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HomeMy WebLinkAbout02/20/2018 06G Airport Lease Agreement with Robert E. McCormick dba McCormick Aircraft Hangars, LLCBUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDASTATEMENT 1 Item No. 6.G. For Meeting of: February 20, 2018 ITEM TITLE: Resolution authorizing an Airport Lease Agreement with McCormick Aircraft Hangars, LLC, for property south of 2810 West Washington Avenue SUBMITTED BY: Robert K. Peterson, Airport Director, 509-575-6149 SUMMARY EXPLANATION: The Yakima Air Terminal -McAllister Field is an Enterprise fund where the majority of the revenue generated at the airport is through operating or lease agreements. Rob McCormick with McCormick Air Center has indicated a desire to lease approximately 14,000 square feet of property south of Triumph Actuation Systems. This lease will allow Mr. McCormick the ability to rehabilitate asphalt that has outlived it's useful life and construct a vehicle parking lot. The parking lot will provide surrounding businesses with ample vehicle parking while providing the airport with additional revenue. The initial term of the agreement is for 10 years and has the option to extend another 10 years beyond the initial term (20 years total). ITEM BUDGETED: Yes STRATEGIC PRIORITY: Economic Development APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: Adopt Resolution. BOARD/COMMITTEE RECOMMENDATION: ATTACHMENTS: Description 0 resolution O Lease Agreement Upload Date 2/16/2018 2/14/2018 Type Cover Memo ac 2 A RESOLUTION 3 RESOLUTION NO. R -2018 - executing an Airport Lease Agreement with Robert E. McCormick dba McCormick Aircraft Hangars, LLC, for property south of 2810 West Washington Avenue. WHEREAS, City owns and operates Yakima Air Terminal -McAllister Field in accordance with applicable Federal, State and Local regulations; and WHEREAS, the airport has property available for lease within parcel number 181335- 31001, located south of 2810 West Washington Avenue on Yakima Air Terminal -McAllister Field property; and WHEREAS, the City of Yakima and Robert E. McCormick dba McCormick Aircraft Hangars, LLC, have negotiated to lease approximately 14,000 square feet of said parcel, which includes a license to occupy property and construct parking lot improvements for vehicle parking all of which is set forth in the "Airport Lease Agreement" attached hereto and incorporated herein by this reference; and WHEREAS, the City Council has determined that approval of the airport lease agreement is in the best interests of residents of the City of Yakima, and will promote the purposes of the Yakima Air Terminal -McAllister Field; now, therefore BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager is hereby authorized and directed to execute and administer the attached and incorporated Airport Lease Agreement with Robert E. McCormick and dba McCormick Aircraft Hangars, LLC. ADOPTED BY THE CITY COUNCIL this 20th day of February, 2018. ATTEST: Kathy Coffey, Mayor Sonya Claar Tee, City Clerk 4 AIRPORT LEASE AGREEMENT #7 BETWEEN YAKIMA AIR TERMINAL-McALLISTER FIELD AND ROBERT E. MCCORMICK DBA MCCORMICK AIRCRAFT HANGARS, LLC. THIS LEASE, executed this 1st day of March, 2018, between the YAKIMA AIR TERMINAL — McALLISTER FIELD, a department of the City of Yakima, Washington, hereinafter referred to as "LESSOR", and ROBERT E. MCCORMICK dba McCormick Aircraft Hangars, LLC, a Limited Liability Company in Washington State, hereinafter referred to as "LESSEE." WITNESSETH: WHEREAS, LESSOR operates the Yakima Air Terminal - McAllister Field, hereinafter referred to as "Airport," and WHEREAS, LESSOR has approved property available for lease as provided by this Lease, and LESSEE desires to occupy and use such property in accordance with this Lease, NOW THEREFORE, in consideration of the mutual promises contained herein and the benefit to be derived by each party, the parties agree as follows: 1. PREMISES: LESSOR does hereby lease and let unto LESSEE, and LESSEE does hereby lease and take from LESSOR, approximately 14,000 square feet of land in the City of Yakima, Yakima County, Washington, as that property is depicted on the drawing marked Exhibit "A", attached hereto and by this reference made a part hereof, together with the right of ingress to and egress from the leased premises and the public use areas/facilities used in connection therewith, over designated Airport property and roadways, subject to rules and regulations governing the use of the Airport and as the same may be promulgated by LESSOR from time to time. The LESSOR may, at any time hereafter, provide a legal description of the premises and such description shall become a part of this Lease. 