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HomeMy WebLinkAboutR-2014-051 Yakima Air Terminal Lease Agreement with James KeeneRESOLUTION NO. R-2014-051 A RESOLUTION authorizing the City Manager to execute a Land Lease Agreement with James Keene WHEREAS, City owns and operates Yakima Air Terminal in accordance with applicable Federal, State and Local regulations; and WHEREAS, the City Council has determined that it is in the best interest of the City to enter into a Land Lease Agreements with James Keene; BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager is hereby authorized to execute the attached and incorporated Land Lease Agreement with James Keene. ADOPTED BY THE CITY COUNCIL this 1st day of April, 2014. 1,21:44 Micah awley, ayor ATTEST: onya 1 : ar Tee, City Clerk } \ __ /* =� AIRPORT LEASE AGREEMENT BETWEEN YAKIMA AIR TERMINAL-McALLISTER FIELD AND JAMES KEENE THIS LEASE, executed this Or — day of , 2014, between the YAKIMA AIR TERMINAL — McALLISTER FIELD, a de artment of the City of Yakima, Washington, hereinafter referred to as "LESSOR,” and JAMES KEENE, a single man 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 7,747 sq ft of land at 2000 W Washington Ave in the City of Yakima, Yakima County, Washington, as that property is depicted and legally described 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. Filename: G:\F- drive\DATA\WORD\LEASE\Keene 1 2. TERM: The tenancy created by this Lease shall commence on April 1, 2014 and terminate on June 30, 2040, unless otherwise terminated as provided for herein. The term of this Lease shall be extended by one ten (10) year period (to wit, June 30, 2040 to June 30,2050); unless either party delivers to the other written notification of the intent to terminate prior to May 1, 2040. 3. RENT: A. LESSEE promises and agrees to pay rent to LESSOR at the then current aviation land rate per square foot of property leased shown in Exhibit A for the leased premises, made 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 as 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 Aviation Rate. 4. ARBITRATION SECTION In the event the parties are unable to agree upon the fair market rental rate for the succeeding periods, upon written notice of either party to the other, but no later than thirty (30) days prior to the expiration of the then current rental period, the matter of establishment of fair market rental shall be referred to arbitration. Within thirty (30) days of such notice, each party shall select one arbitrator. The two arbitrators shall jointly select a third arbitrator who shall be a real estate broker with at least five (5) years' experience in sales or leases of commercial property in the Yakima Valley. The decision of a majority of the arbitrators as to the fair market rental value for the property shall be made within forty-five (45) days of said written notice and shall be binding. Each of the parties shall bear the cost of its designated arbitrator. The parties shall share equally the expense of the third arbitrator. The arbitration decision shall be binding upon both parties and shall be enforceable in accordance with the laws of the State of Washington. The arbitrator's decision shall relate back to the beginning of the new rental period. 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 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 Filename: G:\F- drive\DATA\WORD\LEASE\Keene 2 provided herein, or otherwise breach this Lease, then the Airport Manager may 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. 6. 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, 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. 7. USE: LESSEE agrees to use the leased premises only for an aeronautical 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 or consent to assignment. 8. UTILITIES: LESSEE shall be responsible for all utility services including, but not limited to, power, natural gas, water, sewer, and garbage. 9. 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. 10. 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 Filename: G:\F- drive\DATA\WORD\LEASE\Keene 3 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. 11. 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. 12. 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. 13. 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 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 Filename: G:\F- drive\DATA\WORD\LEASE\Keene 4 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. 14. 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. 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 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. Filename: G:\F- drive\DATA\WORD\LEASE\Keene 5 15. 