Lessor, or both, of the building or premises. This
Government representative in charge. lease shall be governed by Federal law.
b. Emergency Maintenance and Repairs. The b. SECURITY. Exit signs, emergency lighting,
Lessee will notify the Lessor of any emergency and portable fire extinguishers, and fire protection
request the Lessor to perform the necessary work. systems, such as sprinkler systems and alarms,
All emergency maintenance and repairs performed by which meet fire protection standards established by
the Lessor will be completed within 48 hours from the applicable state statutes, fire regulations, building
time of notification. Emergency maintenance and codes, or local ordinances, shall be provided and
repairs include but are not limited to: maintained by the Lessor. This includes, but is not
(1) failure of heating/cooling system to limited to, the recharging of fire extinguishers and
maintain specific temperature replacement of long life batteries (lithium) in smoke
(2) failure of water system, including hot detectors. Equipment, services or utilities furnished,
water and activities of other tenants shall be free of safety,
(3) inadequate or no water pressure health, and fire hazards.
(4) leaking water pipes
(5) blocked or leaking drains 17. FAILURE IN PERFORMANCE (SEP 1999) -
(6) electrical failure 552.270-10 The Government may deduct from any
(7) sewage system malfunction payments under this lease, then or thereafter due,
(8) failure of security and fire protection an amount which reflects the reduced value of the
systems, including alarms and contract requirement not performed. No deduction
sprinklers from rent pursuant to this clause shall constitute a
(9) Repair/replace exterior windows and default by the Government under this lease. These
doors including plate glass if applicable. remedies are not exclusive and are in addition to
In the event the Lessor shall fail to perform any other remedies which may be available under
emergency maintenance and repairs within 48 hours this lease or at law.
or to perform non-emergency maintenance and
repairs within 5 days from the date notice is given by
6
DACA45-5-16-00006
18. DEFAULT BY LESSOR DURING THE TERM 23. ASSIGNMENT OF CLAIMS (JAN 1986) -
(SEP 1999)-552.270-22 52.232-23
a. Each of the following shall constitute a The Lessor, under the Assignment of Claims Act, as
default by Lessor under this lease: amended, 31 USC 3727, 41 USC 15 (hereafter
(1) Failure to maintain, repair, operate or referred to as the "the Act"), may assign its rights to
service the premises as and when specified in this be paid amounts due or to become due as a result
lease, or failure to perform any other requirement of of the performance of this contract to a bank, trust
this lease as and when required provided any such company, or other financing institution, including any
failure shall remain uncured for a period of thirty(30) Federal lending agency.The Lessor shall not furnish
days next following Lessor's receipt of notice thereof or disclose to any assignee under this contract any
from the Government or an authorized classified document (including this contract) or
representative. information related to work under this contract until
(2) Repeated and unexcused failure by the Government authorizes such action in writing.
Lessor to comply with one or more requirements of
this lease shall constitute a default notwithstanding 24. SUBORDINATION. NONDISTURBANCE AND
that one or all such failures shall have been timely ATTORNMENT(SEP 1999)-552.270-23
cured pursuant to this clause. Lessor warrants that it holds such title to or other
b. If a default occurs, the Government may, by interest in the premises and other property as is
notice to Lessor, terminate this lease for default and necessary to the Government's access to the
if so terminated, the Government shall be entitled to premises and full use and enjoyment thereof in
the damages specified in the Default in accordance with the provisions of this lease.
Delivery-Time Extensions clause.
25. NO WAIVER(SEP 1999)-552.270-26
19. ELECTRONIC FUNDS TRANSFER PAYMENT No failure by either party to insist upon the strict
(MAR 2000)(VARIATION)-552.232-76 performance of any provision of this lease or to
a. The Government will make payments under exercise any right or remedy consequent upon a
this lease by electronic funds transfer(EFT). breach thereof, and no acceptance of full or partial
b. Lessor's failure to properly designate a rent or other performance by either party during the
financial institution or to provide appropriate payee continuance of any such breach shall constitute a
bank account information may delay payments of waiver of any such breach of such provision.
amounts otherwise properly due.
26. STATEMENT OF LEASE(SEP 1999)-552.270-
20. PROMPT PAYMENT(SEP 1999)-552.232-75 24
The Government will make payments under the terms The Contracting Officer will, within thirty (30)
and conditions in the Prompt Payment Act. days next following the Contracting Officer's receipt
of a joint written request from Lessor and a
prospective lender or purchaser of the building,
21. SUBLETTING AND ASSIGNMENT (SEP 19991 execute and deliver to Lessor a letter stating that the
—552.270.5 The Government may sublet any part of same is issued subject to the conditions stated in
the premises but shall not be relieved from any this clause and, if such is the case, that(1) the lease
obligations under this lease by reason of any such is in full force and effect; (2) whether any notice of
subletting. The Government may at any time assign default has been issued.
this lease, and be relieved from all obligations to the
Lessor under this lease excepting only unpaid rent 27. MUTUALITY OF OBLIGATION (SEP 1999) -
and other liabilities, if any, that have accrued to the 552.270-28 The obligations and covenants of the
date of said assignment. Any assignment shall be Lessor, and the Government's obligation to pay rent
subject to prior written consent of the Lessor, which and other Government obligations and covenants,
shall not be unreasonably withheld. arising under or related to this Lease, are
interdependent.
22. SUBSTITUTION OF TENANT AGENCY (SEP
1999) - 552.270-25 The Government may, at any 28. SUCCESSORS BOUND (SEP 1999) - 552.270-
time and from time to time, substitute any 11
Government agency or agencies for the Government This lease shall bind, and inure to the benefit of, the
agency or agencies. parties and their respective heirs, executors,
administrators, successors, and assigns.
7
DACA45-5-16-00006
29. INTEGRATED AGREEMENT (SEP 1999) - 33. OFFICIALS NOT TO BENEFIT.
552.270-27 This Lease, upon execution, contains No Member of or Delegate to Congress, or Resident
the entire agreement of the parties and no prior Commissioner shall be admitted to any share or part
written or oral agreement, express or implied, shall of this lease contract, or to any benefit that may
be admissible to contradict the provisions of the arise therefrom; but this provision shall not be
Lease. construed to extend to this lease contract if made
with a corporation for its general benefit.
30. DISPUTES(JUL 2002)-52.233-1
This contract is subject to the Contract Disputes Act 34. COVENANT AGAINST CONTINGENT FEES
of 1978, as amended (41 U.S.C. 601-613). (FEB 1990) - 552.203-5
a. The Contractor warrants that no person or
31. EXAMINATION OF RECORDS: The Lessor agency has been employed or retained to solicit or
agrees that any duly authorized Government obtain this contract upon an agreement or
representative shall have the right, until the understanding for a contingent fee, except a bona
expiration of three (3) years after final payment of fide employee or agency. For breach or violation of
the agreed rental, to have access to and to examine this warranty, the Government shall have the right to
any directly pertinent books, documents, papers, annul this contract without liability or, in its
and records of the Lessor involving transactions discretion, to deduct from the contract price or
related to this lease. consideration, or otherwise recover the full amount
of the contingent fee.
32. GRATUITIES TO GOVERNMENT b. "Bona fide agency," as used in this clause,
EMPLOYEES: means an established commercial or selling agency
a. The Government may, by written notice to (including licensed real estate agents or brokers),
the Lessor, terminate the right of the Lessor to maintained by a Contractor for the purpose of
proceed under this lease if it is found, after notice securing business, that neither exerts nor proposes
and hearing, by the Secretary of the Army or his duly to exert improper influence to solicit or obtain
authorized representative, that gratuities (in the form Government contracts nor holds itself out as being
of entertainment, gifts, or otherwise) were offered or able to obtain any Government contract or contracts
given by the Lessor, or any agency or representative through improper influence.
of the Lessor, to any officer or employee of the c. °Bona fide employee," as used in this clause,
Government with a view toward securing a lease or means a person, employed by a Contractor and
securing favorable treatment with respect to the subject to the Contractor's supervision and control
awarding or amending, or the making of any as to time, place, and manner of performance, who
determinations with respect to the performing, of neither exerts nor proposes to exert improper
such lease, provided, that the existence of facts influence to solicit or obtain Government contracts
upon which the Secretary of the Army or his duly nor holds out as being able to obtain any
authorized representative makes such findings shall Government contract or contracts through improper
be in issue and may be reviewed in any competent influence.
court. d. "Contingent fee," as used in this clause,
b. In the event this lease is terminated as means any commission, percentage, brokerage, or
provided in paragraph a. hereof the Government other fee that is contingent upon the success that a
shall be entitled (1) to pursue the same remedies person or concern has in securing a Government
against the Lessor as it could pursue in the event of contract.
a breach of the lease by the Lessor and (2) as a e. "Improper influence," as used in this clause,
penalty, in addition to any other damages to which it means any influence that induces or tends to induce
may be entitled by law, to exemplary damages in an a Government employee or officer to give
amount(as determined by the Secretary of the Army consideration or to act regarding a Government
or his duly authorized representative)which shall be contract on any basis other than the merits of the
not less than three (3) nor more than ten (10) times matter.
the cost incurred by the Lessor in providing any such
gratuities to any such officer or employee. 35. PROHIBITION OF SEGREGATED FACILITIES
c. The rights and remedies of the Government (FEB 1999) - 52.222-21
provided in this clause shall not be exclusive and are a. °Segregated facilities; as used in this
in addition to any other rights and remedies provided clause, means any waiting rooms, work areas, rest
by law or under this lease. rooms and wash rooms, restaurants and other
8
DACA45-5-16-00006
eating areas, time clocks, locker rooms and other
storage or dressing areas, parking lots, drinking
fountains, recreation or entertainment areas,
transportation, and housing facilities provided for
employees, that are segregated by explicit directive
or are in fact segregated on the basis of race, color,
religion, sex, or national origin because of written or
oral policies or employee custom.The term does not
include separate or single-user rest rooms or
necessary dressing or sleeping areas provided to
assure privacy between the sexes.
b. The Lessor agrees that it does not and will
not maintain or provide for its employees any
segregated facilities at any of its establishments,
and that it does not and will not permit its employees
to perform their services at any location under its
control where segregated facilities are maintained.
The Lessor agrees that a breach of this clause is a
violation of the Equal Opportunity clause in this
contract.
c. The Lessor shall include this clause in every
subcontract and purchase order that is subject to the
Equal Opportunity clause of this contract.
36. EQUAL OPPORTUNITY(APR 2002) - 52.222-
37
Definition. "United States," as used in this clause,
means the 50 States, the District of Columbia,
Puerto Rico, the Northern Mariana Islands,
American Samoa, Guam, the U.S. Virgin Islands,
and Wake Island.
The Contractor shall not discriminate against
any employee or applicant for employment because
of race, color, religion, sex, familial status or national
origin, disabled veterans, veterans of the Vietnam
era,and other eligible veterans.
The Contractor shall insert the terms of this clause in
all subcontracts or purchase orders of $25,000 or
more unless exempted by rules, regulations, or
orders of the Secretary of Labor. The Contractor
shall act as specified by the Deputy Assistant
Secretary of Labor to enforce the terms, including
action for noncompliance.
37. AFFIRMATIVE ACTION FOR WORKERS
WITH DISABILITIES (JUN 1998) - 52.222-36
Regarding any position for which the employee or
applicant for employment is qualified, the Contractor
shall not discriminate against any employee or
applicant because of physical or mental disability.
9
DACA45-5-16-00006
Representations and Certifications, the legal entity's
REPRESENTATIONS AND CERTIFICATIONS name and address, followed by the DUNS or DUNS
+4 number that identifies the offeror's name and
1. OWNERSHIP address exactly as stated in the offer. The DUNS
The Lessor certifies that he Is the rightful and legal number will be used by the Government to verify
owner of the property and has the legal right to enter that the offeror is registered in the SAM database.
into this lease. If the title of the Lessor shall fail, or it c. If the offeror does not have a DUNS number,
be discovered that the Lessor did not have authority it should contact Dun and Bradstreet directly to
to lease the property, the Government may obtain one.
terminate. (1) An offeror may obtain a DUNS
The Lessor, the Lessor's heirs, executors, number—
administrators, -successors, or assigns agree to (i) if located within the United States, by
indemnify the Lessee by reason of such failure and calling Dun and Bradstreet at 1-866-705-5711 or via
to refund all rentals paid. the Internet at http://www.dnb.com; or
(ii) If located outside the United States,
SYSTEM for AWARD MANAGEMENT by contacting the local Dun and Bradstreet office.
REGISTRATION (VARIATION)–52.204-7 (2) The offeror should be prepared to
a. Definitions. As used in this clause System for provide the following information:
Award Management registration(SAM)database" (i) Company legal business.
means the primary Government repository for (ii) Tradestyle, doing business, or other
Contractor information required for the conduct of name by which your entity is commonly recognized.
business with the Government. (iii) Company Physical Street Address,
"Data Universal Numbering System (DUNS) City, State, and ZIP Code.
number" means the 9-digit number assigned by Dun (iv) Company, Mailing Address, City,
and Bradstreet, Inc. (D&B) to identify unique State and ZIP Code(if separate from physical).
business entities. (v) Company Telephone Number.
"Data Universal Numbering System +4 (vi) Date the company was started.
(DUNS+4) number" means the DUNS number (vii) Number of employees at your
assigned by D&B plus a 4-character suffix that may location.
be assigned by a business concern. (D&B has no (viii) Chief executive officer/key
affiliation with this 4-character suffix.) This 4- manager.
character suffix may be assigned at the discretion of (ix) Line of business(industry).
the business concern to establish additional SAM (x) Company Headquarters name and
records for identifying alternative Electronic Funds address(reporting relationship within your entity).
Transfer (EFT) accounts for the same parent d. If the Offeror does not become registered in
concern. the SAM database in the time prescribed by the
"Offeror" means the owner of the property Government, the Government will proceed to award
offered, not an individual or agent representing the to the next otherwise successful registered Offeror.
owner. e. Processing time, which normally takes 48
"Registered in the SAM database" means hours, should be taken into consideration when
that— registering. Offerors who are not registered should
(1) The Contractor has entered all consider applying for registration immediately upon
mandatory information, including the DUNS number receipt of this solicitation.
or the DUNS+4 number, into the SAM database; and f. The Contractor is responsible for the
accuracy
(2) The Government has validated all and completeness of the data within the SAM
mandatory data fields and has marked the record database,
"Active." and for any liability resulting from the Government's
b. (1) By submission of an offer, the offeror reliance on inaccurate or incomplete data. To
acknowledges the requirement that a prospective remain registered in the SAM database after the
awardee must be registered with D&B and in the initial registration, the Contractor is required to
SAM database prior to award, during performance, review and update on an annual basis from the date
and through final payment of any contract resulting of initial registration or subsequent updates its
from this solicitation. information in the SAM database to ensure it is
(2) The offeror shall enter in the current, accurate and complete. Updating
appropriate block, on the GSA Form 3518, entitled information in the SAM does not
10
•
•
DACA45-5-16-00006
alter the terms and conditions of this contract and Is
not
a substitute for a properly executed contractual
document.
g. (i) If a Contractor has legally changed its
business name, "doing business as" name, or
division name (whichever is shown on the contract),
or has transferred the assets used in performing the
contract, the Contractor shall comply with the
requirements of Subpart 42.12 of the Federal
Acquisition Regulations (FAR) and provide the
responsible Government a fully revised and
initialed/signed GSA Form 3518, entitled
Representations and Certifications, along with
written notification of its intention to (A)change the
name in the SAM database; and (B) provide the
Government with sufficient documentation to verify
and confirm the legally changed name or change in
ownership.
(ii) If the Contractor fails to comply with
the requirements of paragraph(g)(1)(i) of this
clause, or fails to perform the agreement at
paragraph (g)(1)(i)(C) of this clause, and, in the
absence of a properly executed novation or change-
of-name agreement, the SAM information that
shows the Contractor to be other than the Contractor
indicated in the contract will be considered to be
incorrect information within the meaning of the
"Suspension of Payment" paragraph of the
electronic funds transfer (EFT) clause of this
contract.
(2) The Lessor shall not change the name
or address for EFT payments or manual payments,
as appropriate, in the SAM record to reflect an
assignee for the purpose of assignment of claims.
Assignees shall be separately registered in the SAM
database. Information provided to the Lessor's SAM
record that indicates payments, including those
made by EFT, to an ultimate recipient other than that
Lessor will be considered to be incorrect information.
h. Offerors and Contractors may obtain
information on registration and annual confirmation
requirements via the Internet at http://www.sam.gov.
You may also contact the SAM Help Desk as
www.fsd.cov or by calling 1-866-606-8220.
11
1111L4 MIR i ... 1pia.
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16 DACA45-5.16-00006
Publish 2/9
NOTICE OF PUBLIC HEARING
Notice is hereby given that the Iowa City Airport
Commission will hold a public hearing on the 18th day
of February, 2016, at 6:00 p.m. in the 2ntl Floor
Conference Room of the Airport Terminal Building, Iowa
City, Iowa, or if said meeting is cancelled, at the next
meeting of the Iowa City Airport Commission thereafter
as posted by the City Clerk; at which hearing the
Commission will consider a resolution authorizing an
agreement to renew a ground lease with the United
States for ground adjacent to the U.S. Army Reserve
Center at the Airport.
Copies of the proposed resolution are on file for
public examination in the office of the City Clerk, City
Hall, Iowa City, Iowa. Persons wishing to make their
views known for Commission consideration are
encouraged to appear at the above-mentioned time
and place.
MARIAN K.KARR,CITY CLERK
OFFICIAL PUBLICATION
NOTICE OF PUBLIC HEARING
Notice is hereby given that the
I Iowa City Airport Commission will
hold a public hearing on the 18th
//��,, day ofFebruary2016,at 6:00 p.m.
Printer's Fee$ { .�V in the 2nd Floor Conference Room
, of the Airport Terminal Building,
CERTIFICATE OF PUBLICATION Iowa City,Iowa,or if said meeting
is cancelled,at the next meeting of
the Iowa CityAirportCommission
STATE OF IOWA, ; thereafter as posted by the City
Clerk; at welch hearing the
; Commission will consider a resolu-
tion authorizing an agreement to
renew a ground lease with. the
THE IOWA CITY PRESS-CITIZEN 1 United.States for ground adjacent
to the U.S.Army Reserve.Center at
the Airport.
FED,IDN42-0330670 Copies of the proposed resolu-
tion are on file for public examina-
1, San)._ t' tion in the office of the City Clerk,
' City Hall,Iowa City,Iowa. Persons
beingdulysworn,saythat I a wishing to make their views known
for Commission consideration are
the legal clerk of the IOWA CITY encouraged to appear at the
above-mentioned time and place.
PRESS-CITIZEN,a newspaper MARIAN K.KARR,CITY CLERK
. published in said county,and February 9,2016
that a notice,a printed copy of MM
which is hereto attached,1 was
published in said paper
time(s),on the following date(s):
1/4-1/IAA to C-AA-"A
Legal Clerk
Subscribed and sworn to
before me his to day of
Notary Public
•
f. _ ' fila•
4��T )
f
� ' f
Prepared by: Michael Tharp,Operations Specialist, 1801 S.Riverside Dr.Iowa City,IA 52246(319)350 5045
RESOLUTION NO. �`—675
RESOLUTION GIVING NOTICE OF INTENT TO EXECUTE A GROUND LEASE
WITH TERRY EDMONDS FOR GROUND LOCATED AT THE IOWA CITY
MUNICIPAL AIRPORT AND SETTING A PUBLIC HEARING ON SAID PROPOSAL
FOR MARCH 17,2016.
WHEREAS,the Commission owns ground referred to as the Iowa City Municipal Airport;and
WHEREAS,Terry Edmonds desires to construct an aircraft storage hangar;and
WHEREAS, the Airport Operations Specialist has negotiated a lease with Terry Edmonds for a
term of thirty(30)years;and
WHEREAS,a lease of this period of time requires the holding of a public hearing.
BE IT RESOLVED BY THE AIRPORT COMMISSION OF THE CITY OF IOWA CITY:
1. The Airport Commission of the City of Iowa City does hereby declare its intent to enter
into the above-referenced lease agreement.
2. A public hearing on said proposed lease agreement should be and is hereby set for March
17,2016 at 6:00 p.m. in the Iowa City Airport Terminal Building, 1801 S.Riverside
Drive,Iowa City,Iowa,or if said meeting is cancelled,at the next meeting of the Airport
Commission thereafter as posted by the City Clerk.
3. That the City Clerk is hereby authorized and directed to publish notice of the public
hearing for the above-named project in a newspaper published at least once weekly and
having a general circulation in the City,not less that four(4)nor more than twenty(20)
days before said hearing.
4. That the copy of lease agreement is hereby ordered placed on file by the Chairperson in
the office of the City Clerk for public inspection
Passed and approved this i day of F�ruC r,, 2016.
miramsz's--
,ALViea Appr ved By:
CHAIRPERSON /r r
ATTEST: -� / `P�b
TARY City Attorney's Office
It was moved by 1 t SS t9 v l � �— and seconded by 6 (`e^ the
Resolution be adopted, and upon roll call there were:
Ayes Nays Absent
r./,/ Assouline
4/ Bockenstedt
Gardinier
Odgaard
Ogren
OFFICIAL PUBLICATION
q 7� : NOTICE OF PUBLIC HEARING
Printer's Fee S .q a , Notice is hereby given that the
•Iowa City Airport Commission will
;hold a public hearing on the 17th
CERTIFICATE OF PUBLICATION day of March,2016,at 6:00 p.m.in
the 2nd Floor Conference Room of
STATE OF IOWA, 'the Airport Terminal Building, Iowa
City, Iowa, or if said meeting is
cancelled, at the next meeting of
JOHNSON COUNTY,SS: Ithe Iowa City Airport Commission
thereafter as posted by the City
THE IOWA CITY PRESS-CITIZENCleric; at which hearing the
'Commission Will consider aresolu-
aion authorizing an agreement to
FED.ID#42-0330670 enter into a ground leash with the
Terry Edmonds for ground at the
i ('rosb� ACpie
Copies of the proposed resolu-
being duly sworn,say the I am tion are on file for public examine
-
Zion in the office of the City Clerk,
the legal clerk of the IOWA CITY City Hall,Iowa City,Iowa. Persons
PRESS-CITIZEN,a newspaper wishing to make their views;for Commission consideration are
published in said county,and 'encouraged to appear at the
.
that a notice,a printed copy of above-mentioned timeand place.
MARIAN K.KARR,CITY CLERK
which is hereto attached,was 'r. 159S FEBRUARY 29,2016
published In said paper 1
time(s),on the following date(s):
Jour, r^'`..1
Legal Clerk '
Subscribed and sworn to
before me this
o_ as, day mf
A I l{�
Notary Pu lie
ADAM JAMES Kr.NI E�
o
yak Commission i umbo,7355331
. - My Commission Expires
03!04!2017
NOTICE OF PUBLIC HEARING
Notice is hereby given that the Iowa City Airport
Commission will hold a public hearing on the 17th day
of March, 2016, at 6:00 p.m. in the 2nd Floor
Conference Room of the Airport Terminal Building, Iowa
City, Iowa, or if said meeting is cancelled, at the next
meeting of the Iowa City Airport Commission thereafter
as posted by the City Clerk; at which hearing the
Commission will consider a resolution authorizing an
agreement to enter into a ground lease with the Terry
Edmonds for ground at the Airport.
Copies of the proposed resolution are on file for
public examination in the office of the City Clerk, City
Hall, Iowa City, Iowa. Persons wishing to make their
views known for Commission consideration are
encouraged to appear at the above-mentioned time
and place.
MARIAN K.KARR,CITY CLERK
- ire
Iowa City Municipal Airport
Ground/Hangar Lease
This Ground/Hangar Lease("Lease") is made as of day of 2016, by and between the
Iowa City Airport Commission, having a principal business at 1801 S. Riverside Drive, Iowa City, IA 52240
("Landlord")and Terry Edmonds("Tenant")
RECITALS
A. The City of Iowa City is the owner of fee title to promises situated in the City of Iowa City,State
of Iowa,Commonly known as the Iowa City Municipal Airport. Landlord has the authority to lease
ground.
B. Tenant is Terry Edmonds.
C. The parties desire to enter into a ground lease pursuant to which Landlord will lease an
unimproved portion of the Iowa City Municipal Airport as depicted on Exhibit A(the"Lease Premises")
for the purposes of construction of an aircraft storage hangar and associated apron.
D. Tenant has indicated a willingness and ability to properly keep, maintain,and improve said
ground in accordance with standards established by Landlord, if granted a lease of sufficient term on
said ground area.
In consideration of the foregoing and the mutual covenants hereinafter contained, and for other
good and valuable consideration the receipt and sufficiency of which are hereby acknowledge by the
parties, Landlord and Tenant hereby agree as follows:
ARTICLE I
GRANT
1.01 Grant. Landlord hereby leases to tenant the Leased Premises in accordance with the terms and
conditions hereinafter set forth
ARTICLE II
CONDITION
2.01 Condition of Lease Premises. Tenant is taking possession of the Leased Premises in an-`as-is"
condition as of the execution and delivery of this Lease. Landlord shall have no obligation to p iform..,._,
any improvements, alterations,additions, repairs or replacements thereto except those specifically
defined in this lease. ==;c"-.. "
"
•
ARTICLE III
TERM
3.01 Initial Term. The term of this lease shall commence on June 1, 2016(the"Lease
Commencement Date") and shall continue thereafter until May 31,2046 (the"Term") unless sooner
terminated as provided herein
3.02 Options to renew. There are no options to renew included in this lease
3.03 Termination:Tenant may terminate this lease at any time within 1 calendar year of the
execution date for any reason with 30 days written notice.Tenant will be responsible for payment of
lease for time that has elapsed.
ARTICLE IV
RENT AND UTILITIES
4.01 Annual Base Rent. Commencing on June 1, 2016 and continuing on the first day of each
succeeding month,Tenant shall pay to Landlord,at the address specified in section 7.05,or at such
other place as Landlord may from time to time hereinafter designate to Tenant in writing,annual rent
("Annual Base Rent")as follows:
Annual Base Rent: $.20 per square foot per year. For the period of June 1, 2016-May 31,
2021. $604.80 per year, payable monthly with payments due on the first day of the month.
Beginning June 1,2021 and every 5 years following the Annual Base Rent shall be computed as
follows: Annual Base Rent+CPI escalator as further defined.
a. Definitions. For the purposes of this provision,the following definitions shall apply:
1.The term "Consumer Price Index"or"CPI"shall mean the US. Bureau of Labor
Statistics Consumer Price Index for all Urban Consumers-U.S.City Average,seasonally adjusted. (1982-
1984= 100).
2.The term "Current CPI" shall mean the annual average of Consumer Price Indices for
the calendar year immediately proceeding the change date.
3.The term "Base CPI"shall mean the annual average of Consumer Price Indices for the
calendar year immediately preceding the year for which the Current CPI is determined.
4.the term "Change Date"Shall mean June 1st of each year beginning-lune 1,021 (5
year point) ? T
b.Adjustment. Effective on the Change Date,the Monthly Base Rent hereunder shalt eScalate--.
based on the following formula and illustrated by the following example:
•
Z)
1. Formula.
[(Current CPI—Base CPI)X Rent'+ Rent= Escalated Rent
[Base CPI]
2. Example:Assume the monthly base rent is$1,632.Assume the Current CPI (annual
average CPI for 2011) is 225.114 and that the Base CPI (annual average CPI for 2012) is 228.537.
Monthly base rent beginning February 1,2013 would be$1,656.81
J(228.537-225.114)x 16321+ 1632=$1656.81
[225.114]
c. No recomputations. No subsequent adjustments or recomputations, retroactive or otherwise
shall be made to the Consumer Price Index due to any revision that may later be made to the first
published figure of the Consumer Price Index for any month.
d. No Rent decrease. In no event shall the Annual Bas Rent for a given year be less than the
Annual Base Rent for the immediately preceding year.
e. No Waiver. Any delay or failure of Landlord in computing or billing Tenant for the escalation
of Annual Base Rent as provided herein shall not constitute a waiver of or in any way impair the
continuing obligation of Tenant to pay such escalation of Monthly Base Rent.
f. Change in Index. In the event that the Consumer Price Index ceases to use 1982-1984=100 as
the basis of calculation,the new CPI established by the U.S. Bureau of Labor Statistics Consumer Price
Index for all Urban Consumers-U.S. City Average,seasonally adjusted,with a different base year shall be
used.
Tenant may prepay early without a prepayment penalty
4.02 Net Lease.This Lease in every sense shall be without cost to the Landlord for the development,
maintenance, and improvement of the Leased Premises. It shall be the sole responsibility of the Tenant
to keep, maintain, repair and operate the entirety of the Leased Premises and all improvements and
facilities placed thereon at Tenant's sole cost and expense.
4.03 Utility Payments. Commencing with the Lease Commencement Date and continuing throughout
the term,Tenant shall pay or cause to be paid all charges,assessments,or taxes for gas, electricity,
water,sewer,telephone,and all other utility services incurred in connection with Tenant's use and
occupancy of the Leased Premises.
4.04 Taxes. Commencing with the Lease Commencement Date and continuing throughouX.,he term,
tenant shall pay all property taxes on the Leased Premises when they become due.
ARTICLE V
USE AND OCCUPANCY
5.01 Use.Tenant shall use the Leased Premises for the construction, use,and support of corporate
aviation hangar facilities.
5.02 Construction.Tenant shall use its best efforts to complete the construction of a building facility
on the Leased Premises for the operation of said hangar. Tenant's interest under this Lease shall
terminate and all payments hereunder shall be forfeited if Tenant does not complete construction of the
substantial improvements within one(1)year of the date of execution of this Lease agreement.