1 1 Page Z:\F- drive\DATA\WORD\LEASE\McCormick\Lease 7 Parking Lot 5 2. TERM: A. The tenancy created by this Lease shall commence on 1st of March 2018, and continue for a period of ten (10) years, terminating on February 28th, 2028, unless otherwise terminated as provided for herein. B. LESSEE shall have the option to extend the initial ten year term by one additional ten (10) year term that if so extended would expire February 28th 2038; provided that LESSEE delivers to LESSOR, not less than three -hundred sixty-five (365) days before the expiration of the original ten year term, written notification of its intent to extend the term. 3. RENT: A. LESSOR recognizes that the property outlined in Exhibit "A" requires significant improvements to be utilized for vehicle parking. Improvements include rehabilitation and/or reconstruction of asphalt and updated surface markings. LESSEE has provided an estimate for the necessary improvements that is included as Exhibit "B" of this agreement. As part of this Agreement between LESSOR and LESSEE, LESSOR herby agrees to provide a monthly credit of $116.00 that will be amortized throughout the lease term, including any extension thereof, until such time as the estimated expense of the parking improvements has been recouped by LESSEE. LESSEE's maximum permitted credit for improvement cost recovery shall not exceed thirty-two thousand four hundred and eighty-nine dollars and twenty-one cents ($32,489.21), in the event the cost of the construction of improvements exceeds the estimate provided in Exhibit B. B. LESSEE promises and agrees to pay LESSOR rent for the property at the then current commercial land rate per square foot of property leased shown in Exhibit "A", to be paid in advance on or before the 10th day of each month. Payments shall be made to the City of Yakima, Accounts Receivable, 129 N. 2nd St, Yakima, WA 98901. Any rental payments/fees past due shall accrue a delinquency charge of twelve percent (12%) per annum. C. The lease rental rate provided for above shall be subject to review and modification every year on the anniversary of this Lease and shall be set at the then current commercial airport rental rate. 4. DEPOSIT: Upon execution of this lease by both parties, LESSEE shall deposit with LESSOR the amount of one month's rent plus leasehold tax as a guarantee of LESSEE's performance of this Lease and the timely payment of the rental provided for herein; and in the event LESSEE shall fail to pay the rental as provided herein, or otherwise breach this Lease, then the Airport Manager may 2 1 Page Z:\F- drive\DATA\WORD\LEASE\McCormick\Lease 7 Parking Lot 6 apply such deposit, or any part thereof as may be necessary, to the payment of rental or to the payment of damages for such breach or pursue any other remedies provided herein. This deposit shall be adjusted from time to time to reflect adjustments in the rent and/or leasehold tax. 5. TAXES AND LIENS: In addition to the rent payable above, LESSEE promises and agrees to pay, as the same become due and payable, all licenses, fees and taxes, including but not limited to the leasehold excise tax, that are required to be paid by LESSEE by reason of this Lease and by reason of LESSEE's use and occupancy of the leased premises and by reason of LESSEE's construction or ownership of improvements to the leased premises. LESSEE shall neither suffer nor permit the attachment of any lien or other encumbrance on the leased premises by reason of LESSEE's occupancy thereof. LESSEE agrees to indemnify LESSOR and shall hold LESSOR harmless from any such taxes and liens. 6. USE: LESSEE agrees to use the leased premises only for vehicle parking or for any other use allowed by the Master Plan and the zoning of the property, as may be approved by the LESSOR. LESSEE further agrees the vehicle parking lot will only be utilized by employees in the immediately adjacent buildings and the occasional transient pilot. Furthermore, passengers departing and arriving on commercial airlines shall not be allowed to park vehicles in parking lot as this would result in direct competition with the LESSOR for parking services. The use of the property for any other purpose than that described herein shall be deemed a material breach of this Lease constituting grounds for its termination. This provision shall apply to any assignment of this Lease, whether voluntary or due to mortgage foreclosure or for any other reason. Failure of the assignee to comply with this Section shall be reasonable cause for LESSOR to withhold approval or consent to assignment. 7. UTILITIES: LESSEE shall be responsible for all utility service costs including, but not limited to, power, natural gas, water, sewer, and garbage. 8. PREMISES CONDITION: LESSEE has made a full inspection of the premises, is fully aware of its condition except with respect to environmental conditions and accepts the premises on an "AS -IS" basis. LESSEE agrees to pay for any improvements, repairs and/or modifications necessary to the operation of LESSEE's business and as described in Section 3 A, above. 