HomeMy WebLinkAboutR-2019-096 Airport Lease Agreement to Build Additional Aircraft HangersRESOLUTION NO. R-2019-096
RESOLUTION authorizing a Lease Agreement with McCormick Aircraft Hangars, LLC., for
property located at 3600 W Washington Ave, Yakima Air Terminal -McAllister
Field
WHEREAS, the 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 181334-13002,
which property is located at 3600 W Washington Ave, Yakima, Washington 98903, and
WHEREAS, the 2015 Airport Master Plan adopted by City Council identifies the need for
additional hangar development in order to meet increasing demands within the aviation industry; and
WHEREAS, McCormick Air Center Fixed Base Operator has indicated the need for additional T-
Hangars for aircraft storage and has proposed a location for the T-Hangar development that is consistent
with the Airport Master Plan, and
WHEREAS, the airport received approval from the Federal Aviation Administration Airports
District Office, which approval has indicated the proposed hangar development is a safe and efficient use
of navigable airspace by aircraft and with respect to the safety of persons and property; and
WHEREAS, the City of Yakima and McCormick Aircraft Hangars, LLC , have negotiated a Lease
that would authorize McCormick to occupy the property and to develop aircraft hangars thereon to store
aircraft at the Yakima Air Terminal -McAllister Field, thus providing the aviation community with additional
aircraft storage facilities, all of which is set forth in the "Airport Land Lease Agreement" attached hereto
and incorporated herein by this reference; and
WHEREAS, the City Council has determined that approval of the attached Lease agreement is in
the best interests 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 Interim City Manager is hereby authorized and directed to execute the attached Lease with
McCormick Aircraft Hangars, LLC , for a lease of Yakima Air Terminal -McAllister Field property located
at 3600 W Washington Ave, Yakima, Washington 98903 in accordance with the terms set forth therein
ADOPTED BY THE CITY COUNCIL this 5th day of November, 2019
ATTEST ,.���� K. thy Coff
Sonya Cladr Tee, City Clerk
AIRPORT LEASE AGREEMENT
BETWEEN
CITY OF YAKIMA AND YAKIMA AIR TERMINAL-MCALLISTER FIELD
AND MCCORMICK AIRCRFT HANGARS, LLC.
THIS AGREEMENT is effective on December 1, 2019, between the CITY OF
YAKIMA and YAKIMA AIR TERMINAL - McALLISTER FIELD, a department of the
City of Yakima, Washington, hereinafter referred to as "LESSOR," and
MCCORMICK AIRCRAFT HANGARS, LLC , a Washington corporation,
hereinafter referred to as " "LESSEE"
WITNESSETH
WHEREAS, LESSOR operates the Yakima Air Terminal -McAllister Field which is
a Department of the City of Yakima, hereinafter both referred to as "LESSOR",
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 concession rights granted herein and
the mutual covenants and agreements hereinafter contained, the parties hereto
agree, for themselves, their successors and assigns, as follows.