"Substantial improvements" means completion of the construction in accordance with the plans and
specifications approved by the Commission and with city ordinances.The failure by Tenant to complete
minimum improvements within a period of one (1)year from the Lease Commencement Date shall be
considered an event of Default and Landlord shall have available all remedies set forth herein.
5.03. Licenses.Tenant shall, at Tenant's expense, obtain and maintain during the Term of this Lease all
licenses or permits necessary for the operation of Tenant's use of the Leased Premises as defined in
Section 5.01 herein and Tenant shall comply with any other applicable rules and regulations governing
the operation of Tenant's use of the Leased Premises as required by any federal,state,or local
government or regulatory authority or agency.
5.04. Zoning.Tenant shall, at Tenant's expense,obtain any and a/I necessary zoning approvals and
permits required by local law or ordinance.
5.05. Restrictions
a. Prohibited Uses. No use of the Leased Premises shall be permitted which is offensive by
reason of odor,fumes,dust,smoke, noise,or other pollution, nor shall any use be permitted which is
hazardous by reason of excessive danger of fire or explosion,which may be injurious to any property or
persons on or about the Iowa City Municipal Airport or that is in violation of the applicable laws or
regulations of any governmental authority.Any use that negatively affects the operation of the Iowa
City Airport is prohibited.
b. Hazardous Materials. No Hazardous Materials of any kind shall be stored on or disposed of on
the lot.As used herein, Hazardous Materials shall mean:
Any"hazardous waste" as defined by the Resource Conservation and Recovery Act of
1976,as amended from time to time,and rules or regulations promulgated thereunder
Any"hazardous substance" as defined by the Comprehensive Environmental Response
Compensation and Liability Act of 1980,as amended from time to time, and rules or regulationsr
promulgated thereunder; ` r ry t-�
Any oil, petroleum products,and their byproducts;and '�
Any substance which is regulated by any federal,state, or local governmental authority
or that is the subject of any law, rule or regulation.
With the exception of Paragraph 5.05b above, 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. No waste or disposable materials shall be released on the ground or in the storm sewers.
Should such materials be spilled or escape from storage or in any way contaminate the Airport or
property adjacent to the Airport through activities of the Tenant,the Tenant shall be responsible for the
clean up, containment and otherwise abatement of such contamination at Tenant's sole cost and
expense. Further, Tenant shall notify the Commission and appropriate governmental agency of such
occurrence immediately. Should Tenant fail to do so, the Commission may take any reasonable and
appropriate action in the Tenant's stead. The cost of such remedial action by the Commission shall be
paid by the Tenant.
a. Tenant may have the following materials stored in the Hangar Spaces �^
• 1 case of engine oil J
• 2 1/2 gallons gasoline for motorized tugs(but no aviation fuetal
gasoline in drums)
• 1 gallon of cleaning solvents
c. Nuisances. No act constituting a nuisance as defined under the provision of Chapter 657, Code
of Iowa,or the common law of Iowa,shall be permitted, and the restrictions pertaining to acts within a
county in said Code chapter shall be applicable.
d. Construction Site Standards. Construction and the conduct thereof shall comply with all
governmental requirements as to health and safety and shall meet the standards set forth herein and as
set forth by City ordinance.Such standards shall cover, but not be limited to,the restrictions contained
herein and additional regulations concerning erosion control, parking for construction workers,office
trailers on the lot, material storage, location of telephones and vending machines, security design,
location and disposal of sewage during construction,cleaning and policing of the construction site and
protection of streets,street right of ways and property adjoining the building site.Said requirements
may vary depending on size, location and topography of a lot. During the course of construction,Tenant,
its agents,and contractors shall keep mud,dirt,debris and building materials off of all City roads. No
temporary building,job trailers or the like shall be permitted on the lot except those incident to
construction while an approved building is being constructed thereon and shall be removed within 30
days following the issuance of a permanent certificate of occupancy by the City of Iowa City.When the
construction of a project is once begun,work thereon shall be prosecuted diligently and continuously
until full completion. Any building shall be substantially completed prior to occupancy of any part
thereof, and landscaping shall be fully completed within 30 days of granting a certificate of occupancy,
weather permitting. If the Tenant informs the Landlord in writing within 30 days of issuance of the
certificate of occupancy that weather will not permit the completion of landscaping,the Landlord will
provide the Tenant with an alternate deadline by which to complete the landscaping.Tenant shall be
liable for damage to airport facilities and pavements used during construction activity.
e.Parking. All vehicle parking areas and service drives shall be dust free, hard-surface with a
concrete curb and gutter.
f. Landscaping. In connection with construction on the leased ground,the Tenant shall be
required to sod or seed the entire ground surface of the leased ground except for building and parking
sites and alternatively landscaped areas.The Tenant shall be responsible for sodding or seeding shall
maintain in good condition and appearance.
g.Signs. All signage shall comply with city ordinances and be approved by the Landlord.
h. Lighting. All lighting shall be directed away from adjacent properties and shall be positioned
to eliminate glare on streets and highways. No neon lights, intermittent or flashing lights shall be
allowed. Only shaded light sources shall be used to illuminate signs,facades, buildings, parking and
loading areas.All lighting shall be reflected downward.
i. Storage. No storage of any articles,goods, or materials shall be permitted outside any building
except of a temporary nature only and then only with the prior written consent of the Landlord,who
shall have the right,as a condition to any such approval,to impose such limitations and screening
requirements as it may deem to be in the best interests of the area.Any such approval may be revoked
by the Landlord if at any time any of such limitations or screening requirements are not met.
j. Utilities.All electric,telephone, and other utility lines on or servicing the lot must be
underground.
ARTICLE VI
A w• CT
IMPROVEMENTS;SURRENDER;PERSONAL PROPERTY :_a 4 `7
ALTERNATIONS; LEINS; MAINTENANCE;COMPLIANCE =; '0
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6.01 Improvements and Personal Property.
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a.Title to Tenant's Improvements.Any and all real property improvements, alterations
modifications or additions on or to the Leased Premises made by Tenant during the Term
("Improvements")shall be and remain the property of Tenant throughout the Term.
b.Surrender. Upon expiration of the Term or termination of the Lease,whether by breach,
default,expiration of Lease, or otherwise,title to the Tenant's Improvements shall be and become the
sole and absolute property of Landlord, and Tenant shall thereupon be required to, at Landlord's sole
discretion, either: (i) return and deliver up the Leased Premises in the same condition as when delivered
to Tenant, normal wear and tear excepted or(ii) return and deliver up to Landlord the Leased Premises
and Tenant's Improvements thereon. If Landlord chooses option (ii),said Improvements shall be
surrendered to and become the sole property of Landlord at that time,free and clear of any liens of
mortgages, deeds of trust, liens of mechanics, laborers or materialmen,and al\other liens and
encumbrances other than any such liens and encumbrances incurred by Landlord, or such lien or
encumbrance which Landlord agrees in writing may survive the expiration of the Term or the
termination of the Lease.
c. Removal of Personal Property.A" items of furniture,furnishings, inventories and other
personal property acquired by Tenant for use on the Leased Premises (the"Personal Property") shall be
and remain the property of Tenant regardless of termination of the Lease or expiration of the Term.
Tenant shall remove from the Leased Premises all Personal Property at or before the termination or
expiration of the Lease. If Tenant fails to remove such items within such period,then (i) such items shall
be deemed abandoned by Tenant and shall become the property of Landlord, and (ii) Landlord shall
have the right to remove and dispose of such items as Landlord, in its sole discretion,sees fit and to
charge Tenant the cost of doing so.
6.02 Alterations.
a. Required or Discretionary Alterations.Tenant shall make all additions, improvements, and
alterations (hereinafter"Alterations")on the Leased Premises, and on and to the Tenant's
Improvements thereon, required by any governmental authority or which may be made necessary by
the act or neglect of Tenant, its employees, agents or contractors,or any persons,firm or corporation,
claiming by,through or under Tenant. Except as provided in the immediately preceding sentence,
Tenant shall not make any other Alterations to the Leased Premises without Landlord's prior written
consent,which consent shall not be unreasonably withheld or delayed.
b. Performance Standards. Prior to making any Improvements or Alterations,Tenant shall
submit to Landlord for approval the following items:
i. Final plans and specifications,together with a certificate from Tenant's architect that
the final plans and specifications are in compliance with all applicable laws and ordinances;
ii. A good faith estimate by Tenant's architect of the cost of constructing the
Improvements or Alterations; 7
iii. Names and addresses of proposed contractors and subcontractors; ")
iv.A copy of the signed contract or contracts for the full cost of construction of the
Improvements or Alterations in accordance with the final plans and the cost estimate-'of
Tenant's architect;
v. Necessary permits or satisfactory evidence that a permit is not required. Landlord
shall determine in its reasonable discretion the sufficiency of such evidence;
vi. Certificates of insurance required by Section 8.01 naming Landlord and the City of
Iowa City as additional insureds and including builder's risk, liability and worker's compensation
insurance and such other insurance customarily obtained during construction as is reasonably
requested by Landlord;and
vii. Completion assurances in the form of an Irrevocable Letter of Credit or Payment and
Performance Bond in accordance with Section 6.02(c) below, both drawn to the benefit of
Landlord,or as may be required by Landlord. Such completion assurances must be acceptable to
Landlord in both form and substance, and must also be obtained from companies satisfactory to
Landlord.
In addition,Tenant shall, upon Landlord's written request, provide Landlord with
evidence satisfactory to Landlord of Tenant's financial ability to pay for the Improvements or
Alterations. Landlord may also require that Tenant secure, at Tenant's expense,evidence
satisfactory to assure Landlord's title in the Leased Premises against mechanic's liens arising out
of any work,alterations or improvements made to the Leased Premises by Tenant as provided in
Section 6.03 hereinbelow.Tenant shall not commence to perform any Improvements or
Alterations costing in excess of$10,000.00 without obtaining Landlord's prior written consent,
which consent shall not be unreasonably withheld.All permitted Improvements or Alterations
shall be performed with new materials, in a good and workmanlike manner,strictly in
accordance with the final plans and specifications approved by the Landlord, and in accordance
with any and all Legal Requirements as such term is defined in Section 6.05. Upon completion of
any such work by or on behalf of Tenant,Tenant shall provide Landlord with such documents as
Landlord may require evidencing payment in full for such work,such as lien waivers, and "as-
built" working drawings. In the event Tenant performs any work not in compliance with the
provision of this Section 6.02(b),Tenant shall, upon written notice from Landlord, immediately
remove such work and restore the Leased Premises to their condition immediately prior to the
performance thereof. If Tenant fails to so remove such work and restore the Leased Premises as
aforesaid, Landlord may, at its option,and in addition to all other rights or remedies of Landlord
under this Lease,at law or in equity,enter the Leased Premises and perform said obligation of
Tenant and Tenant shall reimburse Landlord for the cost to the Landlord thereof, immediately
upon being billed therefore by Landlord. Such entry by Landlord shall not be deemed eviction
or disturbance of Tenant's use or possession of the Leased Premises, nor render LandWd liable
in any manner to Tenant. ^� ;
c. Performance Bonds. Unless exempt or unless this requirement is waived by Landlor Tena it;
at its own cost and expense, shall cause to be executed,and delivered to Landlord two separate,bonds,;1
as follows: :
i. Prior to the date of commencement of construction, a contract surety bond in=,a sum
equal to the full amount of the construction contract awarded by Tenant for construction of the
improvements on the Leased Premises.Said bond shall be drawn in a form and from such
company as approved by Landlord; shall guarantee the faithful performance of necessary
construction and completion of improvements in accordance with approved final plans and
detail specifications;and shall guarantee Landlord against any losses and liability,damages,
expenses, claims,and judgments caused by or resulting from any failure of Tenant, or Tenant's
contractor,to perform completely the work described as herein provided and to pay all bills for
labor,supplies, material and equipment incident thereto.
In lieu of said bond,Tenant may deposit the amount of said bond in a local depository
institution selected by Tenant to remain until Tenant's general contractor has delivered to
Landlord a waiver of all claims against the Leased Premises for labor done and materials
furnished and for a period of four months after the Landlord's building inspector approves final
completion of the construction of improvements, provided no mechanic's liens have been filed
against the Leased Premises during that time, at which time such deposit shall be refunded to
Tenant.All earnings from said deposit shall be the property of Tenant.
ii. Prior to the commencement of this Lease, a surety bond in the sum at least equal to
one (1)year's rental.Said bond shall be conditioned on the faithful performance of all terms,
conditions, and covenants of this Lease,shall be renewable annually,and shall be kept in full
force and effect for the complete term of this Lease.
At Tenant's option,an amount equal to one (1)year's rental may be deposited with
Landlord in lieu of said performance bond.
6.03 Liens.Tenant shall not cause or permit any liens to be attached to, placed on or filed against the
Landlord's interest in the Leased Premises or Tenant's Improvements in connection with any
construction,alteration, demolition, repair or restoration work Tenant performs or causes to be
performed on the Leased Premises. If, however, at any time, in connection with the planning,
construction,alteration,demolition, repair or restoration work Tenant performs or causes to be
performed on the Leased Premises,any liens of mechanics, laborers, or material men shall be filed
against, attached to or placed on the Leased Premises,the Tenant's Improvements or any part thereof
relating to work described above,Tenant shall, at its expense,cause the same to be discharged, by
payment, bonding or otherwise as provided by law,within fifteen (15)days after Tenant receives notice
that the lien was filed,except for such liens that may have been incurred by Landlord arising from
Landlord's actions. Nothing herein contained shall in any way prejudice the rights of Tenant to contest in
good faith to final judgment or decree any such lien prior to payment thereof, provided that Tenant shall
furnish and keep in effect a surety bond of a responsible and substantial surety company,acceptable to
Landlord, in an amount sufficient to pay 125%of the amount of such contested lien claim with all
interest thereon and costs and expenses with respect thereto,or(b) provide other security reasonably
satisfactory to Landlord. Upon final determination of the validity of such contested lien or claim,Tenant
shall immediately pay the amount finally determined to be due thereon including any judgment or
decree rendered in connection therewith,with all property costs and charges and shall cause apnnsuch
lien to be released of record without cost to Landlord and during the pendency of any such contest,
Tenant shall save and keep Landlord harmless from any claim or loss by reason thereof.Tenant stfailure 1
to comply with the terms of this Section 6.03 shall be considered a Default under the Lease,and-
Landlord shall have the right to any and all remedies against Tenant as set forth in Sectii 13.02 herein
ry
6.04 Maintenance.Tenant shall,throughout the Term, at its sole cost and expense, maintain the Leased
Premises and all buildings and improvements at any time erected thereon, any unimproved portion of
the Leased Premises and all Personal Property installed therein, in good repair and in a safe,clean,
sightly and sanitary condition. In the event that Tenant, in Landlord's reasonable judgment,fails to
comply with its repair and maintenance obligations under this Section 6.04, Landlord may, but shall not
be obligated to, in addition to its remedies under Article XIII, perform all repairs and maintenance which
in Landlord's reasonable judgment is required to bring the Leased Premises,Tenant's Improvements and
Personal Property into compliance with the repair and maintenance standards of this Section 6.04.
6.05 Compliance with Legal Requirements.Tenant shall,throughout the Term, at its sole cost and
expense, promptly comply with all applicable laws, ordinances and regulations of governmental entities
having jurisdiction over the Leased Premises (including, but not limited to all local zoning use restrictions
and requirements),and all policies of insurance applicable to the Leased Premises(collectively, "Legal
Requirements").Tenant shall not conduct or permit any person to conduct any unlawful activity on the
Leased Premises or any use or activity in violation of(a) any Legal Requirements, including but not
limited to zoning or other land use laws or ordinances,or(b) any private restrictive covenants applicable
to the Real Estate. Furthermore,Tenant shall not cause or allow any activity which causes air,water,
sailor noise pollution,which would violate any Legal Requirements or which would otherwise constitute
a nuisance or reasonably objectionable intrusion into or interference with the use of any surrounding
property.
6.06 Non-Discrimination.Tenant covenants, in consideration of the right to lease property at Iowa City
Municipal Airport,that 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.Tenant shall remain in compliance with all
r--a
requirements of 49 C.F.R. Part 21, Non-Discrimination in Federally Assisted Programs of the De Aliment
tment
of Transportation.
"n � --�
ARTICLE VII --.: —
c-, �
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INSURANCE, DAMAGE DESTRUCTIONP1
G. N
7.01 Insurance.Tenant covenants and agrees that it will at its own expense procure and maintai
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. Property Insurance-100%of the replacement cost value on any building, on an "all risk"or
Special Causes of Loss basis or equivalent form. City of Iowa City shall be named as a Loss Payee on the
property insurance policy with Clause C. Loss Payable of ISO form CP1213 0607 (or other equivalent
form)
b. Liability-$1,000,000 occurrence/$2,000,000 aggregate limits on a "Garage Liability"form (or
equivalent combined premises and auto liability form)whereby such insurance includes all operations
conducted on the premises and any auto or motorized vehicle or trailer operated by or on behalf of the
tenant.
c. Excess Liability$1,000,000 occurrence/$1,000,000 aggregate.
City of Iowa City and the Airport Commission shall be named as an additional insured on the Garage
Liability and the policy shall be endorsed with the Government Immunity endorsement provided below.
Certificate of insurance will be provided evidencing coverage. All insurance companies involved should
have an A.M. Best rating of A-or higheL Tenant shall deliver to the Landlord,within thirty(30) days of
execution of this lease agreement, Certificates of Insurance and copies of said policies, naming the
Landlord and the City of Iowa City, Iowa as additional insureds. Tenant shall provide fifteen (15)days'
notice to the Landlord before cancellation of said insurance.
Governmental Immunities Endorsement
1. Non-waiver of Government Immunity.The insurance carrier expressly agrees and states that
the purchase of this policy and the including of the City of Iowa City, Iowa and the Iowa City
Airport Commission as Additional Insured does not waive any of the defenses of governmental
immunity available to the City of Iowa City, Iowa,or the Iowa City Airport Commission under
Code of Iowa Section 670.4 as it now exists and as it may be amended from time to time.
2. Claims Coverage.The insurance carrier further agrees that this policy of insurance shall cover
only those claims not subject to the defense of governmental immunity under the Code of Iowa Section
670.4 as it now exists and as it may be amended from time to time.Those claims not subject to Code of
Iowa Section 670.4 shall be covered by the terms and conditions of this insurance policy.
3.Assertion of Government Immunity.The City of Iowa City, Iowa and the Iowa City Airport
Commission shall be responsible for asserting any defense of governmental immunity, and may do so at
any time and shall do so upon the timely written request of the insurance carrier. Nothing contained in
this endorsement shall prevent the carrier from asserting the defense of governmental immunity on
behalf of the City of Iowa City and/or the Iowa City Airport Commission.
4. Non-Denial of Coverage.The insurance carrier shall not deny coverage under this ppfcy and
the insurance carrier shall not deny any of the rights and benefits accruing to the City of lowapty, Iowa
«m.
and the Iowa City Airport Commission under this policy for reasons of governmental unity nless``fl
and until a court of competent jurisdiction has ruled in favor of the defense(s)of govecri ental'
6r...
immunity asserted by the City of Iowa City, Iowa and the Iowa City Airport Commission. °
—17 51
N
5. No Other Change in Policy.The insurance carrier,the City of Iowa City, Iowa,and the Iowa
City Airport Commission agree that the above preservation of governmental immunities shall not
otherwise change or alter the coverage available under the policy.
d. Worker's Compensation Insurance as required by Chapter 85, Code of Iowa.
7.02 Subrogation:Subrogation rights are not to be waived unless a special provision is attached to this
lease.
7.03 Damage or Destruction.
a.Tenant's Obligation to Restore. If any or all of the Tenant's Improvements shall be damaged or
destroyed by fire or any other casualty, then Tenant shall have the right,exercisable by giving written
notice thereof to Landlord within fifteen (15)days after the determination thereof,to terminate this
Lease. Damaged means when the cost to repair the Improvements exceeds the current value of the
Improvements as determined by the Landlord.
i. If the Lease is not terminated,then Tenant shall be obligated to repair and restore
Tenant's Improvements, as hereinafter provided. Such repair or restoration shall be commenced
within ninety(90) days after the date the casualty occurs, and shall be completed within a
reasonable period thereafter not to exceed twelve(12) months. If the Tenant shall fail to
commence or complete such repairs and restoration work within the time periods set forth in
the preceding sentence,except for reasons due to strike,shortage of labor or materials,war,or
an act of God, Landlord shall have the right to immediately terminate this Lease. In performing
such restoration,Tenant shall substantially comply with the conditions applicable to Alterations,
including but not limited to,Section 6.02.All insurance proceeds collected for such damage or
destruction shall be paid to a depositary approved by Landlord,Tenant, and any entity having a
security interest in the Lease. Such insurance proceeds shall be made available to be applied
toward the cost of such repairs or restoration. If the insurance proceeds shall be insufficient for
said repair or restoration,Tenant shall make up the deficiency out of Tenant's funds. In,all cases,
due allowance shall be made for reasonable delay caused by adjustment of insjnce
loss, strikes,governmental approval, labor difficulties or any cause beyond eittier.party.s�
reasonable control.
ii. If the Lease is terminated in accordance with this Section 13.02(a),Hien Tenant shall
demolish the Tenant's Improvements and restore the Leased Premises to its condition,prior to
the Lease Commencement Date, and the effective date of the termination shall occur Lon
completion of such demolition and restoration work, as if such date were specified as the
expiration date of the Term. In such event,the insurance proceeds shall be applied to pay for
the demolition of the Tenant's Improvements and the restoration of the Leased Premises, as
previously provided,and thereafter,Tenant shall receive any remaining proceeds.
b. Remedies. If Tenant shall not enter upon the repair or rebuilding,or the demolition and
restoration,as the case may be,of the Tenant's Improvements within the period specified in Section
8.03(a) and prosecute same thereafter with such dispatch as may be necessary to complete same within
said period,then, in addition to whatever other remedies Landlord may have either under this Lease,at
law or in equity,the money received by and then remaining in the hands of the Depositary shall be paid
to and retained by Landlord as security for the continued performance and observance by Tenant of the
Tenant's covenants and agreements hereunder, or Landlord may terminate this Lease and then be paid
and retain the amount so held as liquidated damages resulting from the failure on the part of Tenant to
comply with the provisions of Section 8.03(a).
c. Negotiation, Settlement and Adjustment of Insurance Proceeds.Tenant shall have the right to
settle the amount of the casualty loss with the insurance carriers, but no final settlement of a loss in
excess of Fifty Thousand Dollars ($50,000.00) may be made without Landlord's prior written consent
thereto.
d. Rent and Other Charges. Provided the Lease is not terminated as provided in Section 8.03(a),
neither Rent nor other charges shall be reduced or abated following damage or destruction or during
the period of repair, restoration or rebuilding. If the Lease is so terminated, Rent and other chafes shall
be paid through the effective date of such termination. c•-•) —71
ARTICLE VIII '- '` — 111"
ASSIGNMENT AND SUBLETTING FA -°
8.01 Binding Effect.The Lease shall be binding upon and shall inure to the benefit of the parties hereto
and their respective heirs, personal representatives,successors, and assigns.
8.02 Assignments.Tenant may not sell,transfer, or assign this Lease(either directly or indirectly)or any
legal or beneficial interest therein,or sublease all or any part of the Leased Premises without the prior
written consent of the Landlord,which consent may be withheld at Landlord's sole discretion. In
exercise of its discretion as to such a proposed sale,transfer or assignment by Tenant, Landlord, in the
event that a proposed sale,transfer or assignment by Tenant provides for payment to Tenant an
amount of rent greater than the amount of Tenant's rent obligation herein at the time, Landlord may
require that a percentage of the difference between the rental amounts be paid to Landlord.Tenant
shall give Landlord written notice of any proposed assignment or sublease of the Leased Premises,and
such notice shall provide (a)the name and address of the proposed assignee or sublessee, (b)the terms
of the proposed assignment or a copy of the proposed sublease, (c)the most recent financial statements
of the proposed assignee or sublessee and (d)such other information as Landlord may reasonably
request. Any assignment or sublease made by Tenant without Landlord's consent in violation of this
Section 10.02 shall be voidable at Landlord's option and shall constitute an Event of Default. Landlord's
consent to anyone assignment or sublease shall not be deemed a waiver of this Section 10.02 with
respect to any subsequent assignment or sublease nor consent to any subsequent assignment or
sublease.Absent the Landlord's agreement to the contrary,following assignment,whether with or
without the Landlords'consent,Tenant will remain liable for all Lease obligations.
ARTICLE IX
MORTGAGES
9.01 Leasehold Mortgage.
a.General Provisions.Tenant, and any successor or permitted assignee of Tenant shall not,at
any time during the Term, pledge, mortgage or encumber the Lease and/or the Leased Premises
demised hereunder,or Tenant's Improvements,without Landlord's prior written consent,which consent
Landlord may, in its sole discretion,withhold. Any such pledge, mortgage or encumbrance made by and
entered into with Landlord's consent, is herein referred to as a "Leasehold Mortgage". Any Leasehold
Mortgage made by and entered into by Tenant without Landlord's consent in violation of this Section
11.01 shall be voidable at Landlord's option, and shall constitute an Event of Default.
b. Landlord's Forbearance; Foreclosure by Leasehold Mortgagee. Landlord hereby agrees that
for the benefit of a Leasehold Mortgagee holding a Leasehold Mortgage and the successors and assigns
of such Leasehold Mortgagee:
i.When giving notice to Tenant with respect to any default under the Lease or any
exercise of any right to terminate the Lease, Landlord will also give a copy of such notice to the
Leasehold Mortgagee at the address of the Leasehold Mortgagee furnished to Landlord. No such
notice to Tenant shall be deemed to affect any rights of the Leasehold Mortgagee unless or until
such notice is given in said manner to such Leasehold Mortgagee.
ii. In case Tenant shall default in respect of any of the provisions of the Lease,the
Leasehold Mortgagee shall have the right, but not the obligation,to cure such default,and
Landlord shall accept payment and/or performance by or on behalf of such Leasehold
Mortgagee as though, and with the same effect, as if the same had been done or performed by
Tenant.The Leasehold Mortgagee will have a period of time after the service of any notice of a
default hereunder upon it within which to cure the default specified in such notice, or cause it to
be cured,which is the same period for cure, if any,as is available to Tenant under the Lease for
the specified default, plus an additional period of thirty(30) days. In the event of a default(or in
the eVi9nt that Landlord is seeking to terminate the Lease by reason of a default)which cannot
reasonably be cured within said period because of Tenant's possession of the Leased Premises,
Landlord shall forebear from exercising its rights to terminate the Lease as against Leasehold
Mortgagee(while reserving all rights against Tenant)on account of such default provided that
the Leasehold Mortgagee:(A) has cured all defaults which can reasonably be cured within the
period of time allotted for cure, (8)within said period has notified Landlord of its intent to cure
all other defaults in a notice which specifies the proceedings by which the Leasehold Mortgagee
intends to secure possession of the Leased Premises, (C) has begun proceedings to secure
possession within the said period, and (D)thereafter prosecutes such proceedings with
reasonable diligence.The notice specified in clause (8)above shall contain an assumption:by the
Leasehold Mortgagee of all of Tenants restrictions and obligations hereunder. --
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iii. No default will be deemed to exist as against any Leasehold Mortgagee and Landlord
shall have no right, and shall take no action,to effect a termination of the Lease as against any
Leasehold Mortgagee until the Leasehold Mortgagee has had the opportunity to cure such
default specified in clause (ii)above. If the Leasehold Mortgagee, by foreclosure or otherwise,
acquires Tenant's leasehold estate,the Leasehold Mortgagee shall be subject to all Lease
Restrictions and shall be liable for all Tenant's obligations accruing thereafter to the same extent
as the prior Tenant would have been so liable.
iv. Provided that the Leasehold Mortgagee has complied with Subsection (ii)of this
Section,any default of Tenant under any provision of the Lease which is not reasonably
susceptible of being cured by a Leasehold Mortgagee during the cure period specified in
Subsection(ii) of this Section shall be cured by Leasehold Mortgagee or any other purchasers or
transferees of Tenants interest under this Lease,whether at judicial foreclosure,trustee's sale or
by an assignment of the Lease in lieu of foreclosure within thirty(30)days after acquisition.
v.A Leasehold Mortgagee (or its designee or nominee) may become the legal owner and
holder of the interest of Tenant under the Lease, including without limitation,the interest of
Tenant in all Tenant's Improvements and Personal Property, by foreclosure or other
enforcement proceedings,or by obtaining an assignment of the Lease and a conveyance of the
Tenant's Improvements and Personal Property in lieu of foreclosure or through settlement of or
arising out of any pending or threatened foreclosure proceeding,without Landlord's consent,
but subject always to the applicable terms, provisions,obligations, and restrictions of the Lease.
Upon such acquisition of legal ownership,such Leasehold Mortgagee(or its designee or
nominee)shall be liable for all obligations under the Lease accruing thereafter to the same
extent as the Tenant would have been. In such event, Leasehold Mortgagee(or, if said
Leasehold Mortgagee has not yet become a successor Tenant hereto,then its designee or
nominee)shall have the right thereafter to assign the Lease and convey the Tenant's
Improvements and Personal Property subject to all other applicable terms, provisions,
obligations,and restrictions of the Lease.
vi. If Tenant fails to observe or perform any of its obligations under the Lease, Leasehold
Mortgagee may, but shall not be obligated to,observe or perform such obligations for and on
behalf of Tenant,whether or not Tenant shall be in default under the Lease.
c. Notices to Leasehold Mortgagees.Any notice or other communication which Landlord shall
desire or is required to give to or serve upon a Leasehold Mortgagee shall be in writing and shall be
served by registered or certified mail or by commercial courier service addressed to such holder at the
address as shall be designated from time to time by such Leasehold Mortgagee and shall mailatopy of
said notice by ordinary mail.Any notice or other communication which any Leasehold Mortg4e shall
desire or is required to give to or serve upon Landlord shall be deemed to have been given orsgrved if'
sent by registered or certified mail or by commercial courier service addressed to Landlord attandlo[d
address as set forth in the provisions of the Lease providing for notices to Landlord or_ such other
address as shall be designated from time to time by Landlord by notice in writing given to such: ,.,�„
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Leasehold Mortgagee by registered or certified mail or by commercial courier service. Any notice given
pursuant hereto shall be effective when received or refused.
d. Non-Merger. No union of the interests of Landlord and Tenant shall result in a merger of the
Lease and the fee interests in the Leased Premises without the prior written consent of any Leasehold
Mortgagee.
