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HomeMy WebLinkAbout1980 Agreement Fly Florida, Inc.MODIFICATION OF LEASE AGREEMENT, made this /P3 day of V-4--lI , 1980, between the CITY OF SEBASTIAN, a Florida municipality, herein referred to as Lessor, and FLY FLORIDA, INC., a Florida corporation, herein referred to as Lessee. RECITALS 1. The parties hereto have entered into a lease dated 1d' 19 040 , a copy of which is i attached ereto as Exhibit No. , affecting property des- cribed as follows: SEE ATTACHMENT (Being approximately three acres in size) 2. The parties desire to enter into a new agreement supplementing the provisions of the lease. 3. The lease dated y i „�� between lessor and lessee for the p`( operty described above, shall be modified effective 4. 1e , 19416 , i as follows: �i " RENT - The parties agree that the rent for the term of this lease shall be as follows: 1. For the airport facilities described above, the yearly rental shall be on a graduating scale set out below: Annually for the first S years E 900.00 Annually for the 6th thru loth year 1,200.00 Annually for the llth thru 15th year 1,500.00 Annually for the 16th thru the 20th year 1,800.00 Plus sales tax if applicable. 2. The above rental for the land shall be payable quarterly, commencing from the date of this lease. 3. As additional rent the Lessee shall pay to the Lessor two cents (2t) for every gallon of aviation fuel sold by Lessee at the Sebastian Municipal Airport. Said payments to be paid quarterly, commencing from the date of this lease. _z 4. All rental payments to be made payable to the City of Sebastian and mailed or delivered to the Director of Finance, City of Sebastian, City Hall, Post Office Box 127, Sebastian, Florida 32958. All provisions of the lease are incorporated herein and are hereby modified or supplemented to confirm herewith, but in all other respects are to be and shall continue in full force. IN WITNESS WHEREOF, the parties have hereunto set their hands and seals this day and year first above written. CITY OF SEBASTIAN, A Florida Municipality BY`�{ Mayor ATTEST: �� City Cl�{Kli` Signed, sealed and delivered in the npresence �of: (�dyJ��aJ.Lt/�Jle��.�.r�l�i��J—rvtp nux� As Eo the City of Sebastian FLY FLORIDA, INC. BY rds ident ATTEST: gned, sealed and delivered in the presence of: UA,,,,5f V �L F1yFlori , -2- LEASE THIS LEASE, made and entered into this _JtAday of , 19�, by and between the CITY OF SEBASTIAN, a F1 ida municipality, party of the first part, hereinafter called the LESSOR, and FLY FLORIDA, INC. , a Florida Corpora- tion, whose officers are -Gilbert J. Swiger , President; John M. Drew , Secretary, parties of the second part, hereinafter called the LESSEE; W I T N E S S E T H: THAT in consideration of the covenants and promises herein contained by the parties, the,Lessor does hereby lease to the Lessee the following described land, located at Sebastian, Indian River County, Florida, to wit: SEE ATTACHMENT "A" (Being approximately.3 acres in size) Lessor leases to the Lessee said land for a term of 20 years, commencing and terminating /7 with an option on he part of the Lessee for an additional 20 years, upon terms to be agreed upon at that time between Lessor and Lessee, provided Lessee notifies Lessor, in writing, at least one hundred eighty (180) days before the termination of this lease of his intention to exercise said option. At the end of term or breach by Lessee for any reason, all improvements made by the Lessee are the property of the City. RENT - The parties agree that the rent for the term of this lease shall be as follows: 1. For the airport facilities described above, the -1- yearly rental shall be on a graduating scale set out below: Annually for the first 5 years - $ 900.00 6th thru loth year - 1,200.00 " llth thru 15th year - l.Snn.nn " 16th thru 20th year - 1,•0nn.nn Plus sales tax if applicable. 2. The above rental for the land shall be payable quarterly, commencing from the date of this lease. LESSEE AGREES to pay all utilities for the premises, to maintain the grounds, buildings and facilities on the leased property in accordance with the requirements of the Airport Advisory Board, the City of Sebastian and the FAA, to keep the buildings and hereafter erected premises insured by fire, extended coverage in full insurable value including windstorm and aircraft collision and to maintain liability insurance of not less than $500,000/$1,000,000/$500,000 with a company or companies, to be approved by the Lessor. Lessee will furnish copies of said policies showing the interest of Lessor in the leased airport facilities, and paid -up annual premium receipts to the Clerk of the City of Sebastian. Nothing in this lease shall be construed to require the Lessee to repair, replace or rebuild, as the case may be, build- ings or other property damaged or destroyed by wind, fire, water, or other agencies or events beyond the control of the Lessee except as to the proceeds of the insurance policies permitting such replacement or repair. In the event the Lessee does not elect to repair, replace or rebuild, the