1. PREMISES:
LESSOR does hereby lease and let unto LESSEE, and LESSEE does hereby
lease and take from LESSOR, approximately 28,172 square feet of land in the City
of Yakima, Washington, as that property is depicted on the drawing marked Exhibit
"A" Parcel B, 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 premises are
a section of land which is located on a portion of the real property known as Yakima
County Assessor's Parcel No. 181334-13002 LESSOR shall provide a legal
description of the leasehold premises and such description shall become a part of
this Lease
2. TERM:
A. The tenancy created by this Lease shall commence on 1st of December
2019, and continue for a period of thirty (30) years, terminating on November 30,
2049, unless otherwise terminated as provided for herein
B. LESSEE shall have the option to extend the initial thirty-year term by two
additional ten (10) year terms that, if so extended, would expire November 30,
2059 and November 30, 2069, consecutively; provided that LESSEE delivers to
LESSOR, not less than three -hundred sixty-five (365) days before the expiration
of the original thirty-year term, as well as not Tess than three -hundred sixty-five
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(365) days before the expiration of the first ten year extension, written notification
of its intent to extend the term
3. RENT:
A. LESSEE promises and agrees to pay LESSOR rent for the property at the
then current aeronautical land rate per square foot of property leased, as depicted
on 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
B. The lease rental rate provided for above shall be subject to review and
modification every two years on the anniversary of this Lease and shall be set at
the then current aeronautical airport rental rate
C. All Lease rates identified above are Lease payment rates for property only
and do not include any taxes of any sort. All applicable taxes, including leasehold
taxes, shall be paid by LESSEE and shall be computed on the basis of the Lease
rate in effect at the time the tax is imposed (See Section 6, below)
4. ARBITRATION SECTION:
Not Applicable
5. DEPOSIT:
Upon execution of this Lease by both parties, LESSEE shall deposit with LESSOR
the amount of one month's rent plus leasehold tax thereon, as a guarantee of
LESSEE's performance of this Lease and the timely payment of the Lease
payments provided for herein, in the event LESSEE shall fail to pay the Lease
payments as provided herein, or otherwise breach this Lease, then the Airport
Director may apply such deposit, or any part thereof as may be necessary, to the
payment of the Lease or to the payment of damages for such breach or pursue
any other remedies provided herein or by law Any amount of the required deposit
that is expended as payment of past due Lease payment obligations shall be
immediately repaid to the City of Yakima, with written notice to the Airport Director
by the LESSEE, in order to maintain the required deposit value at all times during
the Lease term This deposit shall be adjusted from time to time to reflect
adjustments in the Lease payment and/or leasehold tax
6. TAXES AND LIENS:
In addition to the Lease payments identified 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, 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 of improvements on 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
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7. USE:
LESSEE agrees to use the leased premises only for an aeronautically oriented
activity or for any other use allowed by the Master Plan and the zoning of the
property by the appropriate jurisdiction as approved by the LESSOR. The use of
the property for any other purpose 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 of consent to assignment.
8. UTILITIES:
LESSEE shall be responsible for all utility services including, but not limited to,
power, natural gas, water, sewer, communication, and garbage
9. JANITORIAL:
LESSEE shall furnish all janitorial services necessary to keep the Lease premises
clean and sanitary at LESSEE's sole expense.
10. PREMISES CONDITION:
LESSEE has made a full inspection of the premises, is fully aware of its condition,
except with respect to environmental conditions and latent defects, and accepts
the premises on an "AS -IS" basis LESSEE agrees to pay for any improvements,
repairs and/or modifications necessary to accommodate the operation of
LESSEE's business
11. 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, trade fixtures and other improvements, existing and
future, in an attractive and usable manner as reasonably determined by the Airport
Director and consistent with other properties at the Airport. Maintenance shall
include, but not be limited to, landscaping, garbage and debris removal, ash
removal, painting, and snow removal
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12. SIGNS:
LESSEE, at LESSEE's own expense, may erect a sign(s) of a type, number and
location suitable to LESSOR and as permitted by applicable City of Yakima
ordinances Sign(s) shall not cause safety concerns with the Air Traffic Control
Tower's line of sight as aircraft depart and arrive from the Yakima Air Terminal -
McAllister Field 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 Director, which approval shall not be
unreasonably withheld
13. IMPROVEMENTS:
All buildings, trade fixtures and other improvements installed on 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 Director,
which approval shall not be unreasonably withheld Approval of LESSEE's
improvements shall be deemed granted thirty (30) days after submission in writing
to the Airport Director if no response has been received by LESSEE within that
time period
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
14. 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
foundation, utilities and other land improvements and restoring the land and
premises to pre -lease condition and grade level LESSOR shall notify LESSEE of
its intent within sixty (60) days of the termination, cancellation or expiration of the
lease
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 Director Fixtures not removed within sixty
(60) days after cancellation, expiration or termination shall become the property of
the LESSOR unless other arrangements have been previously approved in writing
by the Airport Director
LESSEE shall, as additional consideration for grant of this Lease, insure that all
liens, security interest and other encumbrances against said improvements and
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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,
trade fixtures or other improvements, be liable for any debt or encumbrance
associated therewith, whether now existing or hereafter incurred, levied or
attached
15. LESSEE'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. 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 forty-five (45) 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 within the time herein specified, said right of
refusal shall cease to exist, but this lease shall continue otherwise on all the other
terms, covenants, and conditions set forth in this lease This right of refusal shall
be inapplicable to a transfer, by way of sale, gift or devise, 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 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
16. REGULATIONS:
LESSEE agrees to comply with all applicable laws, ordinances, rules, regulations,
federal grant assurances, 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)
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17. SUBLETTING:
LESSEE shall not sublet any part of the premises without the prior written approval
of LESSOR. 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
18. ASSIGNMENT:
LESSEE shall not assign this Lease without the prior written approval of LESSOR,
such approval to be at the sole discretion of LESSOR Such assignment shall be
in conformance with all applicable local, state and federal laws, ordinances, rules,
regulations and policies LESSEE shall give preference to aeronautical activities
and all assignees shall comply with all terms of this Lease, together 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 assignment by LESSOR shall not be construed to be a consent to any
subsequent assignment.
