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HomeMy WebLinkAbout07112007Special~~ ~, ,~. 1!! ~~... - -== =:-. HOME OF PELICAN ISLAND SPECIAL CITY COUNCIL MEETING AND ATTORNEY-CLIENT SESSION WEDNESDAY, JULY 11, 2007 - 5:30 PM AGENDA CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FLORIDA 1. CALL PUBLIC MEETING TO ORDER 2. ROLL CALL 3. PUBLIC REQUEST BY CITY ATTORNEY FOR A CLOSED ATTORNEY-CLIENT SESSION TO DISCUSS SETTLEMENT OF PENDING LITIGATION IN THE MATTER OF J ~ S AVIATION VS. CITY OF SEBASTIAN 4. CITY COUNCIL WILL RECESS THIS PUBLIC MEETING TO COMMENCE A CLOSED ATTORNEY-CLIENT SESSION AS REQUESTED ABOVE Estimated Length of the Attorney-Client Session: 45 MINUTES Names of Persons Attending: Mayor Andrea Coy Vice-Mayor Sal Neglia Council Member AI Paternoster Council Member Dale Simchick Council Member Eugene Wolff City Manager, AI Minner City Attorney, Rich Stringer Certified Court Reporter 5. REOPENING OF PUBLIC MEETING; ANNOUNCE END OF ATTORNEY-CLIENT SESSION 6. CONSIDERATION OF PROPOSED SETTLEMENT OF PENDING LITIGATION IN THE MATTER OF J ~ S AVIATION VS. CITY OF SEBASTIAN 7. ADJOURNMENT OF PUBLIC MEETING ANY PERSON WHO DECIDES TO APPEAL ANY DECISION MADE WITH RESPECT TO ANY MATTER CONSIDERED AT THE PUBLIC PORTION OF THE MEETING WILL NEED A RECORD OF THE PROCEEDINGS AND MAY NEED TO ENSURE THAT A VERBATIM RECORD OF THE PROCEEDINGS /S MADE, WHICH RECORD INCLUDES THE TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL /S TO BE HEARD. (286.0105 F.S.) IN COMPLIANCE W/TH THE AMERICANS WITH DISABILITIES ACT (ADA), ANYONE WHO NEEDS A SPECIAL ACCOMMODATION FOR THIS MEETING SHOULD CONTACT THE CITY'S ADA COORDINATOR AT 589-5330 AT LEAST 48 HOURS /N ADVANCE OF THIS MEETING. IN THE CIRCUIT COURT OF THE 19T" JUDICIAL CIRCUIT IN AND FOR INDIAN RIVER COUNTY, FLORIDA J & S AVIATION, INC. Plaintiff, vs. CITY OF SEBASTIAN Defendant. CASE NO.: 2005-0622-CA-03 JUDGE: ROBERT A. HAWLEY THIRD AMENDED COMPLAINT The Plaintiff, J & S Aviation, Inc., by and through its undersigned attorneys hereby sues the City of Sebastian and in support states: General Alle ations 1. This is an action for damages which exceeds $15,000.00 exclusive of interest, costs and attorney's fees. 2. The Plaintiff, J & S Aviation, Inc., is a domestic corporation authorized and existing under laws of the state of Florida with its principal place of business in Sebastian, Indian River County, Florida 3. The Defendant, City Of Sebastian, is a municipality located in Indian River County authorized and existing under the laws of the state of Florida. 4. On February 22, 1999, the parties entered into a lease for property located on the Sebastian Municipal Airport. (A copy of the lease is attached hereto as exhibit "A" and incorporated herein by reference.) ~~ ~__~ J & S Aviation, Inc. v. City of Sebastian Case No.: 2005-0622-CA-03 Third Amended Complaint 5. The lease is for a specified term of twenty (20) years, commencing April 21, 1999 and terminating on April 21, 2019. The lease contains an option which the Plaintiff can exercise at its discretion, for an additional twenty (20) year term. 6. The lease contains a provision for the City of Sebastian's anticipated reactivation of runway 9-27. 7. If runway 9-27 is reactivated, paragraph 4 of the lease requires the City of Sebastian to relocate the Plaintiff to a comparable site on the airport property. 8. In 2003, the City of Sebastian decided to re-active runway 9-27. 9. On March 7, 2003, the Plaintiff and Sebastian executed a "Buy-Out & Relocation Agreement.," (The Agreement) which modified the lease. (A copy of the Buy-Out & Re-Location Agreement is attached hereto as exhibit "B" and incorporated herein by reference.) 10. On March 11, 2005, the Plaintiff and the City of Sebastian executed the First Amendment to the Airport Lease. (A copy of the Amendment is attached as Exhibit "C".) 11. The Agreement was intended to allow the runway 9-27 reactivation project to move forward while preserving the viability of the Plaintiff's business enterprise. In order to accomplish this goal, the plan required the City of Sebastian to perform the following relocation activities at no cost to the Plaintiff: a) Prepare, and process for approval, the basic site plan for the relocated site to accommodate a facility of the same general size of the tenants existing facility. b) Provide such additional asphalt surfacing for aircraft- vehicle parking and fill dirt to the relocation site as required to fulfill the basic site plans approved pursuant to Sub-Section a (above); c) Establish utility easements and paved access to the relocation site; .- Page 2 of 15 z , ___~ J & S Aviation, Inc. v. City of Sebastian Case No.: 2005-0622-CA-03 Third Amended Complaint d) Issue a building permit for the new facility; e) Accommodate storm water discharge for the relocated into the City system off-site; and f) Transfer ownership of fuel tank and related equipment to tenant and require no payments or rent for the fuel tank for the duration of the lease. 12. The Agreement required the City of Sebastian to complete the above-listed acts by December 1, 2003. 13. The Agreement called for the Plaintiff to vacate its existing building by January 1, 2004. 14. Not until December 15, 2004 did Sebastian finally send a confirmation letter to the Plaintiff advising it that they had permission to complete their relocation to the new agreed upon site. Based upon this letter, the Plaintiff began relocating its business into a storage container placed on property at the new site located on the Sebastian Municipal Airport. 15. Under the lease, Sebastian agreed to be responsible for removing and replacing the fuel farm at the old location. (See paragraph 39(c) of the Airport Lease.) The Plaintiff was not in possession of the old fuel farm after January 1, 2005 and did not participate in the demolition of the fuel farm at the old location. 16. As part of The Agreement, the City of Sebastian agreed to give the fuel tank and the fuel dispensing equipment to the Plaintiff after the Plaintiff vacated the old lease property. The Plaintiff contacted both the Sebastian Airport Manager and the Indian River County Environmental Health Department regarding regulations that needed to be followed to move the fuel tank and equipment. Page 3 of 15 ~`. J & S Aviation, Inc. v. City of Sebastian Case No.: 2005-0622-CA-03 Third Amended Complaint 17. The Indian River County Health Department told the Plaintiff it could follow the plans and specification for the existing fuel farm and to obtain a permit for the City of Sebastian. 18. The Sebastian Building Official told the Plaintiff in order to relocate the storage tank and related equipment that he needed to contact the Indian River County Fire Department for Building Permit Approval. 19. The Plaintiff contacted the Indian River County Fire Department as requested and followed all recommended and mandatory procedures set forth by the Indian River County Fire Department. 20. On February 11, 2005, the Plaintiff received building permit no. OS- 001787 from the City of Sebastian for the construction of a "Slab & Wall for Fuel Tank." The permit included approval by the Indian River County Fire Department as requested by the City of Sebastian and its Building Official. 21. On February 24, 2005, at 10:07a.m., the Plaintiff received an a-mail from Jason Milewski, the Sebastian Airport manager that read in full: "Dear Mr. Van Antwerp, I have review your proposed relocation of your fuel tank and approve it, as indicated on the revised drawing you have submitted on 02-24-05. I have notified the Building Department and Growth Management of this new location as well. Please do not hesitate to call, should you have any questions. Sincerely, Jason Milewski, C.M. Airport Director" 22. In January 2005, the Plaintiff moved the fuel tank and related equipment as directed by the Sebastian Airport manager to the approved location. Page 4 of 15 ~1 ,, J & S Aviation, Inc. v. City of Sebastian Case No.: 2005-0622-CA-03 Third Amended Complaint 23. During February 2005 and March 30, 2005, the City of Sebastian, as required by the lease, removed the existing fuel contaimnent structure from on the old leased property. 24. In April 2005, Charles Vogt from the Indian River County Health Department was at the Sebastian Municipal Airport to perform an annual inspection of the airport. The inspection was unrelated to the relocation plan or building permits described above. 25. On April 18, 2005, the Indian River County Health Department sent a letter as formal notice to correct violations of ordinances dealing with pollutant storage systems. The letter provided ten business days to send a written response to the County. Immediately upon receipt of the letter, the Plaintiff began makirig the asked for corrective measures that were within its ability. 26. On or about April 20, 2005, John Van Antwerp telephoned Charles Vogt and asked what actions he needed to take to remedy the situation. Mr. Vogt said, "I don't know, I will get with the County attorney and get back with you." 27. On or about May OS, 2005, the Plaintiff received a letter from Ryan Denner, Airport Manager Specialist, which was titled, "Default of Lease Agreement." The. letter states that the City of Sebastian is in receipt of the letter from Indian River County listing the Notice of Violations. The letter from Mr. Denner further states in relevant part, "Accordingly, please consider this to be Notice pursuant to paragraph 21 of The Lease that these items of default must be remedied within 30 days hereof or The Lease shall be subject to termination." Page 5 of 1 S ~. J & S Aviation, Inc. v. City of Sebastian Case No.: 2005-0622-CA-03 Third Amended Complaint 28. On May 9, 2005, the Plaintiff sent a response letter to Ryan Denner, and copied the manager of the City of Sebastian, whereby it advised the City of the actions taken by the Plaintiff to correct the violations which were within its power. The letter also asked the City to withdraw their Notice of Default and give the Plaintiff additional time to make further corrections requested. 29. On May 9, 2005, the Plaintiff wrote to Indian River County and set forth a list of the corrective actions taken and addressed issues related to the telephone conversation with Mr. Vogt. 30. On May 18, 2005, a second letter of formal notification of violation was sent to both the Plaintiff and the City of Sebastian from the Indian River County Health Department. The letter addressed the issues of the closure of the pollutant storage tank. The letter also states in relevant part, "Failure to correct the above violations within the specified time may result in a summons to appear before the Indian River County Environmental Control Hearing Board or Circuit Court and could subject you to a fine of up to $500.00 per day violation. 31. On June 3, 2005, the Plaintiff received a letter from the airport manager for the City of Sebastian, in which he stated that because the City had received a second notice of violation the City felt that the Plaintiff remained in violation of Health Department Regulations. The letter states in relevant part, "Accordingly, please consider this to be notice pursuant to paragraph 21 of The Lease that these items of default must be remedied within 30 days hereof or The Lease shall be subject to termination." / ~ (~% Page6of15 J & S Aviation, Inc. v. City of Sebastian Case No.: 2005-0622-CA-03 Third Amended Complaint 32. On June 22, 2005, Indian River County sent an e-mail to Jason Milewski that states in full: "Jason, The Department is in receipt of your request for the extension of 60 days for the corrective measures involved with J & S Aviation Notice of Violation. This Department understands the need for the request and grants the time extension of 60 (sixty) days to complete the required actions necessary to achieve resolution. If there are questions or problems, please contact me so I may assist you. Sincerely, Charles L. Vogt III." 33. On June 22, 2005, the Sebastian City Counsel met and voted to terminate the Plaintiff's lease for "Failure To Remedy Default After Notice." The Plaintiff was never given notice that the termination of his lease was on •the agenda for discussion by the City of Sebastian and therefore was denied due process with regard to the termination of the lease.. 34. On August 2, 2005, the City of Sebastian sent a letter to the Plaintiff stating, "As you are aware, the Sebastian City Counsel voted on June 22, 2005, to terminate your lease for failure to remedy default after notice. Demand is hereby made that the premises be vacated and all personal property removed there from no later than noon August 31, 2005." 35. On August 26, 2005, City of Sebastian removed the Plaintiff s signs which indicated its place of business. 36. All corrective measures required by the City of Sebastian were accomplished by the Plaintiff except for those items which could not be corrected due to the wrongful eviction of the Plaintiff and the City of Sebastian's refusal. to issue any additional permits which would be necessary to take further corrective actions. Page 7 of 15 (" 1 J & S Aviation, Inc. v. City of Sebastian Case No.: 2005-0622-CA-03 Third Amended Complaint Count I Breach of Contract 37. The Plaintiff, J & S Aviation, realleges and reavers paragraphs 1-37 as if fully set forth herein. 38. The Plaintiff and City of Sebastian entered into a contract which is made up of the Airport Lease, the Buy-Out & Relocation Agreement and Amendment to the Lease along with clarifying documents all attached as exhibits to this Complaint. 39. The contract contemplates that the City of Sebastian would reopen runway 9-27 and relocate the Plaintiff s business on the grounds of the Sebastian Municipal Airport. Under the terms of the contract, the City of Sebastian was responsible for removing and replacing the fuel farm as part of the relocation of the Plaintiff s business. (See paragraph 39 of The Lease.) 40. The City of Sebastian failed to properly follow the codes, ordinances, and regulations related to the removal and relocation of the fuel farm as evidenced by the Notice of Violation of the Indian River County Health Department. 41. Further, the contract contemplated that the Plaintiff s business would be relocated on the airport grounds when the City decided to reactivate runway 9-27. The City of Sebastian agreed to perform the following relocation activities no cost to the Plaintiff: a) Prepare, and process for approval, the basic site plan for the relocated site to accommodate a facility of the same general size of the tenants existing facility. b) Provide such additional asphalt surfacing for aircraft- vehicle parking and fill dirt to the relocation site as required to fulfill the basic site plans approved pursuant to Sub-Section A (above); c) Establish utility easements and paved access to the __ relocation site; rn_ Page8of15 ~-.. J & S Aviation, Inc. v. City of Sebastian Case No.: 2005-0622-CA-03 Third Amended Complaint d) Issue a building permit for the new facility; e) Accommodate storm water discharge for the relocated into the City system off-site; and f) Transfer ownership of fuel tank and related equipment to tenant and require no payments or rent for the fuel tank for the duration of the lease. 5. The City of Sebastian shall complete the activities set forth in paragraph 3 and have the relocated site available for occupancy by closing runway 13-31, displacing the threshold, obtaining a waiver from the FAA, and/or any combination of the above, in accordance with a schedule that would reasonable allow completion of the relocated facility at least thirty days prior to the date of vacancy established in paragraph 1. 42. The City of Sebastian breached the contract by failing to comply with all of the conditions of the contract as set forth above. 43. The Plaintiff has been damaged by the City of Sebastian breach of contract. 44. The Plaintiff has complied with all of the conditions precedent or all conditions have been waived by the City of Sebastian or have otherwise occurred. 45. The Plaintiff has retained. the undersigned attorneys and agreed to pay them a reasonable fee for their services. The City of Sebastian is required to pay their fees pursuant to paragraph 34 of The Lease. WHEREFORE, for the reasons set forth-above, the Plaintiff, J & S Aviation, Inc., respectfully requests this Court to enter a judgment in its favor for monetary damages, pre- judgment interest, costs, and attorney's fees and for such other and further relief as this Court deems just and proper. Page 9 of 15 a`~ ~ ~;' J & S Aviation, Inc. v. City of Sebastian Case No.: 2005-0622-CA-03 Third Amended Complaint Count II Breach of Implied Covenant of Good Faith And Fair Dealing 46. The Plaintiff, J & S Aviation, Inc., realleges and reavers paragraphs 1-46 as if fully set forth herein. 47. The Plaintiff has been a tenant on the City of Sebastian Airport for more than 30 years. Its principal, John Van Antwerp, has served as the Airport Manager. The Plaintiff has been an asset to both the local and aviation community. 