3 1 Page Z:\F- drive\DATA\WORD\LEASE\McCormick\Lease 7 Parking Lot 7 9. MAINTENANCE: LESSEE agrees to keep and maintain the premises in at least as good a condition as the condition of the premises at the beginning of LESSEE's occupancy, normal wear and tear excepted. LESSEE further agrees that LESSEE shall be responsible to maintain all leased areas, buildings, trade fixtures and other improvements, existing and future, in an attractive and usable manner as determined by the Airport Manager and consistent with other properties at the Airport. Maintenance shall include, but not be limited to weed control, garbage and debris removal, ash removal, painting, snow removal and pavement maintenance. 10. SIGNS: LESSEE, at LESSEE's own expense, may erect a sign(s) of a type, number and location suitable to LESSOR. No signs or other advertising matter or devices shall be used or displayed in or about the leased premises or upon any portion of the Airport without the prior written approval of the Airport Manager, which approval shall not be unreasonably withheld. 11. IMPROVEMENTS: All buildings, trade fixtures and other improvements to the leased property by LESSEE shall conform to applicable rules, regulations and codes, and LESSEE shall procure all building and other permits therefore. All buildings trade fixtures and other improvements shall be designed with a view toward aesthetic considerations and installation shall not commence until plans and specifications therefore have been submitted to and approved in writing by the Airport Manager, which approval shall not be unreasonably withheld. Approval of LESSEE's improvements shall be deemed granted twenty (20) days after submission in writing to the Airport Manager if no response has been received by LESSEE. LESSOR makes no representation or guarantee as to the suitability of the leased area for construction of buildings, roads, ramps, etc., and is not responsible for the costs of excavation and/or removal of any object found either above or below ground level except for hazardous materials and archaeological artifacts existing prior to tenancy. 12. REVERSION OF IMPROVEMENTS: Upon termination of this lease for any reason LESSOR may, at its option, either accept ownership of the improvements constructed or installed on the Premises, except for trade fixtures, or require LESSEE to remove such improvements within sixty (60) days of such termination. Such removal shall include removing the 4 1 Page Z:\F- drive\DATA\WORD\LEASE\McCormick\Lease 7 Parking Lot 8 foundation, utilities and other land improvements and restoring the land to grade level. LESSOR shall notify LESSEE of its intent within sixty (60) days of the cancellation or expiration. Prior to the expiration of this Lease, LESSEE shall remove all such trade fixtures and repair any damage to the premises caused by removal of trade fixtures, to the reasonable satisfaction of the Airport Manager. Fixtures not removed within sixty (60) days after termination become the property of the LESSOR unless other arrangements have been previously approved in writing by the Airport Manager. LESSEE shall, as additional consideration for grant of this Lease, insure that all liens, security interest and other encumbrances against said improvements and structures except those created or suffered by LESSOR, whether consensual or involuntary, shall be paid, discharged or satisfied prior to time for reversion thereof to LESSOR; and, in any event, the parties acknowledge that LESSOR shall not, by virtue of termination of the leasehold interest nor reversion of the structures or other improvements, be liable for any debt or encumbrance associated therewith, whether now existing or hereafter incurred, levied or attached. 13. LESSOR'S OPTION TO PURCHASE: LESSOR shall have the right of first refusal on all improvements or structures on the demised premises as hereinafter set forth, excluding the parking lot improvements identified in Section 3 A herein, which shall have been reasonably compensated by the terms set forth in this Agreement. If at any time during the term, LESSEE shall receive a bona fide offer from a third person for the purchase of any or all improvements or structures on the demised premises, which offer LESSEE shall desire to accept, LESSEE shall promptly deliver to LESSOR a copy of such offer and LESSOR may, within thirty (30) days thereafter, elect to purchase the demised premises on the same terms as those set forth in such offer. If LESSOR shall not accept such offer with the time herein specified therefor, said right of refusal shall cease to exist, but this lease shall continue otherwise on all the other terms, covenants, and conditions in this lease set forth. This right of refusal shall be inapplicable to a transfer, by way of sale, gift or device, including a trust, to or for a party related to a LESSEE , or to any transfer, in whole or in part, from one such related party to another, but shall apply to any subsequent transfer to a third person. For the purpose of this Article, if the then LESSEE shall be an individual, a related party shall include a spouse, lineal descendant or spouse of such descendant, ancestor or sibling (whether by the whole or half blood), a partnership or limited liability company of which such owner is a member, a joint ownership or ownership in common, which includes the then LESSEE, or a corporation, the majority of whose shares is owned by the 5 1 Page Z:\F- drive\DATA\WORD\LEASE\McCormick\Lease 7 Parking Lot 9 LESSEE, or any one or more of the foregoing parties. If the then LESSEE shall be a corporation, a related party shall include an affiliate, subsidiary or parent corporation, a successor by merger or consolidation, or the holder or holders of the majority of the shares of such corporation. 