19. MISCELLANEOUS PROVISIONS:
A. The parties agree that LESSOR, through its Airport Director or other person
authorized by the Airport Director, 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
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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 Director, 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.
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
20. 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, judgments 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 and 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 in proportion attributable to the 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. LESSEE agrees to reimburse LESSOR for any damage to the premises
caused by the occupancy of LESSEE, its employees, agents, servants, invitees,
independent contractors or any other person acting on behalf of LESSEE or under
its direction
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C. 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 control
D. 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 21 C,
the Washington Water Pollution Control Act, RCW Ch. 90 48, the Washington
Hazardous Waste Management Act, RCW Ch 70 105; the Washington Model
Toxic Control Act, RCW Ch 70 105D, and the regulations promulgated
thereunder, 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
21. INSURANCE:
A. At all times during performance of the Lease, the Lessee shall secure and
maintain in effect insurance to protect the City and the Lessee from and against all
claims, damages, losses, and expenses arising out of or resulting from the
performance of this Lease Lessee shall provide and maintain in force insurance
in limits no less than that stated below, as applicable The City reserves the right
to require higher limits should it deem it necessary in the best interest of the public
B. Commercial Liability Insurance Before this Lease is fully executed by the
parties, Lessee shall provide the City with a certificate of insurance as proof of
commercial liability insurance with a minimum liability limit of Two Million Dollars
($2,000,000.00) per occurrence combined single limit bodily injury and property
damage, and Two Million Dollars ($2,000,000 00) general aggregate This
insurance requirement can be satisfied with a combination of commercial general
liability insurance and excess or umbrella liability insurance coverage If Lessee
carries higher coverage limits, such limits shall be shown on the Certificate of
Insurance and Endorsements and the City of Yakima and the Yakima Air Terminal,
its elected officials, officers, agents, and employees shall be named as additional
insureds for such higher limits. The certificate shall clearly state who the provider
is, the coverage amount, the policy number, and when the policy and provisions
provided are in effect. Said policy shall be in effect for the duration of this Lease.
The policy and Endorsements shall name the City of Yakima and the Yakima Air
Terminal, its elected officials, officers, agents, and employees as additional
insureds, and shall contain a clause that the insurer will not cancel or change the
insurance without first giving the City thirty (30) calendar days prior written notice
The insurance shall be with an insurance company or companies rated A-VII or
higher in Best's Guide and admitted in the State of Washington
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C. 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
22. DAMAGE OR DESTRUCTION:
A. TENANT IMPROVEMENTS. In the event the construction completed in
accordance with Section 13 herein, or improvements thereto, are partially or totally
damaged by fire or other casualty, the LESSEE shall repair or replace the same at
solely 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's insurance proceeds
shall first be used for the costs of restoration of the premises; if the insurance
proceeds are insufficient to completely repair the premises then the remaining
repair shall be completed at LESSEE's sole cost and expense as necessary to
restore the premises to its pre-fire/casualty condition
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 of affected property
with due diligence
23. DEFAULT, TERMINATION & FORFEITURE:
A. The failure by LESSEE to pay monthly Lease payments (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 LESSOR may apply the deposit funds to past -due
rent owing, which amount when so applied shall be forfeited Any required 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 in 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
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received three (3) days after mailing to LESSEE at the address in 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 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 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
24. 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.