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). 16. 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. 17. 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 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. Filename: G:\F- drive\DATA\WORD\LEASE\Keene 6 18. 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. 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 Filename: G:\F- drive\DATA\WORD\LEASE\Keene 7 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. 19. 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 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 Washington Hazardous Waste Management Act, RCW Ch. 70.105; the Filename: G:\F- drive\DATA\WORD\LEASE\Keene 8 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. 20. 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 insureds 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 Tess 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. 21. 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 LESSOR and LESSEE as their interest bear in accordance with a straight line Filename: G:\F- drive\DATA\WORD\LEASE\Keene 9 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. 22. 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 become due and payable from LESSEE, together with late fees on said sum at a Filename: G:\F- drive\DATA\WORD\LEASE\Keene 10 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. 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. 24. VENUE, ATTORNEY FEES: In the event of litigation to enforce the rights and obligations hereunder, venue shall lie in Yakima County Superior Court, and the prevailing party shall be entitled to its reasonable attorney fees in addition to court costs. 25. 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 personnel policies and practices or in the use or operation of LESSEE's services or facilities. Filename: G:\F- drive\DATA\WORD\LEASE\Keene 11 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. 26. AIRPORT SECURITY AND ACCESS CONTROL A. Access to Non -Movement Area/Ingress and Egress. LESSEE is granted only that vehicular and/or pedestrian access which is reasonably necessary to allow LESSEE access to the hangar ramp/apron once LESSEE is on Airport property. Vehicular access to and egress from Airport by the LESSEE shall be made into and out of only Airport Gate No. 2008, vehicle gate. B. 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. C. There will be one Authorized Signatory for airport security, airport ID, and access control for the entire lease area. Filename: G:\F- drive\DATA\WORD\LEASE\Keene 12 D. 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. E. 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 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. F. 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. G. 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. H. 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. Filename: G:\F- drive\DATA\WORD\LEASE\Keene 13 (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. I. "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. J. 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 and take possession of the tie down. 27. 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. Filename: G:\F- drive\DATA\WORD\LEASE\Keene 14 LESSOR: YAKIMA AIR T RMIN - McALLISTER FIELD 2406 W. Was ington : • ue, Suite B Ya a, Was3 (5e9' 575-61 (51i 9) 575- urke, City anager STATE OF WASHINGTON County of Yakima I certify that I know or have satisfactory evidence that Tony O'Rourke signed this instrument, on oath stated that he is authorized to execute this 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 4- )- I I-4 By: `'i p rr� Ali i 17 v� Notary Public Appointment Expires '`-i -11 - so KAARRE ALLYN Notary Public 4 State of Washington My Commission Expires April 11, 2016 Filename: G:\F- drive\DATA\WORD\LEASE\Keene 15 CITY CONTRACT N RESOLUTION NO: G LESSEE: JAMES KEENE 50 Dalton Lane Zillah, WA 98953 5Q9-961-5352 - Phone AN� es Keene STATE OF WASHINGTON County of Yakima I certify that I know or have satisfactory evidence instrument and acknowledged it to be his free and purposes mentioned in the instrument. Date By:�l-l.r� Notary Publif Appointment Expires Filename: G:\F- drive\DATA\WORD\LEASE\Keene 16 3 -27_2M f Date that James Keene signed this voluntary act for the uses and Date CENTER, SEC. SEC. 35, T.13N , R.18E., W.M. = 1; 00 _ C•1 h O o 1:6 b o' (f.); S 89'54'32" 64.53' 6.0:: ••, .1 7 CO EXISTING o BUILDING o 4' Vr,/ .14/-/-/ 18, 2' PARCEL A 6,435± sf N 5929'51" E 9.16' 56.63' _ N 8954'32" E S 8954'32" W _2667.36' WASHINGTON AVENUE RIGHT OF WAY LINE 