ARTICLE X
EASEMENTS
10.01 Generally. This Lease and the rights granted to Tenant hereunder are expressly made subject and
subordinate to any and all existing easements on the Leased Premises,and Tenant shall not in any way
act to alter, obstruct,disturb or otherwise impair any of said easements nor grant additional easements
on or affecting the Leased Premises during the term of this Lease without Landlord's prior written
consent.
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ARTICLE XI - l '"fl
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DEFAULT
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11.01 Events of Default.The following shall constitute"Events of Default": . N a
a. Monetary. Tenant shall fail to pay Rent at the time required or any other monetary obligation
or payment required under this Lease when due, and such failure shall continue for a period of ten (10)
days following written notice from Landlord to Tenant;or
b. Non-performance.Tenant shall fail to observe or perform any of the other covenants,terms
or conditions contained in the Lease,or a warranty made by Tenant shall fail to be accurate and
complete, and such failure shall continue and not be cured for a period of thirty(30)days after written
notice by Landlord to Tenant, provided that if the default is not reasonably susceptible of being cured
within thirty (30)days,an Event of Default shall occur only if the Tenant fails to promptly commence
such cure or fails thereafter to diligently pursue such efforts to completion;or
c. Bankruptcy: Receivership. If(i)Tenant files a petition in bankruptcy or for reorganization or
for an arrangement pursuant to any present or future federal or state bankruptcy law or under any
similar federal or state law,or is adjudicated a bankrupt or insolvent,or makes an assignment for the
benefit of its creditors, or admits in writing its inability to pay its debts generally as they become due,or
if a petition or answer proposing the adjudication of Tenant as a bankrupt or a reorganization of Tenant
under any present or future federal or state bankruptcy law or any similar federal or state law is filed in
any court and such petition or answer is not discharged or denied within thirty(30) days after the filing
thereof;or(ii)A receiver,trustee or liquidator of Tenant of all or substantially all of the assets of Tenant
or of the Leased Premises or any portion thereof is appointed in any proceeding brought by or against
Tenant and is not discharged within thirty(30)days after such appointment or if Tenant consents to or
acquiesces in such appointment.
11.02 Landlord's Rights upon an Event of Default. Upon the occurrence of an Event of Default by Tenant,
or at any time thereafter during the continuance of such Event of Default, Landlord may take any of the
following actions and shall have the following rights against Tenant:
a. Termination. Landlord may elect to terminate the Lease by giving no less thari irtj30)days'
prior written notice thereof to Tenant,and upon the passage of time specified in such-notice,-this Lease-
and all rights of Tenant hereunder shall terminate as fully and completely and with the`satne effect as,if,
such date were the date herein fixed for expiration of the Term and Tenant shall remain liable as
provided in Section 13.02(c).
b. Eviction. Landlord 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 Section 11.02(a), by
operation of law or otherwise, and no repossession of the Leased Premises or any part thereof pursuant
to Section 13.02(b)or otherwise shall relieve Tenant of its liabilities and obligations hereunder,all of
which shall survive such termination, repossession or reletting.
d. Damages. In the event of any termination of this Lease or eviction from or repossession of the
Leased Premises or any part thereof by reason of the occurrence of an Event of Default:
i Rent and Charges.Tenant shall pay to Landlord the Rent and other sums and charges
required to be paid by Tenant for the period to and including the end of the Term or expiration
of an option period as provided for by Section 3.02 herein,whichever is later.
e. Rights Cumulative, Non-Waiver. No right or remedy herein conferred upon or reserved to
Landlord is intended to be exclusive of any other right or remedy,and each and every right and remedy
shall be cumUlative and in addition to any other right or remedy given hereunder or now or hereafter
existing at law or in equity or by statute. In addition to the other remedies provided in this Lease,
Landlord shall be entitled,to the extent permitted by applicable law,to injunctive relief in case of the
violation,or attempted or threatened violation,of any of the covenants,agreements,conditions or
provisions of this Lease,or to a decree compelling performance of this Lease,or to any other remedy
allowed to Landlord at law or in equity.
f. Landlord's Right to Cure. If Tenant fails to pay any utilities charges described in Article IV,
insurance premiums described in Article VIII,the cost of any of the repairs or maintenance required to
be made by Tenant pursuant to the Lease or any other charges,costs or expenses required to be paid
under the Lease, Landlord shall have the right, but not the obligation,to make all such payments,and in
addition to its other remedies under this Article XI, Landlord shall have the option of requiring Tenant to
repay to Landlord the amount of such payments(which shall be deemed additional rent hereunder)on
demand with interest after demand at 10% rate per annum. (the"Default Rate").
g. Late Charge, Default Rate. If Landlord does not receive payment of any installment of Rent or
any other sum or charge required to be paid by Tenant to Landlord hereunder within ten (10)days after
the same falls due (regardless of whether Tenant has received notice of the delinquency), Landlord may
impose a late charge equal to five percent(5%)of the amount of such delinquent sum and if such sum is
not received by Landlord within thirty(30)days of its due date,such sum shall, in addition, bear interest
at the Default Rate from the due date until the date paid.
h. Landlord's Lien. Landlord shall have a lien against Tenant's leasehold estate,Tenant's
Improvements and all property of Tenant located at the Leased Premises,to secure any obligations of
Tenant to Landlord arising pursuant to the provisions of this Lease.
11.03 No Implied Waiver.The failure of Landlord to insist upon strict performance of any of the
covenants or conditions of the Lease,or to exercise any options herein conferred in anyone or more
instances shall not be construed as a waiver or relinquishment for the future of any such covenant,
condition,or option, but the same shall be and remain in full force and effect.The receipt by Landlord of
any Rent or any other sum payable hereunder with knowledge of the breach of any covenants or
agreements contained herein shall not be deemed a waiver of such breach.
ARTICLE XIIrri ""
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ABANDONMENT 1.13
12.01 Abandonment.Tenant shall not vacate or abandon the Leased Premises at any time durirte the _--
Term of this Lease. If Tenant shall vacate or abandon the Leased Premises,the right of possession shall,
at the option of Landlord, revert to Landlord and Tenant shall lose all right to possession of the Leased
Premises and Tenant's Improvements; however,Tenant shall otherwise remain liable on this Lease.
Landlord shall then,without further notice, have the remedies provided for in Article XIII herein.
ARTICLE XIII
ENVIRONMENTAL CONDITIONS
13.01 Definitions.As used in this Lease,the phrase"Environmental Condition"shall mean: (a) any
adverse condition relating to surface water,ground water, drinking water supply, land,surface or
subsurface,strata or the ambient air, and includes,without limitation, air, land and water pollutants,
noise,vibration, light and odors,or(b)any condition which may result in a claim of liability under the
Comprehensive Environmental Response Compensation and Liability Act,as amended,or the Resource
Conversation and Recovery Act,or any claim of violation of the Clean Air Act,the Clean Water Act,the
Toxic Substance Control Act, or any claim of liability or of violation under any federal statute hereafter
enacted dealing with the protection of the environment,or under any rule, regulation, permit or plan
under any of the foregoing,or under any law, rule or regulation now or hereafter promulgated by the
state in which the Leased Premises are located, or any political subdivision thereof, relating to such
matters(collectively"Environmental Laws").
13.02 Compliance by Tenant. Tenant shall,at all times during the Term,comply with all Environmental
Laws applicable to the Leased Premises and shall not, in the use and occupancy of the Leased Premises,
cause or contribute to,or permit or suffer any other party to cause or contribute to any Environmental
Condition.
13.03 Tenant's Indemnity.Tenant will protect, indemnify and save harmless the Landlord,City of Iowa
City,the partners of the Landlord, and all of the foregoing's respective partners,agents and employees
(collectively"Landlord's Indemnitees"),from and against all liabilities,obligations, claims, damages,
penalties,causes of action,costs and expenses(including,without limitation, reasonable attorneys'fees
and expenses)of whatever kind or nature,contingent or otherwise, known or unknown,incurred or
imposed, based upon any Environmental Laws or resulting from any Environmental Condition occurring
or contributed to during the term of this Lease. In case any action,suit or proceeding is brought against
any of the parties indemnified herein by reason of any occurrence described in this Section 13.03,
Tenant will,at Tenant's expense, by counsel reasonably approved by Landlord, resist and defend such
action,suit or proceeding,or cause the same to be resisted and defended.
ARTICLE XIV
TENANT'S INDEMNIFICATION
14.01 Generally.To the extent not expressly prohibited by law,Tenant agrees to indemnify,save,
protect and hold forever harmless, Landlord,and all of Landlord's Indemnitees as defined in Section
13.03 hereinabove,from and against all losses,damages,costs,claims and liabilities, including,without
limitation, court costs and reasonable attorney's fees and expenses, which Landlord's Indemnitees,or
any of them, may become liable or obligated by reason of, resulting from or in connection with: (a)any
injury to or death of persons and damage to,or theft, misappropriation or loss of property occurring in
or about the Leased Premises or the Property arising from Tenant's use and occupancy of the Leased
Premises and/or the conduct of its business;(b) any activity,work or thing done, permitted or suffered
by Tenant in or about the Leased Premises, including all liabilities of every kind or description which may
arise out of or in connection therewith; and(c)any breach or default on the part of Tenant in the
payment or performance of any covenant,agreement or obligation on the part of Tenant to be paid or
performed pursuant to the terms of this Lease or any other act or omission of Tenant, its agents or
employees. In case of any action or proceeding brought against Landlord's Indemnitees, or any of them,
by reason of any such claims,Tenant covenants to defend such action or proceeding by counsel
reasonably satisfactory to Landlord and/or any particular Landlord's Indemnitee.
ARTICLE XV
MISCELLANEOUS PROVISIONS
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15.01 Access by Landlord.
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(a) Landlord or Landlord's agents, representatives or employees shall have the right at any time upon at
least twenty-four(24) hours oral notice (except in emergencies, in which case only such notice, if any, as
may be feasible under the circumstances shall be required)to enter upon the Leased Premises and
Tenant's Improvements for the purposes of inspecting the same,determining whether this Lease is
being complied with,curing(as permitted herein)any default by Tenant and showing the Leased
Premises to prospective Leasehold Mortgagees.
(b) Landlord or Landlord's agents, representatives,or employees shall have the right whenever
necessary and without notice to enter upon the Leased Premises for the purpose of repairing or
maintaining any of Landlord's property adjacent to or abutting the Leased Premises.
15.02 Gender and Number.Words of any gender used in the Lease shall be held to include any other
gender, and words in the singular shall be held to include the plural, where required.
15.03 Notices. Notices,statements and other communications to be given under the terms of the
Lease shall be in writing and sent by certified or registered mail,or by commercial courier, return
receipt requested, and addressed as follows:
If to Landlord: With copies to: If to Tenant:
Iowa City Airport
Commission City Attorney Terry Edmonds
Airport Manager 1801 S. 410 E.Washington St. 4125 180th St. NE
Riverside Dr.
Iowa City, IA 52240 Solon, IA 52333
Iowa City, IA 52240
or at such other address as from time to time designated by the party receiving the notice.All
such notices shall be deemed to have been fully given, made or sent when made by personal
service or deposited in the United States Mail, Registered or Certified, postage prepaic4:-.:r ,,
15.04 Applicable Law.The laws of the State of Iowa shall govern the validity,
—�4 a
performance and enforcement of this Lease.
15.05 Partial Invalidity. If any provision of the Lease shall be invalid or unenforceable it:.
shall not affect the validity or enforceability of any other provisions of the Lease.
15.06 Heading. Headings as to the contents of particular sections herein are inserted only for
convenience,and are in no way to be construed as a part of the Lease or as a limitation on the scope of
the particular section to which they refer.
15.07 Binding Effect.The covenants,conditions and agreements contained in the Lease shall bind,apply
to and inure to the benefit of the parties hereto and their respective successors.
15.08 No Partnership. It is expressly understood that Landlord shall not be construed or held to be a
partner,joint venturer or associate of Tenant in the conduct of Tenant's business and that the
relationship between the parties hereto is and shall at all times remain that of landlord and tenant.
15.09 Holding Over.The Lease shall terminate without further notice at expiration of the Term.Any
holding over by Tenant or any party claiming by,through or under Tenant after expiration shall not
constitute a renewal or extension or give Tenant any rights in or to the Leased Premises. In the event of
any holding over, Landlord may exercise any and all remedies available to it under Article XIII herein or
at law or in equity to recover possession of the Leased Premises, and for damages.
15.10 Time is of the Essence.Time is of the essence in this Lease.
15.11 Entire Agreement; Merger.The Lease contains all the agreements and conditions made between
the parties hereto with respect to the matters contained herein and may not be modified orally or in
any other manner than by an Agreement in writing signed by all the parties hereto or their respective
successors.All prior written and oral understandings and agreements shall be deemed to have merged
into the Lease and have no further force and effect.
15.12 Counterparts.This Lease may be executed in counterparts,each of which shall be deemed to be
an original and all of which shall,when taken together,constitute but one and the same instrument.
15.13 Apron Construction. Landlord agrees to reimburse 100%of cost to install apron between exisiting
hangar k and new hangar. Landlord agrees to reimburse 50%of cost to install apron in front of new
hanger.
15.14 Utility Access. Landlord agrees to install new electric and gas services in the area for future
growth.Tenant will be responsible for connection to,and running utilities from these locations to the
proposed hangar.
15.15 FAA Airspace Study.Tenant shall request an Obstruction Evaluation/Airport
Airspace Analysis (0E/AAA) under CFR Title 14 Part 77.Tenant shall not commence
construction activity until said study is returned with a "DETERMINATION OF NO HAZARD TO N
AIR NAVIGATION" as the study result.
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ARTICLE XVI -<
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FAA PROVISIONS
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16.01 Commission Control.The Landlord reserves the right, but shall not be obligated to the re-Rant,to
maintain and keep in repair the landing area of the Airport and publicly owned facilities of the Airport,
without hindrance from the Tenant.The Landlord reserves the right to take action it considers necessary
to protect the aerial approaches of the Airport against obstructions. The Tenant shall not act as an agent
or represent itself as an agent for the Commission in matters between the Federal Aviation
Administration and the Landlord
16.02. Landlord Improvements.The Landlord reserves the right to further develop or improve the
landing area and al/publicly owned aviation facilities of the Airport as it sees fit,without interference or
hindrance from the Tenant.
16.03. 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 Landlord reserves the right to grant to others the privilege and right of
conducting any activity of an aeronautical nature.
16.04 Grant Assurances. This Lease shall be subordinate to the provisions of any outstanding or future
agreement between Landlord and the United States government or 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 said Airport.
16.05 Right of Flight.Tenant acknowledges that the City of Iowa City, Iowa is authorized by law to own
and operate the Iowa City Municipal Airport located in Johnson County, Iowa near the Leased Premises.
There is hereby reserved to 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
Leased Premises herein conveyed,together with the right to cause in said airspace such noise,
vibrations,fumes,dust, and particles 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.Tenant foregoes and waives any and all claims for damages,of
whatever kind or type,which are reasonably likely to occur in the future as a result of aircraft using the
"navigable airspace",as defined by the Federal Aviation Act of 1958(49 U.S.C.40102(a)(30))and
regulations promulgated thereunder over and above the Leased Premises, including but not limited to,
damages resulting from noise,vibration,fumes, dust and particles.Tenant grants to the Landlord, its
successors and assigns,a continuing right to keep the air space above the Airport Imaginary Surfaces as
described in Federal Aviation Regulations Part 77 and depicted on the Airport Layout Plan (ALP)clear of
any and all fences,crops,trees, poles, building or other obstructions of any kind or nature whatsoever
which now extend,or which may any any time in the future extend, above said surfaces.Tenant grants
the Landlord the right of ingress to,egress from,and passage over the Leased Premises for the purpose
of effecting and maintaining such clearance and of removing any and all obstructions which now or may
hereafter extend above the Airport Imaginary Surfaces as described in Federal Aviation Regulations Part
77 and depicted in the ALP. c
16.06. Additional FAA Provisions. = �� c�
(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 ort;lhe said
property described in this Lease for a purpose for which c:) Department of Transportation projtRm or
activity is extended or for another purpose involving the provision of similar services or benefits,Tenant
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 assigns,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.
(c) 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 interferences or hindrance.
(d) 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.
(e) 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.
(f) 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
(g)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.
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EXHIBIT A
Leased Premises
A location 30 feet south of Hangar K. An area 56 feet wide by 54 feet deep(3024 square feet)for the
purposes of construction of a hangar building.
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Goole earth
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Prepared by: Michael Tharp,Operations Specialist, 1801 S.Riverside Dr.Iowa City,IA 52246(319)350 5045
RESOLUTION NO. /1-9 -1;
RESOLUTION APPROVING PLANS, SPECIFICATIONS, FORM OF CONTRACT, AND
ESTIMATE ON COST FOR "2016 TERMINAL APRON EXPANSION" CONSTRUCTION
PROJECT AT THE IOWA CITY MUNICIPAL AIRPORT
WHEREAS,notice of public hearing on the plans specifications, form of contract and estimate of cost for
the above-named project was published as required by law,and the hearing thereon held.
NOW,THEREFORE,BE IT RESOLVED BY THE IOWA CITY AIRPORT COMMISSION THAT:
1. The plans,specifications,form of contract and estimate of cost for the above-named project
are hereby approved
2. The amount of bid security to accompany each bid for the construction of the above-named
project shall be in the amount of 10%(ten percent)of bid payable to the Iowa City Airport
Commission
3. The City Clerk is hereby authorized and directed to publish notice for the receipt of bids for
the construction of the above-named project in a newspaper published at least once weekly
and having a general circulation in the city.
4. Sealed bids for the above-named project are to be received by the City of Iowa City, Iowa at
the Office of the City Clerk,at the City Hall,before 2:00pm on the 30th day of March,2016.
At that time,the bids will be opened and announced by the City Clerk or her designee, and
thereupon referred to the Iowa City Airport Commission for action upon said bids at its next
regular meeting,to be held at the Terminal Building,Iowa City Airport, 1801 S.Riverside
Drive,Iowa City,Iowa,at 6:00pm on the 21'day of April 2016,or if said meeting is
cancelled,at the next meeting of the Airport Commission thereafter as posted by the City
Clerk.
Passed and approved this /q- day of 144(40-t1 2016.
i4000r `I � > Approved By:
CHAIRPERSON
A'1'1'EST: aX:,
/
C ARY City Attorney's Office
� r
It was moved by 01.9q and seconded by ��`�Dsrrf/`6 ' ✓1-e- the Resolution be
adopted, and upon rol(8all there were:
Ayes Nays Absent
Assouline
✓ Bockenstedt
1/ Gardiner
Odgaard
Ogren
Prepared by: Michael Tharp,Operations Specialist, 1801 S.Riverside Dr.Iowa City,IA 52246(319)350 5045
RESOLUTION NO. /�j-"07
RESOLUTION AUTHORIZING THE CHAIRPERSON TO EXECUTE AND THE
SECRETARY TO ATTEST TO A LAND LEASE BETWEEN THE AIRPORT
COMMISSION OF THE CITY OF IOWA CITY,IOWA,AND THE UNITED
STATES GOVERNMENT
WHEREAS,the Airport Commission of the City of Iowa City has negotiated a lease for land as
described in Exhibit A; and
WHEREAS,the previous lease agreement has expired; and
WHEREAS,the Commission finds the proposed lease to be proper and in the best interest of the
Iowa City Municipal Airport; and
WHEREAS,the term of the lease shall be from March 1,2016 through February 28,2021.
NOW,THEREFORE,BE IT RESOLVED BY THE AIRPORT COMMISSION OF THE
CITY OF IOWA CITY:
1. That the attached land lease between the Airport Commission and the U.S.Government
is hereby approved.
2. That the Chairperson is directed and authorized to execute and the Secretary to attest to
said land lease.
It was moved by RSSe.,t L-., and seconded by r-li"' the Resolution be adopted,
and upon roll call there were:
Ayes Nays Absent
Assouline
.�/ Bockenstedt
✓ Gardiner
,/ Odgaard
c✓ Ogren
Passed and approved this l Sr day of re rcu4-r`7i 2016.
i
,r.d.�_ �`_ i, Approved By:
CHAMFERS°
c2if5Z------ '" -/4:)../(/-/.6
ATTEST: -G
EC TARY City Attorney's Office
Prepared by: Michael Tharp,Operations Specialist, 1801 S.Riverside Dr.Iowa City,IA 52246(319)350 5045
RESOLUTION NO. x1/4Oe'
RESOLUTION AUTHORIZING THE CHAIRPERSON TO EXECUTE AND THE
SECRETARY TO ATTEST TO A LAND LEASE BETWEEN THE AIRPORT
COMMISSION OF THE CITY OF IOWA CITY,IOWA,AND TERRY
EDMONDS.
WHEREAS,the Airport Commission of the City of Iowa City has negotiated a lease of land to
Terry Edmonds for his use in constructing a new hanger; and
WHEREAS,the Commission fmds the proposed lease to be proper and in the best interest of the
Iowa City Municipal Airport; and,
WHEREAS,the term of the lease shall be from June 1, 2016 through May 31,2046.
NOW,THEREFORE,BE IT RESOLVED BY THE AIRPORT COMMISSION OF THE
CITY OF IOWA CITY:
1. That the proposed land lease,attached hereto,is hereby approved.
2. That the Chairperson is directed and authorized to execute and the Secretary to attest to
the land lease between the Airport Commission and Terry Edmonds.
It was moved by Ge,�.. . and seconded by C the Resolution be adopted,
and upon roll call there were:
Ayes
Nays Absent
Bockenstedt
Gardiner
Odgaard
Ogren
Passed and approved this C7 day of HAr 2016.
an" App ed By:
C . I. . . .S�
ATTEST`4r
TARY City Attorney's Office
Prepared by: Michael Tharp, Operations Specialist, 1801 S. Riverside Dr, Iowa City IA 52246 319-350-5045
RESOLUTION NO. /PI' - t'
RESOLUTION TO ADOPT 2016 AIRPORT EMERGENCY PLAN.
WHEREAS, the Iowa City Airport Commission wishes to adopt the 2016 Airport Emergency
Plan, replacing an earlier version of the Airport Emergency Plan; and
WHEREAS, the 2016 Airport Emergency Plan is a confidential document under Section 21.5(1)(k)
of the Iowa Code; and
WHEREAS, the Airport Emergency Plan will become effective immediately following resolution.
NOW, THEREFORE, BE IT RESOLVED BY THE IOWA CITY AIRPORT COMMISSION, THAT:
1. The 2016 Airport Emergency Plan is adopted.
2. Previous versions of the Airport Emergency Plan are hereby rescinded.
Passed and approved this day of gc reel , 2016.
de
CHAT• "E" .!(IN
'-
' AY
oved by
ATTES / 3 (�' (�
City Attorney's Office
It was moved by C 1c and seconded by OS�-tn. the Resolution be
adopted, and upon roll cal there were: v
Ayes Nays Absent
Bockenstedt
l/ Gardinier
V _ Odgaard
V Ogren
Prepared by: Michael Tharp,Operations Specialist, 1801 S. Riverside Dr, Iowa City IA 52246 319-350-5045
RESOLUTION NO. fi/e //)
RESOLUTION AUTHORIZING THE CHAIRPERSON TO SIGN THE ANNUAL
NATIONAL MUSEUM OF THE UNITED STATES AIR FORCE STATIC
DISPLAY LOAN PROGRAM AGREEMENTS.
WHEREAS, the Iowa City Municipal Airport has long borrowed an aircraft from the National
Museum of the U.S. Air Force as a display at the entrance to the Airport; and
WHEREAS, only certified parties can borrow planes for displays from the National Museum of
the U.S. Air Force; and
WHEREAS, the Commission is not, and likely cannot become, a certified party, as it is not a
direct subdivision of the State; and
WHEREAS, the City of Iowa City is a certified party, and through Iowa City Code 13-1-5(A) has
delegated authority to the Commission to operate the Airport on its behalf; and
WHEREAS, authorizing the Commission Chair to sign the annual Loan Agreements on behalf of
the City would allow the execution of the Agreements without the necessity of bringing them to
the Commission for approval every year.
NOW, THEREFORE, BE IT RESOLVED BY THE IOWA CITY AIRPORT COMMISSION, THAT:
1. The Chairperson (present and future) is authorized to sign Loan Agreements with the
National Museum of the U.S. Air Force for display aircraft.
Passed and approved this 2-1 day of 1/11),- 1 , 2016.
CHAT ERS
Ap roved by
ATTEST: e�-G /..-g' / /17(
SECRETARY City Attorney's Office
It was moved by C and seconded by 64 Ott ' e/ the Resolution be
adopted, and upon roWcall there were:
Ayes Nays Absent
Bockenstedt
Gardiner
Libby
Odgaard
Ogren
Prepared by: Michael Tharp,Operations Specialist, 1801 S. Riverside Dr, Iowa City IA 52246 319-350-5045
RESOLUTION NO. /e///i - /1
RESOLUTION AUTHORIZING THE CHAIRPERSON TO SIGN AND THE
SECRETARY TO ATTEST A CONTRACT FOR ELECTRICAL TRANSFORMER
INSTALLATION IN THE SOUTH T-HANGAR AREA.
WHEREAS, the Iowa City Airport Commission desires to enter into a contract with MidAmerican
Energy, Inc. to provide for installation of electrical transformer and associated service lines;
WHEREAS, both parties have agreed to the contract terms.
NOW, THEREFORE, BE IT RESOLVED BY THE IOWA CITY AIRPORT COMMISSION, THAT:
1. The Chairperson is hereby authorized to sign and the Secretary to attest to the attached
contract.
Passed and approved this 2,( day of -p C> l , 2016.
CHAIRP S
Ap oved byz.
ATTEST: e.-6,- ,__/.3� T c/M.,.
SECRETARY City Attorney's Office
It was moved by ... ...'L/ and seconded by ds , the Resolution be
adopted, and upon roll call there were:
Ayes Nays Absent
L.../-1Bockenstedt
Gardinier
✓J Libby
✓ Odgaard
.O _Ogren
Prepared by: Michael Tharp,Operations Specialist, 1801 S. Riverside Dr, Iowa City IA 52246 319-350-5045
RESOLUTION NO. ,4/ /,Z
RESOLUTION AUTHORIZING THE CHAIRPERSON TO SIGN AND THE
SECRETARY TO ATTEST A CONTRACT FOR GAS MAIN INSTALLATION IN
THE SOUTH T-HANGAR AREA.
WHEREAS, the Iowa City Airport Commission desires to enter into a contract with MidAmerican
Energy, Inc. to provide for installation of gas main service;
WHEREAS, both parties have agreed to the contract terms;
NOW, THEREFORE, BE IT RESOLVED BY THE IOWA CITY AIRPORT COMMISSION, THAT:
1. The Chairperson is hereby authorized to sign and the Secretary to attest to the attached
contract.
Passed and approved this 2 Q day of Prp n, , 2016.
CHAIR RSON
A roved by
ATTEST.
e a. s ��
SECRETARY City Attorney's Office
It was moved by re-eN. and seconded by (0(r
roll ,
(n.� the Resolution be
adopted, and upon II there were:
Ayes Nays Absent
Bockenstedt
,,/ Gardinier
✓/ Libby
✓ Odgaard
Ogren
y
2-97
MidAmerican Energy Company
Gas Main Extension Agreement - Refundable Advance for Construction
MidAmerican Energy Company,an Iowa Corporation,its successors and assigns,(Company),and
[Iowa City Airport I its successors and assigns,(Applicant)agree as follows:
I. Company will extend its gas distribution mains as required to make natural gas service available to the following platted
and described area:
Iowa City Airport Hangar K
2. The Company shall:
a. Install,own,operate and maintain the gas distribution system and reserves the right to extend or alter the system
in the future if necessary.
b. Furnish all necessary labor and materials required for the construction of such mains and distribution system.
c. Schedule such main installation with Applicant so as to provide timely service.
3. The Applicant shall:
a. Provide a signed final plat of the subdivision or a detailed plot plan of the area to be served.
b. Provide,without cost to the Company,such easements as are nedessary for the construction,operation and
maintenance of the gas main extension.
c. Provide easement areas: 1)cleared of all obstructions;2)within 4"of final grade over the route of the distribution
system;3)with streets finished to local specifications;and 4)with sewer and water installed.
d. Place visible stakes,including lot numbers,on all lot corners and easement lines.
e. Provide drawings showing the location of all present and future underground facilities.
f. Locate all underground facilities such as storm sewers,sanitary sewers,septic lines and water lines that are not
located by members of a one-call locating system.
g. Indemnify,protect and hold harmless the Company from and against all liability,damage,loss,claims and actions
of any nature whatsoever which arise out of damage to underground facilities resulting from the customer's
failure to correctly locate such facilities as required under this agreement.
h. Hold Company harmless for any loss,cost or damage caused by delays in construction of the distribution
system and services.