25. VENUE, ATTORNEY FEES:
This Contract shall be governed by and construed in accordance with the laws of
the State of Washington. The venue for any action to enforce or interpret this
Contract shall lie in the Superior Court of Washington for Yakima County,
Washington
26. NON-DISCRIMINATION CLAUSE:
To the extent required by law, LESSEE, for itself, its successors in interest and
assigns, as a part of the consideration hereof, does hereby covenant and agree as
follows
A. During the performance of this Lease, LESSEE shall not discriminate in
violation of any applicable federal, state and/or local law or regulation on the basis
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of race, age, color, sex, religion, national origin, creed, marital status, disability,
honorably discharged veteran or military status, pregnancy, sexual orientation,
political affiliation, or the presence of any sensory, mental or physical handicap,
and any other classification protected under federal, state, or local law This
provision shall include but not be limited to the following employment, upgrading,
demotion, transfer, recruitment, advertising, layoff or termination, rates of pay or
other forms of compensation, selection for training, and the performance under this
Lease
B. LESSEE agrees that in the construction of any improvements on, over or
under Airport land and the furnishing of services thereon, no person shall be
discriminated against on the basis of race, age, color, sex, religion, national origin,
creed, marital status, disability, honorably discharged veteran or military status,
pregnancy, sexual orientation, political affiliation, or the presence of any sensory,
mental or physical handicap, and any other classification protected under federal,
state, or local law
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 basis of race, age, color, sex, religion, national origin, creed, marital
status, disability, honorably discharged veteran or military status, pregnancy,
sexual orientation, political affiliation, or the presence of any sensory, mental or
physical handicap, and any other classification protected under federal, state, or
local law
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
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27. 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 -McAllister Field 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 an additional
card(s) is/are required Any request for an additional card may or may not be approved
by the Airport Director 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 are 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
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(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.
G. "Non -Movement Area Certification of Training — Application for Permit to
Operate Ground Vehicles at the Yakima Air Terminal -McAllister Field" 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 Director is authorized
by the Airport's Governing Authority, to immediately declare this Lease void, to
cancel the same without any legal proceeding.
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28. OFFICIAL NOTIFICATIONS:
All notices, requests and other communication under this Agreement shall be
effectively given only if in writing and sent by United States certified mail, returned
receipt requested, postage prepaid, or by nationally recognized and receipted
overnight courier service (e g FedEx, UPS, DHL, or Airborne Express)
guaranteeing next business day delivery, addressed as follows.
If to LESSOR
If to LESSEE
City Manager
City of Yakima
City Hall — First Floor
129 N Second Street
Yakima, WA 98901
and
Robert K. Peterson, Airport Director
Yakima Air Terminal -McAllister Field
2406 W Washington Ave, Suite B
Yakima, WA 98903
(509) 575-6149
Rob. Peterson(a�yakimawa.gov
(509) 575-6260
Robert E McCormick
MCCORMICK AIRCRAFT HANGARS, LLC
3210 W WASHINGTON AVE
YAKIMA, WA 98903
509-248-1680 (Office)
509-945-2219 (Cell)
RobMcCormickaircenter.com
29. INTEGRATION:
This document embodies the entire Lease terms conditions and understandings
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
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IN WITNESS WHEREOF, the parties hereto have caused this agreement to be
executed by their respective authorized officers or representatives as of the day
and year below. The term of the Lease commences on the date stated on the top
of page 1, which is the date that all parties have executed the Lease
LESSOR:
CITY OF YAKIMA AND
YAKI Al L-/:ALLI
By. /,/� . I�di���/
C1
Attest: ('4U-(j ,L 20 l } OM A
City Clerk
Contract Number AlH (04
Resolution Number (k,- / O - I —U 1
LESSEE:
MCCORMICK AIRCRAFT
HANGARS, LLC.
er Robert McCormick, Owner
STATE OF WASHINGTON
) ss
COUNTY OF YAKIMA
I certify that I know or have satisfactory evidence that Robert E. McCormick is the
person who appeared before me, and said person acknowledged that he signed
this instrument, on oath stated that he was authorized to execute the instrument,
and acknowledged it as the Owner of McCormick Aircraft Hangars, LLC., to be the
free and voluntary act of such party for the uses and purposes mentioned in the
instrument.