227.00' _ 162.47' PARCEL B / / /1/ / / / 7,747± sf 18.3' X /// ////////// EXISTING BUILDING 6 16' yr, E Y4 COR, SEC. 35, T.13N., R.18E., W.M I N W, ;11‹. E 0 _ _ 1 5 . iipageg4,c; LommanAinciates; Civil' Entdeering + Lind Striieyilig-411-nning- 2803 River Road Yakima, WA 989°2 509.966.7000 Fax 5o9.965.3800 www.hlaciviLcom JOB NO. 14049 DRAWING: 14049 dwg DATE: 03-25-14 DRAWN BY: TDF CHECKED BY: KDY Lease Exhibit at Yakima Air Terminal City of Yakima, YakimaCounty, Washington Yakima Air Terminal Lease Description - Pingrey HLA Project No. 14049S March 25, 2014 Parcel A That portion of the Southeast quarter of Section 35, Township 13 North, Range 18 East, W.M. described as follows: Commencing at the East quarter comer of said Section 35; Thence South 89°54'32" West along the North line of said Southeast quarter 967.07 feet; Thence South 00°05'28" East 46.00 feet to the Southerly right of way line of Washington Avenue; Thence South 89°54'32" West along said right of way line 162.47 feet to the Point of Beginning; Thence South 00°05'28" East 95.36 feet to the Northwesterly line of Yakima Air Terminal's Object Free Area for Runway 4-22 as designated in the Airport Layout Plan; Thence South 59°29'51" West along said Northwesterly line 9.16 feet; Thence South 89°54'32" West 56.63 feet; Thence North 00°05'28" West 100.00 feet to said Southerly right of way line of Washington Avenue; Thence North 89°54'32" East 64.53 feet to the Point of Beginning. Situate in Yakima County, Washington. (Containing 6,435 ± square feet, more or less) Parcel B That portion of the Southeast quarter of Section 35, Township 13 North, Range 18 East, W.M. described as follows: Commencing at the East quarter comer of said Section 35; Thence South 89°54'32' West along the North line of said Southeast quarter 967.07 feet; Thence South 00°05'28'1 East 46.00 feet to the Southerly right of way line of Washington Avenue; and the Point of Beginning. Thence South 89°54'32" West along said right of way line 162.47 feet; Thence South 00°05'28" East 95.36 feet to the Northwesterly line of Yakima Air Terminal's Object Free Area for Runway 4-22 as designated in the Airport Layout Plan; Thence North 59°29'51" East along said Northwesterly line 188.39 feet to the Point of Beginning. Situate in Yakima County, Washington. (Containing 7.747 ± square feet more or Tess) BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 5 For Meeting of: 4/1/2014 ITEM TITLE: SUBMITTED BY: Resolution authorizing a lease agreement between the Yakima Air Terminal and James Keene. Robert K. Peterson, Airport Manager 509-575-6149 SUMMARY EXPLANATION: The Yakima Air Terminal owns and manages a variety of properties, buildings, and land located within the airport's property. Recently, a tenant showed interest in selling two of their four hangars developed at the airport of which said hangars are under two separate lease agreements. In order to accommodate this transaction a new lease agreement had to be developed to facilitate the sale of one hangar as so the building would be separated from the original lease. Upon implementation of this new lease the old lease with the original owner will be amended accordingly to reflect the new footprint at the airport. These transactions will exhibit a minor increase in space leased at the airport and will provide a small increase in revenue as previously established in prior lease. Resolution: X Other (Specify): Contract: Start Date: April 1, 2014 Item Budgeted: Yes Funding Source/Fiscal Impact: Strategic Priority: Insurance Required? Yes Mail to: Phone: APPROVED FOR SUBMITTAL: Ordinance: Contract Term: End Date: June 30, 2040 Amount: The lease agreement will provide approximately $1,394 per year of revenue based off the current aeronautical rates and charges. Economic Development City Manager ,A.Teye. RECOMMENDATION: Staff recommends the City Manager and City Council to sign above lease agreement to allow Mr. Keene the opportunity to purchase said hangar. ATTACHMENTS: Description Upload Date 0 Resolution 3/26/2014 0 Lease Agreement 3/25/2014 0 Lease Agreement Exhibit A 3/25/2014 Type Resolution Contract Contract AIRPORT LEASE AGREEMENT BETWEEN YAKIMA AIR TERMINAL-McALLISTER FIELD AND JAMES KEENE AMENDMENT #1 THIS LEASE AMENDMENT #1, is executed this 7 day of , 2014, between the YAKIMA AIR TERMINAL — McALLISTER FIELD, a department of the City of Yakima, Washington, hereinafter referred to as "LESSOR," and JAMES KEENE, a single man hereinafter referred to as "LESSEE": WITNESSETH: WHEREAS, LESSOR operates the Yakima Air Terminal - McAllister Field, hereinafter referred to as "Airport"; and WHEREAS, LESSOR has an additional 6,425 sq ft of property available