4. Applicant agrees to provide a cash advance for construction totaling I $ 9,932.22 .This amount includes $ 8,329.60
for construction costs plus the composite Federal and State Tax liability(where applicable)of $ 1,602.62 .The cash
advance for construction shall be due when this Agreement is signed by Applicant. If Applicant requires that the installation
be completed during the winter construction season,or when adverse working conditions impede construction,Applicant
shall pay an additional non-refundable sum of $ 4.89 I per foot.Company reserves the right to determine when
such winter and/or adverse conditions exist.The amount of the cash advance is subject to change if Applicant's signed
acceptance is not received by the Company within 90 days from the date Company executes this Agreement.
5. Company will refund portions of the cash advance for construction to Applicant as new customers connect to the main,
subject to the following terms:
a. A refund based on estimated revenue plus tax shall be allowed for each new gas customer connect made within
the first ten years following the date of this agreement.
b. No interest will be paid on refunded cash advances.
C. Refunds will be made at least once a year during the ten year period.
d. Total refunds shall not exceed the original cash advance for construction.
e. No refunds shall be made for customers connected after ten years from the date of this agreement.
1. The balance remaining on deposit at the end of the ten year period shall be deemed a non-refundable contribution
in aid of construction.
g. Further main extensions which use any part of the gas main extension constructed under this Agreement will Not
result in refunds.
6. Within the area described above,Company will provide gas service to customers in accordance with Company's tariffs
and regulatory requirements.
MIDAMERICAN ENERGY COMPANY APPLICANT
By:
Title: Gas Engi -ring Director Title: �,� } ",:.!Cty,,, — Cita.i
WMIS#: 2478067 Date Wanted:
District: Cedar Valley Date Signed: _.91._2(140.___ (6
City Attornoy'a Offf
! ht
Prepared by: Michael Tharp, Operations Specialist, 1801 S. Riverside Dr, Iowa City IA 52246 319-350-5045
RESOLUTION NO. ///1,— /_3
RESOLUTION AUTHORIZING THE CHAIRPERSON TO SIGN AND THE
SECRETARY TO ATTEST A CONTRACT FOR ELECTRICAL SERVICE
INSTALLATION IN THE SOUTH T-HANGAR AREA.
WHEREAS, the Iowa City Airport Commission desires to enter into a contract with Advanced
Electrical Services, Inc. to provide for installation of electrical transformer pad and associated
service lines; and
WHEREAS, the optional 200 amp metered service will be installed; and
WHEREAS, both parties have agreed to the contract terms.
NOW, THEREFORE, BE IT RESOLVED BY THE IOWA CITY AIRPORT COMMISSION, THAT:
1. The Chairperson is authorized to sign a services agreement for the above work.
Passed and approved this 2-1 day of I , 2016.
CHAIR RS
Ap ed by (-,/.1
ATTEST:
SECRETARY City Attorney's Office
It was moved byand seconded by %re---", the Resolution be
adopted, and upon roll call t�fere were:
p P P�
Ayes Nays Absent
ZBockenstedt
Gardinier
Libby
Odgaard
Ogren
.t t
ADVANCED ELECTRS , INC.
AE Electrical Contracting ICAL& Service CompanyERVICES
" Advanced Bore I Tek-A Division of Advanced Electrical Services
(319)351-6452•(319)351-3080 FAX •aesjake@msn.com•1233 Gilbert Court •Iowa City, IA 52240
March 31, 2016
Iowa City Airport
ATTN: Michael Tharp
RE: Hangar Expansion
We propose to provide the following:
One transformer pad with spill containment
640 ft. of 3" SCH 40 PVC for conduits to 3 hangars
790 ft of 2"duct for communications pathways
150 ft of two 4" SCH 40 PVC for primary power
350 aluminum wire from transformer to glider hanger
Dig 510 ft. for primary power and secondary
Three handholes
Labor, Material and Equipment$15, 900.00
Add Option: install 200 amp metered service on the glider hangar ADD: $2,500.00
Add Option: Add protection post around transformer$300.00 per post, $250.00 per rail
Pricing does not include:
Bonds, fees or dues
Frost charges
pa& Noone 3/9-400-3904
Approved By
./._
04:/.6.,
City Attorney's Office
Prepared by: Michael Tharp,Operations Specialist, 1801 S. Riverside Dr, Iowa City IA 52246 319-356-5045
RESOLUTION NO. - /L
RESOLUTION ACCEPTING BIDS AND AUTHORIZING THE CHAIRPERSON
TO SIGN AND THE SECRETARY TO ATTEST A CONTRACT FOR 2016
TERMINAL APRON EXPANSION
WHEREAS, All-American Concrete, Inc. of West Liberty, Iowa, has submitted the lowest
responsive bid of$191,487.30 for construction of the above named project.
NOW, THEREFORE, BE IT RESOLVED BY THE IOWA CITY AIRPORT COMMISSION, THAT:
1. The bids for the above named projected are accepted.
2. The contract for the construction of the above named project is hereby awarded to All-
American Concrete, Inc. subject to the conditions:
a. That awardee secures adequate performance and payment bond, insurance
certificates, and contract compliance program statements.
3. The Chairperson is hereby authorized to sign and the Secretary to attest the contract for
construction of the above-named project, subject to the condition that awardee secure
adequate performance and payment bond, insurance certificates, and contract
compliance program statements upon instruction from legal counsel.
Passed and approved this -2_( day of 4-p7, / , 2016.
CHAIR-S'
Ap roved by /
ATTEST: +¢� Y (� `(4,
SECRETARY City Attorney's Office
It was moved by �� and seconded by (/� )644-1 the Resolution be
adopted, and upon roll II there were:
Ayes Nays Absent /
(/ Bockenstedt
Gardinier
Libby
Odgaard
Ogren
Prepared by: Michael Tharp,Operations Specialist, 1801 S. Riverside Dr, Iowa City IA 52246 319-350-5045
RESOLUTION NO. A16-15
RESOLUTION RECOMMENDING COUNCIL GRANT A UTILITY EASEMENT
TO MIDAMERICAN ENERGY, INC. FOR UTILITIES AT THE IOWA CITY
MUNICIPAL AIRPORT.
WHEREAS, the Iowa City Airport Commission desires to have MidAmerican Energy install
additional utility lines at the Iowa City Municipal Airport in order to support further hangar
development; and
WHEREAS, MidAmerican Energy has requested a utility easement for the associated work,
detailed in the attached Exhibit "A"; and
WHEREAS, Iowa City Council has the sole authority to grant said easement.
NOW, THEREFORE, BE IT RESOLVED BY THE IOWA CITY AIRPORT COMMISSION, THAT:
1. The Iowa City Airport Commission requests that the Council approve the requested
utility easement.
Passed and approved this « day of k0.l __, 2016.
CHAIRPERSON
� Ap oved by
S
ATTEST: 1V.I���, /� 6
S ir ETA'Y City Attorney's Office
It was moved by (6269-cr./L4...,----�,---- and seconded by 1-1.;6.7 the Resolution be
adopted, and upon roll call there were:
Ayes
Nays Absent
_ ✓ Bockenstedt
Gardinier
_ Libby
- _— _ -- ✓ Odgaard
__ ✓ Ogren
Prepared by: Eric Goers,Assistant City Attorney,410 E.Washington,Iowa City,IA 52240.319-356-5030
RESOLUTION NO. �& /G
RESOLUTION TO AMEND THE IOWA CITY AIRPORT COMMISSION BY-
LAWS TO REFLECT A JULY 1" START DATE FOR COMMISSIONER
TERMS
WHEREAS,the Iowa City Airport Commission wishes to amend the Commission by-laws to honor City
Council's desire to have all Council appointments commence on July 1";and
NOW,THEREFORE,BE IT RESOLVED BY THE IOWA CITY AIRPORT COMMISSION:
1. That the Iowa City Airport Commission By-Laws are amended as follows:
Article II, Section 2 is deleted and replaced with the following
Section 2. Term. Members shall be appointed to four-year terms,commencing on July 1st of the
year of appointment. Members appointed to terms scheduled to end before June 30th shall have
their terms extended until June 30 of the year in which their original appointments would have
expired.
Article III, Section 2 is deleted and replaced with the following
Section 2. Election and Term of Office. Starting in 2017,the officers of this Commission shall
be elected annually at the July meeting. If for whatever reason the election of officers is not held
at such meeting,such election shall be held as soon thereafter as is convenient.
2. The Chairperson and Secretary are authorized to sign the amended by-laws.
Passed and approved this 1°1 day of rk'l.01 , 2016.
�c�`
e
E SON
A roved by
11.' / S (�
ATTEST: /
NAhw .E RET 1Y City Attorney's Office
It was moved by (gyp ,,�.t c and seconded by L C t? the Resolution be adopted,
and upon roll call tffere were:
Ayes Nays Absent
Bockenstedt
Gardiner
ibby
Odgaard
`Ogren
Prepared by: Michael Tharp,Operations Specialist, 1801 S. Riverside Dr, Iowa City IA 52246 319-350-5045
RESOLUTION NO. /e " /
RESOLUTION RECOMMENDING COUNCIL GRANT A UTILITY EASEMENT
TO MIDAMERICAN ENERGY, INC. FOR UTILITIES AT THE IOWA CITY
MUNICIPAL AIRPORT.
WHEREAS, the Iowa City Airport Commission desires to have MidAmerican Energy install
additional utility lines at the Iowa City Municipal Airport in order to support further hangar
development; and
WHEREAS, MidAmerican Energy has requested a utility easement for the associated work,
detailed in the attached Exhibit "A"; and
WHEREAS, Iowa City Council has the sole authority to grant said easement.
NOW, THEREFORE, BE IT RESOLVED BY THE IOWA CITY AIRPORT COMMISSION, THAT:
1. The Iowa City Airport Commission requests that the Council approve the requested
utility easement.
Passed and approved this 1°1 day of Ro.vi , 2016.
acY'rS CHAIRPERSON
A Ap oved by
ATTEST: AVEgi..!I4v
S ETA'Y City Attorney's Office
It was moved by (676,- t-/ and seconded by In'b6.7the Resolution be
adopted, and upon roll call there were:
Ayes
Nays Absent
✓ Bockenstedt
Gardinier
✓ Libby
✓ Odgaard
Ogren
EXHIBIT "A"
Exsisting 2"Gas Main
Legend: r1•
ells ..
L : -Easement Area
a
.-Pad Mounted Transformer Parcel: 1021126004
N
City of Iowa City(Airpport) m
0
:'
Ire
it
%I
F♦
II
II
Easement Description: ^.-- II
A ten(10)feet wide by Seven Hundred Sixty One(761)feet long,underground Anal
electric and gas easement over,across,under and through part of the previously it LLI
described tract,said easement being five(5)feet on each side of the electric and 10'x 761'±
gas lines as installed,to and including a pad mounted transformer,with a Underground
centerline more particulary described as follows: Gas &Electric
Beginning at a point on the the property,approximately One Hundred Thirteen(113) Easement
feet West of the centerline of South Riverside Drive and approximately Three Hundred US Army Reserves
Sixteen (316)feet South of the centerline of the Airport entrance road as presently established;
thence South Two Hundred Eighty(280)feet;thence Southwesterly Two Hundred Five(205)feet;
thence South/Southwesterly Seventy Five (75)feet;thence West Eighty(80)feet;thence Southwesterly
Seventy One(71)feet;thence West Fifty(50)feet more or less to the end of said centerline,to and
including a pad mounted transformer.
MidAmerican Customer: City of Iowa City(Airport) DR#2478067 N
carca IGY
—� Address: 1801 S Riverside Dr. Scale: Not to Scale Date: May 19,2016 "' 0 f
'L ROW Agent: JRE City: Iowa City, IA 52246 Folder#: 002-16 Sec 12,T 17 N, R 1 W,4th PM
Job Desc: Underground Electric&Gas Distribution Easement
. r1 r
Prepared by: Michael Tharp,Operations Specialist, 1801 S.Riverside Dr.Iowa City,IA 52246(319)350 5045
RESOLUTION NO. fi& — if
RESOLUTION GIVING NOTICE OF INTENT TO EXECUTE A GROUND LEASE
WITH JET AIR, INC. FOR GROUND LOCATED AT THE IOWA CITY MUNICIPAL
AIRPORT AND SETTING A PUBLIC HEARING ON SAID PROPOSAL FOR AUGUST
18,2016.
WHEREAS,the Airport Commission of the City of Iowa City owns ground referred to as the Iowa
City Municipal Airport;and
WHEREAS,Jet Air,Inc.desires to construct an aircraft storage hangar;and
WHEREAS,the Airport Operations Specialist has negotiated a lease with Jet Air, Inc. for a term of
Thirty(30)years;and
WHEREAS,a lease of this period of time requires the holding of a public hearing.
BE IT RESOLVED BY THE AIRPORT COMMISSION OF THE CITY OF IOWA CITY:
1. The Airport Commission of the City of Iowa City does hereby declare its intent to enter
into the above-referenced lease agreement.
2. A public hearing on said proposed lease agreement should be and is hereby set for
August 18,2016 at 6:00 p.m.in the Iowa City Airport Terminal Building, 1801 S.
Riverside Drive,Iowa City,Iowa,or if said meeting is cancelled,at the next meeting of
the Airport Commission thereafter as posted by the City Clerk.
3. That the City Clerk is hereby authorized and directed to publish notice of the public
hearing for the above-named project in a newspaper published at least once weekly and
having a general circulation in the City,not less that four(4)nor more than twenty(20)
days before said hearing.
4. That a copy of said lease agreement is hereby ordered to be placed on file by the
Chairperson in the office of the City Clerk for public inspection
Passed and approved this day of AJ c...31— 2016.
Approved By:
ER N / �y
ATTEST:
SECRET I'Y City Attorney's Office
at 11
It was moved by 'r-OttrrU and seconded by Ds the
Resolution be adopted, and upon roll call there were:
Ayes Nays Absent
r/ Bockenstedt
✓ Gardinier
✓ Libby
Odgaard
Ogren
IOWA CITY MUNICIPAL AIRPORT
GROUND LEASE
This Ground Lease (the "Lease") is made as of the day of 2016, by and
between the Iowa City Airport Commission, having a principal business address at
1801 S. Riverside Drive, Iowa City, Iowa 52246 ("Landlord") and Jet Air, Inc.
("Tenant")
RECITALS
A. The City of Iowa City is the owner of the fee title to premises situated in the City of Iowa
City, State of Iowa, commonly known as the Iowa City Municipal Airport. Landlord has the
authority to lease ground.
B. Tenant is Jet Air, Inc.
C. The parties desire to enter into a ground lease pursuant to which Landlord will lease an
unimproved portion of the Iowa City Municipal Airport as depicted on Exhibit A (the "Leased
Premises") for the purposes of construction of an aircraft storage hangar (Hangar "N")and
associated apron.
D. Tenant has indicated a willingness and ability to properly keep, maintain, and improve said
ground in accordance with standards established by Landlord, if granted a lease of
sufficient term on said ground area.
In consideration of the foregoing and the mutual covenants hereinafter contained, and for
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged by the parties, Landlord and Tenant hereby agree as follows:
ARTICLE I
GRANT
1.01 Grant. Landlord hereby leases to Tenant the Leased Premises in accordance with the
terms and conditions hereinafter set forth.
ARTICLE II
CONDITION
2.01 Condition of Lease Premises. Tenant is taking possession of the Leased Premises in an
"as-is" condition as of the execution and delivery of this Lease. Landlord shall have no obligation
to perform any improvements, alterations, additions, repairs or replacements thereto except those
specifically defined in this lease.
ARTICLE III
TERM
3.01 Initial Term. The term of this Lease shall commence on September 1, 2016 (the "Lease
Commencement Date") and shall continue thereafter until thefast day of August. 2046 (the "Term")
unless sooner terminated as provided herein.
3.02 Options to renew. There are no options to renew included in this lease.
ARTICLE IV
RENT AND UTILITIES
4.01 Annual Base Rent. Commencing on _ and continuing on the first day of
each succeeding month, Tenant shall pay to Landlord, at the address specified in Section 17.05, or
at such other place as Landlord may from time to time hereinafter designate to Tenant in writing,
annual rent ("Annual Base Rent" as follows:
f
Annual Base Rent: $.20 per square foot per year. For the period of -
$2,000.00 per year, payable monthly with payments due on the first day of the
month $166.67 is due each month beginning , 2016.
(a) Definitions. For the purposes of this provision, the following definitions shall
apply:
(1) the term "Consumer Price Index" or "CPI" shall mean the U.S. Bureau of
Labor Statistics Consumer Price Index for all Urban Consumers — U.S. City
Average, seasonally adjusted (1982-1984=100).
(2) the term "Current CPI" shall mean the annual average of Consumer Price
Indices for the calendar year immediately preceding the Change Date
(3) the term "Base CPI" shall mean the annual average of Consumer Price
Indices for the calendar year immediately preceding the year for which the
Current CPI is determined.
(4) the term "Change Date" shall mean September 1st of each year beginning
2021
(b) Adjustment. Effective on the Change Date, the Annual Base Rent hereunder
shall escalate based on the following formula and illustrated by the following
example:
(1) Formula:
J{Current CPI-Base CPI}x Rent] + Rent = Escalated Rent
[Base CPI]
(2) Example: Assume Change Date is 2/1/13. Assume the annual
base rent is $1,632. Assume the Current CPI(annual average
CPI for 2011) is 225.114 and that the Base CPI (annual
average CPI for 2012) is 228.537. Annual base rent
beginning February 1, 2013 would be $1,656.81
11228.537-225.114) x$1,632] + $1,632 = $1,656.81
225.114
(c) No Recomputations. No subsequent adjustments or recomputations,
retroactive or otherwise, shall be made to the Consumer Price Index due to
any revision that may later be made to the first published figure of the
Consumer Price Index for any month.
(d) No Rent Decrease. In no event shall the Annual Base Rent for a given year
be less than the Annual Base Rent for the preceding year.
(e) No Waiver. Any delay or failure of Landlord in computing or billing Tenant for
the escalation of Annual Base Rent as provided herein shall not constitute a
waiver of or in any way impair the continue obligation of Tenant to pay such
escalation of Annual Base Rent.
(f) Change in Index. In the event that the Consumer Price Index ceases to use
1982-1984=100 as the basis of calculation the new CPI established by the
U.S. Bureau of Labor Statistics Consumer Price Index for all Urban
Consumers — U.S. City Average, seasonally adjusted, with a different base
year shall be used.
Tenant may pay early without a prepayment penalty
4.02 Net Lease. This Lease in every sense shall be without cost to the Landlord for the
I
development, maintenance, and improvement of the Leased Premises. It shall be the sole
responsibility of the Tenant to keep, maintain, repair and operate the entirety of the Leased
Premises and all improvements and facilities placed thereon at Tenant's sole cost and expense.
4.03 Utility Payments. Commencing with the Lease Commencement Date and continuing
throughout the Term, Tenant shall pay or cause to be paid all charges, assessments, or taxes for
gas, electricity, water, sewer, telephone and all other utility services incurred in connection with
Tenant's use and occupancy of the Leased Premises. .
4.04 Taxes. Commencing with the Lease Commencement Date and continuing throughout the
Term, Tenant shall pay all property taxes assessed on the Leased Premises when they become
due.
ARTICLE V
USE AND OCCUPANCY
5.01 Use. Tenant shall use the Leased Premises solely for the construction, use, and support of
corporate aviation hangar facilities.
5.02 Construction. Tenant shall use its best efforts to complete the construction of a building
facility on the Leased Premises for the operation of said hangar. Tenants interest under this Lease
shall terminate and all payments hereunder shall be forfeited if Tenant does not complete
construction of the substantial improvements within one (1) year of the date of the execution of this
Lease agreement. "Substantial improvements" means completion of the construction in
accordance with the plans and specifications approved by the Commission and with city
ordinances. The failure by Tenant to complete minimum improvements within a period of one (1)
year from the Lease Commencement Date shall be considered an event of Default and Landlord
shall have available all remedies set forth herein.
5.03 Licenses. Tenant shall at Tenant's expense, obtain and maintain during the Term of this
Lease all licenses or permits necessary for the operation of Tenant's use of the Leased Premises
as defined in section 5.01 herein and Tenant shall comply with any other applicable rules and
regulations governing the operation of Tenant's use of the Leased Premises as required by any
federal, state, or local government or regulatory authority or agency.
5.04 Zoning. Tenant shall, at tenant's expense, obtain any and all necessary zoning approvals
and permits required by local law or ordinance.
5.05 Restrictions.
(a) Prohibited Uses. No use of the Leased Premises shall be permitted which is
offensive by reason of odor, fumes, dust, smoke, noise, or other pollution, nor shall any use
be permitted which is hazardous by reason of excessive danger of fire or explosion, which
may be injurious to any property or persons on or about the Iowa City Municipal Airport or
that is in violation of the applicable laws or regulations of any governmental authority. Any
use that negatively affects the operation of the Iowa City Municipal Airport is prohibited.
(b) Hazardous Materials. No hazardous Materials of any kind shall be stored on or
disposed of on the lot. As used herein, Hazardous Materials shall mean:
1. Any "hazardous waste" as defined by the Resource Conservation and
Recovery Act of 1976, as amended from time to time, and rules or regulations
promulgated thereunder;
2. Any "hazardous substance" as defined by the Comprehensive Environmental
Response Compensation and Liability Act of 1980, as amended from time to time
and rules or regulations promulgated thereunder;
3. Any oil, petroleum products, and their byproducts; and
4 Any substance which his regulated by any federal, state, or local
governmental authority or that is the subject of any law, rule, or regulation.
(c) Nuisances. No act constituting a nuisance as defined under the provision of
Chapter 657, Code of Iowa, or the common law of Iowa shall be permitted, and the
restrictions pertaining to acts within a county in said Code chapter shall be applicable.
(d) Construction Site Standards. Construction and the conduct thereof shall comply
with all governmental requirements as to health and safety and shall meet the standards set
forth herein as set forth by City ordinance. Such standards shall cover, but not be limited
to, the restrictions contained herein and additional regulations concerning erosion control,
parking for construction workers, office trailers on the lot, material storage, location of
telephones and vending machines, security design, location and disposal of sewage during
construction, cleaning and policing of the construction site and protection of streets, street
right of ways and property adjoining the building site. Said requirements may vary
depending on size, location, and topography of a lot. During the course of construction,
Tenant, its agents, and contractors shall keep mud, dirt, debris and building materials off all
City roads. No temporary building, job trailers or the like shall be permitted on the lot except
those incident to construction while an approved building is being constructed thereon and
shall be removed within 30 days following the issuance of a permanent certificate of
occupancy by the City of Iowa City. When the construction of a project is once begun, work
thereon shall be prosecuted diligently and continuously until full completion. Any building
shall be substantially completed prior to occupancy of any part thereof, and landscaping
shall be fully completed within 30 days of granting a certificate of occupancy, weather
permitting. If the Tenant informs the Landlord in writing within 30 days of issuance of the
certificate of occupancy that weather will not permit the completion of landscaping, the
Landlord will provide the Tenant with an alternate deadline by which to complete the
landscaping. Tenant shall be liable for damage to airport facilities and pavements used
during construction activity.
(e) Parking. All vehicle parking areas and service drives shall be dust free, hard-surface
with a concrete curb and gutter.
(f) Landscaping. In connection with construction on the leased ground, the Tenant shall
be required to sod or seed the entire ground surface of the leased ground except for
building and parking sites and alternatively landscaped areas. The area Tenant shall be
responsible for sodding or seeding shall be maintained in good condition and appearance.
Any other ground owned by Landlord disturbed by the construction of improvements and
facilities by Tenant shall be restored to their prior condition upon completion of construction.
(g) Signs. All signage shall comply with city ordinances and be approved by the
Landlord.
(h) Lighting. All lighting shall be directed away from adjacent properties and shall be
positioned to eliminate glare on streets and highways. No neon lights, intermittent or
flashing lights shall be allowed. Only shaded light sources shall be used to illuminate signs,
facades, buildings, parking and loading areas. All lighting shall be directed downward.
(i) Storage. No storage of any articles, goods, or materials shall be permitted outside
any buildings except of a temporary nature only and then only with the prior written consent
of the Landlord, who shall have the right, as a condition to any such approval, to impose
such limitations and screening requirements as it may deem in the best interested of the
area. Any such approval may be revoked by the Landlord if at any time any of such
limitations or screening requirements are not met.
(j) Utilities. All electric, telephone, and other utility lines on or servicing the lot must be
underground.
ARTICLE VI
IMPROVEMENTS; SURRENDER; PERSONAL PROPERTY; ALTERATIONS; LIENS;
MAINTENANCE; COMPLIANCE
6.01 Improvements and Personal Property.
(a) Title to Tenant's Improvements. Any and all real property improvements, alterations,
modifications or additions on or to the Leased Premises made by Tenant during the Term
("Improvements") shall be and remain the property of Tenant throughout the Term.
(b) Surrender. Upon expiration of the Term or termination of the Lease, whether
by breach, default, expiration of Lease, or otherwise, title to the Tenant's
Improvements shall be and become the sole and absolute property of Landlord, and
Tenant shall thereupon be required to, at Landlord's sole discretion, either: (i) return and
deliver up the Leased Premises in the same condition as when delivered to Tenant,
normal wear and tear excepted or (ii) return and deliver up to Landlord the
Leased Premises and Tenant's Improvements thereon. If Landlord chooses option (ii),
said Improvements shall be surrendered to and become the sole property of Landlord
at that time, free and clear of any liens of mortgages, deeds of trust, liens of
mechanics, laborers or materialmen, and all other liens and encumbrances other than
any such liens and encumbrances incurred by Landlord, or such lien or encumbrance
which Landlord agrees in writing may survive the expiration of the Term or the termination
of the Lease.
(c) Removal of Personal Property. All items of furniture, furnishings,
inventories and other personal property acquired by Tenant for use on the Leased
Premises (the "Personal Property") shall be and remain the property of Tenant regardless
of termination of the Lease or expiration of the Term. Tenant shall remove from the
Leased Premises all Personal Property at or before the termination or expiration of the
Lease. If Tenant fails to remove such items within such period, then (i) such items
shall be deemed abandoned by Tenant and shall become the property of Landlord,
and (ii) Landlord shall have the right to remove and dispose of such items as Landlord,
in its sole discretion, sees fit and to charge Tenant the cost of doing so.
6.02 Alterations.
(a) Required or Discretionary Alterations. Tenant shall make all additions,
improvements, and alterations (hereinafter "Alterations") on the Leased Premises, and
on and to the Tenant's Improvements thereon, required by any governmental authority or
which may be made necessary by the act or neglect of Tenant, its employees, agents or
contractors, or any persons, firm or corporation, claiming by, through or under Tenant.
Except as provided in the immediately preceding sentence, Tenant shall not make any
other Alterations to the Leased Premises without Landlord's prior written consent,
which consent shall not be unreasonably withheld or delayed.
(b) Performance Standards. Prior to making any Improvements
or Alterations, Tenant shall submit to Landlord for approval the following items:
Final plans and specifications, together with a certificate from Tenant's
architect that the final plans and specifications are in compliance with all
applicable laws and ordinances;
ii. A good faith estimate by Tenant's architect of the cost of
constructing the Improvements or Alterations;
iii. Names and addresses of proposed contractors and subcontractors
iv. A copy of signed contract or contracts for the full cost of construction of the
Improvements or Alterations in accordance with the final plans and the cost estimate
of Tenant's architect.
v. Necessary permits or satisfactory evidence that a permit is not required.
Landlord shall determine in its reasonable discretion the sufficiency of such
evidence.
vi. Certificates of Insurance required by Section 8.01 naming Landlord and the
City of Iowa City as additional insureds and including builder's risk, liability and
worker's compensation insurance and such other insurance customarily obtained
during construction as is reasonably requested by Landlord; and
vii. Completion assurances in the form of an Irrevocable Letter of Credit or
Payment and Performance Bond in accordance with Section 6.02(c) below,
both drawn to the benefit of Landlord, or as may be required by Landlord. Such
completion assurances must be acceptable to Landlord in both form and
substance, and must also be obtained from companies satisfactory to Landlord.
In addition, Tenant shall, upon Landlord's written request, provide Landlord with
evidence satisfactory to Landlord of Tenant's financial ability to pay for the Improvements or
Alterations. Landlord may also require that Tenant secure, at Tenant's expense, evidence
satisfactory to assure Landlord's title in the Leased Premises against mechanic's liens arising
out of any work, alterations or improvements made to the Leased Premises by Tenant as
provided in Section 6.03 herein below. Tenant shall not commence to perform any
Improvements or Alterations costing in excess of $10,000.00 without obtaining Landlord's prior
written consent, which consent shall not be unreasonably withheld. All permitted
Improvements or Alterations shall be performed with new materials, in a good and
workmanlike manner, strictly in accordance with the final plans and specifications approved by
the Landlord, and in accordance with any and all Legal Requirements as such term is defined in
Section 6.05. Upon completion of any such work by or on behalf of Tenant, Tenant shall provide
Landlord with such documents as Landlord may require evidencing payment in full for such
work, such as lien waivers, and "as-built" working drawings. In the event Tenant performs any
work not in compliance with the provision of this Section 6.02(b), Tenant shall, upon written
notice from Landlord, immediately remove such work and restore the Leased Premises to their
condition immediately prior to the performance thereof. If Tenant fails to so remove such work
and restore the Leased Premises as aforesaid, Landlord may, at its option, and in addition to all
other rights or remedies of Landlord under this Lease, at law or in equity, enter the Leased
Premises and perform said obligation of Tenant and Tenant shall reimburse Landlord for the
cost to the Landlord thereof, immediately upon being billed therefore by Landlord. Such entry by
Landlord shall not be deemed an eviction or disturbance of Tenant's use or possession of the
Leased Premises, nor render Landlord liable in any manner to Tenant.