DATED this 31 day of (-o , 2019
01111111111111111111111111111111111111111111110
— Notary Public =
State of Washington
JILL RIGGLE
MY COMMISSION EXPIRES
JANUARY 25, 2020
a IIIIIIIIIIIIIIIIItIluIHIHIHIIIIIIIIIIIIII�
15
Print
Name
NOTARY PUBLIC in and for the
State of '
Washington, residing at yLdt-LiA A
My appointment expires. lIZS/ZOZE3
\\yakima_city\ykat\Shared\F- drive\DATA\WORD\LEASE\McCormick
STATE OF WASHINGTON )
) ss.
COUNTY OF YAKIMA )
I certify that I know or have satisfactory evidence that Cynthia Martinez is the
person who appeared before me, and said person acknowledged that she signed
this instrument, on oath stated that she was authorized to execute the instrument,
and acknowledged it as the Interim City Manager of the City of Yakima, to be the
free and voluntary act of such party for the uses and purposes mentioned in the
instrument.
DATED this day of Q\t• , 2019
(1Pv)-„P
Name: -C i ` p
NOTARY PUBLIC in and for the
State of
Washington, residing at
My appointment expires
16
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Exhibit A
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1
ITEM TITLE:
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEM ENT
Item No. 6.H.
For Meeting of: November 5, 2019
Resolution executing an airport lease agreement to develop
additional aircraft hangars located at 3600 W. Washington Ave,
Yakima Air Terminal -McAllister Field
SUBMITTED BY: Robert K. Peterson, Airport Director, 509-575-6149
SUMMARY EXPLANATION:
In 2015, City Council adopted the Airport Master Plan which identified areas of future growth at
the Yakima Air Terminal -McAllister Field. One element highlighted within the plan identified the
need for additional hangar development to meet increasing demands for aircraft storage.
Through close coordination with the Federal Aviation Administration and McCormick Air Center
we've identified approximately 27,582 square feet of airport property located at 3600 West
Washington Ave to develop eight additional T-Hangars. These additional facilities will free up
larger hangars occupied by smaller aircraft in order to attract corporate jets and air emergency
services. The revenues produced through both land lease and sale of aviation fuel will benefit
the airport's enterprise fund used to operate the airfield.
ITEM BUDGETED:
Yes
STRATEGIC PRIORITY: Economic Development
APPROVED FOR
SUBMITTAL:
Interim City Manager
STAFF RECOMMENDATION:
Adopt Resolution
BOARD/COMMITTEE RECOMMENDATION:
N/A
ATTACHMENTS:
Description Upload Date
D Resolution 10/1612019
D lease 1013112019
2
Type
Resolution
Cover Memo
YAKIMA CITY CLERK
129 N. 2ND STREET
YAKIMA, WA 98901
UNDERGROUND RIGHT OF WAYEASEMENT
Grantor: City of Yakima, a Municipal Corporation
Grantee: Pacificorp, an Oregon Corporation
Abbreviated Legal Description: Portion of the Northeast quarter of Section 34, Township 13
North, Range 19 East, W.M.
Complete legal descriptions on pages 1-2 below.
Assessor's Tax Parcel Id No.: 181334-13002
UNDERGROUND RIGHT OF WAY EASEMENT
For value received, the City of Yakima ("Grantor"), hereby grants to PacifiCorp, an Oregon corporation,
its successors and assigns ("Grantee"), a perpetual easement for a right of way 16 feet in width and 207 feet
in length, more or less, described as follows:
16 FOOT WIDE UNDERGROUND POWER TRANSMISSION EASEMENT DESCRIPTION
(hereinafter "Easement"):
A strip of land 16 feet wide, being 8 feet on each side of the following described centerline:
Beginning at the Southeast corner of the Northeast quarter of Section 34, Township 13
North, Range 19 East, W.M.; thence North 0°23'40" East, along the East line thereof,
667.26 feet to the building restriction line for RUNWAY 9-27, being 750 feet Northeasterly
of and measured perpendicular to RUNWAY 9-27; thence North 69°59'59" West, along
said building restriction line 1192.40 feet; thence South 20°00'01" West 43.81 feet; thence
North 69°59'59" West 446.39 feet; thence South 20°00'01" West 47.00 feet; thence South
18°55' East 7.97 feet to the Westerly wall of new hangar building and the True Point of
Beginning of the centerline of the herein described easement; thence North 18°55' West
69.97 feet; thence North 67°25'30" West 90.00 feet; thence North 48°40' West 67.00 feet;
thence North 67° 15' West 35.00 feet; thence North 79°00' West 207.00 feet; thence North
1 1 °00' East 10.96 feet to the Southerly right of way line of Washington Avenue and the
terminus point of the herein described centerline.