48. Every contract in Florida has an implied covenant of good faith and fair dealing. The covenant requires the parties to act in good faith in their dealings with each other under the contract. 49. In this case, after 30 years the Plaintiff was required to move its buildings and business location. The City of Sebastian was contractually obligated to help in the relocation of the Plaintiff s business and it assumed responsibility for the old location after the Plaintiff was moved out. 50. Both the City of Sebastian and the Plaintiff were cited by the Indian River County Health Department for not giving proper notices before dismantling and moving the fuel farm. 51. Neither the City of Sebastian nor the Plaintiff had ever attempted to move a fuel farm on the airport before. The Plaintiff attempted to proceed in good faith to move the fuel farm according to the law by obtaining a permit from the City of Sebastian, receiving approval from the airport manager and receiving approval from the Indian River County Fire Department before Plaintiff built the new fuel farm. ._ _. ~, j~ ~ ....~ Page 10 of 15 J & S Aviation,111c. v. City of Sebastian Case No.: 2005-0622-CA-03 Third Amended Complaint 52. The City of Sebastian participated in the moving of the fuel farm and demolished the old fuel farm containment site without obtaining approval from the Indian River County Health Department. 53. In bad faith and without dealing fairly with the Plaintiff, the City of Sebastian wrongfully terminated the Plaintiff s lease and constructively evicted the Plaintiff from its leasehold property. 54. The City of Sebastian's acts were taken with unclean hands as a result of their failure to comply with the same code that the Plaintiff is alleged to have violated. 55. The City of Sebastian did not deal in good faith by claiming that the Plaintiff was in breach of its lease for violating codes that the City of Sebastian ifself is alleged to have violated. 56. The City of Sebastian did not .deal fairly with the Plaintiff by constructively evicting the Plaintiff based on an alleged violation of the code that the City of Sebastian itself is also alleged to have violated. 57. If codes were violated, the City of Sebastian was acting in pari delicto with the Plaintiff because it was contractually obligated to relocate the fuel farm. WHEREFORE, for the reasons set forth above the Plaintiff respectfully requests this Court enter a judgment in its favor awarding damages, pre-judgment interest, costs, and attorney's fees and for such other and further relief as this Court deems just and proper. Page 11 of 15 I, ' J & S Aviation, Inc. v. City of Sebastian Case No.: 2005-0622-CA-03 Third Amended Complaint Count III Wrongful Eviction 58. The Plaintiff, J & S Aviation, Inc., realleges and reavers paragraphs 1-37 as if fully set forth herein. 59. The letter dated April 18, 2005 from Indian River County Health Department lists 7 specific violations that were alleged to exist at the old business location. The Notice of Default of Lease dated May 3, 2005 from the City of Sebastian specifically refers to this letter and gives notice that the Plaintiff has 30 days to remedy the default. 60. The alleged violations did not constitute a material breach of the lease because the alleged violation occurred during the relocation and did not go to the essence of the contract. 61. The Plaintiff made every attempt to comply with those requirements even though some of the alleged violations are the responsibility of the City of Sebastian. The Plaintiff wrote to the City of Sebastian and asked for an extension of time to respond to the allegations. The City of Sebastian sent a letter dated June 03, 2006 giving the Plaintiff another 30 days to respond to the alleged violations. 62. The City of Sebastian failed to give the Plaintiff the 30 days time set forth in its letter to comply and wrongfully terminated the lease on June 22, 2006. 63. The Plaintiff has suffered damages as a result of the wrongful eviction including, but not limited to, loss of the value of the lease, loss of income, and loss of improvements made to the lease hold property. l,(~ZI Page 12 of 15 J & S Aviation, Inc. v. City of Sebastian Case No.: 2005-0622-CA-03 Third Amended Complaint 64. The Plaintiff has retained the undersigned attorneys and agreed to pay them a reasonable fee for their services. The City of Sebastian is required to pay their fees pursuant to paragraph 34 of The Lease. WHEREFORE, for the reasons set forth above, the Plaintiff, J & S Aviation, Inc., respectfully requests this Court to enter a judgment in its favor for monetary damages, pre- judgment interest, costs, and attorney's fees and-for such other and further relief as this Court deems just and proper. Count IV Specific Performance 65. The Plaintiff, J & S Aviation, Inc., realleges and reavers paragraphs 1-37 as if fully set forth herein. 66. The Plaintiff and City of Sebastian entered into a contract which is made up of the Airport Lease, the Buy-Out & Relocation Agreement and Amendment to the Lease along with clarifying documents all attached as exhibits to this Complaint. 67. The Plaintiff negotiated for and received a lease for a specific location on the, airport that is unique and provides benefits that can not be duplicated elsewhere on the airport. 68. The Plaintiff has been in business oil the Airport for 30 years and the specific comparable location on the airport set forth in the Agreement is required for the continued viability of its business. Page 13 of 15 F, ~ ~,! ~~ ~, J & S Aviation, Inc. v. City of Sebastian Case No.: 2005-0622-CA-03 Third Amended Complaint 69. While the Plaintiff has plead alternative causes of action at law, those causes of action have remedies which are inadequate and will not fully compensate the Plaintiff. 70. The Plaintiff has retained the undersigned attorneys and agreed to pay them a reasonable fee for their services. The City of Sebastian is required to pay their fees pursuant to paragraph 34 of The Lease. WHEREFORE, the Plaintiff respectfully requests this Court enter judgment in its favor of J & S Aviation, Inc. requiring the City of Sebastian to fully perform under the lease agreement and related documents, issue a building permit for construction of all buildings completed under the lease agreement, award attorneys fees and costs and for such other and further relief as this Court deems just and proper. HEREBY CERTIFY that a true and correct copy of the foregoing has been furnished by U.S. mail, postage prepaid, to: Rich Stringer, Esquire, Attorney for E`~ty of Sebastian, 1225 Main Street, Sebastian, Florida 32958, on this `? day of 4>. c,~~---~:.... , 2006. ~~ Page 14 of 15 J & S Aviation, Inc. v. City of Sebastian Case No.: 2005-0622-CA-03 Third Amended Complaint Robert Meadows, Esquire Co-Counsel for Plaintiff 1705 19th Place Vero Beach, Florida 32960 Telephone: (772) 778-7492 Facsimile: (772) 778-7493 -and- CLEM, VOCELLE & BERG, L.L.P. Co-Counsel for Plaintiff 3333 20th Street Vero Beach, FL 32960-2469 Telephone: (772) 562-8111 Facsimile ,.• 772) 562-2870 r; , ~ ..~ °~ Y~ Paul R. Berg ~~ ~`"' FL Bar No. 901172 ~; Page 15 of 15 _J f ~r ~~ i .~ ~LRFORT LFASL THIS Airport Lease "Lease"), is hereby made and entered into ~~ as of thi~~ day of i~' j i .3 , 19~, by and between the City of Sebastian, a municipal- orporation existing under the laws of the State of Florida, ("Landlord"), and J & S AVIATION, INC., a Florida corporation ("Tenant"). The Landlord and the Tenant are sometimes collectively referred to .herein as the "Parties". WHERFnS, the Landlord is the owner of certain property within in the City of S astian, Indian River County, Florida, located at ~f ~'~~:. , Sebastian, Florida ("Property"), which is being used for the operation of the Sebastian Municipal Airport ("Airport"); and WHEREAS, portions of the Property are available for -use for those activities consistent with or in support of aviation activity; and WHEREAS, Tenant is currently the lessee of a portion of the Property pursuant to a lease between the Landlord -.and J & S ~~ ~ , AVIATION, INC., date ~ 'i ~ l/ , and WHEREAS, J & S AVIATIO , INC. desires to renew the existing Lease; and WHEREAS, the Existing Premises lies within the path of Runway 9-27, which is to be reconstructed and reactivated pursuant to the W I T N E S S E T H h EXHIBIT D ~i~ Master Plan adopted by trie city or Sebastian, Florida; and WHEREAS, the Master Plan calls for the relocation of the Existing Premises to a location outside of any glide slopes or approach zones and clear zones of the Airport; and WHEREAS, it has not been determined when such reconstruction and reactivation of Runway 9-27 will occur, due to f unding conditions of applicable local, state and. federal sources; and WHERF..A.S, it is desirable to maintain occupancy of the Existing Premises and continue the collection. of rent from J & S Aviation, Inc.., until the City receives said Master Plan funding; and WHEREAS, it is in the best interest of the Airport to renew the Lease, subject to an agreement by Tenant to relocate upon reasonable notice; and WHEREAS, the Landlord has agreed to lease the Existing Premises, subject to certain terms and conditions consistent with or in support of the current aviation use of the Property; and WHEREAS, the Tenant desires to lease the -same- from the Landlord. NOPT, THEREFORE, in consideration of the mutual covenants hereinafter provided, the receipt and sufficiency of which are hereby acknowledged, the parties have agreed as follows: 1. Recitals. The above recitals are hereby incorporated herein by this reference. x 18 2. Leaned Preatiaes. Subject to the terms and conditions set forth hereinafter, the Landlord leases hereby to the. Tenant and the Tenant rents hereby from the Landlord the Existing Premises which are described more particularly on Exhibit "A" attached hereto and incorporated by this reference consisting of 0.88 acres in parcel 1 and 1.0 acres in parcel 2. Tenant agrees that Landlord shall reserve unto itself an easement for emergency and official airport access only, and not for general public access. Unless otherwise defined, the term "Leased Premises" shall refer to the premises occupied by the Tenant. 3. Term of Lease. The term of the Lease shall be for a period of twenty (20) years commencing sixty (60) days after the date which the Tenant executes the Lease (the "Commencement Date" ) and shall end at 11:59 E.D.T. on the date of expiration of the last number of years constituting the Lease Term from the first day of the first calendar month succeeding the Commencement Date. So long as. the Tenant is not in default of any term, condition or covenant provided in this Lease, including any addendum hereto, the Tenant shall have the option to renew this Lease for one (1) additional twenty (20) year term (the "Option Term") by providing the Landlord with written notice of the Tenant's decision to exercise its option not less than one hundred eighty (180) days and not more than two hundred ten (210} days prior to the expiration of the initial term of this Lease. All of the terms, 3 ~,,,--- I conveyances and cona~Lions or Lnis Zease sna11 apply aur~ng zne initial and the Option Term; provided, however, the annual rent during the initial and the Option Term shall be adjusted on the Rental Adjustment Date, as described herein. 4. Relocation of Leased Premises. Following the Landlord's. receipt of adequate funding for the re-activation plan for Runway 9-27, as depicted by the Master Plan for Sebastian Municipal Airport and contained with the Capital Budget of the City of Sebastian, the Landlord shall construct a comparable building on .an alternative site at the Airport, comparable in size with the Existing Premises. and with appropriate access with comparable frontage on an existing taxiway of the Airport and to relocate the tenants existing fuel farm or in the alternative install another of comparable size and capacity. ("New Premises") Landlord shall give Tenant written notice of completion of the New Premises. Tenant shall, within sixty (60) days from receipt of notice, relocate its business to the New Premises. 5. Rent. Tenant covenants and agrees to pay Landlord the Minimum Annual Rent of Five Thousand Two Hundred Two ($5,202.00) Dollars, payable in twelve (12) monthly installments ("Rental Payments") of $433.50 each. The Minimum Annual Rent shall commence to accrue and ~0 4 be due and payable on the Commencement Date. The first Rental Payment date shall be the first day of the first full calendar month and shall include a prorated amount applicable to the period from the rental commencement date to the rental payment date, if applicable. In view of the fluctuating purchasing power of the United States dollar, the parties hereto; desiring to adjust the rent hereunder to such purchasing power, agree that such adjustments shall be made on the Rental Adjustment Dates as herein provided so as to reflect as nearly as possible such fluctuations. The parties hereto adopt as the standard for measuring such fluctuations the United States Department of Labor, Bureau of Labor Statistics, revised Index of Consumer Prices. The index for the month prior to the commencement date shall be the basic standa d. The f first ~ x~? adjustment shall be made. on ~"'.~ r ~ ~ and shall 'be effective for five (5) years. Thereafter, adjustments will be made annually and will be effective for the then ensuing lease year. Rent adjustments shall be made by multiplying the Minimum Annual Rent by a fraction, the numerator of which shall be the next Index figure (such figure being the Index figure for the month immediately preceding each Rental Adjustment Date) and the denominator of which shall be the Basic Standard; and the result thus obtained shall be the then applicable annual rent to be paid in monthly installments over the ensuing lease year period. In no . 5 ~ (~' event shall the Minimum Annual Rent (as adjusted by the foregoing ~r,rrr+++l 01 fnr ~ 1 r~oc~i-+ tar.nr r~tr~r }~n 1 r~cv ~1't~n i-}+n Mi nimnm Tnr+t+ol y VylllLLl4~ yVt u yC1„aJC yGUl cvcy r/G 1GJJ 1.11411 L11G 1'1y 111111 u111 l11111U41 Rent for the prior lease year. It is understood that the .above Index is now being published monthly by the Bureau of Labor Statistics of the United States Department of Labor. Should said Bureau of Labor Statistics change the manner of computing such Index, the Bureau shall be requested to furnish a conversion factor designated to adjust the new Index to the one previously in use and made on the basis of such conversion factor. .Should publication of said Index be discontinued by said Bureau of Labor and Statistics, the such other Index as may be published by such Bureau most nearly approaching said discontinued Index shall be used in making the adjustments herein provided for. Should said Bureau discontinue the publication of any Index herein contemplated, then such Index as may be published by another United States Governmental Agency as most nearly approximates the Index herein first above referred to shall govern and be submitted as the Index to be used, subject to the application of an appropriate conversion factor to be furnished by the government agent publishing the adopted Index. If such governmental agency will not furnish such conversion factor, then the parties shall agree upon a conversion factor or a new Index; and, in the event agreement cannot be reached as to such conversion factor or such new Index, the parties hereto agree to submit the matter to 2 ~ 6 arbitrators, in accordance with the rules of the American Arbitration Association and judgment or decree upon the award rendered by the arbitrators may be rendered in any court having jurisdiction thereof . In no event, however, shall the Minimum Annual Rent decrease below the sum of Five Thousand Two Hundred Two ($5, 202.0) Dollars. In the event that any Rental Payment due hereunder shall not be paid ten (10) days or more when due,' in addition to, and not in substitution for, any other rights Landlord may have, Tenant ,shall pay Landlord a late payment fee of 5~s of the amount of such late Rental Payment. This charge is to be considered as additional rent and shall- not be considered interest. If any part of the rental payment or other payments due hereunder shall. remain due and unpaid ten days after written demand by Landlord, the Landlord shall have the options and privileges as follows: (1) Total acceleration. To accelerate the maturity of the rent installments for the balance of the term. This option shall be exercised by an instrument in writing signed by the Landlord, or its agents, and transmitted to the Tenant notifying him of the intention of the Landlord to declare the balance of the entire unpaid rent for the entire term of the Lease to be accelerated and to be immediately due and payable. Tenant shall have fifteen (15) business days from date of said notice to cure default. ~; ' ,~ 1 7 Z ._ ~~,~ !'~~ Dorn nl on~nl nrof-i ~r+ Tn 1 i r+i~ ~~ +'~+~ n.