(c) Performance Bonds. Unless exempt or unless this requirement is waived by
Landlord, Tenant, at its own cost and expense, shall cause to be executed, and delivered
to Landlord two separate bonds, as follows:
(i) Prior to the date of commencement of construction, a contract surety
bond in a sum equal to the full amount of the construction contract awarded by
Tenant for construction of the improvements on the Leased Premises.
Said bond shall be drawn in a form and from such company as approved by
Landlord; shall guarantee the faithful performance of necessary construction and
completion of improvements in accordance with approved final plans and detail
specifications; and shall guarantee Landlord against any losses and liability,
damages, expenses, claims, and judgments caused by or resulting from any
failure of Tenant, or Tenant's contractor, to perform completely the work
described as herein provided and to pay all bills for labor, supplies, material
and equipment incident thereto.
In lieu of said bond, Tenant may deposit the amount of said bond in a local
depository institution selected by Tenant to remain until Tenant's general contractor
has delivered to Landlord a waiver of all claims against the Leased Premises for
labor done and materials furnished and for a period of four months after the
Landlord's building inspector approves final completion of the construction of
improvements, provided no mechanic's liens have been filed against the Leased
Premises during that time, at which time such deposit shall be refunded to Tenant.
All earnings from said deposit shall be the property of Tenant.
(ii) Prior to the commencement of this Lease, a surety bond in the sum at least
equal to one (1) year's rental. Said bond shall be conditioned on the faithful
performance of all terms, conditions, and covenants of this Lease, shall be
renewable annually, and shall be kept in full force and effect for the complete term
of this Lease.
At Tenant's option, an amount equal to one (1) year's rental may be deposited with
Landlord in lieu of said performance bond.
6.03 Liens. Tenant shall not cause or permit any liens to be attached to, placed on or filed
against the Landlord's interest in the Leased Premises or Tenant's Improvements in
connection with any construction, alteration, demolition, repair or restoration work Tenant
performs or causes to be performed on the Leased Premises. If, however, at any time, in
connection with the planning, construction, alteration, demolition, repair or restoration work
Tenant performs or causes to be performed on the Leased Premises, any liens of mechanics,
laborers or materialmen shall be filed against, attached to or placed on the Leased Premises,
the Tenant's Improvements or any part thereof relating to work described above, Tenant shall,
at its expense, cause the same to be discharged, by payment, bonding or otherwise as
provided by law, within fifteen (15) days after Tenant receives notice that the lien was filed,
except for such liens that may have been incurred by Landlord arising from Landlord's actions.
Nothing herein contained shall in any way prejudice the rights of Tenant to contest in good faith
to final judgment or decree any such lien prior to payment thereof, provided that Tenant shall
(a) furnish and keep in effect a surety bond of a responsible and substantial surety company,
acceptable to Landlord, in an amount sufficient to pay 125% of the amount of such contested
lien claim with all interest thereon and costs and expenses with respect thereto, or (b) provide
other security reasonably satisfactory to Landlord. Upon final determination of the validity of
such contested lien or claim, Tenant shall immediately pay the amount finally determined to be
due thereon including any judgment or decree rendered in connection therewith, with all
property costs and charges and shall cause any such lien to be released of record without cost
to Landlord and during the pendency of any such contest, Tenant shall save and keep Landlord
harmless from any claim or loss by reason thereof. Tenant's failure to comply with the terms of
this Section 6.03 shall be considered a Default under the Lease, and Landlord shall have the
right to any and all remedies against Tenant as set forth in Section 13.02 herein.
6.04 Maintenance. Tenant shall, throughout the Term, at its sole cost and expense, maintain
the Leased Premises and all buildings and improvements at any time erected thereon, any
unimproved portion of the Leased Premises and all Personal Property installed therein, in good
repair and in a safe, clean, sightly and sanitary condition. In the event that Tenant, in
Landlord's reasonable judgment, fails to comply with its repair and maintenance obligations
under this Section 6.04, Landlord may, but shall not be obligated to, in addition to its remedies
under Article XIII, perform all repairs and maintenance which in Landlord's reasonable judgment
is required to bring the Leased Premises, Tenant's Improvements and Personal Property into
compliance with the repair and maintenance standards of this Section 6.04, and charge the cost
to Tenant.
6.05 Compliance with Legal Requirements. Tenant shall, throughout the Term, at its sole cost
and expense, promptly comply with all applicable laws, ordinances and regulations of
governmental entities having jurisdiction over the Leased Premises (including, but not limited to
all local zoning use restrictions and requirements), and all policies of insurance applicable to
Leased Premises (collectively, "Legal Requirements"). Tenant shall not conduct or permit any
person to conduct any unlawful activity on the Leased Premises or any use or activity in violations
of (a) any Legal Requirements, including but not limited to zoning or other land use laws or
ordinances, or (b) any private restrictive covenants applicable to the Real Estate. Furthermore,
Tenant shall not cause or allow any activity which causes air, water, soil, or noise pollution, which
would violate any Legal Requirements or which would otherwise constitute a nuisance or
reasonably objectionable intrusion into or interference with the use of any surrounding property.
r '
6.06 Non-Discrimination. Tenant covenants, in consideration of the right to lease property at
Iowa City Municipal Airport, that 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. Tenant shall remain
in compliance with all requirements of 49 C.F.R. Part 21, non-Discrimination in Federal Assisted
Programs of the Department of Transportation.
ARTICLE VII
INSURANCE, DAMAGE AND DESTRUCTION
7.01 Insurance. 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. Property Insurance - 100% of the replacement cost value on any building, on an "all
risk" or Special Causes of Loss basis or equivalent form. City of Iowa City shall be named as a
Loss Payee on the property insurance policy with Clause C. Loss Payable of ISO form CP1213
0607 (or other equivalent form)
b. Liability- $1,000,000 occurrence/$2,000,000 aggregate limits on a "Garage Liability"
form (or equivalent combined premises and auto liability form) whereby such insurance includes
all operations conducted on the premises and any auto or motorized vehicle or trailer operated by
or on behalf of the tenant.
c. Excess Liability$1,000,000 occurrence/$1,000,000 aggregate.
City of Iowa City and the Airport Commission shall be named as an additional insured on the
Garage Liability and the policy shall be endorsed with the Government Immunity endorsement
provided below. Certificate of insurance will be provided evidencing coverage. All insurance
companies involved should have an A.M. Best rating of A- or higher. Tenant shall deliver to the
Landlord, within thirty (30) days of execution of this lease agreement, Certificates of Insurance
and copies of said policies, naming the Landlord and the City of Iowa City, Iowa as
additional insureds. Tenant shall provide fifteen (15) days' notice to the Landlord before
cancellation of said insurance.
Governmental Immunities Endorsement
1. Non-waiver of Government Immunity. The insurance carrier expressly agrees
and states that the purchase of this policy and the including of the City of Iowa City, Iowa
and the Iowa City Airport Commission as Additional Insured does not waive any of the
defenses of governmental immunity available to the City of Iowa City, Iowa, or the Iowa
City Airport Commission under Code of Iowa Section 670.4 as it now exists and as it may
be amended from time to time.
2. Claims Coverage. The insurance carrier further agrees that this policy of
insurance shall cover only those claims not subject to the defense of governmental
immunity under the Code of Iowa Section 670.4 as it now exists and as it may be
amended from time to time. Those claims not subject to Code of Iowa Section 670.4 shall
be covered by the terms and conditions of this insurance policy.
3. Assertion of Government Immunity. The City of Iowa City, Iowa and the Iowa
City Airport Commission shall be responsible for asserting any defense of governmental
immunity, and may do so at any time and shall do so upon the timely written request of the
insurance carrier. Nothing contained in this endorsement shall prevent the carrier from
asserting the defense of governmental immunity on behalf of the City of Iowa City and/or
the Iowa City Airport Commission.
4. Non-Denial of Coverage. The insurance carrier shall not deny coverage under
this policy and the insurance carrier shall not deny any of the rights and benefits accruing
to the City of Iowa City, Iowa and the Iowa City Airport Commission under this policy for
reasons of governmental immunity unless and until a court of competent jurisdiction has
ruled in favor of the defense(s) of governmental immunity asserted by the City of Iowa
City, Iowa and the Iowa City Airport Commission.
5. No Other Change in Policy. The insurance carrier, the City of Iowa City, Iowa,
and the Iowa City Airport Commission agree that the above preservation of governmental
immunities shall not otherwise change or alter the coverage available under the policy.
d. Worker's Compensation Insurance as required by Chapter 85, Code of Iowa.
7.02 Subrogation: Subrogation rights are not to be waived unless a special provision is
attached to this lease.
7.03 Damage or Destruction.
(a) Tenants Obligation to Restore. If any or all of the Tenant's Improvements shall be
damaged or destroyed by fire or any other casualty, then Tenant shall have the right,
exercisable by giving written notice thereof to Landlord within fifteen (15) days
after the determination thereof, to terminate this Lease. Damaged means when the cost
to repair the Improvements exceeds the current value of the Improvements as determined
by the Landlord.
(i) If the Lease is not terminated, then Tenant shall be obligated to repair and
restore Tenant's Improvements, as hereinafter provided. Such repair or restoration
shall be commenced within ninety (90) days after the date the casualty occurs, and
shall be completed within a reasonable period thereafter not to exceed twelve (12)
months. If the Tenant shall fail to commence or complete such repairs and
restoration work within the time periods set forth in the preceding sentence, except
for reasons due to strike, shortage of labor or materials, war, or an act of God,
Landlord shall have the right to immediately terminate this Lease. In performing
such restoration, Tenant shall substantially comply with the conditions applicable to
Alterations, including but not limited to, Section 6.02. All insurance proceeds
collected for such damage or destruction shall be paid to a depositary approved by
Landlord, Tenant, and any entity having a security interest in the Lease. Such
insurance proceeds shall be made available to be applied toward the cost of such
repairs or restoration. If the insurance proceeds shall be insufficient for said repair
or restoration, Tenant shall make up the deficiency out of Tenant's funds. In all
cases, due allowance shall be made for reasonable delay caused by adjustment of
insurance claims, loss, strikes, governmental approval, labor difficulties or any
cause beyond either party's reasonable control.
(ii) If the Lease is terminated in accordance with this Section
13.02(a), then Tenant shall demolish the Tenant's Improvements and restore the
Leased
Premises to its condition prior to the Lease Commencement Date, and the
effective date of the
Termination shall occur upon completion of such demolition and restoration work,
as if such date were specified as the expiration date of the Term. In such event,
the insurance proceeds shall be applied to pay for the demolition of the Tenant's
Y I
Improvements and the restoration of the Leased Premises, as previously provided,
and thereafter, Tenant shall receive any remaining proceeds.
(b) Remedies. If Tenant shall not enter upon the repair or rebuilding, or the demolition
and restoration, as the case may be, of the Tenant's Improvements within the period
specified in Section 8.03(a) and prosecute same thereafter with such dispatch as may be
necessary to complete same within said period, then, in addition to whatever other
remedies Landlord may have either under this Lease, at law or in equity, the money
received by and then remaining in the hands of the Depositary shall be paid to and
retained by Landlord as security for the continued performance and observance by Tenant
of the Tenant's covenants and agreements hereunder, or Landlord may terminate this
Lease and then be paid and retain the amount so held as liquidated damages resulting
from the failure on the part of Tenant to comply with the provisions of Section 8.03(a).
(c) Negotiation, Settlement and Adjustment of Insurance Proceeds. Tenant shall have
the right to settle the amount of the casualty loss with the insurance carriers, but no final
settlement of a loss in excess of Fifty Thousand Dollars ($50,000.00) may be made
without Landlord's prior written consent thereto.
(d) Rent and Other Charges. Provided the Lease is not terminated as provided in
Section 8.03(a), neither Rent nor other charges shall be reduced or abated following
damage or destruction or during the period of repair, restoration or rebuilding. If the Lease
is so terminated, Rent and other charges shall be paid through the effective date of such
termination.
ARTICLE VIII
ASSIGNMENT AND SUBLETTING
8.01 Binding Effect. The Lease shall be binding upon and shall inure to the benefit of the
parties hereto and their respective heirs, personal representatives, successors, and assigns.
8.02 Assignments. Tenant may not sell, transfer, or assign this Lease (either directly or
indirectly) or any legal or beneficial interest therein, or sublease all or any part of the Leased
Premises without the prior written consent of the Landlord, which consent may be withheld at
Landlord's sole discretion. In exercise of its discretion as to such a proposed sale, transfer or
assignment by Tenant, Landlord, in the event that a proposed sale, transfer or assignment by
Tenant provides for payment to Tenant an amount of rent greater than the amount of Tenant's
rent obligation herein at the time, Landlord may require that a percentage of the difference
between the rental amounts be paid to Landlord. Tenant shall give Landlord written notice of any
proposed assignment or sublease of the Leased Premises, and such notice shall provide (a) the
name and address of the proposed assignee or sublessee, (b) the terms of the proposed
assignment or a copy of the proposed sublease, (c) the most recent financial statements of the
proposed assignee or sublessee and (d) such other information as Landlord may reasonably
request. Any assignment or sublease made by Tenant without Landlord's consent in violation of
this Section 10.02 shall be voidable at Landlord's option and shall constitute an Event of Default.
Landlord's consent to any one assignment or sublease shall not be deemed a waiver of this
Section 10.02 with respect to any subsequent assignment or sublease nor consent to any
subsequent assignment or sublease. Absent the Landlord's agreement to the contrary,
following assignment, whether with or without the Landlords' consent, Tenant will remain
liable for all Lease obligations. Nothing in this paragraph shall prevent Tenant from leasing space
in the hangar it intends to build to aviation end users in the normal course of FBO business. Such
use will require neither Landlord permission nor any sharing of profits with Landlord.
ARTICLE IX
MORTGAGES
9.01 Leasehold Mortgage.
(a) General Provisions. Tenant, and any successor or permitted assignee of Tenant
shall not, at any time during the Term, pledge, mortgage or encumber the Lease and/or
the Leased Premises demised hereunder, or Tenant's Improvements, without Landlord's
prior written consent, which consent Landlord may, in its sole discretion, withhold. Any
such pledge, mortgage or encumbrance made by and entered into with Landlord's
consent, is herein referred to as a "Leasehold Mortgage". Any Leasehold Mortgage made
by and entered into by Tenant without Landlord's consent in violation of this Section 11.01
shall be voidable at Landlord's option, and shall constitute an Event of Default.
(b) Landlord's Forbearance; Foreclosure by Leasehold Mortgagee. Landlord hereby
agrees that for the benefit of a Leasehold Mortgagee holding a Leasehold Mortgage and
the successors and assigns of such Leasehold Mortgagee:
(i) When giving notice to Tenant with respect to any default under the Lease
or any exercise of any right to terminate the Lease, Landlord will also give a copy
of such notice to the Leasehold Mortgagee at the address of the Leasehold
Mortgagee furnished to Landlord. No such notice to Tenant shall be deemed to
affect any rights of the Leasehold Mortgagee unless or until such notice is given in
said manner to such Leasehold Mortgagee.
(ii) In case Tenant shall default in respect of any of the provisions of the Lease,
the Leasehold Mortgagee shall have the right, but not the obligation, to cure such
default, and Landlord shall accept payment and/or performance by or on behalf of
such Leasehold Mortgagee as though, and with the same effect, as if the same
had been done or performed by Tenant. The Leasehold Mortgagee will have a
period of time after the service of any notice of a default hereunder upon it within
which to cure the default specified in such notice, or cause it to be cured, which is
the same period for cure, if any, as is available to Tenant under the Lease for the
specified default, plus an additional period of thirty (30) days. In the event of a
default (or in the event that Landlord is seeking to terminate the Lease by reason
of a default) which cannot reasonably be cured within said period because of
Tenant's possession of the Leased Premises, Landlord shall forebear from
exercising its rights to terminate the Lease as against Leasehold Mortgagee (while
reserving all rights against Tenant) on account of such default provided that the
Leasehold Mortgagee: (A) has cured all defaults which can reasonably be cured
within the period of time allotted for cure, (B) within said period has notified
Landlord of its intent to cure all other defaults in a notice which specifies the
proceedings by which the Leasehold Mortgagee intends to secure possession of
the Leased Premises, (C) has begun proceedings to secure possession within the
said period, and (D) thereafter prosecutes such proceedings with reasonable
diligence. The notice specified in clause (B) above shall contain an assumption by
the Leasehold Mortgagee of all of Tenants restrictions and obligations hereunder.
(iii) No default will be deemed to exist as against any Leasehold Mortgagee and
Landlord shall have no right, and shall take no action, to effect a termination of the
Lease as against any Leasehold Mortgagee until the Leasehold Mortgagee has
had the opportunity to cure such default specified in clause (ii) above. If the
Leasehold Mortgagee, by foreclosure or otherwise, acquires Tenant's leasehold
estate, the Leasehold Mortgagee shall be subject to all Lease Restrictions and
shall be liable for all Tenant's obligations accruing thereafter to the same
extent as the prior Tenant would have been so liable.
(iv) Provided that the Leasehold Mortgagee has complied with Subsection
(ii) of this Section, any default of Tenant under any provision of the Lease which is
not reasonably susceptible of being cured by a Leasehold Mortgagee during the
cure period specified in Subsection (ii) of this Section shall be cured by Leasehold
Mortgagee or any other purchasers or transferees of Tenants interest under this
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Lease, whether at judicial foreclosure, trustee's sale or by an assignment of the
Lease in lieu of foreclosure within thirty (30) days after acquisition.
(v) A Leasehold Mortgagee (or its designee or nominee) may become the
legal owner and holder of the interest of Tenant under the Lease, including without
limitation, the interest of Tenant in all Tenant's Improvements and Personal
Property, by foreclosure or other enforcement proceedings, or by obtaining an
assignment of the Lease and a conveyance of the Tenants Improvements and
Personal Property in lieu of foreclosure or through settlement of or arising out of
any pending or threatened foreclosure proceeding, without Landlord's consent, but
subject always to the applicable terms, provisions, obligations, and restrictions of
the Lease. Upon such acquisition of legal ownership, such Leasehold Mortgagee
(or its designee or nominee) shall be liable for all obligations under the Lease
accruing thereafter to the same extent as the Tenant would have been. In
such event, Leasehold Mortgagee (or, if said Leasehold Mortgagee has not yet
become a successor Tenant hereto, then its designee or nominee) shall have the
right thereafter to assign the Lease and convey the Tenant's Improvements and
Personal Property subject to all other applicable terms, provisions, obligations, and
restrictions of the Lease.
(vi) If Tenant fails to observe or perform any of its obligations under the Lease,
Leasehold Mortgagee may, but shall not be obligated to, observe or perform such
obligations for and on behalf of Tenant, whether or not Tenant shall be in default
under the Lease.
(c) Notices to Leasehold Mortgagees. Any notice or other communication which
Landlord shall desire or is required to give to or serve upon a Leasehold Mortgagee shall
be in writing and shall be served by registered or certified mail or by commercial courier
service addressed to such holder at the address as shall be designated from time to time
by such Leasehold Mortgagee and shall mail a copy of said notice by ordinary mail. Any
notice or other communication which any Leasehold Mortgagee shall desire or is required
to give to or serve upon Landlord shall be deemed to have been given or served if sent by
registered or certified mail or by commercial courier service addressed to Landlord at
Landlord's address as set forth in the provisions of the Lease providing for notices to
Landlord or at such other address as shall be designated from time to time by Landlord by
notice in writing given to such Leasehold Mortgagee by registered or certified mail or by
commercial courier services. Any notice given pursuant hereto shall be effective when
received or refused.
(d) Non-Merger. No union of the interests of Landlord and Tenant shall result in a
merger of the Lease and the fee interests in the leased Premises without the prior written
consent of any Leasehold Mortgagee.
ARTICLE X
EASEMENTS
10.01 Generally. This Lease and the rights granted to Tenant hereunder are expressly made
subject and subordinate to any and all existing easements on the Leased Premises, and Tenant
shall not in any way act to alter, obstruct, disturb or otherwise impair any of said
easements nor grant additional easements on or affecting the Leased Premises during the term of
this Lease without Landlord's prior written consent.
ARTICLE XI
DEFAULT
11.01 Events of Default. The following shall constitute "Events of Default":
(a) Monetary. Tenant shall fail to pay Rent at the time required or any other monetary
obligation or payment required under this Lease when due, and such failure shall
continue for a period of ten (10) days following written notice from Landlord to Tenant; or
(b) Non-performance. Tenant shall fail to observe or perform any of the other
covenants, terms or conditions contained in the Lease, or a warranty made by Tenant
shall fail to be accurate and complete, and such failure shall continue and not be cured
for a period of thirty (30) days after written notice by Landlord to Tenant, provided
that if the default is not reasonably susceptible of being cured within thirty (30) days,
an Event of Default shall occur only if the Tenant fails to promptly commence such cure
or fails thereafter to diligently pursue such efforts to completion; or
(c) Bankruptcy: Receivership. If (i) Tenant files a petition in bankruptcy or for
reorganization or for an arrangement pursuant to any present or future federal or
state bankruptcy law or under any similar federal or state law, or is adjudicated a
bankrupt or insolvent, or makes an assignment for the benefit of its creditors, or admits in
writing its inability to pay its debts generally as they become due, or if a petition or
answer proposing the adjudication of Tenant as a bankrupt or a reorganization of
Tenant under any present or future federal or state bankruptcy law or any similar federal
or state law is filed in any court and such petition or answer is not discharged or denied
within thirty (30) days after the filing thereof; or (ii) A receiver, trustee or liquidator of
Tenant of all or substantially all of the assets of Tenant or of the Leased Premises or any
portion thereof is appointed in any proceeding brought by or against Tenant and is not
discharged within thirty (30) days after such appointment or if Tenant consents to or
acquiesces in such appointment.
11.02 Landlord's Rights upon an Event of Default. Upon the occurrence of an Event of Default by
Tenant, or at any time thereafter during the continuance of such Event of Default, Landlord may
take any of the following actions and shall have the following rights against Tenant:
(a) Termination. Landlord may elect to terminate the Lease by giving no less than
thirty (30) days' prior written notice thereof to Tenant, and upon the 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 the date herein
fixed for expiration of the Term and Tenant shall remain liable as provided in Section
13,02(c).
(b) Eviction. Landlord 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 Section
11.02(a), by operation of law or otherwise, and no repossession of the Leased
Premises or any part thereof pursuant to Section 13.02(b) or otherwise shall relieve
Tenant of its liabilities and obligations hereunder, all of which shall survive such
termination, repossession or retelling.
(d) Damages. In the event of any termination of this Lease or eviction from or
repossession of the Leased Premises or any part thereof by reason of the occurrence of
an Event of Default:
(i) Rent and Charges. Tenant shall pay to Landlord the Rent and other sums and
charges required to be paid by Tenant for the period to and including the end of the Term
or expiration of an option period as provided for by Section 3.02 herein,whichever is later.
(e) Rights Cumulative, Non-Waiver. No right or remedy herein conferred upon or
reserved to Landlord is intended to be exclusive of any other right or remedy, and each
and every right and remedy shall be cumulative and in addition to any other right or
remedy given hereunder or now or hereafter existing at law or in equity or by statute. In
addition to the other remedies provided in this Lease, Landlord shall be entitled, to the
extent permitted by applicable law, to injunctive relief in case of the violation, or attempted
or threatened violation, of any of the covenants, agreements, conditions or provisions of
this Lease, or to a decree compelling performance of this Lease, or to any other remedy
allowed to Landlord at law or in equity.
(f) Landlord's Right to Cure. If Tenant fails to pay any utilities charges described
in Article IV, insurance premiums described in Article VIII, the cost of any of the repairs or
maintenance required to be made by Tenant pursuant to the Lease or any other charges,
costs or expenses required to be paid under the Lease, Landlord shall have the right, but
not the obligation, to make all such payments, and in addition to its other remedies under
this Article XI, Landlord shall have the option of requiring Tenant to repay to Landlord the
amount of such payments (which shall be deemed additional rent hereunder) on demand
with interest after demand at 10% rate per annum. (the "Default Rate").
(g) Late Charge, Default Rate. If Landlord does not receive payment of any installment
of Rent or any other sum or charge required to be paid by Tenant to Landlord hereunder
within ten (10) days after the same falls due (regardless of whether Tenant has received
notice of the delinquency), Landlord may impose a late charge equal to five percent (5%)
of the amount of such delinquent sum and if such sum is not received by Landlord within
thirty (30) days of its due date, such sum shall, in addition, bear interest at the Default
Rate from the due date until the date paid.
(h) Landlord's Lien. Landlord shall have a lien against Tenant's leasehold estate,
Tenant's Improvements and all property of Tenant located at the Leased Premises, to
secure any obligations of Tenant to Landlord arising pursuant to the provisions of this
Lease.
11.03 No Implied Waver. The failure of Landlord to insist upon strict performance of any of the
covenants or conditions of the Lease, or to exercise any options herein conferred in any one or
more instances shall not be construed as a waiver or relinquishment for the future of any such
covenant, condition, or option, but the same shall be and remain in full force and effect. The
receipt by Landlord of any Rent or any other sum payable hereunder with knowledge of
the breach of any covenants or agreements contained herein shall not be deemed a waiver
of such breach.
ARTICLE XII
ABANDONMENT
12.01 Abandonment. Tenant shall not vacate or abandon the Leased Premises at any time during
the Term of this Lease. If Tenant shall vacate or abandon the Leased Premises, the right of
possession shall, at the option of Landlord, revert to Landlord and Tenant shall lose all right to
possession of the Leased Premises and Tenant's Improvements; however, Tenant shall otherwise
remain liable on this Lease. Landlord shall then, without further notice, have the remedies provided
for in Article XIII herein.
ARTICLE XIII
ENVIRONMENTAL CONDITIONS
13.01 Definitions.
As used in this Lease, the phrase"Environmental Condition" shall mean:
(a) any adverse condition relating to surface water, ground water, drinking water supply,
land, surface or subsurface, strata or the ambient air, and includes, without limitation, air,
land and water pollutants, noise, vibration, light and odors, or;
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(b) any condition which may result in a claim of liability under the Comprehensive
Environmental Response Compensation and Liability Act, as amended, or the Resource
Conversation and Recovery Act, or any claim of violation of the Clean Air Act, the Clean
Water Act, the Toxic Substance Control Act, or any claim of liability or of violation under any
federal statute hereafter enacted dealing with the protection of the environment, or under
any rule, regulation, permit or plan under any of the foregoing, or under any law, rule or
regulation now or hereafter promulgated by the state in which the Leased Premises are
located, or any political subdivision thereof, relating to such matters (collectively
"Environmental Laws").
13.02 Compliance by Tenant. Tenant shall, at all times during the Term, comply with all
Environmental Laws applicable to the Leased Premises and shall not, in the use and occupancy of
the Leased Premises, cause or contribute to, or permit or suffer any other party to cause or
contribute to any Environmental Condition.
13.03 Tenant's Indemnity. Tenant will protect, indemnify and save harmless the Landlord,
City of Iowa City, the partners of the Landlord, and all of the foregoing's respective partners, agents
and employees (collectively "Landlord's Indemnitees"), from and against all liabilities, obligations,
claims, damages, penalties, causes of action, costs and expenses (including, without limitation,
reasonable attorneys' fees and expenses) of whatever kind or nature, contingent or otherwise,
known or unknown, incurred or imposed, based upon any Environmental Laws or resulting from
any Environmental Condition occurring or contributed to during the term of this Lease. In case any
action, suit or proceeding is brought against any of the parties indemnified herein by reason of any
occurrence described in this Section 13.03, Tenant will, at Tenant's expense, by counsel
reasonably approved by Landlord, resist and defend such action, suit or proceeding, or cause the
same to be resisted and defended.
ARTICLE XIV
TENANT'S INDEMNIFICATION
14.01 Generally. To the extent not expressly prohibited by law, Tenant agrees to indemnify,
save, protect and hold forever harmless, Landlord, and all of Landlord's Indemnitees as defined in
Section 13.03 hereinabove, from and against all losses, damages, costs, claims and liabilities,
including, without limitation, court costs and reasonable attorney's fees and expenses, which
Landlord's Indemnitees, or any of them, may become liable or obligated by reason of, resulting
from or in connection with: (a) any injury to or death of persons and damage to, or theft,
misappropriation or loss of property occurring in or about the Leased Premises or the Property
arising from Tenant's use and occupancy of the Leased Premises and/or the conduct of its
business; (b) any activity, work or thing done, permitted or suffered by Tenant in or about the
Leased Premises, including all liabilities of every kind or description which may arise out of or in
connection therewith; and (c) any breach or default on the part of Tenant in the payment or
performance of any covenant, agreement or obligation on the part of Tenant to be paid or
performed pursuant to the terms of this Lease or any other act or omission of Tenant, its agents or
employees. In case of any action or proceeding brought against Landlord's Indemnitees, or any of
them, by reason of any such claims, Tenant covenants to defend such action or proceeding by
counsel reasonably satisfactory to Landlord and/or any particular Landlord's Indemnitee.
ARTICLE XV
MISCELLANEOUS PROVISIONS
15.01 Access by Landlord.
(a) Landlord or Landlord's agents, representatives or employees shall have the right
at any time upon at least twenty-four (24) hours oral notice (except in emergencies, in
which case only such notice, if any, as may be feasible under the circumstances shall be
required) to enter upon the Leased Premises and Tenant's Improvements for the
purposes of inspecting the same, determining whether this Lease is being complied
with, curing (as permitted herein) any default by Tenant and showing the Leased
Premises to prospective Leasehold Mortgagees.
