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HomeMy WebLinkAbout1976 Agreement with Jacobsen Air-Ag, Inc.s LEASE 1.5' THIS LEASE, made and entered into this _ay of 1976, by and between the CITY OF SEBASTIAN, a Florida municipality, party of the first part, hereinafter called the LESSOR, and JACOBSON AIR -AG, INC., a Florida corporation, whose officers are - Parl Jacobson, President; Keith E. Foster, Vice - President; Thelma Jacobson, Secretary, parties of the second part, hereinafter called the LESSEE; W I T N E S S E T H: THAT inconsideration 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 attached survey, including legal description, in Section 29 of the Fleming Grant, a/k/a as Job #6126 of Lloyd & Associates, Vero Beach, Florida, dated May 7, 1976. Lessor leases to the Lessee said land for a term of At i f tw my years, co encine -/ 4 7 F, and terminating with an option on the part of the Lessee for an additional twenty years, upon terms to be agreed upon at that time between Lessor and Lessee, provided Lessee notified Lessor, in writing, at least one hundred eighty (180) days before the termination of this lease of his intention to exercise said option. 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 5 years - $ 800.00 " 6th thru loth year- 1,200.00 r " llth thru 15th year- 1,600.00 " 16th thru 20th year- 2,000.00 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 Commission, 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 theft, windstorm and aircraft collision and to maintain liability insurance of not less that $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 usual operations and provided further that any such buildings or structures are approved by the Airport Commission, 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. -2- The primary use of said leased premises shall be for a business engaged in rebuilding aircraft, maintenance and repair, aerial spraying and crop dusting. 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 and/or tie down service, conduct sales and service of aircraft, and to provide any and all services and products not conflicting with airport operation in compliance with all ordinances of the City of Sebastian and FAA requirements. ✓ IT IS MUTUALLY AGREED that the Lessee shall not sell, transfer, sublet, assign or encumber this lease to anyone, this being a personal lease between Lessor and Lessee. Any subord- ination, Dledge or mortgage of the above described premises shall U be done only by prior approval of the City Council of Sebastian. 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 facil- ities, and all the buildings, edifices, etc. that are constructed by the said Lessee shall then become the property of the Lessor. 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 unreasonably difficult for the Lessee to carry out the purposes -3- 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 difficultcondition, for the Lessee to carry out the purposes for which the premises were leased, the dispute shall be submitted to a committee consist- ing of the Lessee, a member of the Airport Commission and a third arbiter selected by the Lessee and the Airport Commission. LESSOR COVENANTS AND AGREES to maintain an access road in and out of the airport at its expense, to make repairs on the runway as required by the FAA and/or other federal airport agencies. LESSOR 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 agreements herein are being complied with by the Lessee. 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 hangar/office complex having approximately 9,400 square feet under roof. Construction to begin not more than ninety (90) days after lease is approved by the Lessor, Lessee and the FAA and to be completed within one hundred eight (180) days of starting. Lessor agrees, however, that Lessee shall have -4- 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, except eminent domain proceedings as hereinbefore provided, the parties agree to submit such dispute to three arbiters appointed by the United States Arbitration Commission, under the rules of said Commission, and to abide by the decision of said arbiters. 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 air- craft, 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 obstructions 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 I 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 privileges 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 -5- 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 availablefor sale, the Lessor agrees to notify the Lessee within a reasonable time that the property is for sale and to allow the Lessee to negotiate for purchase of the property. 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 ( SF. AL) by F. Eugene gg, Mayor ATTEST: FLdrence L. 1'he , City 'ler Signed, sealed and delivered in the presence of: j 7 , LssYJ ./ L1/ ltL./" ( s to to Ci yo Se astian) JACOBSON AIR -AG, INC. (LESSEE) by Parl Jacobs r sident ( S E A L ) Thelma Jaco on, Secretary Signed, sealed and delivered in the presence of: u Jac (As to .bs fi Air-Ag, In Inc.) STATE OF FLORIDA COUNTY OF INDIAN RIVER BEFORE ME, the undersigned authority, duly authorized to take acknowledgments and administer oaths in the State and County aforesaid, this day personally appeared F. EUGENE CRAGG and FLORENCE L. PHELAN, Mayor and City Clerk, respectively, of the City of Sebastian, Florida, and they acknowledged before me that they executed the foregoing lease and that the seal affixed to said instrument is the true corporation seal of the City of Sebastian and that it was affixed to said instrument by due and regular corporate authority, and that said instrument is the free act and deed of the City of Sebastian. WITNESS my band and official seal this day of ItOUtIli IgelW. , 1976. Notary Pu c State of Florida at Large My Commission Expires: STATE OF FLORIDA COUNTY OF INDIAN RIVER BEFORE ME, the undersigned authority, duly authorized to take acknowledgments and administer oaths, in the State and County aforesaid, this day personally appeared PARL JOHNSON, President of JACOBSON AIR. -AG, INC., and THELMA JACOBSON, Secretary of JACOBSON AIR -AG, INC., and they acknowledged before me that they executed the foregoing lease for the purpose expressed therein. WITNESS my hand and official seal this / Y day of i O(Te6fCc 1976. , —J_o Ee� Az'ic L" �& State of Florida at Large My Commission Expires: tlwa1rf-r1I1j0 SATE OF R671UF-4 UA ;e V, 1" f1:q6.I wl4.3 ur A 11. P" a OORK111HF'.I Gijgj.h j,,jald16T U DEI1WR1IE1l">.