-~~'i ran i r ~C., LUl l,lUl 4~..V C.L CLUl.1Vll• 111 11CLL Vl L11G V2./1.1 V11 111 Sub-paragraph (1) above, the Landlord may, in like manner, declare as presently due and payable the unpaid rent installments for such a period of years as may be fixed in the Landlord's said notice to the Tenant. The exercise of this option shall not be construed as a splitting of a cause of action, nor shall it alter or affect the obligations of the Tenant to pay rent under the terms of this Lease for the period unaffected by said notice. (3) Other remedies. In addition to the option herein granted above, the Landlord may exercise any and all other options available to it hereunder, which options may be exercised concurrently or separately with the exercise of the above options. (4) Tax. All payments made by Tenant under this Lease shall be accompanied by any applicable sales or rental tax. 5. Improvements to the Premises. The Landlord acknowledges that the Tenant is leasing the premises for the purposes of fixed base operator, and that in order to utilize the Leased Premises for this purpose, the Tenant 3esires to use thereon a building and other improvements, previously constructed by the Tenant upon the Leased Premises. (1) The Tenant shall have the right to use the Leased Premises for fixed base operator provided that any such uses do not in any way curtail the use of the airport facilities in their Z~ 8 usual operations. The Tenant covenants and agrees that all such uses shall be in accordance with the local and state ccdes, regulations and requirements as well as in accordance with all requirements of the "FAA". All buildings, structures, signage and improvements shall comply with the height restrictions contained in the Federal Aviation Regulation Part 77. Tenant further covenants and agrees that it will maintain the structure at Tenant's expense in a condition equal to or better than the present condition of the existing building, ordinary wear and damage by the elements exempted. (2) The Tenant shall indemnify, defend and hold the Landlord harmless from any actions, claims, losses, damages or liens resulting from acts of Tenant, its agents, employees or contractors in performance of the uses on or to the Property. (3) The Tenant shall, at Landlord's request, execute any and all documents of transfer which Landlord deems necessary to perfect title to said improvements. The Tenant agrees that all improvements shall, upon the termination of this Lease for any reason, be free and clear of all encumbrances, liens, and title defects of any kind. All buildings, structures and fixtures of every kind now or hereafter erected or placed on the leased premises shall, at the end of the term or earlier termination of this Lease, f or any reason, be and become the property of the Landlord and shall be left in good condition and repair, ordinary 9 -~ ~~ ~/ _. ~.~" wear and damage by the elements excepted. A fixture shall be rl~•=i nr+ri oc on ~r~i nl ~ ~.s}ii n}+ ~.io~ o r~}»+-}-nl Y~~i~ ~.r}~i r~l~ 1~~~ hr+i ri.~ uC1111C 6a 61J 411 416.1 t.1C W111 ~.. 11 W{.1J U ~11U 6. ~..Gl, 1JU 6. W111 \.. 11, iJ,l lJCllly physically annexed or affixed to the realty by the Tenant and incapable of being removed without structural or functional damage to the realty, becomes a part and parcel of it. Non-fixture personalty owned by the Tenant at the expiration of-the term or earlier termination of this Lease, for any reason, shall continue to be owned by Tenant and, at its option, may remove all such personalty, provided the Tenant is not then in default of any covenant or condition of this Lease, otherwise all such property shall remain on the leased premises until the damages suffered by the Landlord from any such default have been ascertained and compensated. Any 'damage to the Leased Premises caused by the removal by Tenant of any such personalty shall be promptly repaired and the Leased Premises shall be fully restored to its original order and condition by Tenant forthwith at its expense. Any such personalty not removed at or prior to such termination shall become the property of the Landlord. 6. Use of Zeased Premises. The Tenant agrees that no~ use of the Leased Premises will be allowed manner as to constitute a nuisance or connection with the use of the Leased operation, take-off and landing of airc and its agents, employees, contractors, /n 10 ~.~V or conducted in such a a hazard and that, in Premises including the raft thereon, the Tenant licensees, invitees and other persons involved with the use of the Leased Premises will observe and comply with all applicable laws, ordinances, orders and regulations prescribed by lawful authorities having jurisdiction over the Leased Premises and the activities thereon. The Tenant agrees that that primary use of said lease premises shall be for a business as a fixed base operator. The Lessee shall also have the non-exclusive right under this Lease to provide for the sale of aviation gas and oil, flight instructions, charter and rental flights of aircraft, the leasing of hangar space andlor tie down service, conduct sales and service and repair and maintenance of aircraft, avionics and car rentals and to provide any ar,d all services and products not conflicting with Airport operation in compliance with all ordinances of the City of Sebastian and FAA requirements. Any use of the Leased Premises other than those specifically stated above are expressly prohibited unless approved in subsequent amendments to this Lease. No other use may be conducted by the Tenant without the express written consent of the Landlord. Such consent may be withheld by the Landlord for any reason. All aeronautical businesses and activities must be certified and licensed by the FAA in the appropriate categories of their specific operation. 7. Repairs and Alterations. The Landlord shall not be obligated to maintain or repair the Leased Premises or any I1 )} L.. ..' improvements located or any part hereof thereon during the lease }I~rm nr on~i rr~n ~~.i~l ~-1-~n r~~~ T}~n T~r+o n~- ~rY rr~~o 04' i 1-o e~.~l r~ r+~c~ 1..Cill~ VL 411~r 1C11Gwul L11G1CV1 • 113C LG11 Ut~1, uytcca, u~. 11.J JV1G t/~./vL and expense, not to be reimbursed by the Landlord, to maintain all of the improvements, including, but not limited to, buildings (and all parts thereof exterior and interior) and the parking and service areas located on the Leased Premises, in a good state of maintenance in good working order and repair and proper to keep the leased premises in a clean, neat and orderly condition in accordance with local ordinances, including but not limited to, the Sebastian Land Development Code and all other community standards and ordinances. Due to proposed reactivation of Runway 9-27, the Tenant may not erect any additional improvements, alterations or major renovations to the existing improvements on the Existing Premises. The Tenant shall indemnify, defend and hold the Landlord harmless from any claims, losses, damages or liens arising out of or in any way connected with such maintenance activities. 8. Utilities. The Tenant shall be responsible for all utilities of whatever kind or sort, used, installed or consumed in or upon the leased premises including, but not limited to, electricity, lights, water, .sewer, heat, janitor service or any other utility or service consumed in connection with the Lease Premises. The Landlord shall have no liability for failure to procure or the interruption of any such services or utilities. z~ 12 9. Signs. The Tenant shall have the right to erect and maintain such sign or signs on the premises as may b2 per,~,itted by applicable law; provided, however, the Landlord must approve any such signs in writing prior to erection. The Landlord may impose any reasonable restrictions as, in the sole discretion of the Landlord, are deemed necessary. Tenant agrees to maintain each and every sign as may be approved by the Landlord in good condition and working order. 10. Taxes. The Tenant shall pay during the Lease term all ad valorem taxes, assessments or any other charge or payment levied or assessed against the leased premises by any governmental agency having, or purporting to have, jurisdiction thereover, together with all ad valorem taxes assessment or other governmental charge levied against any stock of merchandise, furniture, furnishings, equipment and other property located in, or upon the leased premises. All shall be paid by the Tenant on a timely basis and receipts therefor. shall be provided to the Landlord upon request. 11. ILiability and Property Insurance. The Tenant sh~.ll provide and keep in force, at its own expense, during the term of this Lease, comprehensive general public liability insurance in companies acceptable to Landlord with respect to the Leased Premises, including those portions of the said premises used for driveways, walkways, and parking areas and sufficient to cover `_'`'~, 13 ~c ~,,/ such indemnification and naming as insured both Landlord and T.~,nan~ l.~i mil, ..,i nimti,., 1 i mi ~-a r.F ,,.++- 1 noo +-1,0„ C inn nnn nn ~e~r i n~ilr~~ 1 C11t111L Wl1.. 11 1111111111 LL111 1111I11.J Vt 11VL 1CJJ 1~11U 11 YJVV, VVV.'VV LV1 111J 41Y or death of any one person and $1,000,000.00 for injury or death for any one accident, together with $500,000.00 for damage to property. Tenant agrees that should there be an addition to the allowable use and occupancy under this Lease, Landlord may alter the minimum amounts stated in the preceding sentence during the term of this Lease, by resolution of the City Council of the City of Sebastian. Landlord will give written notice of any such change to Tenant, and such changes will take effect immediately. Any policy or policies of insurance required pursuant to this Lease shall be issued by one or more insurance companies authorized to engage in business in the State of Florida and which have a rating of at least A+ by A.M. Best and Company and at least an AA rating by both Moody's and Standard and Poors. All policies described in this Lease shall contain an endorsement that the insurer will not cancel or materially alter the coverage of such policy or policies without giving thirty (30) days prior written notice thereof to the Landlord and shall name the Landlord as an additional insured. The Tenant's insurance policy is always primary. Tenant shall promptly deposit the original policy or policies of such insurance with the Landlord. 12. Fire and Extended Coverage Insurance. The Tenant shall, /~~~ at its sole cost and expense, procure and keep in effect such ~LJ 14 standard policies of fire and extended coverage insurance (broad form), as the Landlord deems necessary and appropriate, covering the Leased Premises, providing protection against any peril included within the classification "Fire and Extended Coverage" and "Vandalism and Malicious Mischief". Tenant agrees that it shall not keep, use, sell or offer for sale in or upon the Leased Premises 'any article or thing which may be prohibited by its standard form of fire insurance policy. Tenant agrees to pay any increase in premiums for fire and extended coverage insurance that may be charged during the-term of this Lease on the amount of such insurance which may be carried by the Landlord on the Leased Premises or the building(s) of which it is a part,. resulting from a violation of the foregoing, whether or not the Landlord has consented to or otherwise waived the same. In determining whether increased premiums are the result of the Tenant's use of the Leased ..Premises, a schedule, issued. by the organization in making the insurance rate on the Leased Premises,. showing the various components of such rate, shall be conclusive evidence of the several items and charges which make up the fire insurance rate of the Leased Premises. In the event that the Tenant's occupancy causes any increase of premium for the fire, boiler and/or casualty rates on the Leased Premises or any part thereof above the rate for the least hazardous type of occupancy legally permitted in the Leased 15 ~ %'' Premises, the Tenant shall pay the additional premium on its i no~ir~nn~ r~~l i i.i no {^~ir rr~~onn }-}.~r~r.~ L'~r.l-~ 1~r.~r i F ~r~r~~ i nol-~1 r. ilLJ 41 u11\.c r/V11L.1cJ u1l icuJVat ~.. iacicvi. t.u ~.ii ycui li uY1/ii~.u uic, the Tenant shall provide to the Landlord a certificate of such insurance with evidence of the payment of the premium therefor. The Landlord shall have no obligation to keep the buildings and improvements on the leased premises insured nor shall the Landlord have any obligation to insure any personal property used in connection with the Leased Premises. Any policy or policies of insurance required pursuant to this Lease shall be issued by one or more insurance companies authorized to engage in business in the State of Florida and which have a rating of at least A+ by A.M. Best and Company and at least. an AA rating by both Moody's and Standard and Poors. All policies described in this Lease shall contain a clause preventing cancellation of any coverage before thirty (30) days written notice to the Landlord and shall name the Landlord as an additional insured. Upon the request of the Landlord, the Tenant shall provide copies of said policies to the Landlord. Should t;.e Tenant fail to obtain the requisite insurance policies as outlined in this Lease, the Landlord may obtain the insurance for the Tenant at the Tenant's expense. 13. Damage or Destruction of Iaa~rovesnents by Fire or other Casualty. In the event the building and/or other improvements erected on the premises are destroyed or damaged by fire or other ~~ 16 casualty, Tenant agrees that it will cause said building and/or other improvements to be replaced or said damage to be repaired as rapidly as practicable. The Landlord may abate the Tenant's rent for the period of time more than 80~s of the principal building, if any, is unusable. In the event the Tenant elects to repair and/or replace the building and other improvements on the leased premises, the Landlord shall have no claims against any insurance proceeds paid. to the Tenant on account of such damage and/or destruction nor shall the Landlord have any responsibility or obligation to make any expenditures toward the repair and/or replacement of the building and other improvements on the leased premises, provided, however, that all repaired and/or replaced building and other improvements are repaired/replaced in a manner equal to or better than the building/improvement being repaired or replaced. (1) If the Tenant, under its option, elects not to repair and/or replace the building and improvements upon the leased premises, the Landlord shall have two options: (a) To continue to Lease by mutual.agreement between Tenant and Landlord; if the Landlord elects to continue the Lease, the Landlord shall be entitled to any of the insurance proceeds on account of such damage and/or destruction, such proceeds to be the sole property of the Landlord; or (b} To cancel the Lease; if the Landlord elects i~ ~~ to cancel the Lease, the Landlord shall be entitled to that portion of the insurance proceeds paid as a result of such damage and/or destruction to the building and other improvements an the leased premises, the Tenant shall be entitled to the remainder, if any, of the insurance proceeds. (2) In the event the Tenant, under its option, elects not to repair and/or replace the building and improvements upon the Leased Premises, the Tenant shall remove all remaining portions of the damaged or destroyed building and improvements and all rubble or debris resulting therefrom. The Tenant may seek reasonable reimbursement for building removal and site clean-up as may be provided for within the appropriate insurance policies. 14. Ind~nuiification. Tenant shall and does indemnify, defend the Landlord and save it harmless from and against any and all claims, actions, causes of action, .damages, demands, liabilities, claims, losses or litigation arising .out of or connected with the Tenant's occupancy or use of the Leased Premises and the use of the leased premises by tenant's agents, employees, contractors, licensees, and invitees, including all. court costs and attorney's fees at all tribunal levels incurred by the Landlord in connection with any and all loss of life, personal injury and damage to property occurring in or about of arising or relating to, directly or indirectly in any manner whatsoever, the Leased Premises adjacent sidewalks and loading platforms, or 18 ~3y areas, if any, or occasioned wholly or in part by any act or omission Tenant, its agents, contractors, customers, principals, directors, officers or employees. This paragraph 16 shall survive the termination or cancellation of the Lease for occurrences during the terms of the Lease. 