14. REGULATIONS: LESSEE agrees to comply with all applicable laws, ordinances, rules, regulations and policies of all governmental authorities having jurisdiction over the Airport, including policies adopted by LESSOR, as such laws, ordinances, rules, regulations and policies apply to the use and operation of Airport property, facilities and operations as those laws, ordinances, rules, regulations and policies now exist or may hereafter become effective. LESSEE further agrees to accept responsibility for not allowing unauthorized persons access to the Airport Operations Area (AOA). 15. SUBLETTING: LESSEE shall not sublet any part of the premises without the prior written approval of LESSOR, such approval not to be unreasonably withheld. Subleases shall give preference to aeronautical activities and shall comply with all laws, ordinances, rules, regulations and policies applicable to the use and operation of Airport property, facilities and operations as those laws , ordinances, rules, regulations and policies now exist or may hereafter become effective. A consent to sub -lease by LESSOR shall not be construed to be a consent to any subsequent sub -lease. The LESSOR, in determining whether or not to approve a sub -lease, shall consider the extent of the aeronautical activities performed on the premises. Any income to LESSEE derived from sub -leasing shall be distributed to LESSOR in accordance with its policy on SUB -LEASING INCOME in effect at the time of the final execution of this Lease. According to the policy on SUB -LEASING INCOME in effect at the time of this Lease, there is no requirement to share sub -lease income because this Lease is for land only. 16. ASSIGNMENT: LESSEE shall not assign this Lease without the prior written approval of LESSOR, such approval not to be unreasonably withheld. Such assignment shall be in conformance with all applicable Airport Board, local, state and federal laws, ordinances, rules, regulations and policies. LESSEE shall give preference to aeronautical activities and all assignees shall comply with all laws, ordinances, rules, regulations and policies applicable to the use and operation of Airport property, facilities and operations as those laws, ordinances, rules, regulations 6 1 Page Z:\F- drive\DATA\WORD\LEASE\McCormick\Lease 7 Parking Lot 10 and policies now exist or may hereafter become effective. A consent to assignment by LESSOR shall not be construed to be a consent to any subsequent assignment. 17. MISCELLANEOUS PROVISIONS: A. The parties agree that LESSOR, through its Airport Manager or other person authorized by the Airport Manager, may enter upon the leased premises at any reasonable time to make such inspections as LESSOR may deem necessary to the proper enforcement of any term, provision or condition of this Lease. No such entry or inspection by LESSOR is required by this provision, and the failure of LESSOR to enter and make inspection shall not alter the relationship of the parties and their respective rights and duties provided by this Lease. LESSEE shall be granted the right of quiet enjoyment upon performance of all terms of this Lease. B. LESSOR may further develop or improve Airport property and facilities, regardless of the desire or views of LESSEE regarding any such development or improvement, and without interference or hindrance on the part of LESSEE and without liability to LESSEE, provided the operations of the LESSEE are not unreasonably interrupted. C. LESSOR reserves the right, but shall not be obligated to LESSEE, to maintain and keep in repair the landing area of the Airport and all publicly owned facilities of the Airport, together with the right to direct and control all activities of LESSEE in that regard. D. LESSOR reserves the right to take any action necessary or desirable by LESSOR to protect the operations of the Airport against obstruction, or any other activity interfering with the efficient operation of the Airport, together with the right to prevent LESSEE from erecting, or permitting to be erected, any building or other structure on the Airport which, in the opinion of the Airport Manager, would limit the usefulness of the Airport or constitute a hazard to aircraft. E. During time of war or national emergency, LESSOR shall have the right to lease the landing area or any part thereof to the United States of America for military use, and, if any such lease is executed, the provisions of this Lease shall be suspended insofar as they are inconsistent with the provisions of the lease agreement with the United States of America. F. This Lease shall be subordinate to the provisions of any existing or future agreement between LESSOR and the United States of America relative to the operation or maintenance of the Airport, the execution of which has been or may be required as a condition to the expenditure of federal funds for the development of the Airport. 