Side lines of said easement to be lengthened or shortened to meet at angle points and end
at the Westerly wall of new hangar building and at the Southerly right of way line of
Washington Avenue.
Situate in Yakima County, State of Washington
SUBJECT to rights reserved in federal patents, state or railroad deeds, and easements,
conditions, restrictions, reservations, rights of way, covenants and other servitudes appearing
of record or visible upon inspection over or upon the above -described property.
TOGETHER with the right of ingress and egress for Grantee, its contractors, or agents, to
the right of way from adjacent lands of Grantor for all activities in connection with the
purposes for which this easement has been granted; and together with the present and
(without payment therefor) the future right to keep the right of way clear of all brush, trees,
timber, structures, buildings and other hazards which might endanger Grantee's facilities
or impede Grantee's activities.
for the construction, reconstruction, operation, maintenance, repair, replacement, enlargement, and removal
of Grantee's underground electric distribution and communication lines and all necessary or desirable
accessories and appurtenances thereto, including without limitation: wires, fibers, cables and other
conductors and conduits therefor; and pads, transformers, switches, cabinets, vaults on, across, or under the
surface of the real property of Grantor in Yakima County, State of Washington, as more particularly
described as follows and/or shown on Exhibit(s) A and B attached hereto and by this reference made a part
hereof and described as follows:
That portion of the northeast quarter of section 34, township 13 north, range 19 east, W.M.
described as follows:
Beginning at the southeast corner of said subdivision; thence north 0'23'40" east, along
the east line thereof, 667.26 feet to the building restriction line for Runway 9-27, being 750
feet northeasterly of and measured perpendicular to Runway 9-27; thence north 69*59'59"
west, along said building restriction line 1192.40 feet; thence south 20*00'01" west 43.81
feet; thence north 69*59'59 west 207.64 feet to the true point of beginning; thence
continuing north 69*59'59" west 233.75 feet; thence south 20*00'01" west 118 feet;
thence south 69*59'59" east 233.75; thence north 20*00'0I" east 118.00 feet to the true
point of beginning.
Containing 28,172 square feet. Shown as Parcel B on Exhibit B attached hereto.
At no time shall Grantor conduct or permit any ground penetrating activity or excavation in the right of
way without the express written consent of the Grantee. Subject to the foregoing limitations, the right of
way may be used for other purposes not inconsistent, as determined by the Grantee, with the purposes for
which this easement has been granted.
JURY WAIVER. TO THE FULLEST EXTENT PERMITTED BY LAW, EACH OF THE
PARTIES HERETO WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN
RESPECT OF LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR
IN CONNECTION WITH THIS EASEMENT. EACH PARTY FURTHER WAIVES ANY
RIGHT TO CONSOLIDATE, OR TO REQUEST THE CONSOLIDATION OF, ANY ACTION
IN WHICH A JURY TRIAL HAS BEEN WAIVED WITH ANY OTHER ACTION IN WHICH
A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. THIS PARAGRAPH WILL
SURVIVE THE EXPIRATION OR TERMINATION OF THIS AGREEMENT.
Grantor represents and warrants that it possesses all right, title and interest in and to the right of way area,
free and clear of any lien, security interest, encumbrance, claim, license or other restriction that would
interfere with Grantee's use of the right of way area for the purposes contemplated hereunder.
The rights and obligations of the parties hereto shall be binding upon and shall benefit their respective heirs,
successors and assigns and shall run with the land.
Dated this
REPRESENTATIVE ACKNOWLEDGEMENT
State of
County of
This instrur rt was acknowledged before me on this
of whom this instrument was executed
Notary Publi
My commis
CITY CONTRACT NO:
RESOLUTION NO;
Exhibit A
xhi