15. Environmental Matters. Tenant shall and hereby does indemnify, defend the Landlord and save it harmless from ,and against any and all claims, causes of action, lawsuits, losses, liabilities, damages, and expenses (including, without limitation, clean-up costs and reasonable attorney's fees) resulting directly ~or indirectly from, out of or by reason of (i) any hazardous or toxic materials, substances, pollutants, contaminants, petroleum products, hydrocarbons or wastes being located on the property and being caused by the Tenant or its sub-Tenants, agents, employees, contractors, licensees, and invitees. This Paragraph 17 shall survive the termination or cancellation of the Lease for occurrences during the Lease term. 16. Hazardous Material. Tenant shall not cause or permit any Hazardous Material excluding petroleum. based L~roducts utilized in Tenant's business and complying with all applicable laws to be brought upon, kept or used in or about the Lease Premises by Tenant,, its agents, Employees, contractors or invitees, without the prior written consent of Landlord. Tenant hereby indemnifies, defends and holds Landlord harmless from any and all claims, ,..----_., 19 ~~ judgement, damages, penalties, fines, costs, liabilities or losses / i nn~ ~li-li nr+ tsi f-}ira.f- 1 i •ni i-o~ i nn riimi nnti nn i n •rol nn r~F ~1,.~ T r~~c~ ,i11V141.1111y, W1611V 1.iV 1111111.UV1V11, ~111111111,/V1V11 111 VCJI UC Vl V11G 1JG4JG Premises, damages for the loss or restriction on use of rentable or usable space or if any amenity of the Leased Premises damages arising from any adverse impact on marketing of space, and sums paid in settlement of claims, attorneys' fees at all tribunal levels and whether or not suit is instituted, consultant fees and expert f ees) which arise during or after the .lease term as a result of Tenant's breach of the obligations stated in the preceding sentence, or if the presence of Hazardous Material. on the Leased Premises caused or permitted by Tenant results in contamination of the Leased Premises, or if contamination of the Leased Premises by Hazardous Material otherwise occurs for which Tenant is legally liable to Landlord for damage resulting therefrom. This indemnification of Landlord by Tenant includes, without limitation, costs incurred in connection with any investigation of site conditions or any clean-up, remedial, removal or restoration .work required by any federal, state or locate governmental agency or political subdivision because of Hazardous Material present in the soil or groundwater on or under the Leased Premises. Without limiting the foregoing, if the presence of any Hazardous Material on the Leased Premises caused or permitted by Tenant results in any contamination of the Leased Premises, Tenant shall promptly take all actions at its sole _.~~~ 20 expense as are necessary to return the Leased Premises to the condition existing prior to the introduction of any such hazardous Material to the Leased Premises; provided that Landlord's ,approval of such actions shall first be obtained, which approval shall not be unreasonably withheld so long as such actions would not potentially have any material adverse long-term or short-term effect on the Leased Premises. Landlord may cause environmental audits of -the Leased Premises to be conducted during the Lease Term and Tenant will pay the cost on request. As used herein, the term "Hazardous Material" means any hazardous or toxic substance, material or waste which is or becomes regulated by any local governmental authority, the State of Florida or the United States Government. The term "Hazardous Material" includes, without limitation, any material or substance which is (i) defined as a "hazardous waste", under Section.403.703 (21), Florida Statutes (1987); (ii) defined as a "hazardous substance" under Section 403.703 (29) Florida Statutes (1987); (iii) defined as a "toxic or otherwise hazardous substance" under Section 403.771 (2) (c), Florida Statu'~s (1987); (iv) defined as a "toxic substance" under Section 442.102 (21), Florida Statutes (1987); (v) petroleum; (vi) asbestos; (vii) defined as a "hazardous substance" under Section 501.065 (5), Florida Statutes (1987); (viii) designated as a "hazardous substance" pursuant to Section 311 of the Federal Water Pollution Control Act (33 U.S.C. i' _ \ 21 ~ § 1317}; (ix) defined as a "hazardous waste" pursuant to Section ~nnn n~ +-l,n L'r.r7r~r~1 D.~o~+lri.r~ (`r.nv~r~~n1-i~n or~~-l D~r+~~rr~r\r Tr.~ /17 1VV7 Vl 1. 11C LGUC1C11 1\GJVUl \.C VVLIJGI VUl.l V11 1111\1 1\G \.VVC11/ A\i l., ~ ZL U.S.C. § 6901 et seq. (42 U.S.C. § 6903) ; or (x) defined as a "hazardous substance" pursuant to Section 101 of the Comprehensive Environmental Response, Compensation and Liability Act, 42, U.S.C. § 9601 et seq. (42 U.S.C.§ 9601). 17. Prevention of Use of 'the Premises. If, after the effective date of this Lease, the Tenant is precluded or prevented from using the Leased Premises for those specific purposes identified in paragraph 8 of this Lease, by reason of any zoning law, ordinance or regulation of any authority having jurisdiction over the leased premises and such prohibition shall continue for a period in excess~of ninety (90) consecutive days, the Landlord may allow the Tenant to terminate this Lease. 18. 7~andinq Fees. .Landing or any other type of use ~ of runway fees are specifically prohibited by this Agreement, so long as all other Tenants of the property owned by the Landlord located at the Airport are prohibited from charging any such fees, as the use of the Airport is for the general public. Nothing in .this Lease shall act to prohibit the Landlord from charging such fees as it deems necessary or desirous. 19. (3overnment Seizure. In the event the United States Government, or any agency or subdivision thereof, at any time during the term of this Lease takes over the operation or use of ~-~ ~ 22 the airfield and/or Airport which results in the Tenant being unable to operate under the terms of the Lease, then the Lease may be extended upon mutual agreement of the Tenant and the Landlord for an additional period equal to the time the Tenant has been deprived of the value of this Lease. If the duration of the seizure exceeds ninety (90) consecutive days, the Landlord or Tenant, may terminate this Lease. 20. Eminent Do~nna.in. The exercise of the power of eminent domain. by a governing body shall not void or impair. the Lease unless the taking is to such an extent that it is impracticable for the Tenant to continue the operation of its business on the Leased Premises and upon the happening of such event, the Lease shall cease and possession terminate as of the date of being required by condemning authority. Nothing herein shall prevent the Landlord and the Tenant from seeking any and all damages sustained from the condemning authority by reason of the exercise of power of eminent domain. 21. Events of Default. As used in this Lease, the term, "event of default", shall mean any of the following: (1) The failure of the Tenant to perform or abide by any term, provision, covenant, agreement, undertaking, obligation or condition of this Lease. (2) The Tenants failure to pay any consideration, to the Landlord, required by this Lease; 23 ~' ti,~ hereunder pursuant to an execution on a judgment; (4) The Tenants abandonment of any substantial portion of the Leased Premises. "Abandonment" shall be determined by the Landlord, but shall as a minimum be the unnoticed apparent vacation or closure of the permitted uses as provided for within this Lease for a period greater than ninety (90) days; (5) The filing of a petition by or against the Tenant for adjudication as a bankrupt for or insolvent, under any provisions of applicable federal or state bankruptcy or insolvency laws, or an admission that it cannot meet its financial obligations as they become due, or the appointment of a receiver or trustee for all or substantially all of the assets of Tenant. (6) The Tenant or any guarantor of the Tenant's obligations `~~ hereunder shall make a transfer in fraud of creditors or shall make an assignment for the benefit of creditors; (7) Any act of Tenant or Tenant's agents, representatives or employees which results in a lien being filed against the leased premises or the property which is not released of record within sixty (60) days of the date it is initially recorded in the Public Records of Indian River County. Each party covenants and agrees that it has no power to incur any indebtedness giving a right to a lien of any kind or character upon the right, title and interest of the other party in and to the property covered by this Lease, and that no party in and to the property covered by this 24 Lease, and that no party in and to the property covered by this Lease, and that no third person shall ever be entitled to an},• lien, directly or indirectly, derived through or under the other party, or its agents or servants, or on account of any act of omission of said other party. All persons contracting with the Tenant or furnishing materials or labor to said Tenant,. or to its agents or servants, as well as alI persons whomsoever, shall be bound by this provision of this Lease. Should any such lien be filed, the Tenant shall discharge the same or by filing a bond, or otherwise, as permitted by law. The Tenant shall not be deemed to be the -agent of the Landlord so as to confer upon a laborer bestowing labor upon the leased premises, a mechanic's lien upon the Landlord's estate under the provisions of the Florida Statutes, or any subsequent revisions thereof; (8) The liquidation, termination, dissolution or (if the Tenant is a natural person) the death of the Tenant or all Guarantors of the Tenant's obligations hereunder; (9) The Tenant's failure for more than one hundred twenty (120) consecutive days, to continuously conduct and carry on in good faith the type of business for which the Leased Premises are leased; Upon the happening of any "event of default", the Landlord may, at its option, terminate this Lease and expel the Tenant therefrom without prejudice to any other remedy; provided, ~l ! however, that before the exercise of such option for .failure to r.~~- rr,n}- ~r Fai 1 >>rr~ ~-n r.nr~~r~n ~n~r r+r~nrli {-i nn i rnr~~c•r~r-l }~r,rni n rub ict. ~. vi tui.i uic ~..v Nci 1. vi. u~ uaiY L. V11u11..1 Vi1 iaur v...~cu ~icLCl.aa upon the Tenant, the Landlord shall give written notice of such event of default to the Tenant, which thereafter shall have thirty (30) days, from the date notice is sent by the Landlord, within which to remedy or correct such default, unless such default is the failure to pay rent, in which case the Tenant shall have fifteen (15) business days, from the date notice is sent by the Landlord, within which to remedy such default by paying all rent due. 22. Default by Landlord. In the event of a breach or default of this Lease by the Landlord, Tenant may seek damages or equitable relief for the breach, as provided by law. 23. Identity of Interest. The execution of this Lease or the performance of any act pursuant to the provisions hereof shall not be deemed or construed to have the effect of creating between the Landlord and the Tenant the relationship of principal and agent or of a partnership or of a joint venture and the relationship between them shall be and remain only that of landlord and tenant. 24. Notices and Reports. Any notice, report, statement, approval, consent designation, demand or request to be given and any option or election to be exercised by a party under the provisions of this Lease shall be effective only when made in 1 " 1 ~ 26 ~/ with postage prepaid} to the other party at the address given below: Landlord: City of Sebastian Attn: City Manager 1225 Main Street Sebastian, FL 32958 Tenant: J & S Aviation, Inc. 299 Airport Drive West Sebastian, FL 32958 provided, however, that either party may designate a different representative or address from time to time by giving to the other party notice in writing of the change. Tenant shall promptly pay all rentals and other. charges and render all statements herein prescribed at Landlord's Address, as set forth above, or to such other person or corporation, and at such other place, as may be designated from time to time by Landlord in writing.. If Landlord shall pay any monies or incur any expenses in correction of any violation of any covenant, undertaking, or agreement of Tenant as is set forth in this Lease, the amounts so paid or incur__ed shall, at Landlord's option and on notice to Tenant, be considered additional rent payable by Tenant with the next installment of rent thereafter to become due and payable and may be collected or enforced as by law provided in respect to payment of rent. All payments due under this Lease shall be made, at Landlord's option, the exercise of which shall 27 /, i ~ I` shall be made, at Landlord's option, the exercise of which shall ~~ rnoonno~~ n i n ranch lTTni ~-~.-~ C~~~-nc ia~rr~nr.~~1 ~r 1-~~. ~ac}ii ~r ~ a VC 1C4JV1141J1C, 111 L.4J11 ~ Vlll 1. G\.i .JLUI~CJ x..411 C11 \+,I ~ Vl L~ \..4J111C1 J check issued by a national banking association located in Indian River County; all checks shall be received subject to clearance. 25. Right to Inspect. The Landlord may enter the leased premises upon reasonable notice: (a) To inspect or protect the leased premises or any improvement to a property location. thereon; (b) To determine whether the Tenant is complying with the applicable laws, orders or regulations of any lawful authority having jurisdiction over the leased premises or any business conducted therein; or (c) To exhibit the leased premises to any prospective purchaser or Tenant during the final sixty (60) days of the lease term, or at any time after either party has notified the other that the Lease will be terminated. for any reason. No authorized entry by the Landlord shall constitute an eviction of the Tenant or a deprivation of its rights or alter the obligation of the Landlord or create any right in the Landlord adverse to the interest of the Tenant hereunder. 26. Ov~nership of Trade Fixtures, Signs and Personal Pro~aerty. At the expiration of the Lease, any trade fixtures, signs and personal property used by the Tenant in the operation of its business, on the leased premises shall remain the Tenant's ~~ is sole property and the Tenant shall have the right to remove the same provided any damages in removal are repaired by the Tenant at Tenant's sole cost. In case of a judicially determined breach of this Lease by the Tenant, or the termination of the Lease, or any extension hereunder, that may be granted, the .Tenant agrees to immediately surrender possession of said facilities, and all the buildings, edifices, etc. that are constructed by or on behalf of ,Tenant. The facilities, buildings, edifices, etc. shall then become the property of the Landlord. 27. Height Restrictions. The Tenant expressly agrees for itself, its successors and assigns, to restrict the height of structures, objects of natural growth and other obstructions on the leased premises to such a height so as to comply with all Federal Aviation Regulations., State laws and local ordinances, rules and regulations now existing and hereinafter promulgated. The Tenant expressly agrees for itself, its successors and assigns, to prevent any use of the leased premises which would interfere with or adversely affect the operation or maintenance of the Airport or otherwise constitute an airport hazard. The Tenant covenants and acknowledges that the use of the leased premises as proposed by the Tenant does not interfere with or adversely affect the operation or maintenance of the Airport or otherwise constitute an Airport hazard. The Landlord reserves unto itself, 29 `~~ r -~ -t its successors and assigns, for the use and benefit of the public, o ri nl~f- ..F F1 i nli4- Fr,r +-},r+ r~ncoor.r. ..F ~i rnr~ft i n }-1~~ of ro.-~~r•r, V llyll 1. Vl 1111,111. 1V1 1~11C iJUJJUI~G Vl U11VlUl ~. 111 1..116 411 J1.J GIVC above the surface of the Ileased Premises, together with the right to cause in such airspace such noise as may be inherent in the operation of aircraft, now known or hereafter used, for navigation or flight in the airspace, and for use of said airspace for landing on, taking off from, or operating on the Airport. 28. Nondiscrimination. The Tenant for itself, its personal representatives, successors in interest and assigns, as part of the consideration hereof, does hereby covenant and agree as a covenant running with the land that (i) no person on the grounds of religion, gender, marital status, 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 the Tenant's facilities; (ii) that in the construction of any improvements on, over or under the leased premises and the furnishing of services thereon, no person on the grounds of religion, gender, marital status, race, color or national origin shall be excluded from. participation in, denied the benefits of, or otherwise be subjected to discrimination; (iii) that the Tenant shall use the premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally Assisted Programs of the G--~ CG . ~ Department of Transportation - Effectuation of Title VI of the Civil Rights Act of 1964, and the Americans with Disabilities Act. In the event of the breach of any of the above. non- discrimination covenants, the Landlord shall promptly notify the Tenant, in writing, of such breach and the Tenant shall immediately commence curative action. Such action by the Tenant shall be diligently pursued to its conclusion, and if the Tenant shall then fail to commence or diligently pursue action to cure said breach, the Landlord shall then have the right to terminate this Lease and to re-enter and repossess said land and improvements thereon. Landlord represents and warrants that the leased premises is zoned AI (Airport, Industrial), pursuant to the applicable governmental ordinances. 