7 1 Page Z:\F- drive\DATA\WORD\LEASE\McCormick\Lease 7 Parking Lot 11 G. If the leased premises or any interest therein is taken as a result of the exercise of the right of eminent domain, this Lease shall terminate as to such portion as may be taken. If the portion taken does not feasibly permit the continuation of the LESSEE's operations, LESSEE shall have the right to terminate this Lease. Such termination shall be effective as of the date LESSEE's operations cease. LESSEE shall be entitled to a portion of the award representing its interest in the premises. LESSOR shall be entitled to the remainder of the award. 18. INDEMNITY/DUTY TO DEFEND: A. At no expense to LESSOR, LESSEE shall defend against and indemnify fully and save harmless the Yakima Air Terminal - McAllister Field, the City of Yakima and its elected and appointed officials, employees and agents, from any and all liability, damages, suits, claims, actions, judgements or decrees, made against the Yakima Air Terminal - McAllister Field, the City of Yakima and its elected and appointed officials, employees and agents, including all expenses incidental to the investigation and defense thereof, including reasonable attorney fees, based on or arising from the occupancy or use of the leased premises by LESSEE or as a result of LESSEE'S operations at the Airport or from any other act or omission of LESSEE, its servants, employees, agents, invitees, independent contractors or any other entity, person, firm or corporation acting on behalf of LESSEE or under its direction, whether such claim shall be by LESSEE or a third party; provided, however, that LESSEE shall not be liable for any injury, damage or loss occasioned solely by the sole negligence of LESSOR, its agents or employees. LESSOR shall give to LESSEE prompt and reasonable notice of any such claims or actions and LESSEE shall have the right to investigate, compromise and defend the same to the extent of its interest. B. LESSOR agrees to defend, indemnify and hold LESSEE harmless against and from any claim or liability arising from or alleged to arise from the presence of hazardous material or toxic waste on the subject leased premises at the inception of this Lease and the introduction to the premises of such materials due to LESSOR'S activities or under its direct control. C. LESSEE shall keep and hold the Yakima Air Terminal - McAllister Field, the City of Yakima and its elected and appointed officials, agents and employees, free and harmless from any and all claims and actions, loss, damage, expense or cost, including reasonable attorneys fees, incidental to the investigation and defense thereof, resulting from, arising out of, or caused by LESSEE resulting in any liability under the Federal Comprehensive Environmental Response Compensation Liability Act of 1980, as amended, 42 U.S.C. 9601 et seq.; Hazardous Materials Transportation Act, 49 U.S.C. 1801 et seq.; Resource Conservation and Recovery Act, 42 U.S.C. 6901 et seq.; the Clean Water Act, 42 U.S.C. 1251 et seq.; the Washington Environmental Policy Act, RCW Ch. 43.21C; the Washington Water Pollution Control Act, RCW Ch. 90.48; the 8 1 Page Z:\F- drive\DATA\WORD\LEASE\McCormick\Lease 7 Parking Lot 12 Washington Hazardous Waste Management Act, RCW Ch. 70.105; the Washington Model Toxic Control Act, RCW Ch. 70.105D, and the regulations promulgated there under, or under any applicable local or state environmental ordinance, statute, law, rule or regulation. The provisions of this Sub -section shall survive the termination of this Lease. 19. INSURANCE: LESSEE shall file with LESSOR a certificate of insurance, or other proof of insurance acceptable to LESSOR, evidencing an insurance policy with the Yakima Air Terminal -McAllister Field and the City of Yakima and as additional insured providing: 1. Comprehensive general liability insurance coverage in amounts of not less than $1,000,000 Combined Single Limit for bodily injury and property damage covering LESSEE's occupancy of and activities pertaining to the leased premises. LESSEE specifically agrees that insurance limits shall be reviewed at least every five (5) years and that LESSOR may make reasonable adjustments to the required limits. Not less than 30 days written notice, or other such time period as may be acceptable to LESSOR, must be supplied to LESSOR in the event of cancellation, material change to the policy or non -renewal of any or all policies. Certificate shall be issued by carrier(s) with a minimum A.M. BEST rating of A -VII which are admitted in the State of Washington or other such carriers as shall be acceptable to LESSOR. 