proceeds of said insurance policies shall be paid to Lessor and/or the mortgagees as their interest may be and the lease shall be deemed null and void. USES - LESSEE SHALL HAVE THE RIGHT to use the above - described property for any lawful purpose associated with the use ! of aircraft and/or an airport and shall have the right to construct upon said property any buildings or other structures that may be proper for such use, provided any such buildings or structures do not in any way curtail the use of the airport facilities in their -2- usual operations and provided further that any such buildings or structures are approved by the Airport Advisory Board, the Sebastian City Council and the FAA. Lessee covenants and agrees that all such construction shall be in accordance with the local codes, regulations and requirements and pursuant to all requirements of the FAA. The primary use of said leased premises shall be aircraft sales, repair and maintenance, flight training, sale of gas & oil, charters, car rentals and all services incidental thereto, said enumeration is not to be considered all inclusive, in compliance with all ordinances of the City of Sebastian and FAA requirements. IT IS MUTUALLY AGREED that the Lessee shall not sell, transfer, assign or encumber this lease to anyone without prior City Council approval, this being a personal lease between Lessor and Lessee. There shall be no subordination, pledging, transferring, mortgaging, subletting of the lease or improvements without prior City Council approval and there shall be no transferring, pledging, assigning of forty nine (49%) per cent of the stock in the corpora- tion without prior City Council approval. All expenses incident to the operation would be at the Lessee's expense which includes any assessment for improvements, including ad valorem assessment or taxes of leasehold interest, personal property taxes, and any other assessment or taxes imposed on such property or improvement during the term of the lease. LANDING FEES - Landing fees are specifically prohibited by this Agreement so long as no one else is permitted to charge landing fees, as the use of the airport is for the general public. IN CASE OF BREACH of this lease, by the Lessee, or the termination of the lease, or any extension hereunder, that may be granted, the Lessee agrees to surrender possession of said facili- ties, and all the buildings, edifices, etc., that are constructed by the said Lessee shall then become the property of the Lessor. -3- IN THE EVENT the United States Government at any time during the term of this lease takes over the operation or use of said airfield and/or airport with the result that the Lessee is unable to operate under the terms of the lease, then the lease shall be extended for an additional period equal to the time the Lessee has been deprived of the value of this lease. IN THE EVENT of eminent domain proceeding or any other proceeding which results in loss to the Lessee of a substantial portion of the premises leased by the Lessee, the Lessor and the Lessee agree that if this loss makes it impractical or unreason- ably difficult for the Lessee to carry out the purposes for which the premises were leased, then this lease may at the option of the Lessee be cancelled and the Lessee is relieved of any obligation to pay rent on the portion lost by the Lessee. In the event of a dispute between the Lessor and the Lessee as to what constitutes an impractical or unreasonably difficult condition for the Lessee to carry out the purposes for which the premises were leased, the dispute shall be submitted to a committee consisting of the Lessee, a member of the Airport Advisory Board and a third arbiter selected by the Lessee and the Airport Advisory Board. LESSEE will be subject to all standard lease clauses of the FAA and their rules and regulations now existing or to exist in the future. LESSEE FURTHER COVENANTS AND AGREES that the Lessor shall have the privilege at all reasonable times to re-enter the said leased premises for the purpose of inspecting the property and determining whether all terms, conditions and covenants and agree- ments herein are being complied with by the Lessee. Business to be conducted at such hours to be determined by the Airport Advisory Board which would not be an unreasonable , request. LESSEE agrees to conform to ALL governmental pollution standards, requirements and guidelines. -4- IT IS MUTUALLY UNDERSTOOD AND AGREED that if the Lessee shall become insolvent or bankrupt or if proceedings for receiver- ship or bankruptcy shall be instituted against him or if he shall make an assignment for the benefit of creditors or in any manner seeks, permits or suffers his leasehold interest hereby created to be transferred or encumbered by operation of law, or otherwise jeopardized, except as specifically provided for in this lease, then and in such event, or in any event of the same or similar legal or equitable consequences or effect, such event shall be deemed to constitute a breach of this lease, at the option of the Lessor, so as to terminate all rights, privileges