29. A~d~ciitional Rights of Landlord. The Landlord shall. have the option, without waiving or impairing any of its .rights hereunder, to pay any sum or perform any act required of the Tenant, and the amount of any such payment and the value of any such performance, together with interest thereon, shall be secured by this Lease, and shall be promptly due and payable to the Landlord. Landlord shall have no liability whatsoever for any loss or damage resulting in any way or manner from such action. All delinquent payments with a delinquency of ten (10) days or more to the Landlord shall bear interest at the rate of 18~ per year from date the payments are due to the date of payment. Said 31 (l.~ interest shall be calculated on a daily basis and shall be due and pay abic iiviicii uiiicu. In the event of the Tenant's breach of any of the provisions of this Lease, the Landlord shall thereupon have a lien upon all revenues, income, rents, earnings and profits from the leased premises as additional security to the Landlord for the Tenant's faithful performance of each of-the terms and provisions hereof, and to secure payment of all sums owing to the Landlord hereunder. Such liens shall be superior in dignity to the rights of the Tenant and any of its creditors or assignees or any trustee or receiver appointed for the Tenant's property, or any other person claiming under the Tenant. Upon the Landlord's termination of the Tenant's rights under this Lease by reason of the Tenant's default, all such revenues, income, rents, earnings and profits derived or accruing from the leased premises from the date of such termination by the Landlord shall constitute the property of the Landlord, and the same is hereby declared to be a trust fund for the exclusive benefit of the Landlord and shall not constitute any asset of the Tenant or any. trustee or receiver appointed for the Tenant's property. The provisions of this paragraph shall be effective without the Landlord's re-entry upon the leased premises or repossession thereof, and without any judicial determination that the Tenant's interest under said lease has been terminated. The Tenant acknowledges that the Landlord has adopted an u ~ 32 ~U Airport Master Plan and the Tenant covenants that it will use the leased premises to be consistent with the Airpcrt Master Plan. The Tenant shall not allow its occupancy or use of the lease premises to constitute or become a public or private nuisance. 30. Entire Agreement. This Lease contains all of the understandings by and between the parties hereto relative to the leasing of the premises herein described, and all prior or contemporaneous agreements relative thereto have been merged herein or are voided by this instrument, which may be amended, modified, altered, changed, revoked or rescinded. in whole or in part only by an instrument in writing signed by each of the parties hereto. 31. Aa~ignment and Subletting. The Tenant shall not assign this Lease or sublet the leased premises or any portion thereof, or otherwise transfer any right or interest hereunder without the prior written consent of the Landlord, which consent may be withheld for any reason. If the Landlord consents, in writing, to the assignment, subletting or other transfer of any right or interest hereunder by the Tenant, such approval shall be limited to the particular instance specified in-the written consent and the Tenant shall not be relieved of any duty, obligation or liability under the provisions of its Lease. 32. Binding Effect. The terms and provisions of this Lease 33 ~ /~ /` .~/"~ shall be binding on the parties hereto and their respective heirs, successors, assigns and personal representatives, and the terms of any Addendum attached hereto are incorporated herein. 33. Applicable Laar/Venue. In the event of litigation arising out of this writing, venue shall be in Indian River County, Florida and the terms of this Lease shall be construed and' enforced according to the laws of the State of Florida except to the extent provided by Federal law. 34. Attorneys Fees. In any action arising out of the enforcement of this writing, the prevailing party shall be 'entitled to an award of reasonable attorneys fees and costs, both at trial and all appellate levels. 35. Time of the Essence. The Tenant agrees promptly to perform, comply with and abide by this Lease, and agrees that time of payment of performance is of the very nature and essence hereof . 36. Recording. In no event shall the Lease or a copy thereof be recorded in the Public Records of Indian River County, Florida. 37. Aircraft Fuel Dispensing. Lessee is permitted to service its leased or owned aircraft with aviation fuel and lubricants subject to the safety and environmental standards contained herein. Fueling will be done only from metered ~~ ~ fueling dispensers, fixed or mobile, especially constructed for dispensing aviation fuel, and having all safety devices specified by the Rules and Regulations of the Federal Aviation Administration, Florida Department of Transportation and Aviation, and the National Board of Fire Underwriters. Under no circumstances will fueling of aircraft from drums be permitted. (1) Fueling shall fully comply with the criteria of FAA Advisory Circular 150/5230-4, including current changes., and with all references listed in Appendix 6 of Advisory. (2) In addition to the insurance requirements stipulated herein, the following special coverages are also required in the amount of $5,000,000.00: a) products and completed operations liability for fueling operations; b) environmental pollution/hazardous materials cleanup and restoration liability with the City names as an additional insured. (3) Dispensing vehicles and bulk lubricants will be housed in or upon approved facilities. Storage within aircraft hangars is prohibited. 38. Feel Flowacte Fee. In addition to the Minimum Annual Rent, the Tenant and any sublessee of Tenant, shall also pay to the Landlord a fuel flowage fee, which shall not be rent for the Leased Premises, but shall be collected by the Landlord form the Tenant, and any sublessee of the Tenant. The fuel flowage fee 35 --~,. ~~ shall be two cents per gallon on all aviation fuels delivered to the Tenant, or to any sublessee of the Tenant, at the Airport (the preceding charge per gallon shall be subject to change at any time by Landlord as determined by resolution of the City Council of Sebastian. Such change shall become effective immediately upon delivery of written notice thereof to Tenant). The Tenant and any sublessee of the Tenant shall furnish to the Landlord written detailed monthly statements showing the total amount of aviation fuels delivered to the Tenant, or any sublessee of the Tenant, at the Airport. Said statements shall be furnished no later than the 15t" day of each month during the time this Lease shall be in force. The Tenant agrees, both on behalf of itself and any sublessee of the Tenant, that said amounts may be collected by the Landlord from the Tenant, or any sublessee of the Tenant, in the same manner as the monthly rental installments. (1) The monthly statements referred to in the foregoing subparagraphs pertain only to operations conducted at the Airport and exclude any operations of the Tenant, or any sublessee of the Tenant, conducted at other locations. (2) The Tenant, or any sublessee of the Tenant, shall further retain upon the Leased Premises all delivery bills, invoices and related records pertaining to all aviation fuels delivered to the Tenant, or to any such sublessee, and shall ~__._/ produce and make available such books and records upon request 36 by the Landlord for the purpose of auditing payments to the Landlord as provided herein. Such books, records and other documents shall be made available for inspection to representatives of the Landlord during business hours, at the request. of the Landlord. If said inspection reveals that payments to the Landlord are in error, by more than 2~, Tenant shall pay the additional amount owing to the Landlord, plus all costs of said inspection. 39. Fuel Farm. a. Compliance with Governmental Laws and 'Regulations: Lessee agrees and warrants that the fuel farm shall be maintained and managed by Lessee in accordance with all applicable laws, rules, and regulations currently in effect and hereinafter imposed by federal, state and local governing authority. b. Indemnification: Lessee hereby agrees to indemnify, defend-and hold Lessor harmless from and against any and all expenses, costs, damages, judgments, liabilities and reasonable attorney's fees incurred by Lessor resulting from any claims, causes of action, demands, lawsuits, proceedings or actions of any party arising from or in any way connected to the oileration of said fuel farm by Lessee, its agents or employees or for any conditions existing on the leased premises relating to said fuel farm. c. Addition to Rent: Lessor's costs in removing C~ 37 and replacing the fuel farm as provided in Paragraph 1 above shall be amortized over the useful life of the fuel farm, using an interest rate equal to the rate Lessor receives on money deposited with the State Board of Accounts ("SBA") plus one percent (1$) and shall be payable monthly by Lessee along with the monthly rent payment due Lessor under the Lease, commencing on the 10th day of the month following the month in which Lessor completes replacement of the fuel farm. For purposes of this Paragraph, the useful life of the fuel farm shall be deemed to be thirty (30) years. The addition to rent established under this Paragraph shall be recalculated on a yearly basis on the anniversary date of Lessor's completion of the replacement of the fuel farm using. the then current interest rate received by Lessor from the SBA plus one (1~) percent. 40. Parking Rental Fees. The Tenant shall remit to the Landlord ~ of parking fees charged, currently $1.00 per day, up to a maximum of $10.00 per month, as set by the City Council. IN ~PITNESS ~PHEREOF, the Parties hereto have set their hands ~j and seals the day and year first. above written. ATTEST: ,r ~ ~iV'~.s~--' Kathr M. O'Hallor~, CAC/AAE CITY OF SEBASTIAN A Municipal Corporation Existing under the laws of State of Florida ~~~ Thomas W. Fr e City Manager (SEAL Wr':tr,ess: '~ ~ Q~, ~._ - - ~- L ~~ 71~. ~- . l J 6 S AVIATION, INC. By ~, u ~~~c/>~Fl s ;,4.v.~i; Approved as to Form and Content: City Attorney ~~) ~~ Page 1 of 3 BUY-QUT & RELOCATION AGREEMENT ~~~ ~ ~ THIS AGREEMENT, made and entered into this 'day of~e~y, 2003, by and between the CITY OF SEBASTIAN, a municipal corporation existing under the laws of the State of Florida, (hereinafter referred to as the "City"), and J & S Aviation, Inc., a Florida corporation, (hereinafter referred to as the "Tenant"), provides as follows: WITNESSETH: WI~REAS, City is the owner of certain property located in the County of Indian River County, Florida; and WHEREAS, the certain property is being used for the operation of the Sebastian Municipal Airport (hereinafter referred .to as the "Airport"); and 'WHEREAS, the parties entered into a certain AIRPORT LEASE dated February 22, 1999 (hereinaer called the "Lease"); and WHEREAS, the Runway 9127 Reactivation Project requires the removal of improvements from the subject~leasehold; and WHEREAS, the parties Dave reached an amicable agreement that accomplishes the dual purpose of enabling the Project to move forward and preserves the viability of Tenant's business enterprise; NOW, THEREFORE, in consideration of the payments and mutual promises between the parties as hereinafter provided, the receipt and sufficiency of which are hereby aclmowledged, the parties have agreed as follows: 1. Tenant shall vacate and cease to occupy the leasehold premises no later than January 1, 2004. As of said date, all items of personal property not removed try Tenant shall be deemed abandoned and shall become the property of Landlord. 2. No later than April 15, 2003, City shall survey a parcel of 2 acres, more or less, in accordance with the schematic presented in Exhibit "A" (hereinafter called the "Relocation Site', and the within ten (10) days of delivery of the same, the parties shall • execute a lease amendment in the form attached hereto as Exhibit "B". Notwithstan ' ~j_~ EXHIBIT BUY-OUT & RELOCATION AGREEMENT Page 2 of 3 said lease amendment, aII terms of the original lease shall apply to the occupancy of the original leasehold premises until the same is actually vacated or a certificate of occupancy is issued for the relocated facility, whichever occurs first. 3. Landlord shall perform the following relocation activities at no cost to Tenant: a) Prepare, and process for approval, a basic site plan for the Relocated Site to accommodate a facility of the. same general size as Tenant's existing facility; b) Provide such additional asphalt sur.Eacing for aircra$Jvehicle parking and fill dirt to the Relocation Site as required to fulfill the basic site plan approved ptnsuant to subsection a) above; c) Establish utility easements and a paved access to the Relocation Site; dj Issue a building pemnit for the new facility; e) Accommodate stormwater discharge for the. Relocated Site into the City system off-site; and t) Transfer ownership of .fuel tank and related equipment to Tenant and require no payments or rent for the fixel tank for the duration of the lease. 4. Landlord shall cooperate with Tenant in processing impact fee credits with the County, as well as permitting issues with all regulatory agencies. 5. Landlord sha]I complete the activities set forth in paragraph 3 and have the Relocated Site available for occupancy by closing Runway 13-31, displacing the threshold, obtaining a waiver from the FAA,, and/or a~ combination of the above, in accordance with a schedule. that will reasonably allow completion of the relocated facility at least thirty days prior to -the date of vacancy established in paragraph 1 _ 6. Thmugh the end of the occupancy period as set forth above, all remaining terms of the Lease shall continue in e$~ect, and Tenant shall make all rental payments required tinder said lease, Payment of rent shall be abated during the period between the date of vacancy set forth in paragraph 1, anal the date a Certificate of Occupancy is issued for relocated facilities at the Relocation Site. C~, ~._._.-i BUY-OZ7T & RELOCATION AGREEMENT Page 3 of 3 7. The rights granted to Tenant hereunder are conditioned upon Tenant's continued compliance with the requirements of the terms of its Lease. Default and breach of said lease shall constitute a waiver and immediate forfeiture of these rights by Tenant. 8. A$er the execution of BUY-OUT & RELOCATION AGE and FIRST AMENDMENT TO AIlZPORT LEASE, Landlord shall pay Tenant the amount of eighty-five thousand dollars ($85,000) that, along with performance of the obligations set forth herein, shall constitute ;full and complete compensation to Tenant for all claims related to the Runway Reactivation Project. 9. The terms of this agreement are deemed to satisfy the provisions of paragraph 4 of the original Lease, and shall survive execution of any lease amendment or conveyance document absent express written modification or abrogation. . 10. At anytime prior to the date of vacancy set forth in paragraph I, Tenant may choose to terminate the leasehold and not to build the relocated facility, in which case • Tenant shall keep the aforementioned eighty-five thousand dollars ($85,000) as full and complete compensation to Tenant for all claims related to the Runway Reactivation Project. IN WITNESS WHEREOF, the parties hereto have. set their hands axed seals the day and year first above written. ATTEST: r~ Sally A. o, CMC City Clerk Approved as to Form and Legality for Reliance by the City of Sebastian only; Ric Stringer, City A ey City Manages J & S AVIATION, IIVC. . ~~ B Its: Sec Td~s. jCorporate Seal) l '~ • ~ EXHIBl'r ~~A„ •. ~ ~ i~~ -,~ ~~~i' . ~~ :~ ` NORTS _ i ~ . ~~~ ~ ~~~~ QUADRANT ~,~~ \ . `., ~ r . O ~ ` i ~ ti ~ - i D ~ ~ ~ ~ ti ~! ~` ~ ~r ~ `~ ~~ i ~ xoRTs non .. - /. ~ , • .~--r-, AREA ~, ~ `~ ~ ; f ; ' ~ • .~` \ ~` !~ / fr ~~ ~; . ~ ~ • \ / • i~ EAST WEST TAXIWAY ~ ~ EAST ~ ~: .. ~ • ~ ~ ~ ~ QIIAD~tAIQ'I' ~ ~~ .. . . .. ~~ i ., ~ •' ~ ~ ~ i f • ~. ' / : ' SE$ASTIAN M~iICQ'AL ~ ~~.