20. DAMAGE OR DESTRUCTION: A. TENANT IMPROVEMENTS: In the event the construction in accordance with Section 12 - IMPROVEMENTS herein, or improvements thereto, is partially or totally damaged by fire or other casualty, the LESSEE shall repair or replace the same at its own expense. The new improvements shall be at least the same size, design and quality as that which existed prior to any damage or destruction. Both parties agree, however, that any insurance proceeds shall be first applied to the cost of repair or replacement of improvements. LESSEE may elect not to repair or replace said construction or improvements. LESSEE shall advise LESSOR of its intent within thirty (30) days of the damage or destruction. If LESSEE elects not to repair or replace the improvements, this Lease shall be terminated. In such event, LESSOR may either accept ownership of the improvements or require LESSEE to remove the improvements and restore the Premises to a condition satisfactory to the LESSOR. The insurance proceeds shall be used for such restoration and the balance divided between the 9 1 Page Z:\F- drive\DATA\WORD\LEASE\McCormick\Lease 7 Parking Lot 13 LESSOR and LESSEE as their interests bear in accordance with a straight line depreciation schedule. The straight line depreciation schedule shall be over the initial term of the lease and shall begin to run on the lease effective date. The amount so depreciated shall vest in the LESSOR. LESSOR shall notify LESSEE of its intent within thirty (30) days of receipt of LESSEE's notification. If LESSOR elects to have LESSEE remove the improvements, LESSEE shall have sixty (60) days to do so. B. OTHER AIRPORT PROPERTY: In the event of damage or destruction of Airport property caused by the LESSEE, its agents, employees, aircraft or other equipment, LESSEE agrees to repair, reconstruct, or replace the affected property to the condition which existed prior to such damage or destruction, to the extent that same is not covered by insurance required under this Lease. LESSEE further agrees to cause such repair, reconstruction or replacement or affected property with due diligence. 21. DEFAULT, TERMINATION & FORFEITURE: A. The failure by LESSEE to pay rent in the amounts and at the times specified herein, or the failure by LESSEE to otherwise comply with any term, provision or condition of this Lease, shall constitute grounds for termination of this Lease and forfeiture of all rent paid by LESSEE to the time of termination. This Lease and tenancy shall terminate and rent paid shall be forfeited for cause as specified above on written notice by LESSOR to LESSEE stating the amount of rent in default or otherwise stating accurately the manner in which LESSEE fails or has failed to comply with this Lease. LESSEE shall make full payment or otherwise comply with this Lease in the manner specified in the notice within thirty (30) days (except three (3) days for payment of rent) from LESSEE's receipt of such notice, otherwise this Lease and tenancy shall be terminated and rent forfeited. Such notice shall be given in writing and served on LESSEE by personal delivery or mailed by certified mail with return receipt requested addressed to LESSEE at its address stated below LESSEE's signature to this Lease or such other address as the parties may advise each other in writing. It is further agreed that after receipt of notices and as an additional condition to avoid forfeiture, LESSEE shall pay LESSOR's costs and expenses, including attorney's fees, for the preparation and service of such notice. Nothing contained herein shall release or diminish LESSEE's obligation to pay rent for the full term of this Lease save such amount as LESSOR recovers as rent from any subsequent lessee during the term of this Lease. Notices shall be deemed received three (3) days after mailing to LESSEE at the address below LESSEE's signature to this Lease or such other address as the parties may advise each other in writing. B. As additional and not alternative remedy, optional with LESSOR and upon thirty (30)days written notice to LESSEE, should LESSEE be in default hereunder other than default in the payment of rent, LESSOR may cure or correct the same and the cost of such action by LESSOR shall immediately 10 1 Page Z:\F- drive\DATA\WORD\LEASE\McCormick\Lease 7 Parking Lot 14 become due and payable from LESSEE, together with late fees on said sum at a rate of twelve percent (12%) per annum, and the non-payment of said sum by LESSEE shall be adequate grounds for LESSOR to invoke the other remedies as provided in this Lease. C. Upon termination of this Lease for any reason, LESSEE shall immediately surrender the premises to the LESSOR in good condition and repair, ordinary wear and usage excepted; and LESSEE shall remove all of LESSEE'S personal property, trade fixtures, equipment or improvements, excluding parking lot pavement improvements, removable by prior agreement with LESSOR from the premises and shall repair any damage to the premises caused by such removal. Any personal property of LESSEE, or anyone claiming under LESSEE, which shall remain upon the premises at the expiration or termination of this Lease shall be deemed to have been abandoned and may be retained by LESSOR as LESSOR'S property or disposed of by LESSOR in such manner as LESSOR sees fit without compensation to any party. 