and interests of the Lessee herein and hereunder. IN CONSIDERATION of the foregoing, Lessee agrees to have constructed a building of approximately 2,000 square feet; Con- struction to begin not more than ninety (90) days after lease is approved by the Lessor, Lessee and the FAA and to be completed within 180Pdays of starting. Lessor agrees, however, that Lessee shall have the right and option of cancelling this lease if Lessee is unable to obtain utilities, well, septic tank permit and other similar permits that are essential to the operation of Lessee's business. IN THE EVENT OF A DISPUTE between Lessor and Lessee as to the terms and conditions of this lease in a Court determination, the prevailing party would be entitled to reasonable attorney's fees and costs. THIS LEASE is subject to approval by the FAA: a. That the Lessor reserves unto itself, for the use and benefit of the public, a right of flight for the passage of aircraft in the airspace above the surface of the real property hereinafter described together with the right to cause in said airspace such noise as may be inherent in the operation of aircraft, now known or hereafter used, for navigation of or flight in the said airspace, and for use of said airspace for landing on, taking off from or operating on the airport. b. That the Lessee expressly agrees for itself to restrict the height of structures, objects of natural growth and other ob- A -5- structions on the hereinafter described real property to such a height so as to comply with Federal Aviation Regulations, Part 77. C. That the Lessee expressly agrees for itself to prevent any use of the hereinafter described real property which would interfere with or adversely affect the operation or mainten- ance of the airport, or otherwise constitute an airport hazard. Notwithstanding anything herein contained that may be or appear to the contrary, it is expressly understood and agreed that the rights granted under this agreement are non-exclusive and the Lessor herein reserves the right to grant similar privileges to another operator or operators on other parts of the airport. The Lessee in exercising any of the rights or priviliges herein granted to him shall not on the grounds of race, color, or national origin discriminate or permit discrimination against any person or group of persons in any manner prohibited by Part 21 of the Regulations of the Secretary of Transportation. The Lessor is hereby granted the right to take such action, anything to the contrary herein notwithstanding, as the United States may direct to enforce this non-discrimination covenant. SALE OF PROPERTY - In the event the Lessor ever makes the subject property available for sale, the Lessor agrees to give a first right of refusal and allow the Lessee 30 days to meet the terms and conditions of any bonafide offer of purchase of the property presented in writing to the Lessee. IN WITNESS WHEREOF, the parties have hereunto set their hands and seals this day and year first above written. (S E A L) CITY OF SEBASTIAN, a Florida municipalit 05 by Mayor ATTEST: i y �leik Signed, sealed and delivered in the presence of: z' (AMIto oCity of Sebafstianr -6- w ATTEST: -a_a „y�_�Jy�'x Signed, s led and delivered in the presence of: As to Fly Florida, Inc. FLY FLORIDA, INC. b� President -7- ATTACHMENT "A" PROPERTY DESCRIPTION 1. That certain 3 acre parcel lying in Section 29, Township 31 South Range 38 East in the Fleming Grant according to Plats made by S. B. Carter, filed and recorded in the offices of the Clerk of the Circuit Court of Brevard. St. Lucie and Indian River Counties, Florida and described as follows: 2. Beginning at the most Westerly corner of said Section 29. run S 44° 21' 28" E, 818. 81 feel on the Southwest boundary of Section 29 to the centerline of Roseland Road; 3. thence, N 04" 48' 59" W, 514.65 feet on said centerline; 4. thence, N 89" 50' 46" E, 644.46 feet; 5. thence, N 0° 09' 14" W, 542.00 feet to the True Point of Beginning, 6. thence, N 89" 50, 46" E, 425. 00 feet to a point which lies 75. 00 feet West of the centerline of an existing airport taxiway; 7. thence, N 0" 09' 14" W, 307. 00 feet; 8. thence, S 89" 50' 46" W. 425.00 feet; 9. thence, S 0" 09' 14" E, 307. 00 feet to the True Point of Beginning; 10. Containing 3 Acres. 11. Said land lying and being in the City of Sebastian, Indian River County, Florida. ALSO granting an easement for ingress and egress to afore described parcel described as follows: 1. Lying 50 feet either side of a centerline which is described as being 50 feet West of the Westerly boundary and beginning on the Westerly projection of the Northerly boundary of aforesaid parcel; 2. thence, run S 0" 09' 14" E. 849. 00 feet to a point being an intersection with the extension of the centerline of the Fast/West runway; 3. thence, an easement lying 25 feet either side of a centerline which is described as being an extension of the East/ West runway centerline and bearing S 89" 50' 46" W. to a terminus on the Fast right-of-way of Roseland Road. 4. Containing approximately 1. 92 Acres. PREPARED BY LLOYD AND ASSOCIATES