~p ~ ~ ~ ~ GOLF COURSE c O~ O,~'~,,G / j M ~ ~~ ~ ,, ~~ w' ~ ~ ~` ~, ~ ~ ~# ° `~' ~ QUADRANT ~ ° ~ ~® '~ J ? fl; °c e r C aae /. ~ - °~ ~ ~ _ ~ - . G ~~ ~ ~ ~. ~' PARCEL 1: LEGAL DESCRIPTION From the East Corner of Section 29, being also the South corner Section 30 of the Fleming Grant, Indian River Count of 1705.85 ft, bearing S-45°08'49" W along the Fleming~Grant1lineRun a concrete monument, thence run 1137.65 ft. bearing N-44°26'00"tW to a concrete monument being the Southwest corner of Tract No. 4 as shown in the Lloyd & Associates Surve August 12, 1958, thence run 382.22 ft. bearing N~O1 S9 441' dated point, thence. run 367.63 ft bearing 5-89 54 38 ° ~ E..to a is .the point of beginning, continuing 21g,97 fta alont which bearing~•being_the south edge of th.e East-West runwa o g said Satellite Field to"a~nail & disk, thence run 175.031 ft.Rvseland N-0° 02'59" W to a concrete monument thence bearing bearing N-89 54'06" W to a: concrete monument, thence run 174f98 ft. bearing N-0°04'55" E to the point of beginning, containin .8 acres more or less. g g ~~~ ~~ J PARCEL 2; LEGAL DESCRIPTIOIti' FOR of Scctien 29, being also the South corner of Section 30 of The Flcrnin FC m tha Frast comer Cauaty, Florida, run S 4S degrees 08 rninutcs 49 seconds W along the g ~, Indian River of 1705.85 feet to a concrete montua theace run N 44 de Flemtag Grant ~ a dsstaace distance of 1137.63 feet to a concrata monumrnt; sand comer being tha Southw~~ornQ of W a No. 4 as shown in the Lloyd &. Associates Survey Job No. 58-142, dated Au Tract rua N 1 de S~ 12, 1958; thence grce 54 minutes 41 seconds E a distamco of 382.22 feet; thence tun S 89 ~gtecs 54 minutes 3$ seconds W a distance of 587.60 feet; thence run N 0 d a distance of 100.0 feet to the point of 8e ' epees 42 n~inutea 59 seconds W guiaing of the herein dcscn3ed parcel; thence nm S 89 degrees 54 minutes 38 seconds W a distanca of 450.0. feet; thence ntn N 0 degrees 02 minutes 59 aoconds W a distance of 100.0 feet; thence rum N 89 degrees Sd utinutes 38 seconds E a distance of 450.0 Poet; thence run S 0 degrees 02 minutes 59 seconds E a distance of 100.0 feet to the Point of • ,Beginning, Coa:aining 45,000 square foci or 1.03 acres, ~, it ~ 3 EXHIBIT "B" .Page 1 of 3 FIRST AMENDMENT TO AIRPORT LEASE THIS AGREEMENT entered this day of , 2003, amends that certain AIRPORT LEASE existing between the CITY OF SEBASTIAN, a Florida municipal corporation (hereinafter called "Landlord") and J & S AVIATION, Inc., (hereinafter called "Tenant") dated February 22, 1999, and provides THAT IN AND FOR CONSIDERATION of fulfillment of the existing and previously bargained contractual obligations between the parties, the following is agreed: 1. That the legal description of the leased premises is amended to exclude the following parcel of land: {See attached Schedule "A "~ consisting of acres more or less. 2. That the payment of rent shall be abated until issuance of a certificate of occupancy for improvements to the newly designated leased premises. Thereafter, the initial rental amount shall be five cents ($.OS) per square foot. 3. That the initial term of the lease shall be expanded to run for thirty years through April 23, 2029. 4. During the twenty-fifth yeaz of the Term the Landlord shall obtain an appraisal of the Prenuses including all Improvements constructed thereupon, unless this requirement and the Option to Extend is waived in writing by Tenant. A. Tenant O tions. Within ninety (90) days after delivery to Tenant of the appraisal, Tenant may exercise one of the following four options: i. Accept the rent valuation therein and offer in writing to enter anon-assignable, nonrenewable lease extension agreement for up to ten (10) additional yeazs in accordance with the provisions herein except applying a new base Annual Rent amount equal to eight percent (8%) of the value established in said appraisal. (~ Z EXHIBIT "B" Page 2 of 3 This Extension Agreement shall be substantially in the form attached hereto as Exhibit "I". ii. Give notice of its intent to commission a second appraisal by a certified real estate appraiser to be completed within forty-five (45) days. a. If said appraisal results in a valuation of the Premises and Improvements within ten percent (10%) of the initial appraisal, the figures shall be averaged. b. If a disparity of greater than ten percent (10%) results, the respective appraisers shall confer and attempt to negotiate a compromise valuation. c. If no compromise results, said appraisers shall jointly submit the name of a qualified appraiser to the parties who shall then jointly commission. an appraisal therefrom. Said appraisal value will be used to establish the rental amount if it falls between the values of the first two appraisals. If the value thereof falls outside the range of the first two appraisals, the relevant value shall be derived from averaging the three appraisals. Within thirty days of establishment of a rental value as set forth above, Tenant may exercise either option contained in subparagraphs "a" or "c" hereof. iii. Give notice of its intent to allow the lease to expire at the end of the thirty-year term. iv. Landlord and Tenant may agree on an alternate rental rate for the additional term. B. Landlord O tp ions. If Landlord does not accept an offer to enter into a renewed lease, the lease shall expire at the end of the thirty-year term, but the rent for the final five years of the lease shall be waived as additional consideration to Tenant for relinquishing ownership of all site improvements thereafter. C. Automatic Increases durin~Extension. During the term of any extension pursuant to this Article, on each anniversary of the Commencement Date, this Annual Rent shall . _ __._,` }~ s V EXHIBIT "B" Page 3 of 3 be subject to increases in accordance with the Price Index provisions of the original Lease. 5. That this amendment shall take effect February , 2003, or such earlier date as subsequently agreed to between the parties in writing. 6. All other, terms and conditions of the Lease Agreement shall remain in full L~4 force and effect. IN WITNESS WHEREOF, the parties hereto have set their hands and seals the day and year first above written. ATTEST: Sally A. Maio, CMC City Clerk CITY OF SEBASTIAN By: Terrence R. Moore, City Manager Approved as to Form and Legality for Reliance by the City of Sebastian only: Rich Stringer, City Attorney J & S AVIATION, INC. By: Its: [Corporate Seal] FIRST AMENDMENT TO AIRPORT LEASE THIS AGREEMENT entered this ~ day of MQ.~"{' , 2005, amends that certain AIRPORT LEASE existing between the CITY OF SEBASTIAN, a Florida municipal corporation (hereinafter called "Landlord"} and J ~ S AVIATION, Inc., (hereinafter called "Tenant") dated February 22, 1999, and provides THAT IN AND FOR CONSIDERATION of fulfillment of the existing and previously bargained contractual obligations between the parties, the following is ageed: 1. That the legal description of the leased premises is amended to include the following parcel of Land: {See attached Schedule "A "} consisting of 1.93 acres more or less, and is further amended to exclude the following parcel of ]and: {See attached Schedule `B "} consisting of 1,91 acres more or less. 2. That the payment of rent shall be abated until issuance of a certificate of occupancy for improvements to the newly designated leased premises. Thereafter, the initial rental amount shall be five cents ($.OS}per square foot. 3. That the initial term of the lease shall be expanded to run for thirty years through Apri123, 2029. 4. During the twenty-fifth year of the Term the Landlord shall obtain an appraisal of the Premises including all Improvements constructed thereupon, unless this requirement and the Option to Extend is waived in writing by Tenant. A. Tenant Q~tions. Within ninety (90) days after delivery to Tenant of the appraisal, Tenant'may exercise one of the following four options: i. Accept the rent valuation therein and offer in writing to enter anon=assignable, nonrenewable lease extension agreement for up to ten (10) additional years in accordance with the provisions herein except applying a new base Annual Rent amount equal to eight percent {8%) of the value established in said appraisal. This Extension Agreement shall be substantially in the form attached hereto as Exhibit "I". ~.~ _) ~xN~i ~r~' ~G`, ii. Give notice of its intent to commission a second appraisal by a certified real estate appraiser to be completed within forty-five (4S) days. a. If said appraisal results in a valuation of the Premises and Improvements within ten percent (10%) of the initial appraisal, the figures shall be averaged. b. If a disparity of greater than ten percent (10%) results, the respective appraisers shall confer and attempt to negotiate a compromise valuation. c. If no compromise results, said appraisers shall jointly submit the name of a qualified appraiser to the parties who shall then jointly commission an appraisal therefrom. Said appraisal value will be used to establish the rental amount if it falls between the values of the first two appraisals. If the value thereof falls outside the range of the first two appraisals, the relevant value shad be derived from averaging the three appraisals. Within thirty days of establishment of a rental vahte as set forth above, Tenant may exercise either option contained in subparagaphs "a" or "c" hereof. iii. Give notice of its intent to allow the lease to expire at the end of thethirty-year term. iv. Landlord and Tenant may agree on an alternate rental rate for the additional term. B. Landlord Options. If Landlord does not accept an offer to enter into a renewed . lease, the lease shall expire at the end of the thirty-year term, but the rent for the final five years of the lease shall be waived as additional consideration to Tenant for relinquishing ownership of all site improvements thereafter. C. Automatic Increases during Extension. During the term of any extension pursuant to this Article, on each anniversary of the Commencement Date, this Annual Rent shall be subject to increases in accordance with the Price Index provisions of the original Lease. 5. That tk~is amendment shall be given retroactive effect to January 15, 2005. l~ ~f ; ~l All other terms and conditions of the Lease Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have set their hands and seals the day and year first above written. A' Sally A. Mai City Clerk ~ CITY OF SEBASTIAN By: Approved as to Form and Legality for Reliance by the City of Sebastian only: c 1 Rich Stringer, City t ey Davis, Interim City Manager & S AVIATION, INC. Its: SeG~ tkf'~ :,. [Corporate Seal] ,..r ~~ '~ 4R.f ~' X,~ti~111 a~» Page 1 of 2 LEASE EXTENSION AGREEMENT THIS LEASE EXTINSION AGREEMENT, made and entered into this day of 2024, by and between the CITY OF SEBASTIAN, a municipal corporation existing under the laws of the State of Florida, {hereinafter referred to as the "Landlord"), and J & S AVIATION, INC. (hereinafter referred to as the "Tenant") provides that IN AND FOR CONSIDERATION of compliance with the. terms of that certain FIRST AMENDMENT TO AIRPORT LEASE between the parties dated March 2005, and the mutual covenacrts hereinafter provided, the receipt and sufficiency of which are hereby acknowledged, the parties have agreed as follows: The Leasehold of the afore-mentioned Lease Agreement is hereby extended for an additional ten years from the date of the expiration of its Initial Term. 2. The Annual Rent for the first year of said extension shall be $**,*'"*. Each year on the anniversary of the Commencement Date, this Annual Rent shall be increased in accordance with the Price Index adjustment provisions set forth in the original Lease. 3. The Leasehold shall terminate at the end of this extended term and Tenant shall surrender possession of the Prenuses. 4. All other terms and provisions of the Lease Agreement, as modified by the First Amendment thereto, shall remain in full force and effect unless application of the same shall lead to a ludicrous result. AGREED to on the date first set forth above. (~~ ATTEST: City Clerk CITY OF SEBASTIAN A Municipal Corporation By: City Manager - Exhibit "I" Page I of 2 Approved as to Form and Legality for Reliance by the City of Sebastian only: City Attorney J & S AVIATION, INC.. By: its: Corporate Seal: C~ A PARCEL OF LANG LYING AND BEING IN THE COUNTY OF INDIAN RIVER, STATE OF FLORIDA, BEING A PORTION OF THE PEENING GRANT • IN 7bWNSH1P 31 SOUTH, RANGE 319 ~EatST, TALLAHASSEE ~+1~lERID64N, FT,ORILLI. AS SHOWN ON THE SUBONISION PCAT OF SAID PEENING GRANT RECORDED AT PAGE'S 72 AND 73 1N P[AT BOOK NO. f /N TWE PUBLIC RECORDS OF 1HE COUNTY OF BREVARD. STATE OF FLORIDA. SAID LAND BEING +WORE PARTICULARLY DESCRIBED AS FOLLOWS: Cp1NMENCING AT THE EASTERLY CORNER OF SECTION 29 OF THE FLEAAING GRANT IN TOWNSHIP 3t SOUTH, RANGE 38 EAST; TALLAHASSEE MERIDLAN, FLORIL]A. A5 SHOWN ON THE SUBOMSION PLAT OF SAID f1EI+frNG GRANT RECORDED AT PAGES 72 AND 73 W FLAT 800K NO. f IN THE PUBLIC RECORDS OF THE COUNTY OF BREYARD, STATE OF FLORIQ,4, RUN SOUTH 44.59'29" WEST ALONG THE SOUTHEASTERLY LINE OF SAID 5ECTJ'ON 28 A DISTANCE OF 268.1.27 fEE7;• THENCE DEPARTING SAID SOUTHEASTERLY LINE; RUN NORTH 45'00'31'" WIES T A DISTANGE OF 1726.3a FEET Tn THE POWT OF BEis^INNING; FROA! TFIE POINT OF BEGINNING RUN SOUTH 39'53'00" WEST A DVS7ANCE OF 70,06 fFET; THENCE RUN SOUTH 89'47'.36" WEST A OfSTANCE OF 511.49 FEET; THENCE RUN NORTH 44'35'30" FAST A DISTANCE OF 374.93 FEET; THENCE RUN SOUTH 45'06'03" EAST A DISTANCE OF 120.22 FEET; THENCE RUN NORTH 43'x3'18" EAST A DISTANCE OF 57.02 FEET; THENCE RLNV SOLlTN 4.'1'09'00" Ei~.ST A DISTANCE OF 238.14 FEET TO THE Pr?INT OF BECINr1IlNG. 5A/D LANDS NOW LYINC AND' BEING IN INDWN RNER COUNTY, I~iORrtti~, ~ [aONTAINING 1.93 ACRESr MORE OR LESS. Schedule "A" ~~ pARt~, 1; LEGAL DESCRIPTION From the East Corner of Section 29, being also the South corner of Section 30 of the Fleming Grant, Indian River County, Florida, Run 1"]05.85 ft. bearing S-45°08.'49" W along the Fleming Grant line to a concrete monument, thence run 1137.65 ft. bearing N-44°26'00" W to a concrete monument being the Southwest corner of Tract No. 4 as shown in the Lloyd & Associates Survey, Job 58-142, .dated August: 12, 1958, thence run 382.22 ft. bearing N-O1°54'41" E to a point, thence run 367.63 ft. bearing 5-89 54'38" to a point which is the point of beginning, continuing 219.97 ft. along said bearing_being_the south edge of the East-West runway of Roseland Satellite Field to a'nail & disk, thence run 175.031 ft. bearing N-0° 02'59" W to a concrete monument, thence run 220.026 ft. bearing N-89 54'06" W to a concrete monument, thence run 174.98 ft. bearing N-0°04'55" E to the point of beginning, containing .88 acres more or less. PARCEL 2: LEGAL DESCR1FT1ON FOR From the East comer of Section 29, beu-g also she South comer of Section 30 of The Fltming Crtaat. lndiaa Rimer County, Florida, run S 4S degrees 08~rninutca 49 seconds W aioag 1lteFieming Grant line s distanco ' of T 705.85 feet w a coacrote moaumeat; thence rue N d4 degrees 26 minutes 00 seconds W a distance of 1137.65 feet to a coacrote mamumeat; said comer bciag fire Southwest corner of Tract No. 4 es shown 'tn the Lloyd ~ Associates Surrey lob No. S& 142. dated August 12, 1458; thence run N 1 degree 54 minutes 41 secatids E n distance of 382.22 fast; thcncx run S 89 degrees 54 minutes 38 secvn~ds W ~- distance of 5$7.68 feet; thcaet rue N 8 degrees 42 minutes 59 seconds W s distance of 100.0 feet to the Point of Bagiauing of the heron described parcel; thaace nai S 89 degrees 54 minutes 38 seconds W a distanta of 450.0 feet; thence rue N 0 degrees 82 minutes 59 seconds W a distance of itNl.0 feet; thctue rtsm N 89 degrees 54 minutes 38 sccoads E a distaaec o f 450.0 feet; theruce nut S 0 degrees OZ minutes 59 secossds E a distance of 100.0 feet to the PoteYt of . Begittai~ag. Caatairtiag 45,008 square feet or 1.03 scree. Schedule "B" ~J -~ a IN THE CIRCUIT COURT OF THE NINETEENTH JUDICIAL CIRCUIT IN AND FOR INDIAN RIVER COUNTY, FLORIDA CASE N0.20050622-CA03 J & S AVIATION, INC., Plaintiff, vs. CITY OF SEBASTIAN, Defendant. ANSWER, AFFIRMATIVE DEFENSES AND COUNTER CLAIM COMES NOW the undersigned counsel to Defendant CITY OF SEBASTIAN and in response to the third amended complaint herein files this, its ANSWER 1. Paragraph 1 is admitted for jurisdictional purposes only. 2. Paragraphs 2 through 4 are admitted. 3. As to the allegations contained in paragraphs 5 through 7, the document speaks for itself. 4. As to paragraph 8, it is admitted that the City decided to reactivate runway 9-27, but it is denied that the decision was made in 2003. 5. As to paragraph 9, it is admitted that the parties executed said agreement on the date set forth and that a copy of the same is attached as Exhibit B, however it is denied that the agreement in and of itself modified the lease. 6. Paragraph 10 is admitted, however, a copy of the attachments to said exhibit were not included in the amended complaint herein. 7. As to paragraph 11, the first sentence thereof is admitted. As to the remaining allegations therein, the document speaks for itself. 8. As to paragraphs 12 and 13, the document speaks for itself. 9. Paragraph 14 is denied. 10. As to Paragraph 15, Defendant is without knowledge as to the meaning of the terms "fuel farm at the old location" and "old fuel farm" specifically and, accordingly, demands strict proof of said allegations. .