23. INSOLVENCY In the event LESSEE is declared bankrupt by a court of competent jurisdiction or in the event LESSEE makes an assignment for the benefit of creditors, or if a receiver otherwise is appointed for LESSEE, or in the event LESSEE's leasehold estate is subjected to execution to satisfy any judgement against LESSEE, then in that event LESSOR may immediately or at any time thereafter without notice or demand enter into and upon the premises or any part thereof and repossess the same and expel LESSEE or any person upon the premises and remove their effects, and thereupon this Lease and the tenancy hereby created shall absolutely terminate, without prejudice to any remedies which might otherwise be available to LESSOR for collection of past due or future rent. 23. VENUE, ATTORNEY FEES: In the event of litigation to enforce the rights and obligations hereunder, venue shall lie in a court of competent jurisdiction in Yakima County, Washington and the prevailing party shall be entitled to its reasonable attorney fees in addition to court costs. 24. NON-DISCRIMINATION CLAUSE: To the extent required by law, LESSEE, for itself, its personal representative, successors in interest and assigns, as a part of the consideration hereof, does hereby covenant and agree as follows: A. No person, on the grounds of race, color, religion, sex, age, marital status, handicap or national origin, shall be unreasonably excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in LESSEE's 11 1 Page Z:\F- drive\DATA\WORD\LEASE\McCormick\Lease 7 Parking Lot 15 personnel policies and practices or in the use or operation of LESSEE's services or facilities. B. LESSEE agrees that in the construction of any improvements on, over or under Airport land and the furnishing of services thereon, no person, on the grounds of race, color, religion, sex, marital status, handicap, age or national origin, shall be unreasonably excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination. C. LESSEE 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, Non-discrimination in Federally Assisted Programs of the Department of Transportation -Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended. D. It is the policy of the Department of Transportation that minority business enterprise as defined in 49 CFR Part 23, i.e., firms owned and controlled by minorities; firms owned and controlled by women and firms owned and controlled by financially disadvantaged persons; shall have the maximum opportunity to participate in the performance of leases as defined in 49 CFR Section 23.5. Consequently, this Lease is subject to 49 CFR Part 23 as applicable. Lessee hereby assures that no person shall be excluded from participation in, denied the benefits of or otherwise discriminated against in connection with the award and performance of any contract, including leases, covered by 49 CFR Part 23 on the grounds of race, color, national origin or sex. Lessee hereby assures that it will include the above clauses in all sub -leases and cause sub -lessees to similarly include clauses in further sub -leases. 25. AIRPORT SECURITY AND ACCESS CONTROL A. Vehicular or pedestrian access to any and/or all movement areas, whether active or inactive, is expressly prohibited by this Agreement. For the purpose of this Agreement, a movement area is any runway or taxiway utilized for taxiing, takeoffs, and landings of aircraft, exclusive of aircraft loading ramps, aircraft parking areas, and aircraft aprons and tie down spaces. B. Access Identification (ID). Airport Administration will assign one (1) Yakima Air Terminal (YAT) identification card to the LESSEE's Authorized Signatory only. The cost of the badge is dependent on costs associated with the requisite and mandated background check. C. A request by the LESSEE for an additional card(s) shall be made in writing stating through the Authorized Signatory providing the reason(s) or rationale why 12 1 Page Z:\F- drive\DATA\WORD\LEASE\McCormick\Lease 7 Parking Lot 16 an additional card(s) is/are required. Any request for an additional card may or may not be approved by the Airport Manager at his/her sole discretion. The minimum information required for the issuance of any additional card will include the name, local address, and contact phone number of the individual. The same fees outlined above are applicable for any additional badge. If any card is lost, stolen, or made unusable for any reason, the LESSEE will pay the applicable fine and costs associated with the issuance of a new or replacement badge in effect at that time. D. The control and monitoring of access is paramount to Airport security. Accordingly, only authorized users with access to the Airport granted pursuant to this Agreement may hold an ID card to access the Airport. Lost or stolen Airport - issued access cards shall be reported immediately by any means possible to Airport Administration, whereupon the loss or theft will be recorded, and