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(b) Landlord or Landlord's agents, representatives, or employees shall have the right
whenever necessary and without notice to enter upon the Leased Premises for the
purpose of repairing or maintaining any of Landlord's property adjacent to or
abutting the Leased Premises.
15.02 Gender and Number. Words of any gender used in the Lease shall be held to include
any other gender, and words in the singular shall be held to include the plural, where required.
15.03 Notices. Notices, statements and other communications to be given under the terms of the
Lease shall be in writing and sent by certified or registered mail, or by commercial courier, return
receipt requested, and addressed as follows:
If to Landlord: With Copies to: If to Tenant:
Iowa City Airport City Attorney Jet Air, Inc.
Commission 410 E. Washington St. 58 IL Hwy Rt 164
1801 S. Riverside Drive Iowa City, IA 52240 Galesburg, IL 61401
Iowa City, Iowa 52246
15.04 Applicable Law. The Laws of the State of Iowa shall govern the validity, performance and
enforcement of this Lease.
15.05 Partial Invalidity. If any provision of the Lease shall be invalid or unenforceable it shall not
affect the validity or enforceability of any other provisions of the Lease.
15.06 Heading. Headings as to the contents of particular sections herein are inserted only for
convenience, and are in no way to be construed as a part of the Lease or as a limitation on the
scope of the particular section to which they refer.
15.07 Binding Effect. The covenants, conditions and agreements contained in the Lease shall
bind, apply to and inure to the benefit of the parties hereto and their respective successors.
15.08 No Partnership. It is expressly understood that Landlord shall not be construed or held to
be a partner, joint venturer or associate of Tenant in the conduct of Tenant's business and that the
relationship between the parties hereto is and shall at all times remain that of landlord and
tenant.
15.09 Holding Over. The Lease shall terminate without further notice at expiration of the Term.
Any holding over by Tenant or any party claiming by, through or under Tenant after expiration shall
not constitute a renewal or extension or give Tenant any rights in or to the Leased Premises. In the
event of any holding over, Landlord may exercise any and all remedies available to it under Article
XIII herein or at law or in equity to recover possession of the Leased Premises, and for damages.
15.10 Time is of the Essence. Time is of the essence in this Lease.
15.11 Entire Agreement; Merger. The Lease contains all the agreements and
conditions made between the parties hereto with respect to the matters contained herein and
may not be modified orally or in any other manner than by an Agreement in writing signed by all the
parties hereto or their respective successors. All prior written and oral understandings and
agreements shall be deemed to have merged into the Lease and have no further force and effect.
15.12 Counterparts. This Lease may be executed in counterparts, each of which shall be
deemed to be an original and all of which shall, when taken together, constitute but one and the
same instrument.
15.13 Taxiway Construction. Landlord agrees to extend the south t-hangar taxiway at
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Landlord's cost east for public use including use by Jet Air, Inc. Tenant acknowledges that
Landlord will apply for applicable grant funding for this work and will be subject to certain
requirements based on schedule of those grant awards.
15.14 Shared Construction Costs: Landlord agrees to reimburse the Tenant for half (1/2) of the
expenses associated with constructing the hangar apron. The Landlord will be responsible for the
expense of moving the utility lines outside the building footprint. _Tenant shall manage the prL,
of utility relocation at no aaaitionai cost to the Total costs paid by Landlord for
construction of the hangar apron and relocation of the utilities shall not exceed $50,000. Apron
Size will be approximately 70 feet by 150 feet as depicted in Exhibit A. Utility fees are as
established by MidAmerican Energy Co.
15.15 FAA Airspace Study. Tenant shall request an Obstruction Evaluation I Airport Airspace
Analysis (OE/AAA) under CFR Title 14 Part 77. Tenant shall not commence construction activity
until said study is returned with a "DETERMINATION OF NO HAZARD TO AIR NAVIGATION" as
the study result.
ARTICLE XVI
FAA PROVISIONS
16.01 Commission Control. The Landlord reserves the right, but shall not be obligated to the
Tenant, to maintain and keep in repair the landing area of the Airport and publicly owned facilities of
the Airport, without hindrance from the Tenant. The Landlord reserves the right to take action it
considers necessary to protect the aerial approaches of the Airport against obstructions. The
Tenant shall not act as an agent or represent itself as an agent for the Commission in matters
between the Federal Aviation Administration and the Landlord
16.02 Landlord Improvements. The Landlord reserves the right to further develop or improve the
landing area and all publicly owned aviation facilities of the Airport as it sees fit, without interference
or hindrance from the Tenant.
16.03 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 Landlord reserves the right to grant to others the privilege and
right of conducting any activity of an aeronautical nature.
16.04 Grant Assurances. This Lease shall be subordinate to the provisions of any outstanding or
future agreement between Landlord and the United States government or 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 said Airport.
16.05 Right of Flight. Tenant acknowledges that the City of Iowa City, Iowa is authorized by law to
own and operate the Iowa City Municipal Airport located in Johnson County, Iowa near the Leased
Premises. There is hereby reserved to 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 Leased Premises herein conveyed, together with the right to cause in
said airspace such noise, vibrations, fumes, dust, and particles 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. Tenant foregoes and
waives any and all claims for damages, of whatever kind or type, which are reasonably likely to
occur in the future as a result of aircraft using the "navigable airspace", as defined by the Federal
Aviation Act of 1958 {49 U.S.C.40102 (a) (30)) and regulations promulgated thereunder over and
above the Leased Premises, including but not limited to, damages resulting from noise, vibration,
fumes, dust and particles. Tenant grants to the Landlord, its successors and assigns, a continuing
right to keep the air space above the Airport Imaginary Surfaces as described in Federal Aviation
Regulations Part 77 and depicted on the Airport Layout Plan (ALP) clear of any and all fences,
t , >,
crops, trees, poles, building or other obstructions of any kind or nature whatsoever which now
extend, or which may any time in the future extend, above said surfaces. Tenant grants the
Landlord the right of ingress to, egress from, and passage over the Leased Premises for the
purpose of effecting and maintaining such clearance and of removing any and all obstructions
which now or may hereafter extend above the Airport Imaginary Surfaces as described in Federal
Aviation Regulations Part 77 and depicted in the ALP.
16.06 Additional FAA Provisions.
(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 Lease for a purpose for which i:J
Department of Transportation program or activity is extended or for another purpose
involving the provision of similar services or benefits, Tenant 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
assigns, 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.
(c) 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 interferences or hindrance.
(d) 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.
(e) 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.
(f) 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
(g) 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.
Iowa City Airport Commission
By:
Chairperson Date
Attest:
Secretary Date
City Attorney Approval:
City Attorney's Office Date
Jet Air Inc.
Date
1 Y
Commission's Acknowledgement
STATE OF IOWA )
SS:
JOHNSON COUNTY )
On this day of , 2016, before me personally appeared
and to me personally known, who, being by me
duly sworn, did say they are the Chairperson and Secretary, respectively, of the Iowa City Airport
Commission and that the instrument was signed and sealed on behalf of the Commission, and
the execution of the instrument to be their voluntary act and deed of the Commission, by it
voluntarily executed.
Notary Public in and for said County and State
Tenant's Acknowledgment
STATE OF IOWA )
) SS:
JOHNSON COUNTY )
This instrument was acknowledge before me on , 2016 by
of Jet Air, Inc., who acknowledged that (s)he is empowered to bind
Jet Air to the terms of this Lease.
Notary Public in and for said County and State
,
Iowa City Municipal Airport
Ground/Hangar Lease
Exhibit A
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Hangar Size: 100ft x 100ft
Apron Size: —70ft x -150ft
Taxiway Size 35ft x —150ft
Area subject to rental fee: 100ft x 100ft
Prepared by: Michael Tharp,Operations Specialist, 1801 S.Riverside Dr.Iowa City,IA 52246(319)356 5045
RESOLUTION NO. 8/6 - /f
RESOLUTION SETTING A PUBLIC HEARING FOR LEASE FOR HANGAR M
WHEREAS, the Commission plans to enter into a Purchase Agreement whereby it will take
ownership of Hangar M at the Iowa City Municipal Airport; and
WHEREAS, Jet Air, Inc. desires to lease Hangar M from the Commission for use as an aircraft
storage hangar;and
WHEREAS,the Airport Operations Specialist has negotiated a lease with Jet Air, Inc. for a term of
Thirty(30)years;and
WHEREAS,a lease of this period of time requires the holding of a public hearing.
BE IT RESOLVED BY THE AIRPORT COMMISSION OF THE CITY OF IOWA CITY:
1. That a pubic hearing on the lease terms and rates for the above-mentioned facilities is to
be held on the 18 day of August 2016 at 6:00pm. In Iowa City Airport Terminal
Building, 1801 S. Riverside Drive, Iowa City, Iowa,or if said meeting is cancelled,at the
next meeting of the Airport Commission thereafter as posted by the City Clerk.
2. That the City Clerk is hereby authorized and directed to publish notice of the public
hearing for the above-named project in a newspaper published at least once weekly and
having a general circulation in the City,not less that four(4)nor more than twenty(20)
days before said hearing.
3. That a copy of said lease agreement is hereby ordered to be placed on file by the
Chairperson in the office of the City Clerk for public inspection
Passed and approved this day of A-r.7.—:;T 2016.
LAP
rfj=` Approved By:
CHAIRP7'S
ATTEST:,
L SECRETAR City Attorney's Office
It was moved by v, and seconded by (e,c��•-, c/ the
Resolution be adopted, and upon roll call there were:
Ayes Nays Absent
t/ Bockenstedt
Gardinier
4.7 Libby
f Odgaard
Ogren
CORPORATE HANGAR LEASE
This HANGAR LEASE ("Lease") entered into by and between the Iowa City Airport Commission
("Commission") and Jet Air, Inc. ("Tenant") in Iowa City, Iowa.
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 M (the "Hangar
Space") located at the Iowa City Municipal Airport (the "Airport") and described as
follows: Building M, Corporate Hangar, 80' wide x 80' deep with a 65' x 18' Bi-Fold Door.
2. Term.
The term of this Lease shall commence on the date Landlord takes ownership of
Hangar M and shall end on the last day of the month of December, 2046.
3. Rent.
For use of the Hangar Space, Tenant shall pay the Commission the amount of
$ 1,200 per month, payable in advance on the first day of each
month. A 1.5% late fee (which is $ 18.00 per day) for rent not
received by the Commission will be charged after the fifteenth (15) day of each month.
The rent shall be paid pro rata by the Tenant for any period of possession less than a
full month.
For the period of until rent shall be $500 per month.
Rental Rate shall be adjusted beginning January 1, 2027 and every 5 years thereafter
by the CPI Index based on the CPI index from the last adjustment.The first adjustment,
on January 1, 2027, shall be based on the applicable index at the time of the execution
of this lease. Data for the CPI-U, US City Average, All Items Less Food and Energy
shall be used in determining any CPI adjustment. Base Period 1982-1984=100
4. Utilities
Tenant shall be responsible for the electric and gas utilities. Hangar does not have
water utilities.
5. 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. At the termination of the Lease,
the Commission shall return the deposit to the Tenant less any amounts due to repair
damage, conduct cleanup or owed to the Commission. If the Tenant renews the lease,
the deposit will be held over for the new term.
6. Use of the Hangar Space.
a. The Hangar Space shall be used primarily for storage or
construction of the Aircraft consistent with FAR and the Minimum Standards.
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This provision is not to be construed as a prohibition for storage of maintenance
materials, cleaning materials, tools, parts, spares, and other aircraft components.
b. Tenant may park his/her car in the Hangar Space during such time that Tenant is
using the Aircraft.
c. No commercial activity of any kind shall be conducted by Tenant in, from or
around the Hangar Space, other than activities directly related to aviation.
d. No maintenance, including painting, on the Aircraft shall be performed in the
Hangar Space or anywhere on the Airport without the prior written approval of
the Airport Operations Specialist, except such maintenance as performed by the
Tenant on his or her own aircraft as permitted by the FAA. Tenant shall take
steps to ensure that the performance of such maintenance work shall not
damage the Hangar Space or the Airport where the work is performed or emit
offensive odors.
e. Tenant shall be responsible and liable for the conduct of its employees and
invitees, and of those doing business with it, in and around the Hangar Space.
Tenant shall keep the Hangar Space clean and free of debris at all times.
f. In utilizing the Hangar Space during the term of this Lease, Tenant shall comply
with all applicable ordinances, rules, and regulations established by any federal,
state or local government agency.
g. Tenant shall dispose of used oil only in approved receptacles.
h. 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.
7. 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, cleaning of stoppages in
plumbing fixtures and drain lines, cleaning of snow within two (2) feet of the
apron adjoining the Hangar Space, disposing of any debris or waste materials,
and maintaining any Tenant constructed structures and equipment. The
Commission shall be the sole judge of the due maintenance undertaken by the
Tenant, and may upon written notice, require specific maintenance work to be
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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.
c. Tenant shall provide and maintain hand fire extinguisher for the interior of the
Hangar Space of the building in accordance with applicable safety codes.
d. Tenant shall not store any materials outside the Hangar Space.
e. Tenant shall promptly notify the Commission, in writing, of any repairs needed on
the Hangar or to the Hangar Space.
8. 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. However, if due to any negligent or willful act by the
Tenant, its agents, servants, invitees or customer, there is a need for
maintenance or repair of damage, then Tenant shall do such maintenance or
repair in a prompt, reasonable manner, as approved by the Commission.
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.
9. Sublease/Assignment.
Tenant shall be allowed to sublease the space per the FBO agreement.
10. Condition of Premises.
Tenant shall accept the Hangar Space in its present condition 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.
11. Alterations.
Tenant shall not make any alterations to the hangar without the approval of the Airport
Commission.
12. Hazardous Materials.
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a. With the exception of Paragraph 11c below, no "hazardous substance," as
defined in Iowa Code section 455B.411 (2015), may be stored, located, or
contained in the Hangar Space without the Commission prior written approval.
(The Iowa Code can be found online at www.legis.state.ia.us/IACODE . The. U.S.
Code can be found online at www.findlaw.com/casecode/uscodes/index.html Federal
regulations can be found online at http://www.access.qpo.qov/nara/cfr/cfr-table-
search.html, ) Petroleum products and their byproducts for personal use may be
stored or present in the Hangar Space if said substances are contained in
approved containers.
b. With the exception of Paragraph 11c below, 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. No waste or
disposable materials shall be released on the ground or in the storm sewers.
Should such materials be spilled or escape from storage or in any way
contaminate the Airport or property adjacent to the Airport through activities of
the Tenant, the Tenant shall be responsible for the clean up, containment and
otherwise abatement of such contamination at Tenant's sole cost and expense.
Further, Tenant shall notify the Commission and appropriate governmental
agency of such occurrence immediately. Should Tenant fail to do so, the
Commission may take any reasonable and appropriate action in the Tenant's
stead. The cost of such remedial action by the Commission shall be paid by the
Tenant.
c. Tenant may have the following materials stored in the Hangar Space:
• 5 gallons gasoline for motorized tugs
• 1 gallon of cleaning solvents
• 2 55 Gallon Drums for oil. The oil drums will be placed on
a spill containment pad which would provide containment
for entire drum. Spill containment is the responsibility of
the tenant to provide and maintain
13. Special Events.
During any special event at the Airport, including but not limited to the Sertoma
Breakfast or Fly Iowa, 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 in writing. Tenant's failure to comply with the altered
procedure is a default of this Lease, and the Commission may proceed to terminate this
Lease.
14. 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 rules and regulations 30-days prior to their effective
date.
15. 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
5
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 subsequently changes the
lock to the Hangar Space, he or she shall provide shall provide notice to the
Commission before he or she does so and shall provide a new key to the Commssion
within twenty-four hours of doing so.
16. 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
Aircraft Liability, including incidental 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 attached
to this Lease. Tenant shall provide fifteen (15) days notice to the Commission
before cancellation of said insurance.
c. It is the Tenant's responsibility to keep the insurance certificate current. If the
Certificate of Insurance expires during the term of the lease, the Tenant must
provide a current certificate to the Commision within seven (7) days of when the
Certificate expires.
17. 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.
18. Indemnity.
Tenant agrees to release, indemnify and hold the Commission, its officers and
employees harmless from and against any and all liabilities, damages, business
interruptions, delays, losses, claims, judgments, of any kind whatsoever, including all
costs, attorneys' fees, and expenses incidental thereto, which may be suffered by, or
charged to, the Commission by reason of any loss or damage to any property or injury
to or death of any person arising out of or by reason of any breach, violation or non-
performance by Tenant or its servants, employees or agents of any covenant or
condition of the Lease or by any act or failure to act of those persons. The Commission
shall not be liable for its failure to perform this Lease or for any loss, injury, damage or
delay of any nature whatsoever resulting therefrom caused by any act of God, fire,
6
flood, accident, strike, labor dispute, riot, insurrection, war or any other cause beyond
Commission's control.
19. 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.
20. 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.
21. 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 cintinuance of such
default, the Commission may take any of the following actions and shall have the
following rights aganst Tenant:
a. Termination. Commission may elect to erminate 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
the date herin 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 thereof shall relieve Tenant of its liabilities and obligations hereunder,
all of which shall survive such termination, repossession, 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 Comission the rent
and other sums and charges required to by paid by the Tenant for the period to
and including the end of the Term.
22. Security.
Tenant acknowledges that the FAA or another governmental entity or subdivision may
enact laws or regulations regarding security at general aviation airports such that the
7
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.
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
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. This Lease 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
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.
8
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 interferences 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.
i. 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
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 Commission Chairperson
b. by service in the manner provided by law for the service of original notice, or
9
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.
(1) If to the Commission, addressed to:
Iowa City Airport Commission
Iowa City Municipal Airport
1801 S. Riverside Drive
Iowa City, IA 52246
(2) If to Tenant, addressed to:
Jet Air, Inc. Attention: Matt Wolford
1801 S. Riverside Dr.
Iowa City, IA 52246
Email: iow@jetairinc.com
27. Airport Operations Specialist.
The Airport Operations Specialist is the person designated by the Commission to
manage the Hangar Space and to deliver all notices and demands from 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.
IOWA CITY AIRPORT COMMISSION
By:
Title: Date:
10
TENANT:
By:
Title: Date:
Approved:
City Attorney's Office
Prepared by: Michael Tharp,Operations Specialist, 1801 S.Riverside Dr.Iowa City,IA 52246(319)356 5045
RESOLUTION NO. /7,/� ��ZO
RESOLUTION SETTING A PUBLIC HEARING FOR AN AMENDMENT TO THE
FIXED BASED OPERATORS AGREEMENT
WHEREAS,on November 1st,2001 the Airport Commission of the City of Iowa City entered into a
Fixed Base Operators Agreement with Jet Air,Inc.,effective January 15`,2002;and
WHEREAS, the original term of said FBO agreement was five years, with Jet Air options for four
additional five year terms,for a total potential length of twenty five years;and
WHEREAS, Jet Air,Inc. desires to extend that Agreement to cover the term of a new ground lease
and Hangar M lease lasting thirty years;and
WHEREAS,the Commission agrees such an extension is appropriate and in the best interests of the
Airport and the public;and
WHEREAS,the Commission wishes to hear the comment of any member of the public who wishes
to make comment.
BE IT RESOLVED BY THE AIRPORT COMMISSION OF THE CITY OF IOWA CITY:
1. That a pubic hearing on the amendment for the above-mentioned agreement is to be held
on the 18 day of August 2016 at 6:00pm. In Iowa City Airport Terminal Building, 1801
S.Riverside Drive,Iowa City,Iowa,or if said meeting is cancelled,at the next meeting
of the Airport Commission thereafter as posted by the City Clerk.
2. That the City Clerk is hereby authorized and directed to publish notice of the public
hearing for the above-named project in a newspaper published at least once weekly and
having a general circulation in the City,not less that four(4)nor more than twenty(20)
days before said hearing.
3. That a copy of the FBO Amendment is hereby ordered to be placed on file by the
Chairperson in the office of the City Clerk for public inspection
Passed and approved this - day of 44y'_ 1 2016.
410. Approved By:
CHAMP SO
e ( /r
ATTEST: /`
SECRET 11 Y City Attorney's Office
.l
It was moved by 3.re_ --.. and seconded by 04 ae the
Resolution be adopted, and upon roll call there were:
Ayes Nays Absent
EVBockenstedt
✓ Gardinier
i/ Libby
/. Odgaard
Ogren
THIRD AMENDMENT TO FIXED BASED OPERATOR'S AGREEMENT
WHEREAS, on November 1, 2001, the Iowa City Airport Commission (Commission) and Jet Air,
Inc. (Jet Air) entered into a contract entitled "Iowa City Municipal Airport Fixed Base Operator's
Agreement" (FBO Agreement) for lease of space at the Iowa City Municipal Airport including all
non-public areas of the first floor of Building "E,"the airport terminal building;'
WHEREAS, the agreement has previously been amended on two occasions; and
WHEREAS,the parties wish to amend the number of additional option periods.
IT IS THEREFORE AGREED that;
1. Paragraph 1 Term is hereby amended as follows:
The sentence "JA is granted an option to lease the premises for up to four (4) additional five (5)
year terms." is deleted and the sentence "JA is granted an option to lease the premises for up to
eight (8) additional five (5)year terms" is inserted in its place.
All other terms and provisions of the FBO Agreement, not inconsistent with this amendment,
remain in full force and effect.
IOWA CITY AIRPORT COMMISSION JET AIR, INC.
BY BY
Chairperson Matthew Wolford, General Manager
Date Date
Approved by:
City Attorney's Office
Prepared by: Michael Tharp, Operations Specialist, 1801 S. Riverside Dr, Iowa City IA 52246 319-350-5045
RESOLUTION NO. A i
RESOLUTION AUTHORIZING CHAIRPERSON TO ACCEPT IOWA DEPARTMENT
OF TRANSPORTATION GRANT.
WHEREAS, the Iowa City Airport Commission has previously applied for grants from the Iowa
Department of Transportation Office of Aviation for work associated with a taxilane extension
project and a restroom addition in the North T-hangar area.
WHEREAS, the Iowa Transportation Commission has met and approved the FY2017 State
Aviation Program
WHEREAS,the Iowa City Municipal Airport was recommended to receive grant funds as part of
the FY2017 State Aviation Program;and
WHEREAS,it is in the best interest of the Iowa City Airport Commission to accept these grants.
NOW,THEREFORE,BE IT RESOLVED BY THE AIRPORT COMMISSION OF THE
CITY OF IOWA CITY:
1. The Chairperson is authorized sign and the Secretary to attest to acceptance of the grants.
Passed and approved this I /� day of n,y, si 2016.
Approved B :
PP Y
ATTEST: ,,-C` �.
..t
SECRETARY City Attorney's Office
It was moved by 6DL40-•-,5 and seconded by 44'A• A/ the
Resolution be adopted, and upon roll call there were:
Ayes Nays Absent
Bockenstedt
Gardinier
Libby
Odgaard
Ogren
Prepared by: Michael Tharp,Operations Specialist, 1801 S. Riverside Dr, Iowa City IA 52246 319-350-5045
RESOLUTION NO. ,q/rt ' ;2
RESOLUTION AUTHORIZING THE CHAIRPERSON TO SIGN A PURCHASE
AGREEMENT FOR HANGAR BUILDING "M".
WHEREAS, the Iowa City Airport Commission desires to enter into a contract with Jet Air, Inc.
to purchase Hangar Building "M"; and
WHEREAS, both parties have agreed to the contract terms.
NOW, THEREFORE, BE IT RESOLVED BY THE IOWA CITY AIRPORT COMMISSION, THAT:
1. The Chairperson is hereby authorized to sign and the Secretary to attest to the attached
Hangar Purchase Agreement.
Passed and approved this i y day of P tits s , 2016.
CHAI
Ap oved by
ATTEST: e -�
SECRETARY City Attorney's Office
It was moved by &e.,4:-1,'„e./ and seconded by 46•-417' the Resolution be
adopted, and upon roll call there were:
Ayes Nays Absent
Bockenstedt
Gardinier
Libby
Odgaard
'' Ogren
i
I
I
I
Prepared py:Eric Goers,City Attorney's Office,410 E.Washington,Iowa City,Iowa 52240,319-356-5030
I
HANGAR PURCHASE AGREEMENT
Thi Hangar Purchase Agreement(hereinafter, "Agreement") is made between the City of Iowa City,
a munic3ipal corporation of the State of Iowa(hereinafter, "City")and Jet Air,Inc. (hereinafter, "Jet Air"),
for the Purchase,by the City of Hangar M, located on ground owned by the Iowa City Municipal Airport
but leased to Jet Air. Jet Air currently owns the improvements built thereon—namely, Hangar M, on the
ground leased to Jet Air by the City. Hangar M,as described below,shall hereinafter be referred to as the
"Property".The ground on which the Property is located is presently owned by the City,and will continue
to be oikned by the City,
1
1
1. PURCHASE PRICE/PROPERTY DESCRIPTION. The Purchase Price for the Property shall be
$250,0¢0.00, to be paid in full at the time of closing. The Property, Hangar M, is the corporate hangar,
approximately 80' wide and 80' deep,with a 65' x 18' Bi-Fold door, located at.the Iowa City Municipal
Airport The ground on which the Property sits is not changing hands —only the Hangar itself is being
sold. Upon the conclusion of the sale,the City will own both the ground(which it already owns)and the
Hangarl(which is presently owned by Jet Air.)
2. ESTATE TAXES. Seller pays its prorated share,based upon the date of closing,of the real
estate es for the fiscal year in which closing occurs, due and payable in the subsequent fiscal year, and
all unp id taxes for prior years. The amount shall be calculated based upon the assessed valuation,
legislat ve tax rollback and real estate tax exemptions that may be applicable to and used for the
calcula ion of taxes payable in the fiscal year commencing July 1,2016. If, at the time of closing,the tax
rate ha4 not been certified, then the most current certified tax rate shall be used. Buyer shall be given a
credit liar such proration at closing.
3.4ISK OF LOSS AND INSURANCE. Seller shall bear the risk of loss or damage to the Property
prior t�cdd{{ closing or possession, whichever first occurs. Seller agrees to maintain existing insurance until
closing or possession, whichever first occurs. City may also insure the Property prior to closing or
posses ion.The Property shall be preserved in its present condition,ordinary wear and tear excepted, and
Seller hall deliver it intact at the time the City takes possession. Prior to the City taking possession,
Seller slhall promptly give written notice to the City of any loss or damage to the Property. In the event of
loss, damage or destruction of all or part of the Property, the City shall have the option to terminate this
AgreemXient effective immediately.However,in the case of loss,damage or destruction of all or part of the
Property from causes covered by insurance, the City shall have the option to either 1)take possession of
the Property and accept an assignment of all Seller's right,title and interest in and to any claims Seller has
under the insurance policies covering the Property; or 2)terminate this Agreement effective immediately.
4. OSSESSION AND CLOSING. If Seller timely performs all obligations, possession of the
Prope shall be delivered to City on September 1,2016, and any adjustments of rent, insurance,taxes,
interes and all charges attributable to the Seller's possession shall be made as of the date of closing.
5. IXTURES. Included with the Property shall be all fixtures that integrally belong to, are
specifi ally adapted to or are a part of the real estate, whether attached or detached, such as: fencing,
gates, ushes,trees,shrubs and plants.
6. TATEMENT AS TO LIENS. Seller shall deliver the Property free of any and all liens.
7. ENERAL PROVISIONS. In the performance of each part of this Agreement, time shall be of
the essence.Failure to promptly assert rights herein shall not,however,be a waiver of such rights or a
waiver of any existing or subsequent default.This Agreement shall apply to and bind the successors in
interest of the parties. This Agreement shall survive the closing. Paragraph headings are for convenience
of reference and shall not limit or affect the meaning of this Agreement. Words and phrases herein shall
be construed as in the singular or plural number,and as masculine,feminine or neuter gender according to
the context.
8.ADDITIONAL PROVISIONS:
A.TERMITE INSPECTION. City,at its expense,may have the Property inspected for termites or
other wood destroying insects by a licensed pest inspector within 15 days of acceptance. if
active infestation or damage due to prior infestation is discovered, Seller shall have the option
of either having the Property treated for infestation by a licensed pest exterminator and
repaired to the Buyer's satisfaction or declaring this Agreement null and void and returning
all earnest money to Buyer. This provision shall not apply to fences, trees, shrubs or
outbuildings other then garages. Buyer may accept the property in its existing condition
without such treatment or repairs.
B. LEASES. The Property must be free of all leasehold interests. Seller agrees to defend,
indemnify and hold harmless the City from and against any and all claims, damages, losses,
risks, liabilities and expenses (including attorney's fees and costs) arising from or related to
any leasehold interest. This provision survives closing.
9. ACCEPTANCE. When accepted,this Agreement shall become a binding contract.If not accepted
and delivered to City on or before August 18,2016,at 5:00 o'clock p.m.,this Agreement shall be null
and void.
BUYER: IOWA CITY AIRPORT COMMISSION
7-11 714By:
Jaco ,. , Chairperson Date
AflhST: v-G�+>'� a 0 /l Y(`C=
bLibb Secretary Date
Approved By:
8-72,-LA
City Attorney's Office
SELLER: Jet Air,Inc.
er///C/. 2.-,0/6
Date
2
Commission's Acknowledgement
STATE OF IOWA )
)ss:
JOHNSON COUNTY )
On 04s day of , 2016, before me,
, a Notary Public in and for the State of Iowa, personally appeared Jacob
OdgaarSl and Bob Libby,to me personally known, who, being by me duly sworn, did say that they are the
Chair and Secretary,respectively, of the Iowa City Airport Commission and that the instrument was signed
and sealed on behalf of the Commission and that Jacob Odgaard and Bob Libby acknowledged the
executitn of the instrument to be their voluntary act and deed of the Commission,by it voluntarily executed.