~ ~~ ~~ 11. As to paragraph 16, the agreement speaks for itself as to the first sentence thereof, it is denied that Plaintiff contacted the Sebastian Airport Manager as alleged, and Defendant is without knowledge as to the remaining allegations of said paragraph and, accordingly, demands strict proof of said allegations. 12. As to paragraph 17, Plaintiff is without knowledge as to the allegations contained in said paragraph and, accordingly, demands strict proof of said allegations. 13. As to paragraph 18, it is admitted that said official told Plaintiff of the need to contact the fire department, however, it is denied that those were the only requirements told to Plaintiff. 14. As to paragraph 19, Defendant is without knowledge of said allegations and, accordingly, demands strict proof of said allegations. 15. As to paragraph 20, it is admitted that the Plaintiff did receive said permit on the date set forth, however, the remainder of said paragraph is denied. 16. Paragraph 21 is admitted. 17. Paragraph 22 is denied. 18. As to paragraph 23, it is admitted that the Defendant removed the remainder of the fuel containment structure from the prior leased property, but the remainder of said paragraph is denied. 19. As to paragraph 24, it is admitted that said official was at the airport in April 2005, but the remainder of said paragraph is denied. 20. As to paragraph 25, the first two sentences thereof are admitted. The third sentence thereof is denied. 21. As to paragraph 26, Defendant is without knowledge of the allegations therein and, accordingly, demands strict proof of said allegations. 22. As to paragraph 27, Defendant is without knowledge as to what date the Plaintiff received the letter, but admits that said letter was sent. The letter speaks for itself as to the contents thereof. 23. As to paragraph 28, it is admitted that said letter was sent on the date set forth, it is denied that said letter advises as to actions taken, and it is set forth that the letter speaks for itself. LI .' 24. Defendant is without knowledge as to the allegations of paragraph 29 and, accordingly, demands strict proof of said allegations. 25. As to paragraph 30 and 31, it is admitted that the letters were sent on the dates alleged however, Plaintiff's characterizations of the contents thereof are denied and the letters speak for themselves. 26. Paragraph 32 is admitted. 27. As to paragraph 33, the first sentence thereof is admitted and remainder of said allegations are denied. ' 28. As to paragraph 34, it is admitted that said letter was sent on the date set. forth and the letter speaks for itself as to its terms. 29. As to paragraph 35, it is admitted that Defendant removed some signs off site, but denied that these are the business location signs and that said removal was not justified. 30. Paragraph 36 is denied.. 31. Defendant re-assert its answers previously set forth to said allegations. 32. As to paragraph 38, it is admitted that the parties entered into the specified agreements, however it is denied that any additional documents are "clarifying". 33. As to paragraph 39, the contract documents speak for themselves as to the terms and purposes thereof. 34. Paragraph 40 is denied. 35. As to paragraph 41, the contract documents speak for themselves. 36. Paragraphs 42 through 44 are denied. 37. As to paragraph 45, Defendant is without knowledge as to relationship between Plaintiff and its attorneys, aserts that the contract language speaks for itself, but denies Plaintiff s entitlement to payment of said fees. 38. As to paragraph 47, Plaintiff has not existed for 30 years and the principal listed with the Division of Corporations appears to be someone other than John Van Antwerp. Accordingly, the first two sentences of said paragraph are denied. The third sentence of said paragraph has no place in a legal pleading and is therefore ignored. 39. Paragraph 48 is a statement of law and requires no response. 40. Paragraph 49 states legal conclusions and, accordingly, requires no response. ~: _. -~ ~~ f .~,,,. 41. As to paragraph 50, it is admitted that city and Plaintiff were both cited, however, the landowner is always cited for the actions of its tenant in these matters regardless of complicity. 42. Paragraph 51 is denied. 43. As to paragraph 52, it is denied that the city participated in moving the fuel farm, admitted that the City demolished a portion of apre-existing fuel farm site, but denied that City was responsible for obtaining the required approvals. 44. Paragraphs 53 through 57 are denied. 45. As to pazagraph 58, Defendant incorporates by reference the relevant portions of its Answer to the referenced allegations. 46. As to pazagraph 59, the documents speak for themselves as to the terms therein. 47. Paragraphs 60 through 63 aze denied. 48. As to pazagraph 64, Defendant is unaware as to the relationship between Plaintiff and its attorneys, but denies the entitlement to payment of said fees by Defendant. 49. As to pazagraph 65, Defendant incorporates by reference the relevant portions of its Answer to the referenced allegations. 50. As to paragraph 66, Defendant admits that a relationship existed between the parties, admits the authenticity of the attached documents, but asserts that the documents are not an integrated "contract". 51. As to pazagraph 67, Defendant admits that a lease was negotiated for a specific location, but denies that there are unique benefits thereto. 52. Paragraphs 68 and 69 are denied. 53. As to paragraph 70, Defendant is unaware as to the relationship between Plaintiff and its attorneys, but denies the entitlement to payment of said fees by Defendant. AFFIIZMATNE DEFENSES 54. As its First Affirmative Defense, Defendant asserts that Plaintiff has "unclean hands" in its dealings with regulatory agencies in the relocation of its fuel tanks, and is not entitled to the equitable relief requested in Count N. 55. As its Second Affirmative Defense, Defendant asserts that Plaintiff is estopped in bringing this action due to its bad faith performance of its obligations and prior breach. ~~ COUNTERCLAIM Defendant counterclaims against Plaintiff and for cause of action says: Count I -Possession 56. This is an action for possession of real property located in Indian River County, Florida. 57. The real property that is the subject of this action, hereinafter called the "Premises", is more particularly described in the attached Exhibit "I". 58. The parties entered into a lease agreement for said real property, the terms being set forth in the Lease attached to the Third Amended Complaint as Exhibit "A" thereto, as modified by the First Amendment to the Airport Lease, a copy of which is attached as Exhibit "C" to said Third Amended Complaint, said Exhibits being hereby incorporated by reference. 59. Despite the contractual requirement that it complete relocation by January 1, 2004; Plaintiff did not have facilities constructed at the Premises as of January 1, 2005. 60. At that point, Defendant informed Plaintiff that the Airport could no longer accommodate continued operations at the initial leasehold due to grant deadlines and construction contracts for the runway reactivation project. 61. Despite the requirements of City Code, Plaintiff requested that Defendant allow operations out of a temporary facility at the Premises for 90 days while the new structure was completed, and Defendant agreed to allow this accommodation for a period of 120 days. 62. In or around February, 2005, Plaintiff removed the fuel tank located at the original leasehold and stored it at the Premises. 63. The Indian River County Health Department (hereinafter called the "Department"), an agency of the state of Florida, has primary regulatory authority under Florida law in matters governing the installation, operation and removal of fuel tanks. 64. In violation of state law, Plaintiff removed the fuel tank from the original leasehold without notice to, or approval from, the Department. 65. Defendant received a Notice from the Department dated April 18, 2005, addressing ~/i ,, the closure of the fuel facility as a violation of law, a true and correct copy of said Notice being attached hereto as Exhibit "II". 66. After numerous verbal reminders while Plaintiff was in dispute with other regulatory agencies over its construction plan permitting, Defendant sent a written reminder to Plaintiff on Apri120, 2005, that use of the temporary facilities must cease by May 15, 2005. 67. Defendant delivered a Notice dated May 3, 2005, to Plaintiff that it was in default of the Lease due to the tank relocation issues, and that corrective action was required per the Lease, a true and correct copy of said Notice being attached hereto as Exhibit "III". 68. After delivery of the Notice contained in Exhibit "II", Plaintiff installed the fuel tank as part of a fuel farm facility at the Premises. 69. In violation of state law, Plaintiff installed the fuel tank upon the Premises without notice to, or approval from, the Department. 70. Defendant received a second formal Notice from the Department dated May 18 2005, which included the issue of installation of the fuel facility at the Premises as a violation of law, a true and correct copy of said Notice being attached hereto as Exhibit "IV". 71. Plaintiff refused to cure the default delineated in Exhibit "III" within the time provided in the Lease. 72. On June 3, 2005, Defendant gave Plaintiff a second Notice of Default, a true and. correct copy being attached hereto as Exhibit ""V", due to the continued operations out of temporary facilities at the Premises. 73. Plaintiff failed to cure the default noticed in Exhibit "V" and, through the present date, Defendant has continuously operated from the temporary facilities. 74. Further, from January 2005 through March 2006, Plaintiff, as a fiduciary, collected funds due the Airport for tie-down fees in accordance with .the Lease, yet failed to remit the same to Defendant until April 17, 2006. 75. On June 22, 2005, Defendant terminated the Lease. 76. By letter dated August 2, 2005, Defendant demanded that Plaintiff vacate the Premises no later than August 31, 2005. Plaintiff, however, refused to vacate the same and continues occupancy as a Tenant at Sufferance. 77. Defendant is entitled to possession of the Premises and invokes the summary _~ .~ procedures of FS 51.011 in this action for possession. 78. Defendant is represented by the undersigned counsel and compensates the same for legal services. Plaintiff is required to pay the fair value of this legal representation pursuant to paragraph 34 of the Lease as well as the Florida Statutes. WHEREFORE Defendant prays that the Court take jurisdiction of the cause herein, and enter its Judgment granting Defendant possession of the Premises, court costs and such fiu ther relief as the Court deems meet and proper. Count II -Quantum Meruit 79. Defendant realleges and incorporates the allegations of paragraphs 58 - 62 and 67 by reference. 80. 'This is an action in quantum meruit for the fair value of the use of the Premises- described in Exhibit "I". 81. The terms of the First Amendment to the Airport Lease were negotiated in early 2003 in conjunction with, and attached as an exhibit to, the Buy-out Agreement set forth in the Third Amended Complaint as Exhibit "B" thereto. 82. Said terms were premised upon Plaintiff taking possession of the Premises and. constructing its new facility while still in possession of, and operating from, the initial leasehold. 83, Because the agreements contemplated dual possession of both parcels of land by Plaintiff, but actual business use of only one at any given time, ,Defendant agreed to the pazagraph 2 rent abatement provision of Plaintiff's Exhibit "C" as an fair and equitable accommodation to its tenant. 84. Plaintiff did not undertake construction of its new facilities in a reasonable or timely manner, and never exercised dual possession of the properties and, accordingly, has never received a certificate of occupancy for the facilities at the Premises. 85. By allowing Plaintiff to occupy and use the Premises with a temporary facility, Defendant conferred a benefit to Plaintiff beyond the requirements of the Amended Lease. 86. Plaintiff accepted this benefit with full knowledge that it was beyond the contractual r~ __ .,\ ~. ~ ~l obligations of Defendant. 87. Citing the rent abatement provision of the Amended Lease, Plaintiff has refused to compensate Defendant for the occupancy and business use of the Premises. 88. Under these circumstances, it would be inequitable for Plaintiff to have accepted the benefit of use and occupancy of the Premises without paying Defendant the fair value of the same. 89. Defendant is represented by the undersigned counsel and compensates the same for legal services. Plaintiff is required to pay the fair value of this legal representation pursuant to paragraph 34 of the Lease. WHEREFORE Defendant prays that the Court take jurisdiction of the cause herein, and enter its Judgment granting Defendant compensation for the fair value of the use of Premises, court costs and such further relief as the Court deems meet and proper. - CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing was served by I7.S. mail to Robert B. Meadows, Esq., 2205 14~' Avenue, Suite 201, Vero Beach, FL 32960 and to Paul R. Berg, Esq., Co-Counsel for Plaintiff, Clem, Vocelle & Berg, LLP, 3333 20~' Street,; Vero Beach, FL 32960 this 8~' day of September, 2006. Rich Stringer, City ~ 1225 Main Street Sebastian, FL 32958 (772)388-8201 FL Bar # 731277 ~~ ~?~ : "fJ- A PARCEL OF LAND tYlNG AND 8ElNG !N THE COUNTY OF INDIAN RIVER, STATE OF FLORIDA, 6ETNC A PORTION OF THE FLEMINC CR4NT • IN TiDWNSHIP 3l SOUTH. RANGE 3i9 'FAST. TAl,LANASSEE il~lERlDIAN, FLORlt~4, AS SHOWN ON THE SUBDNISlON PLAT OF SAID FLEMING GRANT RECORDED AT PAGES 72 AND T3 IN P[AT BOOK M0. t !N TWE PUBLIC RECORDS OF THE COUNTY OF BRE~ARD, STAT£ OF FLORIDA. SA10 L4N0 BEING 4fORE PARTTCUL4RLY DESCRIBED AS FOLLOWS: CQAIAIENCING AT THE EASTERLY CORNER OF SECTION 29 OF THE FLEMIIVG GRANT !M TiDWN5HIP 3f SOUTH. RANGE 38 EAST. TALLAHASSEE NERIONW. FLOR!!34 A5 SHOWM OIV THE SU$DMSION PLAT OF SAID fLE~flNG GRANT RECORDED AT PAGES T2 AND T3 !N PLAT' BOOK N0. 1 !N THE PUBUC RECORDS OF THE COUNTY OF BREVARD. STATE OF FLORIDA. RUN SOUTH 44'59'29' WEST .ALONG THE 50UTHEASTERLY UNE OF SAID SECTION 29 A DISTANCE OF 268.3.27 FET:?,• THENCE DEPARTING SAID SDUTHEAS'TERLY- LNY~ RUN NORTH 45'00'31'" WEST A DISTANCE OF 1726,30 FEtT T70 THE P01NT OF 8EGlNN1NGi ~ FROM THE POWT OF 8E'GlNNlIVG RUN SOUT?4 39.53'00" WEST A DISTANCE' OF 70,06 FEETi THENCE RUN SOUTH 89'47'36' WEST A D15TANCE OF 51 i.49 FEETi !HENCE RUN NORTH 44'35'50" E+0.ST A DISTANCE OF 374.93 FEET; TJIENCE RUN SOUTH 4+5'08'03" EAST A DISTANCE OF 120.22 FEET; THENCE RUN NORTH 43'23'-18" EAST A DISTANCE OF 57.02 FEET; THENCE RUN SOUTH 4,'3'09'00" EAST A DISTANCE OF 238.14 FEET 70 THE POINT OF BEGlNNIMaG SAID LANDS NOW ~ LYING i9ND' 6ETNG IN ~IND~4N RNER COUNTY, J20RIDY~ • GONTA-NING f.93 ACRES, MORE OR LEA 1~ ~.o~ ~axr of 7eb Hersh ~A~fi Jahn O. Ag~wnohi. M.D., M.H.A. Govemur 5ee:re INDIAN RIVER COUNTY HEALTH DEPARTMENT Apri118, 2005 Mr. Michael Stanek, Registered Agent ~ and S Aviation, Inc. 302 Airport Drive East Sebastian, FL. 32958 CERTIFIED No: 7004 2510 0006 2432 6242 RL: FDFP Facility #318509256 J and S Aviation, Ync Dear Mr. Stanek: This letter constitutes Format Notice to Contact Violation of Chapter SS-427, Special Acts, Laws of Florida, the Indian River County I3nviranmental Control Act, Indian River Coumy EnvironmentaJ..Control Rule 1 S Indian River County .ordinance No. 9122, and . the following Iaavs.aud r-ales-which-axc-adopted~by-reference-in the-said Act,~.Ru1e,_aud --:~...- Qrdinance. This notice is given pursuant to the authority of the Indian River County Bnvironmental Control Act, Chapter 85-427, Laws of Florida. S The faIlawing violations were found to exist at the aforementioned facility located at 302 AirpartDrive Fast; Sebastian, Floridaby representatives bf #his depar6ment. VIaLATION: i. Chapter 52-761.400(4)_Z Florida Administrative Code. Failure to submit notification to the department for the change in status of the Pollutant Storage System. 2. Chapter 62-761.450(1}(a)-2 I+'Iorida Administrative Code. Failure to submit required notification within l0 days of Pollutant Storage System Closure to this office. 3. Chapter 62-761.450(1)(a)-3 Florida Administrative Code. Faihire to submit required notification within 48 hours of Pollutant Storage System Closure to this office. 4. Chapter 52-751.450(1)b Florida Administrative Code. Failure to provide notification within 30 days to this department for closure of the Pollutant Storage System.. 5. Chapter 62~761.800(Z}a Florida Administrative Code. Failure to provide the requirements for "out of service status" of a Pollutant Storage System. Etsvirn:nnt~:tal Hcelttt Telephaee: (772)794-7440 1900 -27fle Streit 8unextn: 259 7440 vein B~ FL.3346U Fax: {770794-7447 ~~ 1~-~l. ~ 1 i ~_L._ Formal Notice to Correct Violation Page iwo 6. ~ Chapter 62-'161.800{3)(a){I)-a Florida Administrative Code. Failure to properlyramove-all liquids and sludge from an "out of service" Pollutant Storage System. 