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