Notary Public in and for said County and State
Seller's Acknowledgement
STATE OF IOWA
)ss:
JOHNSON COUNTY )
This instrument was acknowledged before me on , 2016 by
as of Jet Air, Inc., who verifies that (s)he is
empowtred to bind Jet Air,Inc.to this Purchase Agreement.
Notary Public in and for said County and State
3
Prepared by: Michael Tharp,Operations Specialist, 1801 S.Riverside Dr.Iowa City,IA 52246(319)350 5045
RESOLUTION NO. 144 --
RESOLUTION AUTHORIZING THE CHAIRPERSON TO EXECUTE AND THE
SECRETARY TO ATTEST TO A HANGAR LEASE BETWEEN THE AIRPORT
COMMISSION OF THE CITY OF IOWA CITY,IOWA,AND JET AIR,INC.
WHEREAS,the Airport Commission of the City of Iowa City has negotiated a lease for hangar
building"M"at the Iowa City Municipal Airport; and
WHEREAS,the Commission fmds the proposed lease to be proper and in the best interest of the
Iowa City Municipal Airport; and
WHEREAS,the term of the lease shall be from September 1,2016 through December 31,2046.
NOW,THEREFORE,BE IT RESOLVED BY THE AIRPORT COMMISSION OF THE
CITY OF IOWA CITY:
1. That the proposed hangar lease for Hangar building"M"is hereby approved.
2. That the Chairperson is directed and authorized to execute and the Secretary to attest to
the corporate hangarllease'Lbetween the Airport Commission and Jet Air,Inc.
It was moved by bfrc.�e-- 00 and seconded by �—,�b�v t1 the Resolution be adopted,
and upon roll call there were:
Ayes
Nays Absent
Bockenstedt
Gardinier
Libby
Odgaard
r Ogren.
Passed and approved this I c[ day of Air"S 1 2016.
Approved By:
C • l'Iv: R ;i
VS/1/Z.
ATTEST:
SECRETARY City Attorney's Office
Prepared by: Michael Tharp,Operations Specialist, 1801 S.Riverside Dr.Iowa City,IA 52246(319)350 5045
RESOLUTION NO. t)/6 A
RESOLUTION AUTHORIZING THE CHAIRPERSON TO EXECUTE AND THE
SECRETARY TO ATTEST TO A LAND LEASE BETWEEN THE AIRPORT
COMMISSION OF THE CITY OF IOWA CITY,IOWA,AND JET AIR,INC.
WHEREAS,the Airport Commission of the City of Iowa City has negotiated a lease for land as
described in Exhibit A; and
WHEREAS,the Commission fmds the proposed lease to be proper and in the best interest of the
Iowa City Municipal Airport; and
WHEREAS,the term of the lease shall be from September 1, 2016 through 31 August,2046.
NOW,THEREFORE,BE IT RESOLVED BYTHE AIRPORT COMMISSION OF THE
CITY OF IOWA CITY:
1. That the proposed land lease is hereby approved.
2. That the Chairperson is directed and authorized to execute and the Secretary to attest to
the land lease between the Airport Commission and Jet Air,Inc.
It was moved by 03‘i and seconded by a9 S cue,ail the Resolution be adopted,
and upon roll call there were:
Ayes Nays Absent
Bockenstedt
Gardinier
Libby
/.7 / Odgaard
Y Ogren
Passed and approved this ( (% day of � c� 2016.
9.7 Appr ed By:
C •
ATTEST: „��.-4wy1- ( 6
SECRETARY City Attorney's Office
,
IOWA CITY MUNICIPAL AIRPORT
GROUND LEASE
This Ground Lease (the "Lease") is made as of the day of 2016, by and
between the Iowa City Airport Commission, having a principal business address at
1801 S. Riverside Drive, Iowa City, Iowa 52246 ("Landlord") and Jet Air, Inc.
("Tenant")
RECITALS
A. The City of Iowa City is the owner of the fee title to premises situated in the City of Iowa
City, State of Iowa, commonly known as the Iowa City Municipal Airport. Landlord has the
authority to lease ground.
B. Tenant is Jet Air, Inc.
C. The parties desire to enter into a ground lease pursuant to which Landlord will lease an
unimproved portion of the Iowa City Municipal Airport as depicted on Exhibit A (the"Leased
Premises") for the purposes of construction of an aircraft storage hangar (Hangar "N")and
associated apron.
D. Tenant has indicated a willingness and ability to properly keep, maintain, and improve said
ground in accordance with standards established by Landlord, if granted a lease of
sufficient term on said ground area.
In consideration of the foregoing and the mutual covenants hereinafter contained, and for
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged by the parties, Landlord and Tenant hereby agree as follows:
ARTICLE I
GRANT
1.01 Grant. Landlord hereby leases to Tenant the Leased Premises in accordance with the
terms and conditions hereinafter set forth.
ARTICLE II
CONDITION
2.01 Condition of Lease Premises. Tenant is taking possession of the Leased Premises in an
"as-is" condition as of the execution and delivery of this Lease. Landlord shall have no obligation
to perform any improvements, alterations, additions, repairs or replacements thereto except those
specifically defined in this lease.
ARTICLE III
TERM
1 3.01 Initial Term. The term of this Lease shall commence on September 1, 2016 (the "Lease
Commencement Date") and shall continue thereafter until the last day of August. 2046 (the"Term")
unless sooner terminated as provided herein.
3.02 Options to renew. There are no options to renew included in this lease.
ARTICLE IV
RENT AND UTILITIES
4.01 Annual Base Rent. Commencing on STI-t,--‘ -t,- 16)4b and continuing on the first day of
each succeeding month, Tenant shall pay to Landlord, at the address specified in Section 17.05, or
at such other place as Landlord may from time to time hereinafter designate to Tenant in writing,
annual rent ("Annual Base Rent" as follows:
Annual Base Rent: $.20 per square foot per year. For the period of 5"4r1-t--ttz- r z'''" -
ok�b,.1'1'12,000.00 per year, payable monthly with payments due on the first day of the
month $166.67 is due each month beginning S crk.� i , 2016.
(a) Definitions. For the purposes of this provision, the following definitions shall
apply:
(1) the term "Consumer Price Index" or "CPI" shall mean the U.S. Bureau of
Labor Statistics Consumer Price Index for all Urban Consumers — U.S. City
Average, seasonally adjusted (1982-1984=100).
(2)the term "Current CPI" shall mean the annual average of Consumer Price
Indices for the calendar year immediately preceding the Change Date
(3) the term "Base CPI" shall mean the annual average of Consumer Price
Indices for the calendar year immediately preceding the year for which the
Current CPI is determined.
(4) the term "Change Date" shall mean September 1st of each year beginning
S / 4-4tr 1 2021
(b) Adjustment. Effective on the Change Date, the Annual Base Rent hereunder
shall escalate based on the following formula and illustrated by the following
example:
(1) Formula:
JfCurrent CPI-Base CPI}x Rent] + Rent= Escalated Rent
[Base CPI]
(2) Example: Assume Change Date is 2/1/13. Assume the annual
base rent is $1,632. 'Assume the Current CPI(annual average
CPI for 2011) is 225.114 and that the Base CPI (annual
average CPI for 2012) is 228.537. Annual base rent
beginning February 1, 2013 would be $1,656.81
((228.537-225.114) x$1,632] + $1,632 = $1,656.81
225.114
(c) No Recomputations. No subsequent adjustments or recomputations,
retroactive or otherwise, shall be made to the Consumer Price Index due to
any revision that may later be made to the first published figure of the
Consumer Price Index for any month.
(d) No Rent Decrease. In no event shall the Annual Base Rent for a given year
be less than the Annual Base Rent for the preceding year.
(e) No Waiver. Any delay or failure of Landlord in computing or billing Tenant for
the escalation of Annual Base Rent as provided herein shall not constitute a
waiver of or in any way impair the continue obligation of Tenant to pay such
escalation of Annual Base Rent.
(f) Change in Index. In the event that the Consumer Price Index ceases to use
1982-1984=100 as the basis of calculation the new CPI established by the
U.S. Bureau of Labor Statistics Consumer Price Index for all Urban
Consumers — U.S. City Average, seasonally adjusted, with a different base
year shall be used.
Tenant may pay early without a prepayment penalty
4.02 Net Lease. This Lease in every sense shall be without cost to the Landlord for the
development, maintenance, and improvement of the Leased Premises. It shall be the sole
responsibility of the Tenant to keep, maintain, repair and operate the entirety of the Leased
Premises and all improvements and facilities placed thereon at Tenant's sole cost and expense.
4.03 Utility Payments. Commencing with the Lease Commencement Date and continuing
throughout the Term, Tenant shall pay or cause to be paid all charges, assessments, or taxes for
gas, electricity, water, sewer, telephone and all other utility services incurred in connection with
Tenant's use and occupancy of the Leased Premises. .
4.04 Taxes. Commencing with the Lease Commencement Date and continuing throughout the
Term, Tenant shall pay all property taxes assessed on the Leased Premises when they become
due.
ARTICLE V
USE AND OCCUPANCY
5.01 Use. Tenant shall use the Leased Premises solely for the construction, use, and support of
corporate aviation hangar facilities.
5.02 Construction. Tenant shall use its best efforts to complete the construction of a building
facility on the Leased Premises for the operation of said hangar. Tenant's interest under this Lease
shall terminate and all payments hereunder shall be forfeited if Tenant does not complete
construction of the substantial improvements within one (1) year of the date of the execution of this
Lease agreement. "Substantial improvements" means completion of the construction in
accordance with the plans and specifications approved by the Commission and with city
ordinances. The failure by Tenant to complete minimum improvements within a period of one (1)
year from the Lease Commencement Date shall be considered an event of Default and Landlord
shall have available all remedies set forth herein.
5.03 Licenses. Tenant shall at Tenant's expense, obtain and maintain during the Term of this
Lease all licenses or permits necessary for the operation of Tenant's use of the Leased Premises
as defined in section 5.01 herein and Tenant shall comply with any other applicable rules and
regulations governing the operation of Tenant's use of the Leased Premises as required by any
federal, state, or local government or regulatory authority or agency.
5.04 Zoning. Tenant shall, at tenant's expense, obtain any and all necessary zoning approvals
and permits required by local law or ordinance.
5.05 Restrictions.
(a) Prohibited Uses. No use of the Leased Premises shall be permitted which is
offensive by reason of odor,fumes, dust, smoke, noise, or other pollution, nor shall any use
be permitted which is hazardous by reason of excessive danger of fire or explosion, which
may be injurious to any property or persons on or about the Iowa City Municipal Airport or
that is in violation of the applicable laws or regulations of any governmental authority. Any
use that negatively affects the operation of the Iowa City Municipal Airport is prohibited.
(b) Hazardous Materials. No hazardous Materials of any kind shall be stored on or
disposed of on the lot. As used herein, Hazardous Materials shall mean:
1. Any "hazardous waste" as defined by the Resource Conservation and
Recovery Act of 1976, as amended from time to time, and rules or regulations
promulgated thereunder;
2. Any"hazardous substance" as defined by the Comprehensive Environmental
Response Compensation and Liability Act of 1980, as amended from time to time
and rules or regulations promulgated thereunder;
id
3. Any oil, petroleum products, and their byproducts; and
4 Any substance which his regulated by any federal, state, or local
governmental authority or that is the subject of any law, rule, or regulation.
(c) Nuisances. No act constituting a nuisance as defined under the provision of
Chapter 657, Code of Iowa, or the common law of Iowa shall be permitted, and the
restrictions pertaining to acts within a county in said Code chapter shall be applicable.
(d) Construction Site Standards. Construction and the conduct thereof shall comply
with all governmental requirements as to health and safety and shall meet the standards set
forth herein as set forth by City ordinance. Such standards shall cover, but not be limited
to, the restrictions contained herein and additional regulations concerning erosion control,
parking for construction workers, office trailers on the lot, material storage, location of
telephones and vending machines, security design, location and disposal of sewage during
construction, cleaning and policing of the construction site and protection of streets, street
right of ways and property adjoining the building site. Said requirements may vary
depending on size, location, and topography of a lot. During the course of construction,
Tenant, its agents, and contractors shall keep mud, dirt, debris and building materials off all
City roads. No temporary building,job trailers or the like shall be permitted on the lot except
those incident to construction while an approved building is being constructed thereon and
shall be removed within 30 days following the issuance of a permanent certificate of
occupancy by the City of Iowa City. When the construction of a project is once begun, work
thereon shall be prosecuted diligently and continuously until full completion. Any building
shall be substantially completed prior to occupancy of any part thereof, and landscaping
shall be fully completed within 30 days of granting a certificate of occupancy, weather
permitting. If the Tenant informs the Landlord in writing within 30 days of issuance of the
certificate of occupancy that weather will not permit the completion of landscaping, the
Landlord will provide the Tenant with an alternate deadline by which to complete the
landscaping. Tenant shall be liable for damage to airport facilities and pavements used
during construction activity.
(e) Parking. All vehicle parking areas and service drives shall be dust free, hard-surface
with a concrete curb and gutter.
(f) Landscaping. In connection with construction on the leased ground, the Tenant shall
be required to sod or seed the entire ground surface of the leased ground except for
building and parking sites and alternatively landscaped areas. The area Tenant shall be
responsible for sodding or seeding shall be maintained in good condition and appearance.
Any other ground owned by Landlord disturbed by the construction of improvements and
facilities by Tenant shall be restored to their prior condition upon completion of construction.
(g) Signs. All signage shall comply with city ordinances and be approved by the
Landlord.
(h) Lighting. All lighting shall be directed away from adjacent properties and shall be
positioned to eliminate glare on streets and highways. No neon lights, intermittent or
flashing lights shall be allowed. Only shaded light sources shall be used to illuminate signs,
facades, buildings, parking and loading areas. All lighting shall be directed downward.
(9 Storage. No storage of any articles, goods, or materials shall be permitted outside
any buildings except of a temporary nature only and then only with the prior written consent
of the Landlord, who shall have the right, as a condition to any such approval, to impose
such limitations and screening requirements as it may deem in the best interested of the
area. Any such approval may be revoked by the Landlord if at any time any of such
limitations or screening requirements are not met.
(j) Utilities. All electric, telephone, and other utility lines on or servicing the lot must be
underground.
ARTICLE VI
IMPROVEMENTS; SURRENDER; PERSONAL PROPERTY;ALTERATIONS; LIENS;
MAINTENANCE; COMPLIANCE
6.01 Improvements and Personal Property.
(a) Title to Tenant's Improvements. Any and all real property improvements, alterations,
modifications or additions on or to the Leased Premises made by Tenant during the Term
("Improvements")shall be and remain the property of Tenant throughout the Term.
(b) Surrender. Upon expiration of the Term or termination of the Lease,whether
by breach, default, expiration of Lease, or otherwise, title to the Tenant's
Improvements shall be and become the sole and absolute property of Landlord, and
Tenant shall thereupon be required to, at Landlord's sole discretion, either: (i) return and
deliver up the Leased Premises in the same condition as when delivered to Tenant,
normal wear and tear excepted or (ii) return and deliver up to Landlord the
Leased Premises and Tenant's Improvements thereon. If Landlord chooses option (ii),
said Improvements shall be surrendered to and become the sole property of Landlord
at that time, free and clear of any liens of mortgages, deeds of trust, liens of
mechanics, laborers or materialmen, and all other liens and encumbrances other than
any such liens and encumbrances incurred by Landlord, or such lien or encumbrance
which Landlord agrees in writing may survive the expiration of the Term or the termination
of the Lease.
(c) Removal of Personal Property. All items of furniture, furnishings,
inventories and other personal property acquired by Tenant for use on the Leased
Premises (the"Personal Property") shall be and remain the property of Tenant regardless
of termination of the Lease or expiration of the Term. Tenant shall remove from the
Leased Premises all Personal Property at or before the termination or expiration of the
Lease. If Tenant fails to remove such items within such period, then (i) such items
shall be deemed abandoned by Tenant and shall become the property of Landlord,
and (ii) Landlord shall have the right to remove and dispose of such items as Landlord,
in its sole discretion, sees fit and to charge Tenant the cost of doing so.
6.02 Alterations.
(a) Required or Discretionary Alterations. Tenant shall make all additions,
improvements, and alterations (hereinafter "Alterations") on the Leased Premises, and
on and to the Tenant's Improvements thereon, required by any governmental authority or
which may be made necessary by the act or neglect of Tenant, its employees, agents or
contractors, or any persons, firm or corporation, claiming by, through or under Tenant.
Except as provided in the immediately preceding sentence, Tenant shall not make any
other Alterations to the Leased Premises without Landlord's prior written consent,
which consent shall not be unreasonably withheld or delayed.
(b) Performance Standards. Prior to making any Improvements
or Alterations,Tenant shall submit to Landlord for approval the following items:
Final plans and specifications, together with a certificate from Tenant's
architect that the final plans and specifications are in compliance with all
applicable laws and ordinances;
ii. A good faith estimate by Tenant's architect of the cost of
constructing the Improvements or Alterations;
Names and addresses of proposed contractors and subcontractors
iv. A copy of signed contract or contracts for the full cost of construction of the
Improvements or Alterations in accordance with the final plans and the cost estimate
of Tenant's architect.
v. Necessary permits or satisfactory evidence that a permit is not required.
Landlord shall determine in its reasonable discretion the sufficiency of such
evidence.
vi. Certificates of Insurance required by Section 8.01 naming Landlord and the
City of Iowa City as additional insureds and including builder's risk, liability and
worker's compensation insurance and such other insurance customarily obtained
during construction as is reasonably requested by Landlord; and
vii. Completion assurances in the form of an Irrevocable Letter of Credit or
Payment and Performance Bond in accordance with Section 6.02(c) below,
both drawn to the benefit of Landlord, or as may be required by Landlord. Such
completion assurances must be acceptable to Landlord in both form and
substance, and must also be obtained from companies satisfactory to Landlord.
In addition, Tenant shall, upon Landlord's written request, provide Landlord with
evidence satisfactory to Landlord of Tenant's financial ability to pay for the Improvements or
Alterations. Landlord may also require that Tenant secure, at Tenant's expense, evidence
satisfactory to assure Landlord's title in the Leased Premises against mechanic's liens arising
out of any work, alterations or improvements made to the Leased Premises by Tenant as
provided in Section 6.03 herein below. Tenant shall not commence to perform any
Improvements or Alterations costing in excess of $10,000.00 without obtaining Landlord's prior
written consent, which consent shall not be unreasonably withheld. All permitted
Improvements or Alterations shall be performed with new materials, in a good and
workmanlike manner, strictly in accordance with the final plans and specifications approved by
the Landlord, and in accordance with any and all Legal Requirements as such term is defined in
Section 6.05. Upon completion of any such work by or on behalf of Tenant, Tenant shall provide
Landlord with such documents as Landlord may require evidencing payment in full for such
work, such as lien waivers, and "as-built"working drawings. In the event Tenant performs any
work not in compliance with the provision of this Section 6.02(b), Tenant shall, upon written
notice from Landlord, immediately remove such work and restore the Leased Premises to their
condition immediately prior to the performance thereof. If Tenant fails to so remove such work
and restore the Leased Premises as aforesaid, Landlord may, at its option, and in addition to all
other rights or remedies of Landlord under this Lease, at law or in equity, enter the Leased
Premises and perform said obligation of Tenant and Tenant shall reimburse Landlord for the
cost to the Landlord thereof, immediately upon being billed therefore by Landlord. Such entry by
Landlord shall not be deemed an eviction or disturbance of Tenant's use or possession of the
Leased Premises, nor render Landlord liable in any manner to Ten4nt.
(c) Performance Bonds. Unless exempt or unless this requirement is waived by
Landlord, Tenant, at its own cost and expense, shall cause to be executed, and delivered
to Landlord two separate bonds, as follows:
(i) Prior to the date of commencement of construction, a contract surety
bond in a sum equal to the full amount of the construction contract awarded by
Tenant for construction of the improvements on the Leased Premises.
Said bond shall be drawn in a form and from such company as approved by
Landlord; shall guarantee the faithful performance of necessary construction and
completion of improvements in accordance with approved final plans and detail
specifications; and shall guarantee Landlord against any losses and liability,
damages, expenses, claims, and judgments caused by or resulting from any
failure of Tenant, or Tenant's contractor, to perform completely the work
described as herein provided and to pay all bills for labor, supplies, material
and equipment incident thereto.
In lieu of said bond, Tenant may deposit the amount of said bond in a local
depository institution selected by Tenant to remain until Tenants general contractor
has delivered to Landlord a waiver of all claims against the Leased Premises for
labor done and materials furnished and for a period of four months after the
Landlords building inspector approves final completion of the construction of
improvements, provided no mechanic's liens have been filed against the Leased
Premises during that time, at which time such deposit shall be refunded to Tenant.
All earnings from said deposit shall be the property of Tenant.
(ii) Prior to the commencement of this Lease, a surety bond in the sum at least
equal to one (1) year's rental. Said bond shall be conditioned on the faithful
performance of all terms, conditions, and covenants of this Lease, shall be
renewable annually, and shall be kept in full force and effect for the complete term
of this Lease.
At Tenant's option, an amount equal to one (1) year's rental may be deposited with
Landlord in lieu of said performance bond.
6.03 Liens. Tenant shall not cause or permit any liens to be attached to, placed on or filed
against the Landlord's interest in the Leased Premises or Tenant's Improvements in
connection with any construction, alteration, demolition, repair or restoration work Tenant
performs or causes to be performed on the Leased Premises. If, however, at any time, in
connection with the planning, construction, alteration, demolition, repair or restoration work
Tenant performs or causes to be performed on the Leased Premises, any liens of mechanics,
laborers or materialmen shall be filed against, attached to or placed on the Leased Premises,
the Tenant's Improvements or any part thereof relating to work described above, Tenant shall,
at its expense, cause the same to be discharged, by payment, bonding or otherwise as
provided by law, within fifteen (15) days after Tenant receives notice that the lien was filed,
except for such liens that may have been incurred by Landlord arising from Landlord's actions.
Nothing herein contained shall in any way prejudice the rights of Tenant to contest in good faith
to final judgment or decree any such lien prior to payment thereof, provided that Tenant shall
(a) fumish and keep in effect a surety bond of a responsible and substantial surety company,
acceptable to Landlord, in an amount sufficient to pay 125% of the amount of such contested
lien claim with all interest thereon and costs and expenses with respect thereto, or (b) provide
other security reasonably satisfactory to Landlord. Upon final determination of the validity of
such contested lien or claim, Tenant shall immediately pay the amount finally determined to be
due thereon including any judgment or decree rendered in connection therewith, with all
property costs and charges and shall cause any such lien to be released of record without cost
to Landlord and during the pendency of any such contest, Tenant shall save and keep Landlord
harmless from any claim or loss by reason thereof. Tenant's failure to comply with the terms of
this Section 6.03 shall be considered a Default under the Lease, and Landlord shall have the
right to any and all remedies against Tenant as set forth in Section 13.02 herein.
6.04 Maintenance. Tenant shall, throughout the Term, at its sole cost and expense, maintain
the Leased Premises and all buildings and improvements at any time erected thereon, any
unimproved portion of the Leased Premises and all Personal Property installed therein, in good
repair and in a safe, clean, sightly and sanitary condition. In the event that Tenant, in
Landlord's reasonable judgment, fails to comply with its repair and maintenance obligations
under this Section 6.04, Landlord may, but shall not be obligated to, in addition to its remedies
under Article XIII, perform all repairs and maintenance which in Landlord's reasonable judgment
is required to bring the Leased Premises, Tenant's Improvements and Personal Property into
compliance with the repair and maintenance standards of this Section 6.04, and charge the cost
to Tenant.
6.05 Compliance with Legal Requirements. Tenant shall, throughout the Term, at its sole cost
and expense, promptly comply with all applicable laws, ordinances and regulations of
governmental entities having jurisdiction over the Leased Premises (including, but not limited to
all local zoning use restrictions and requirements), and all policies of insurance applicable to
Leased Premises (collectively, "Legal Requirements"). Tenant shall not conduct or permit any
person to conduct any unlawful activity on the Leased Premises or any use or activity in violations
of (a) any Legal Requirements, including but not limited to zoning or other land use laws or
ordinances, or (b) any private restrictive covenants applicable to the Real Estate. Furthermore,
Tenant shall not cause or allow any activity which causes air, water, soil, or noise pollution, which
would violate any Legal Requirements or which would otherwise constitute a nuisance or
reasonably objectionable intrusion into or interference with the use of any surrounding property.
6.06 Non-Discrimination. Tenant covenants, in consideration of the right to lease property at
Iowa City Municipal Airport, that 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. Tenant shall remain
in compliance with all requirements of 49 C.F.R. Part 21, non-Discrimination in Federal Assisted
Programs of the Department of Transportation.
ARTICLE VII
INSURANCE, DAMAGE AND DESTRUCTION
7.01 Insurance. 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. Property Insurance - 100% of the replacement cost value on any building, on an "all
risk" or Special Causes of Loss basis or equivalent form. City of Iowa City shall be named as a
Loss Payee on the property insurance policy with Clause C. Loss Payable of ISO form CP1213
0607 (or other equivalent form)
b. Liability- $1,000,000 occurrence/$2,000,000 aggregate limits on a "Garage Liability"
form (or equivalent combined premises and auto liability form) whereby such insurance includes
all operations conducted on the premises and any auto or motorized vehicle or trailer operated by
or on behalf of the tenant.
c. Excess Liability$1,000,000 occurrence/$1,000,000 aggregate.
City of Iowa City and the Airport Commission shall be named as an additional insured on the
Garage Liability and the policy shall be endorsed with the Government Immunity endorsement
provided below. Certificate of insurance will be provided evidencing coverage. All insurance
companies involved should have an A.M. Best rating of A- or higher. Tenant shall deliver to the
Landlord, within thirty (30) days of execution of this lease agreement, Certificates of Insurance
and copies of said policies, naming the Landlord and the City of Iowa City, Iowa as
additional insureds. Tenant shall provide fifteen (15) days' notice to the Landlord before
cancellation of said insurance.
Governmental Immunities Endorsement
1. Non-waiver of Government Immunity. The insurance carrier expressly agrees
and states that the purchase of this policy and the including of the City of Iowa City, Iowa
and the Iowa City Airport Commission as Additional Insured does not waive any of the
defenses of governmental immunity available to the City of Iowa City, Iowa, or the Iowa
City Airport Commission under Code of Iowa Section 670.4 as it now exists and as it may
be amended from time to time.
2. Claims Coverage. The insurance carrier further agrees that this policy of
insurance shall cover only those claims not subject to the defense of governmental
immunity under the Code of Iowa Section 670.4 as it now exists and as it may be
amended from time to time. Those claims not subject to Code of Iowa Section 670.4 shall
be covered by the terms and conditions of this insurance policy.
3. Assertion of Government Immunity. The City of Iowa City, Iowa and the Iowa
City Airport Commission shall be responsible for asserting any defense of governmental
immunity, and may do so at any time and shall do so upon the timely written request of the
insurance carrier. Nothing contained in this endorsement shall prevent the carrier from
asserting the defense of governmental immunity on behalf of the City of Iowa City and/or
the Iowa City Airport Commission.
4. Non-Denial of Coverage. The insurance carrier shall not deny coverage under
this policy and the insurance carrier shall not deny any of the rights and benefits accruing
to the City of Iowa City, Iowa and the Iowa City Airport Commission under this policy for
reasons of governmental immunity unless and until a court of competent jurisdiction has
ruled in favor of the defense(s) of governmental immunity asserted by the City of Iowa
City, Iowa and the Iowa City Airport Commission.
5. No Other Change in Policy. The insurance carrier, the City of Iowa City, Iowa,
and the Iowa City Airport Commission agree that the above preservation of governmental
immunities shall not otherwise change or alter the coverage available under the policy.
d. Worker's Compensation Insurance as required by Chapter 85, Code of Iowa.
7.02 Subrogation: Subrogation rights are not to be waived unless a special provision is
attached to this lease.
7.03 Damage or Destruction.
(a) Tenant's Obligation to Restore. If any or all of the Tenant's Improvements shall be
damaged or destroyed by fire or any other casualty, then Tenant shall have the right,
exercisable by giving written notice thereof to Landlord within fifteen (15) days
after the determination thereof, to terminate this Lease. Damaged means when the cost
to repair the Improvements exceeds the current value of the Improvements as determined
by the Landlord.
(i) If the Lease is not terminated, then Tenant shall be obligated to repair and
restore Tenant's Improvements, as hereinafter provided. Such repair or restoration
shall be commenced within ninety (90) days after the date the casualty occurs, and
shall be completed within a reasonable period thereafter not to exceed twelve (12)
months. If the Tenant shall fail to commence or complete such repairs and
restoration work within the time periods set forth in the preceding sentence, except
for reasons due to strike, shortage of labor or materials, war, or an act of God,
Landlord shall have the right to immediately terminate this Lease. In performing
such restoration, Tenant shall substantially comply with the conditions applicable to
Alterations, including but not limited to, Section 6.02. All insurance proceeds
collected for such damage or destruction shall be paid to a depositary approved by
Landlord, Tenant, and any entity having a security interest in the Lease. Such
insurance proceeds shall be made available to be applied toward the cost of such
repairs or restoration. If the insurance proceeds shall be insufficient for said repair
or restoration, Tenant shall make up the deficiency out of Tenant's funds. In all
cases, due allowance shall be made for reasonable delay caused by adjustment of
insurance claims, loss, strikes, governmental approval, labor difficulties or any
cause beyond either party's reasonable control.