7. Chapter 62-761.800(3}(a}(i}-a Florida Ailminisfrative Code. Failure to properly render free all explosive vagors from an "out of service" Pollutant Storage System CO}1S.tEC7.'IVE ACTION: Within 14 business days of receipt of this letter, you are required to. provide a written response specifying dates and details of each and every act by you which you contend constitutes compliance with the above requiremers. If you are unable to comply with any ofthe requirements of this letter, it is imperative that you immediately call Mr. Charles Vogt of this office. No ad1usiment of the above requirements or extensions of the deadlines in this letter shall be valid unless made in venting.. Any extensions or adjustments must be sought and obtained priar to the expiration of the stated deadlines. Failure to correct the above violations within. the specif ed time may result ~ a summons to appear before the IndianRYVer County EnvironmentalControlHeoring Board or Circuit Court and could sabject you to a fvae of up to Five Hundred Dollars ($S40}per day gcr violation. In addition, you are subj ect to #"ines of up to Five Hundred Dollars ($504) per day far each day you cre ate a Public Health Threat, pr conduct an Activity ~ . which Results .in Environmental Damage, ar conduct an Activity Without or. in Violation of a.R ~~ired Permi#. Accordingly, a Notice ~f Nan Compliance will be filed with the '~ Indian River County Environmental Control Hearing Board seeking Civil Penalties in S this matter. Sincerely, a Charles L.Vogt, 111IS~CPSSI Envirommental Speciakist III ~i 3 May 3, 2005 John Van Antwerp J&S Aviation 302 East Airport Dr. Sebastian, FL 32958 Subject: Default of Lease Agreement Dear Mr. Van Antwerp, We have received the following attached warning. from the Florida Department of Health. This constitutes an "Event of llefault" in that item (1) of paragraph (5), as well as subparagraph (a) of paragraph 39, of the lease agreement between J&S Aviation Inc. and. the City of Sebastian requires that the'use of the property, and the fuel farm specifically, comply with all federal, state and local law3~, rules and regulations. Further, legal- action by the Florida Department of Health may subject the City to fines and penalties du` to your actions, which shall be an additional area of default. ~~ Accordingly, please consider this to be notice pursuant to paragraph 21 of the Lease that these items of default must be remedied within 30 days hereof or the Lease shall be subject~to termination. As always, please . do not hesitate to contact me at 581-0111, should you have any questions or concerns regarding this matter. Sincerely, Ryan Denver Airport Management Specialist Ord cc: Jim Davis, City Manager . Rich Stringer, City Attorney E:\TenantsV&S AviationV.ease Compliance.doc ~ `~ ~..~ 7~-~-l l~~ ( -' '- F~L01RIDrA, DEPARTML?NI` OF Jeb Bush ,~ T Governor 1 11J~ John O. Agwunobi, M.D., M.B.A. Secrete INDIAN RIVER COUNTY HEALTH DEPARTMENT May 18, 2005 City Manager through Rich Stringer, City Attorney City of Sebastian 1225 Main Street Sebastian, FL 32958 CERTIFIED NO: 7004 2510 0006 2432 6501 RE: FDEP Facility #318509256, J and S Aviation, Inc. Violation of Chapter 62-761, Florida Administrative Code Deaz Sir or Madam : REC~~V~~ MAY ~ :q ~U05 BY: This letter constitutes Formal Notice to Correct Violation of Chapter 85-427, Special Acts, Laws of Florida, the Indian River County Environmental Control Act, Indian River. County Environmental Control Rule 1, Indian River County Ordinance No. 91-22, and the following laws and rules which are adopted by reference in the said Act, Rule, and Ordinance. This notice is given pursuant~o the authority of the Indian River County Environmental Control Act, Chapter 85-427, Laws of Florida. . ~ S The following vioiations:were found to exist at the aforementioned facility located~at 302 Airport Drive East and 204 East Airport Drive East, Sebastian, Florida.by representatives of this department. I. Violations for the above ground pollutant storage tank originally located at the former J&S Aviation facility site registered at the above facility: Chapter 62-761.450(1)(x)(2), Florida Administrative Code. Failure to submit required notification within 10 days of Pollutant Storage System Closure to this office. Chapter 62-761.450(1)(a)(3), Florida Administrative Code. Failure to submit required notification within 48 hours ofPollutant Storage System Closure to this office. Chapter 62-761.450(1)(b), Florida Administrative Code. Failure to provide notification within 3Q days to this department for closure of the Pollutant Storage System. CORRECTIVE ACTION: Within 30 days of receipt of this letter the results from soil and ground water analysis collected in accordance with the standard closing of a storage tank system referenced in Chapter 62-761 FAC, shall be submitted to this office for review. The area to be tested is at the former J&S Aviation pollutant storage tank site at 302 East Airport Drive. In the event contamination exceeding state soil and /or ground water critena is discovered; this shall be reported within 24 hours and immediate actions to contain and abate contamination shall be implemented and completed in a timely manner in accordance with 62-770 FAC.. Environmental Health 1900 - 279 Street Telephone: (772)7947440 J' / ~ G; Vero Beach, FL31960 Suncom: ~ 259-7440 ~~ Fax: (772)794-7447 ~~~1 ~1 r ~ Formal Notice to Correct Violation Page two II. Violations for the above ground pollutant storage tank intermediately located in and around 204 East Airport Drive, the J&S Aviation facility compound: Chapter 62-761.40(1)(a)(2). Florida Administrative Code. Failure to submit notification to the department for the change in status of the Pollutant Storage System. Chapter 62-761.500(1) through (4), Florida Administrative Code. Failure to properly install an above ground pollutant storage tank. Chapter 62-761.510(1) through (3), Florida Administrative Code. Failure to secondarily contain an above ground pollutant storage tank. Chapter 62-761.600(1), Florida Administrative Code. Failure to conduct release .detection for an above ground pollutant storage tank. Chapter 62-761.640(1) and (2), Florida Administrative Code. Failure to record release detection for an above ground pollutant storage tank Chapter 62-761.800(2) and (3), Florida Administrative Code. Failure to empty and render freeliquids_and explosive gases from an "out of service" above ground pollutant - - storage tank. CORRECTIVE ACTION: Within 30 days of receipt of this letter, retain the services of a q ed environmental consultant to conduct an evaluation into the potential for soil and ground water contamination from theistorage tank system, and submit said evaluation: to this office for review. The area to be tested is at the intermediate J&S Aviation ` compound pollutant storage tank site at 204 East Airport Drive. In the event contamination exceeding state soil and /or ground water criteria is discovered, this shall be reported within 24 hours and immediate actions to contain and abate the contamination shall be implemented. III. Violations for the above ground pollutant storage tank newly located at the J&S Aviation facility site. Chapter 62-761.450(1)(a), Florida Administrative Code. Failure to provide notification within 48 hours to this deparment of the installation of a Pollutant Storage System. Chapter 62-761.450(1)b, Florida Administrative Code. Failure to provide registration within 30 days to the FDEP~for installation of a Pollutant Storage System. Chapter 62-761.800(2) and (3), Florida Administrative Code. Failures to upgrade, inspect, evaluate, and test an above ground pollutant storage tank system prior to returning the system to service. CORRECTIVE ACTION: Wi 30 ys o receipt .of this letter, plans certified by a professional engineer shall be submitted for review to this office for the aboveground pollutant storage system construction. These plans shall be reviewed and approved by the Fire Department and any other applicable agencies for compliance. ~~' Formal Notice to Correct Violation Page three All requirements by these agencies shall be implemented prior to usage. Engineering attention should be made to the requirements found in 40 CFR 112 (Spill Prevention Control and Countermeasure Plan -SPCC) for facility compliance with Federal Law. If you are unable to comply with any of the requirements of this letter, it is imperative that you immediately call Mr. Charles Vogt of this office. No adjustment of the above requirements or extensions of the deadlines in this letter shall be valid unless made in wntmg. Any extensions or adjustments must be sought and obtained in writing prior to the expiration of the stated deadlines. Failure to correct the above violations within the specified time may result in a summons to appear before the Indian River County Environmental Control Hearing Board or Circuit Court and could subject you to a fine of up to Five Hundred Dollars ($500) per day per violation. In addition, you are subject to fines of up to Five Hundred Dollars ($50.0) per day for each day you create a Public Health Threat, or conduct an Activity which Results in Environmental Damage, or conduct an Activity Without or in Violation of a Required Permit. Accordingly, a Notice ofNon-Compliance will be filed with the Indian River County Environmental Control Hearing Board seeking Civil Penalties in this matter. ......Sincerely, ,` ~ t Charles ogt, III, CPSSI Environmental Specialist III C~ June 3, 2005 John Van Antwerp J&S Aviation 302 East Airport Dr. Sebastian, FL 32958 Subject: Default of Lease Agreement - Dear Mr. Van Antwerp; Despite written notice to cease, you have continued to operate out of temporary facilities at your airport site beyond the grace period granted by the City for such operations. Accordingly, you are in violation of City Code provisions against the-use of land other than in accordance with an approved site plan. - ~ . This constitutes an `went of Default" in that the lease agreement between J&S Aviation Inc. and the City of Sebastian requires that the use . of the property comply v~ith all federal, state and local laws, rules and regulations. Accordingly, please consider- this to -be notice pursuant to paragraph 21 of the Lease that these items of default must be remedied within 30 days hereof or the:Lease shall be subject to termination. As always, please do not hesitate to contact me at 581-0111, should you have any questions or concerns regarding this matter: Sincerely, Jason Milewski Airport Manager Ord _ . cc: Al Minner, City Manager Rich Stringer, City Attorney E:\TenantsU&S Aviaflon\L,ease Compliance2.doc ~% L X~ i3~ i v 09-29-`06 16.24 F130M-GLEN, VOCELLE & BERG 772-562-2870 T-79.7 P003/007 F-931 IN THE CIRCUIT COURT OF THE 19rH JUDICIAL CIRCUIT IN AND I;OR INDIAN RIVER COUNTY, FLORIDA CASE NO.: 20050622-CA-03 ] & S AV CATION, INC. Flair~tiff, vs. CTTY OF SEBASTIAN REC]EIV~IJ 0 C T W ~ Z006 ~ _.T_ : _: Defendant. ANS'VVER AND AI+FIRMATIV'B DEFENSES TO COUNTERCLAIM The Plaintiff, ] & S AVIATION, INC., by and through-its undersigned attonley - files this 1,nsvver and Affirmative Defenses to the Defendant's Counterclaim and states: Count I -Possession 56: Denied. S7. Denied. 5$. Admitted that the party entered into a lease agreement. The terms are set forth in al: of the attachments as set forth in the Third Amended Complaint. 59. Denied. 64. Denied. 61. benied. 62. Denied. 63. Denied. 64. Denied. 65. Denied. 66. Denied. ,•'"`~,. ~~~~ 09-29-'06 16;24 FF30M-GLEN, VOCELLE & BEBG 772-562-2870 J do S Avis rtion, Inc. v. City of Sebastian Case No.: 2005-0622-CA~03 Alaintdf, j`''s Answer and A~rmatdve Defenses to Counterclaim b7. Denied. b8. Denied. 69. Denied. 70. Denied. 71. Denied. 72. Denied. 73. Denied. 74. Denied. 75 Denied. 7b. Denied. 77. Denied. 78. Denied. ount II - Quantum Meruit T-717 P004/007 F-931 RECEI~~ 0 C T - 1 2006 T3Y: a~_ 79. The Plaintiff, J & S AVIATION, INC., realleges and reavers responses to paragraph > 58- b2 and 67 as if set forth fiilly herein. 80. Denied. 81. Denied. 82. Denied. 83. Denied. 84. Denied. 8S. Denied. $6. Denied. Page 2 of 3 C~,; 09-29-'06 16;24 FBOM-GLEN, VOCELLE & BERG 772-562-2870 ,I & S Avfa Lion,1'n~c. v. City of Sebastian Case No.: 2005-0622-GA-03 Plainnf~"s ~4nswer and A~rmative Defenses to Counterclaim 87. Denied. 88. Denied, 89. Denied. 90. Every allegation not expressly admitted herein is denied. Affirmative Defenses T-77.7 P005/007 F-931 REC~~ . - ocr - 1 Zoos BY: 91. As a first affirmative defense, the Plaixtiff asserts that the Defendant has unclean hf nds attd is not entitled to equitable relief requested in its Counterclaim. 92. As a second affirmative defense, the Plaintiff asserts that the Defendants is estopped f rom bringing this action due to its bad-faith performance and its obligations and p~7or breach of he agreements between the parties. Demand far Jury Trial_ The Plaintiff demands a trial by jury on all issues so triable on the Counterclaim. I HEREBY CERTIFY that a true and correct copy of the foregoing has been furnished by U.S. mail, postage prepaid, to: Rich Stringer, Esquire, Attorney for City. of Sebastian, 1225 Main Street, Sebastian, Florida 32958, and ob Meadove~ 1705 9th Flare, Vera Bcac h, Florida 32960, Co-Counsel for Plaintiff, on this day of , 2006. CX.EM, VOCELLE & BERG, L.L.P. Attorney for Plaintiff 3333 20th Street 'Vero Beach, FL 32964-2469 Telephone: (772) X62-8111 Facsimile : (772_~5.fa2~2870 By: No: '9~i 172 p;Vlpps~4tpp~ \I~RPraC~Case biractoryV ~ 5 Aviation, Inc~WeadmgsW~we~ Snd Alf. oefenses to CounCarclBiM 09.29.06.Jb.doc Page 3 of 3 C~ 1 ~~ ~- 09-29-' 06 16 23 F130h1-GLEN, VOCELLE & BEF3G 772-562-2870 T-717 P002/0®7 F-931 IN THE CIRCUIT COURT OF THE 19~" JUDICIAL CIRCUIT IN AND FOR INDIAN RIVER COUNTY, FLORIDA CASE NO.; 2005-0622-CA-03 J 8c S AVI. ~TION,ING. JUDGE; ROBERT A. I•IA'WLEY Plaintiff, - vs. OCT ~ ~ ZUU6 CITY OF ; EBASTIAN BY: befendant. REPLY TO AFFIRMATIVE DEFENSES The Plaintiff,: J & S AVIATION, INC., by and through its undersigned attorneys hereby file; this Reply to Defendant, CITY OF SEBASTIAN'S, Affirmative Defenses and states: 1. J & S Aviation, Inc. denies each and every affirmative defense and demands st ict proof thereof. I HEREBY CERTIFY that a true and correct copy of the foregoing has been furnished H y U.S. mail, postage prepaid, to: Mich Springer, Esquire, Attorney for City of Sebas#ian, .225 1Vlain Street, Sebastian, Florida 32958, and...$ Meado , I7 19th Place, Vero Beach , FIorida 32960, Co-Counsel for Plaintiff, on thi day of , 2006. CLEM, VOCEI,LE & BERG, L.L.P. . A,ttvrncy for Plaintiff 3333 20th Street Vero Beach, FL 32960-2169 Telephone: (772) 562-8111 Facsimile :~~) 562-2$70 By: Bar No. 901 I72 j , '7 L'iQ ~ ~ GI D:URDeVWCpD2~ ~fPrac~Case DirecWry~l 8 S Aviation, in~pleadmgsVteply to At(. Defenses 04.29.06.jD.0oe r~ y~ VOCELLE ~ BERG, L.L.P. ATTORNEYS AT LAW A LIMITED LIABILITY PARTNERSHIP OF PROFESSIONAL ASSOCIATIONS: LOUIS B. VOCELLE, JR., P.A.*O° PAUL R. BERG, P.A.* O 3333 - 20TH STREET VERO BEACH, FLORIDA 32960-2469 TELEPHONE (772) 562-8111 FAX (772) 562-2870 INTERNET www.cpvlaw.com BREVARD COUNTY OFFICE 321 SIXTH AVENUE INDIALANTIC, FLORIDA 32903 TELEPHONE: (321) 725-3303 PETER J. SWEENEY, JR. ROBERT GOLDEN, RETIRED PLEASE REPLY TO VERO BEACH OF COUNSEL July 3, 2007 VIA FACSIMILE (772-589-5570) Richard Stringer, Esquire City of Sebastian 1225 Main Street Sebastian, FL 32958 Re: J & S Aviation, Inc. v. City of Sebastian Dear Rich: ST. LUCIE COUNTY OFFICE 133 SO. SECOND STREET, SDTTE 106 FT. PIERCE, FLORIDA 34950 TELEPHONE: (772) 489-0774 * BOARD CERT. CIVIL TRIAL LAWYER O BOARD CERT. BUSINESS LFFIGATION ¢ CERTIFIED CIVIL MEDIATOR RE C EI~TEI~ JUL 5 2007 BY: Please allow this letter to confirm the settlement that has been tentatively reached between the parties in the above-referenced case. My understanding of the terms of the settlement are as follows: 1. The City of Sebastian will pay $200,000.00 to J & S Aviation, Inc within l0:days of counsel approval. 2. J & S Aviation, Inc. may keep the steel building currently sitting on the site. and may keep the fuel tank and fueling equipment at its option. 3. J & S Aviation will vacate the premises and remove all property no later than August 31, 2007. 4. J & S Aviation, its principals and their immediate family members will not take direct or indirect ownership interest or managerial positions in any commercial operation located on the Sebastian airport for a period of ten (10) years. If my understanding of any of the terms of this settlement are incorrect, please advise immediately. I understand that you will attempt to hold a special meeting of the City counsel in order to approve this settlement and bring this matter to a final conclusion. Given the short time frame in which this case might be tried, I am asking that you advise me when you think this special meeting .will be held and whether we should advise the Court of the time frames for approval of this settlement. Thank you for your attention to this matter. Sinc r y P 1 R.~ PRB/jb ~/ _ _ cc: J & S Aviation, Inc. ~j ._J