the card will be made "inactive". "Reported immediately" means within twenty-four (24) hours or the next business day, not including weekends or holidays. A new card may then be issued by Airport Administration bearing a number different from the one lost or stolen. E. Fraud and Intentional Falsification of Records. (1) No person may make any fraudulent or intentionally false statement in any application for any security program, access medium, or identification medium. (2) No person may make any fraudulent or intentionally false entry in any record or report that is kept, made or used to show compliance or exercise any privileges. F. Security Responsibilities. No person may: (1) Tamper or interfere with, compromise, modify, attempt to circumvent, or cause a person to tamper or interfere with, compromise, modify, or attempt to circumvent any security system, measure, or procedure. (2) Enter, or be present within a secured area without complying with the systems, measures, or procedures being applied to control access to, or presence or movement in such areas. (3) Use, allow to be used, or cause to be used, any Airport -issued or Airport -approved identification medium that authorizes the access, presence, or movement of persons or vehicles in secured areas in any other manner than that for which it was used by the appropriate authority. 13 1 Page Z:\F- drive\DATA\WORD\LEASE\McCormick\Lease 7 Parking Lot 17 G. "Non -Movement Area Certification of Training — Application for Permit to Operate Ground Vehicles at the Yakima Air Terminal". Any person given vehicular access to the Airport shall be required to read, apply for and pass the test associated with the current edition of the Airport Driving Rules & Regulations document provided by the Airport to qualify for access to the Airport. A copy of the application and test will be kept in the LESSEE's File. H. Airport Safety and Security. In the interest of Airport safety and security, in the event LESSEE fails to abide by this Agreement, the Airport Manager of YAT is authorized by the Airport's Governing Authority, to immediately declare this Lease void, to cancel the same without any legal proceeding. 26. INTEGRATION: This document embodies the entire Lease between the parties with respect to the subject matter herein contained. No amendments or modifications hereof shall be enforceable unless in writing, signed by the party to be charged. Time is of the essence of this entire Lease 14 1 Page Z:\F- drive\DATA\WORD\LEASE\McCormick\Lease 7 Parking Lot 18 LESSOR: YAKIMA AIR TERMINAL - McALLISTER FIELD 2406 West Washington Avenue, Suite B Yakima, Washington 98903 (509) 575-6149 (509) 575-6185 (fax) Cliff Moore, City Manager STATE OF WASHINGTON County of Yakima I certify that I know or have satisfactory evidence that Cliff Moore signed this instrument, on oath stated that they were authorized to execute the instrument and acknowledged it as the City Manager to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. Date: By: Notary Public Appointment Expires 15 1 Page Z:\F- drive\DATA\WORD\LEASE\McCormick\Lease 7 Parking Lot 19 LESSEE: Robert E. McCormick 191 Mapleway Road Selah, Washington 98942 (cell) (509) 945-2219 (home) (509) 697-5230 ROBERT E. McCORMICK DATE STATE OF WASHINGTON County of Yakima I certify that I know or have satisfactory evidence that Robert E. McCormick signed this instrument, on oath stated that they were authorized to execute the instrument and acknowledged it to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. Date By: Notary Public Appointment Expires Signature 16 1 Page Z:\F- drive\DATA\WORD\LEASE\McCormick\Lease 7 Parking Lot Date 20 EXHIBIT A Exhibit A: Lease agreement between the Yakima Air Terminal -McAllister Field and McCormick Air Center, LLC, a limited liability company Approximately 14,000 square feet of vehicle parking space 17 1 Page Z:\F— drive\DATA\WORD\LEASE\McCormick\Lease 7 Parking Lot EXHIBIT B WA 98909 dd Jerry TI tvs Contracting LOC 5093943-3008 passOwshoomorri PRO.) Criumph Parkiftg l t t 2808 South 28th Ave Yakima>'WA ES 21 DATE 1127/201 fab JAT Ft t any question pie a salt Eason Warenque 509-834-3407 TY PPM Down l#se M aow Ca plet un LT 2TAL 2" ileav 42t1{} sil 9,800 sq 11 Saw eu asphalt Re ad 'haat offs' 143X1 `2" and 3" ophalt ., 's Show existing growl made for pnsitiva deaiisagc {'4,000 sy * I; tte:tisik haul, and pimp 2 inches * Apply soil slerd t (14.1140 so ft) Amish) hank and place hot mix asphal (4,200 so 11} Oh, haul, and Mace hot mix asphalt t a the compacted depth of r tE 3acluded in price p 27.00 Sales Tax (8 %) S1,462.21 k you for year business To 32.,489.21 alxs. Exulusacraas; 4 sed saaivptaig,t aagtc caa i..fxay # faar tifad ca a#�twz az the 'd qtr a3ayr. ral' will kae eta..E st 1 lt2�la ti sc tr.. #1s. E 'da es tt t be a33a W' St an y�aea~ss vlr�tl be- ger#. ru 4a...lc ekisrgau wlil t lSawe#S: uittaau# wri caa t'% ' E : rs sukpac# tv tvcaer. Stan ata s S tae dui Egeki irxa#za vi bra t' ar tea once ta3ract, is ta�lE#± 18 1 Page Z:AF— drive\DATA\WORD\LEASE\McCormick\Lease 7 Parking Lot