(ii) If the Lease is terminated in accordance with this Section
13.02(a), then Tenant shall demolish the Tenant's Improvements and restore the
Leased
Premises to its condition prior to the Lease Commencement Date, and the
effective date of the
Termination shall occur upon completion of such demolition and restoration work,
as if such date were specified as the expiration date of the Term. In such event,
the insurance proceeds shall be applied to pay for the demolition of the Tenant's
Improvements and the restoration of the Leased Premises, as previously provided,
and thereafter,Tenant shall receive any remaining proceeds.
(b) Remedies. If Tenant shall not enter upon the repair or rebuilding, or the demolition
and restoration, as the case may be, of the Tenant's Improvements within the period
specified in Section 8.03(a) and prosecute same thereafter with such dispatch as may be
necessary to complete same within said period, then, in addition to whatever other
remedies Landlord may have either under this Lease, at law or in equity, the money
received by and then remaining in the hands of the Depositary shall be paid to and
retained by Landlord as security for the continued performance and observance by Tenant
of the Tenant's covenants and agreements hereunder, or Landlord may terminate this
Lease and then be paid and retain the amount so held as liquidated damages resulting
from the failure on the part of Tenant to comply with the provisions of Section 8.03(a),
(c) Negotiation, Settlement and Adjustment of Insurance Proceeds. Tenant shall have
the right to settle the amount of the casualty loss with the insurance carriers, but no final
settlement of a loss in excess of Fifty Thousand Dollars ($50,000.00) may be made
without Landlord's prior written consent thereto.
(d) Rent and Other Charges. Provided the Lease is not terminated as provided in
Section 8.03(a), neither Rent nor other charges shall be reduced or abated following
damage or destruction or during the period of repair, restoration or rebuilding. If the Lease
is so terminated, Rent and other charges shall be paid through the effective date of such
termination.
ARTICLE VIII
ASSIGNMENT AND SUBLETTING
8.01 Binding Effect. The Lease shall be binding upon and shall inure to the benefit of the
parties hereto and their respective heirs, personal representatives, successors, and assigns.
8.02 Assignments. Tenant may not sell, transfer, or assign this Lease (either directly or
indirectly) or any legal or beneficial interest therein, or sublease all or any part of the Leased
Premises without the prior written consent of the Landlord, which consent may be withheld at
Landlord's sole discretion. In exercise of its discretion as to such a proposed sale, transfer or
assignment by Tenant, Landlord, in the event that a proposed sale, transfer or assignment by
Tenant provides for payment to Tenant an amount of rent greater than the amount of Tenant's
rent obligation herein at the time, Landlord may require that a percentage of the difference
between the rental amounts be paid to Landlord. Tenant shall give Landlord written notice of any
proposed assignment or sublease of the Leased Premises, and such notice shall provide (a) the
name and address of the proposed assignee or sublessee, (b) the terms of the proposed
assignment or a copy of the proposed sublease, (c) the most recent financial statements of the
proposed assignee or sublessee and (d) such other information as Landlord may reasonably
request. Any assignment or sublease made by Tenant without Landlord's consent in violation of
this Section 10.02 shall be voidable at Landlord's option and shall constitute an Event of Default.
Landlord's consent to any one assignment or sublease shall not be deemed a waiver of this
Section 10.02 with respect to any subsequent assignment or sublease nor consent to any
subsequent assignment or sublease. Absent the Landlord's agreement to the contrary,
following assignment, whether with or without the Landlords' consent, Tenant will remain
liable for all Lease obligations. Nothing in this paragraph shall prevent Tenant from leasing space
in the hangar it intends to build to aviation end users in the normal course of FBO business. Such
use will require neither Landlord permission nor any sharing of profits with Landlord.
ARTICLE IX
MORTGAGES
9.01 Leasehold Mortgage.
(a) General Provisions. Tenant, and any successor or permitted assignee of Tenant
shall not, at any time during the Term, pledge, mortgage or encumber the Lease and/or
the Leased Premises demised hereunder, or Tenant's Improvements, without Landlord's
prior written consent, which consent Landlord may, in its sole discretion, withhold. Any
such pledge, mortgage or encumbrance made by and entered into with Landlord's
consent, is herein referred to as a "Leasehold Mortgage". Any Leasehold Mortgage made
by and entered into by Tenant without Landlord's consent in violation of this Section 11.01
shall be voidable at Landlord's option, and shall constitute an Event of Default.
(b) Landlord's Forbearance; Foreclosure by Leasehold Mortgagee. Landlord hereby
agrees that for the benefit of a Leasehold Mortgagee holding a Leasehold Mortgage and
the successors and assigns of such Leasehold Mortgagee:
(i) When giving notice to Tenant with respect to any default under the Lease
or any exercise of any right to terminate the Lease, Landlord will also give a copy
of such notice to the Leasehold Mortgagee at the address of the Leasehold
Mortgagee furnished to Landlord. No such notice to Tenant shall be deemed to
affect any rights of the Leasehold Mortgagee unless or until such notice is given in
said manner to such Leasehold Mortgagee.
(ii) In case Tenant shall default in respect of any of the provisions of the Lease,
the Leasehold Mortgagee shall have the right, but not the obligation, to cure such
default, and Landlord shall accept payment and/or performance by or on behalf of
such Leasehold Mortgagee as though, and with the same effect, as if the same
had been done or performed by Tenant. The Leasehold Mortgagee will have a
period of time after the service of any notice of a default hereunder upon it within
which to cure the default specified in such notice, or cause it to be cured, which is
the same period for cure, if any, as is available to Tenant under the Lease for the
specified default, plus an additional period of thirty (30) days. In the event of a
default (or in the event that Landlord is seeking to terminate the Lease by reason
of a default) which cannot reasonably be cured within said period because of
Tenant's possession of the Leased Premises, Landlord shall forebear from
exercising its rights to terminate the Lease as against Leasehold Mortgagee (while
reserving all rights against Tenant) on account of such default provided that the
Leasehold Mortgagee: (A) has cured all defaults which can reasonably be cured
within the period of time allotted for cure, (B) within said period has notified
Landlord of its intent to cure all other defaults in a notice which specifies the
proceedings by which the Leasehold Mortgagee intends to secure possession of
the Leased Premises, (C) has begun proceedings to secure possession within the
said period, and (D) thereafter prosecutes such proceedings with reasonable
diligence. The notice specified in clause (B) above shall contain an assumption by
the Leasehold Mortgagee of all of Tenants restrictions and obligations hereunder.
(iii) No default will be deemed to exist as against any Leasehold Mortgagee and
Landlord shall have no right, and shall take no action, to effect a termination of the
Lease as against any Leasehold Mortgagee until the Leasehold Mortgagee has
had the opportunity to cure such default specified in clause (ii) above. If the
Leasehold Mortgagee, by foreclosure or otherwise, acquires Tenant's leasehold
estate, the Leasehold Mortgagee shall be subject to all Lease Restrictions and
shall be liable for all Tenant's obligations accruing thereafter to the same
extent as the prior Tenant would have been so liable. •
(iv) Provided that the Leasehold Mortgagee has complied with Subsection
(ii) of this Section, any default of Tenant under any provision of the Lease which is
not reasonably susceptible of being cured by a Leasehold Mortgagee during the
cure period specified in Subsection (ii) of this Section shall be cured by Leasehold
Mortgagee or any other purchasers or transferees of Tenants interest under this
Lease, whether at judicial foreclosure, trustee's sale or by an assignment of the
Lease in lieu of foreclosure within thirty (30) days after acquisition.
(v) A Leasehold Mortgagee (or its designee or nominee) may become the
legal owner and holder of the interest of Tenant under the Lease, including without
limitation, the interest of Tenant in all Tenant's Improvements and Personal
Property, by foreclosure or other enforcement proceedings, or by obtaining an
assignment of the Lease and a conveyance of the Tenant's Improvements and
Personal Property in lieu of foreclosure or through settlement of or arising out of
any pending or threatened foreclosure proceeding,without Landlord's consent, but
subject always to the applicable terms, provisions, obligations, and restrictions of
the Lease. Upon such acquisition of legal ownership, such Leasehold Mortgagee
(or its designee or nominee) shall be liable for all obligations under the Lease
accruing thereafter to the same extent as the Tenant would have been. In
such event, Leasehold Mortgagee (or, if said Leasehold Mortgagee has not yet
become a successor Tenant hereto, then its designee or nominee) shall have the
right thereafter to assign the Lease and convey the Tenant's Improvements and
Personal Property subject to all other applicable terms, provisions, obligations, and
restrictions of the Lease.
(vi) If Tenant fails to observe or perform any of its obligations under the Lease,
Leasehold Mortgagee may, but shall not be obligated to, observe or perform such
obligations for and on behalf of Tenant, whether or not Tenant shall be in default
Under the Lease.
(c) Notices to Leasehold Mortgagees. Any notice or other communication which
Landlord shall desire or is required to give to or serve upon a Leasehold Mortgagee shall
be in writing and shall be served by registered or certified mail or by commercial courier
service addressed to such holder at the address as shall be designated from time to time
by such Leasehold Mortgagee and shall mail a copy of said notice by ordinary mail. Any
notice or other communication which any Leasehold Mortgagee shall desire or is required
to give to or serve upon Landlord shall be deemed to have been given or served if sent by
registered or certified mail or by commercial courier service addressed to Landlord at
Landlord's address as set forth in the provisions of the Lease providing for notices to
Landlord or at such other address as shall be designated from time to time by Landlord by
notice in writing given to such Leasehold Mortgagee by registered or certified mail or by
commercial courier services. Any notice given pursuant hereto shall be effective when
received or refused.
(d) Non-Merger. No union of the interests of Landlord and Tenant shall result in a
merger of the Lease and the fee interests in the leased Premises without the prior written
consent of any Leasehold Mortgagee.
ARTICLE X
EASEMENTS
10.01 Generally. This Lease and the rights granted to Tenant hereunder are expressly made
subject and subordinate to any and all existing easements on the Leased Premises, and Tenant
shall not in any way act to alter, obstruct, disturb or otherwise impair any of said
easements nor grant additional easements on or affecting the Leased Premises during the term of
this Lease without Landlord's prior written consent.
ARTICLE XI
DEFAULT
11.01 Events of Default. The following shall constitute"Events of Default":
(a) Monetary. Tenant shall fail to pay Rent at the time required or any other monetary
obligation or payment required under this Lease when due, and such failure shall
continue for a period of ten (10) days following written notice from Landlord to Tenant; or
(b) Non-performance. Tenant shall fail to observe or perform any of the other
covenants, terms or conditions contained in the Lease, or a warranty made by Tenant
shall fail to be accurate and complete, and such failure shall continue and not be cured
for a period of thirty (30) days after written notice by Landlord to Tenant, provided
that if the default is not reasonably susceptible of being cured within thirty (30) days,
an Event of Default shall occur only if the Tenant fails to promptly commence such cure
or fails thereafter to diligently pursue such efforts to completion; or
(c) Bankruptcy: Receivership. If (i) Tenant files a petition in bankruptcy or for
reorganization or for an arrangement pursuant to any present or future federal or
state bankruptcy law or under any similar federal or state law, or is adjudicated a
bankrupt or insolvent, or makes an assignment for the benefit of its creditors, or admits in
writing its inability to pay its debts generally as they become due, or if a petition or
answer proposing the adjudication of Tenant as a bankrupt or a reorganization of
Tenant under any present or future federal or state bankruptcy law or any similar federal
or state law is filed in any court and such petition or answer is not discharged or denied
within thirty (30) days after the filing thereof; or (ii) A receiver, trustee or liquidator of
Tenant of all or substantially all of the assets of Tenant or of the Leased Premises or any
portion thereof is appointed in any proceeding brought by or against Tenant and is not
discharged within thirty (30) days after such appointment or if Tenant consents to or
acquiesces in such appointment.
11.02 Landlord's Rights upon an Event of Default. Upon the occurrence of an Event of Default by
Tenant, or at any time thereafter during the continuance of such Event of Default, Landlord may
take any of the following actions and shall have the following rights against Tenant:
(a) Termination. Landlord may elect to terminate the Lease by giving no less than
thirty (30) days' prior written notice thereof to Tenant, and upon the 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 the date herein
fixed for expiration of the Term and Tenant shall remain liable as provided in Section
13.02(c).
(b) Eviction. Landlord 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 Section
11.02(a), by operation of law or otherwise, and no repossession of the Leased
Premises or any part thereof pursuant to Section 13.02(b) or otherwise shall relieve
Tenant of its liabilities and obligations hereunder, all of which shall survive such
termination, repossession or reletting.
(d) Damages. In the event of any termination of this Lease or eviction from or
repossession of the Leased Premises or any part thereof by reason of the occurrence of
an Event of Default:
(i) Rent and Charges. Tenant shall pay to Landlord the Rent and other sums and
charges required to be paid by Tenant for the period to and including the end of the Term
or expiration of an option period as provided for by Section 3.02 herein, whichever is later.
(e) Rights Cumulative, Non-Waiver. No right or remedy herein conferred upon or
reserved to Landlord is intended to be exclusive of any other right or remedy, and each
and every right and remedy shall be cumulative and in addition to any other right or
•
remedy given hereunder or now or hereafter existing at law or in equity or by statute. In
addition to the other remedies provided in this Lease, Landlord shall be entitled, to the
extent permitted by applicable law, to injunctive relief in case of the violation, or attempted
or threatened violation, of any of the covenants, agreements, conditions or provisions of
this Lease, or to a decree compelling performance of this Lease, or to any other remedy
allowed to Landlord at law or in equity.
(f) Landlord's Right to Cure. If Tenant fails to pay any utilities charges described
in Article IV, insurance premiums described in Article VIII, the cost of any of the repairs or
maintenance required to be made by Tenant pursuant to the Lease or any other charges,
costs or expenses required to be paid under the Lease, Landlord shall have the right, but
not the obligation, to make all such payments, and in addition to its other remedies under
this Article XI, Landlord shall have the option of requiring Tenant to repay to Landlord the
amount of such payments (which shall be deemed additional rent hereunder) on demand
with interest after demand at 10% rate per annum. (the"Default Rate").
(g) Late Charge, Default Rate. If Landlord does not receive payment of any installment
of Rent or any other sum or charge required to be paid by Tenant to Landlord hereunder
within ten (10) days after the same falls due (regardless of whether Tenant has received
notice of the delinquency), Landlord may impose a late charge equal to five percent (5%)
of the amount of such delinquent sum and if such sum is not received by Landlord within
thirty (30) days of its due date, such sum shall, in addition, bear interest at the Default
Rate from the due date until the date paid.
(h) Landlord's Lien. Landlord shall have a lien against Tenant's leasehold estate,
Tenant's Improvements and all property of Tenant located at the Leased Premises, to
secure any obligations of Tenant to Landlord arising pursuant to the provisions of this
Lease.
11.03 No Implied Waver. The failure of Landlord to insist upon strict performance of any of the
covenants or conditions of the Lease, or to exercise any options herein conferred in any one or
more instances shall not be construed as a waiver or relinquishment for the future of any such
covenant, condition, or option, but the same shall be and remain in full force and effect. The
receipt by Landlord of any Rent or any other sum payable hereunder with knowledge of
the breach of any covenants or agreements contained herein shall not be deemed a waiver
of such breach.
ARTICLE XII
ABANDONMENT
12.01 Abandonment. Tenant shall not vacate or abandon the Leased Premises at any time during
the Term of this Lease. If Tenant shall vacate or abandon the Leased Premises, the right of
possession shall, at the option of Landlord, revert to Landlord and Tenant shall lose all right to
possession of the Leased Premises and Tenant's Improvements; however, Tenant shall otherwise
remain liable on this Lease. Landlord shall then, without further notice, have the remedies provided
for in Article XIII herein.
ARTICLE XIII
ENVIRONMENTAL CONDITIONS
13.01 Definitions.
As used in this Lease,the phrase"Environmental Condition"shall mean:
(a) any adverse condition relating to surface water, ground water, drinking water supply,
land, surface or subsurface, strata or the ambient air, and includes, without limitation, air,
land and water pollutants, noise,vibration, light and odors, or;
(b) any condition which may result in a claim of liability under the Comprehensive
Environmental Response Compensation and Liability Act, as amended, or the Resource
Conversation and Recovery Act, or any claim of violation of the Clean Air Act, the Clean
Water Act, the Toxic Substance Control Act, or any claim of liability or of violation under any
federal statute hereafter enacted dealing with the protection of the environment, or under
any rule, regulation, permit or plan under any of the foregoing, or under any law, rule or
regulation now or hereafter promulgated by the state in which the Leased Premises are
located, or any political subdivision thereof, relating to such matters (collectively
"Environmental Laws").
13.02 Compliance by Tenant. Tenant shall, at all times during the Term, comply with all
Environmental Laws applicable to the Leased Premises and shall not, in the use and occupancy of
the Leased Premises, cause or contribute to, or permit or suffer any other party to cause or
contribute to any Environmental Condition.
13.03 Tenant's Indemnity. Tenant will protect, indemnify and save harmless the Landlord,
City of Iowa City, the partners of the Landlord, and all of the foregoing's respective partners, agents
and employees (collectively "Landlord's Indemnitees"), from and against all liabilities, obligations,
claims, damages, penalties, causes of action, costs and expenses (including, without limitation,
reasonable attorneys' fees and expenses) of whatever kind or nature, contingent or otherwise,
known or unknown, incurred or imposed, based upon any Environmental Laws or resulting from
any Environmental Condition occurring or contributed to during the term of this Lease. In case any
action, suit or proceeding is brought against any of the parties indemnified herein by reason of any
occurrence described in this Section 13.03, Tenant will, at Tenant's expense, by counsel
reasonably approved by Landlord, resist and defend such action, suit or proceeding, or cause the
same to be resisted and defended.
ARTICLE XIV
TENANT'S INDEMNIFICATION
14.01 Generally. To the extent not expressly prohibited by law, Tenant agrees to indemnify,
save, protect and hold forever harmless, Landlord, and all of Landlord's Indemnitees as defined in
Section 13.03 hereinabove, from and against all losses, damages, costs, claims and liabilities,
including, without limitation, court costs and reasonable attorney's fees and expenses, which
Landlord's Indemnitees, or any of them, may become liable or obligated by reason of, resulting
from or in connection with: (a) any injury to or death of persons and damage to, or theft,
misappropriation or loss of property occurring in or about the Leased Premises or the Property
arising from Tenant's use and occupancy of the Leased Premises and/or the conduct of its
business; (b) any activity, work or thing done, permitted or suffered by Tenant in or about the
Leased Premises, including all liabilities of every kind or description which may arise out of or in
connection therewith; and (c) any breach or default on the part of Tenant in the payment or
performance of any covenant, agreement or obligation on the part of Tenant to be paid or
performed pursuant to the terms of this Lease or any other act or omission of Tenant, its agents or
employees. In case of any action or proceeding brought against Landlord's Indemnitees, or any of
them, by reason of any such claims, Tenant covenants to defend such action or proceeding by
counsel reasonably satisfactory to Landlord and/or any particular Landlord's Indemnitee.
ARTICLE XV
MISCELLANEOUS PROVISIONS
15.01 Access by Landlord.
(a) Landlord or Landlord's agents, representatives or employees shall have the right
at any time upon at least twenty-four (24) hours oral notice (except in emergencies, in
which case only such notice, if any, as may be feasible under the circumstances shall be
required) to enter upon the Leased Premises and Tenant's Improvements for the
purposes of inspecting the same, determining whether this Lease is being complied
with, curing (as permitted herein) any default by Tenant and showing the Leased
Premises to prospective Leasehold Mortgagees.
(b) Landlord or Landlord's agents, representatives, or employees shall have the right
whenever necessary and without notice to enter upon the Leased Premises for the
purpose of repairing or maintaining any of Landlord's property adjacent to or
abutting the Leased Premises.
15.02 Gender and Number. Words of any gender used in the Lease shall be held to include
any other gender, and words in the singular shall be held to include the plural, where required.
15.03 Notices. Notices, statements and other communications to be given under the terms of the
Lease shall be in writing and sent by certified or registered mail, or by commercial courier, return
receipt requested, and addressed as follows:
If to Landlord: With Copies to: If to Tenant:
Iowa City Airport City Attorney Jet Air, Inc.
Commission 410 E.Washington St. 58 IL Hwy Rt 164
1801 S. Riverside Drive Iowa City, IA 52240 Galesburg, IL 61401
Iowa City, Iowa 52246
15.04 Applicable Law. The Laws of the State of Iowa shall govern the validity, performance and
enforcement of this Lease.
15.05 Partial Invalidity. If any provision of the Lease shall be invalid or unenforceable it shall not
affect the validity or enforceability of any other provisions of the Lease.
15.06 Heading. Headings as to the contents of particular sections herein are inserted only for
convenience, and are in no way to be construed as a part of the Lease or as a limitation on the
scope of the particular section to which they refer.
15.07 Binding Effect. The covenants, conditions and agreements contained in the Lease shall
bind, apply to and inure to the benefit of the parties hereto and their respective successors.
15.08 No Partnership. It is expressly understood that Landlord shall not be construed or held to
be a partner,joint venturer or associate of Tenant in the conduct of Tenant's business and that the
relationship between the parties hereto is and shall at all times remain that of landlord and
tenant.
15.09 Holding Over. The Lease shall terminate without further notice at expiration of the Term.
Any holding over by Tenant or any party claiming by, through or under Tenant after expiration shall
not constitute a renewal or extension or give Tenant any rights in or to the Leased Premises. In the
event of any holding over, Landlord may exercise any and all remedies available to it under Article
XIII herein or at law or in equity to recover possession of the Leased Premises, and for damages.
15.10 Time is of the Essence. Time is of the essence in this Lease.
15.11 Entire Agreement; Merger. The Lease contains all the agreements and
conditions made between the parties hereto with respect to the matters contained herein and
may not be modified orally or in any other manner than by an Agreement in writing signed by all the
parties hereto or their respective successors. All prior written and oral understandings and
agreements shall be deemed to have merged into the Lease and have no further force and effect.
15.12 Counterparts. This Lease may be executed in counterparts, each of which shall be
deemed to be an original and all of which shall, when taken together, constitute but one and the
same instrument.
15.13 Taxiway Construction. Landlord agrees to extend the south t-hangar taxiway at
Landlord's cost east for public use including use by Jet Air, Inc. Tenant acknowledges that
Landlord will apply for applicable grant funding for this work and will be subject to certain
requirements based on schedule of those grant awards.
15.14 Shared Construction Costs: Landlord agrees to reimburse the Tenant for half (1/2) of the
expenses associated with constructing the hangar apron. The Landlord will be responsible for the
expense of moving the utility lines outside the building footprint. Tenant shall rrr the_process
of utility relocation at no additional cost to the iandlord. Total costs paid by Landlord for
construction of the hangar apron and relocation of the utilities shall not exceed $50,000. Apron
Size will be approximately 70 feet by 150 feet as depicted in Exhibit A. Utility fees are as
established by MidAmerican Energy Co.
15.15 FAA Airspace Study. Tenant shall request an Obstruction Evaluation I Airport Airspace
Analysis (OE/AAA) under CFR Title 14 Part 77. Tenant shall not commence construction activity
until said study is returned with a "DETERMINATION OF NO HAZARD TO AIR NAVIGATION" as
the study result.
ARTICLE XVI
FAA PROVISIONS
16.01 Commission Control. The Landlord reserves the right, but shall not be obligated to the
Tenant, to maintain and keep in repair the landing area of the Airport and publicly owned facilities of
the Airport, without hindrance from the Tenant. The Landlord reserves the right to take action it
considers necessary to protect the aerial approaches of the Airport against obstructions. The
Tenant shall not act as an agent or represent itself as an agent for the Commission in matters
between the Federal Aviation Administration and the Landlord
16.02 Landlord Improvements. The Landlord reserves the right to further develop or improve the
landing area and all publicly owned aviation facilities of the Airport as it sees fit, without interference
or hindrance from the Tenant.
16.03 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 Landlord reserves the right to grant to others the privilege and
right of conducting any activity of an aeronautical nature.
16.04 Grant Assurances. This Lease shall be subordinate to the provisions of any outstanding or
future agreement between Landlord and the United States government or 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 said Airport.
16.05 Right of Flight. Tenant acknowledges that the City of Iowa City, Iowa is authorized by law to
own and operate the Iowa City Municipal Airport located in Johnson County, Iowa near the Leased
Premises. There is hereby reserved to 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 Leased Premises herein conveyed, together with the right to cause in
said airspace such noise, vibrations, fumes, dust, and particles 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. Tenant foregoes and
waives any and all claims for damages, of whatever kind or type, which are reasonably likely to
occur in the future as a result of aircraft using the "navigable airspace", as defined by the Federal
Aviation Act of 1958 {49 U.S.C.40102 (a) (30)) and regulations promulgated thereunder over and
above the Leased Premises, including but not limited to, damages resulting from noise, vibration,
fumes, dust and particles. Tenant grants to the Landlord, its successors and assigns, a continuing
right to keep the air space above the Airport Imaginary Surfaces as described in Federal Aviation
Regulations Part 77 and depicted on the Airport Layout Plan (ALP) clear of any and all fences,
•
crops, trees, poles, building or other obstructions of any kind or nature whatsoever which now
extend, or which may any time in the future extend, above said surfaces. Tenant grants the
Landlord the right of ingress to, egress from, and passage over the Leased Premises for the
purpose of effecting and maintaining such clearance and of removing any and all obstructions
which now or may hereafter extend above the Airport Imaginary Surfaces as described in Federal
Aviation Regulations Part 77 and depicted in the ALP.
16.06 Additional FM Provisions.
(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 Lease for a purpose for which i:J
Department of Transportation program or activity is extended or for another purpose
involving the provision of similar services or benefits, Tenant 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
assigns, 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.
(c) 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 interferences or hindrance.
(d) 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.
(e) 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.
(f) 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
(g) 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.
Iowa City Airport Commission
By: � —� . 1I l7f/
Zc1(
C -•n Date
Attest: Slit/20/k,
Secretary Date
City orney Approval:
VI.LA
City Attorney's Office Date
Jet Air Inc.
Da e
Commission's Acknowledgement
STATE OF IOWA )
SS:
JOHNSON COUNTY )
On this day of , 2016, before me personally appeared
and to me personally known, who, being by me
duly sworn, did say they are the Chairperson and Secretary, respectively, of the Iowa City Airport
Commission and that the instrument was signed and sealed on behalf of the Commission, and
the execution of the instrument to be their voluntary act and deed of the Commission, by it
voluntarily executed.
Notary Public in and for said County and State
Tenant's Acknowledgment
STATE OF IOWA )
)SS:
JOHNSON COUNTY )
This instrument was acknowledge before me on 2016 by
of Jet Air, Inc.,who acknowledged that (s)he is empowered to bind
Jet Air to the terms of this Lease.
Notary Public in and for said County and State
Iowa City Municipal Airport
Ground/Hangar Lease
Exhibit A
-
11,
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Hangar Size: 100ft x 100ft
Apron Size: -70ft x-150ft
Taxiway Size 35ft x-150ft
Area subject to rental fee: 100ft x 100ft
0 L
Prepared by: Michael Tharp,Operations Specialist, 1801 S.Riverside Dr.Iowa City,IA 52246(319)356 5045
RESOLUTION NO. #/6 --25
RESOLUTION AMENDING THE FIXED BASED OPERATORS AGREEMENT
AGREEMENT
WHEREAS,on November 1st,2001 the Airport Commission of the City of Iowa City entered into a
Fixed Base Operators Agreement with Jet Air,Inc.,effective January 1',2002;and
WHEREAS,the original term of said FBO agreement was five years, with Jet Air options for four
additional five year terms,for a total potential length of twenty five years;and
WHEREAS,Jet Air,Inc. desires to extend that Agreement to cover the term of a new ground lease
and Hangar M lease lasting thirty years;and
WHEREAS,the Commission agrees such an extension is appropriate and in the best interests of the
Airport and the public;
BE IT RESOLVED BY THE AIRPORT COMMISSION OF THE CITY OF IOWA CITY:
The Chairperson is hereby authorized to sign and the Secretary to attest to the Third Amendment
to Fixed Based Operator's Agreement,a copy of wh�'ch is attached and incorporated herein.
Passed and approved this /I day of P-2-. �„, 0' 2016.
Approved By:
CHAMFER!,N/
A ITLST:
SECRETARY City Attorney's Office
It was moved by (9.0.-AL„;.,— and seconded by 4,4-‘,..-.,dej the
Resolution be adopted, and upon roll call there were:
Ayes Nays Absent
Bockenstedt
Gardinier
‘,' Libby
v Odgaard
Ogren
THIRD AMENDMENT TO FIXED BASED OPERATOR'S AGREEMENT
WHEREAS, on November 1, 2001, the Iowa City Airport Commission (Commission) and Jet Air,
Inc. (Jet Air) entered into a contract entitled "Iowa City Municipal Airport Fixed Base Operator's
Agreement" (FBO Agreement) for lease of space at the Iowa City Municipal Airport including all
non-public areas of the first floor of Building"E,"the airport terminal building;'
WHEREAS, the agreement has previously been amended on two occasions; and
WHEREAS,the parties wish to amend the number of additional option periods.
IT IS THEREFORE AGREED that;
1. Paragraph 1 Term is hereby amended as follows:
The sentence "JA is granted an option to lease the premises for up to four (4) additional five (5)
year terms." is deleted and the sentence "JA is granted an option to lease the premises for up to
eight (8) additional five(5)year terms" is inserted in its place.
All other terms and provisions of the FBO Agreement, not inconsistent with this amendment,
remain in full force and effect.
IOWA CITY Al 'T COMMISSION JET AIR, INC.
BY 11110, BY .>.0f23 ii - et,"
Chairpers•r Matthew Wolford, neral Manager
Date IT' / (11 / Date `,*2./sto(6'
Approv by:
6?-7,
City Attorney's Office