for lease, and LESSEE desires to occupy and use such property in accordance with this Lease Amendment # 1; NOW THEREFORE, in consideration of the mutual promises contained herein and the benefit to be derived by each party, the parties agree to amend paragraph # 1 of the underlying Lease as follows: 1. PREMISES: LESSOR does hereby lease and let unto LESSEE, and LESSEE does hereby lease and take from LESSOR, approximately 7,747 sq ft of land located at 2000 W Washington Avenue, and 6,435 sq ft of land located at 2002 W Washington Avenue, in the City of Yakima, Yakima County, Washington, as that property is depicted and legally described on the drawing marked Exhibit "A", Parcel "A & 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. Other than the specific amendments stated herein, all other terms, conditions, obligations, rights and requirements of the underlying Lease shall remain in full force and effect throughout the Lease term. LESSOR: YAKIMA AIR TERMINAL - McALLISTER FIELD 2406 W. Washington Avenue, Suite B Yakima, Washingto (509) 75-6149 - p (509) 5-6185 - fa CITY CONTRACT NO: te 7" Yld RESOLUTION NQ kA01 q '0 51 STATE OF W SHINGTON County of Yakima I certify that I know or have satisfactory evidence that Tony O'Rourke signed this instrument, on oath stated that he is authorized to execute this 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 g By: ex Notary lc Appointment Expires LESSEE: JAMES KEENE 50 Dalton Lane Zillah, WA 98953 509 5 Ph James ne STATE OF WASHINGTON County of Yakima Date RRE ALLYN Notary PubiC State of Washington My Commission Expires April 11, 2018 ...orm# — 3/ — I certify that I know or have satisfactory evidence that James Keene signed this instrument and acknowledged it to be his free and voluntary act for the uses and purposes mentioned in the instrument. BY: Notary Public Appointritent Expires Signe Date Yakima Air Terminal Lease Description - Pingrey HLA Project No. 14049S March 25, 2014 Parcel A That portion of the Southeast quarter of Section 35, Township 13 North, Range 18 East, W.M. described as follows: Commencing at the East quarter corner of said Section 35; Thence South 89°54'32" West along the North line of said Southeast quarter 967.07 feet; Thence South 00°05'28" East 46.00 feet to the Southerly right of way line of Washington Avenue; Thence South 89°54'32" West along said right of way line 162.47 feet to the Point of Beginning; Thence South 00°05'28" East 95.36 feet to the Northwesterly line of Yakima Air Terminal's Object Free Area for Runway 4-22 as designated in the Airport Layout Plan; Thence South 59°29'51" West along said Northwesterly line 9.16 feet; Thence South 89°54'32" West 56.63 feet; Thence North 00°05'28" West 100.00 feet to said Southerly right of way line of Washington Avenue; Thence North 89°54'32" East 64.53 feet to the Point of Beginning. Situate in Yakima County, Washington. (Containing 6,435 ± square feet, more or less) Parcel B That portion of the Southeast quarter of Section 35, Township 13 North, Range 18 East, W.M. described as follows: Commencing at the East quarter corner of said Section 35; Thence South 89°54'32" West along the North line of said Southeast quarter 967.07 feet; Thence South 00°05'28" East 46.00 feet to the Southerly right of way line of Washington Avenue; and the Point of Beginning. Thence South 89°54'32" West along said right of way line 162.47 feet; Thence South 00°05'28" East 95.36 feet to the Northwesterly line of Yakima Air Terminal's Object Free Area for Runway 4-22 as designated in the Airport Layout Plan; Thence North 59°29'51" East along said Northwesterly line 188.39 feet to the Point of Beginning. Situate in Yakima County, Washington. (Containing 7.747 ± square feet more or Tess) CENTER, SEC. 35, T.13N., R.18E., W.M. S 8954'32" W _2667.361 r. 1,- 03 1' _ c c\JO 0. Ot.0 0 r.;. 64.53' WASHINGTON AVENUE RIGHT OF WAY LINE 8'32"W 227.00,' _ - , 7zZ.--r-- 'A i...,-;,-,-/ -,(•:1,4.1.6-- 2- k -8.4' ! .. 18.2 ' ? Lu 2 L.LI .:/ -co ,...., / 00 c\I . EXISTING in _ -.., 6 , / BUILDING ,./.,qn , .;--- o ‘ 4 .... . o 0 - 1 b' 9/ 4 / ... , . .0 u) ,.4.- 7 /- ,/,.., 1 ":;; :-.4.% -/-/-.:;',0.;? V ) • ._: PARCEL A 6,435± sf N 59°29'51" E 9.16' _ 56.63' _ vt: ' 18.3 14 (0! EXISTING BUILDING 162.47' PARCEL B 7,747± sf - 6.16' /•"' E COR, SEC. 35, T.13N., R.18E., I 0 961..07' 1 5 _30 fiukcits, Lowman Aspci3*Inc., CiiiEfrgjheering. 2803 River Road Yakima, WA 989o2 509.966.7000 Fax 509.965.3800 www.hlaciviLeom ,JOB NO. 14049 DRAWING: 14049 dwg ' DATE. 03-25-14 DR AWN BY: TDF CHECKED BY: KDY Lease Exhibit at Yakima Air Terminal 1 City of Yakima, Yakima_County, Washington AMENDED AIRPORT LEASE AGREEMENT BETWEEN YAKIMA AIR TERMINAL-MCALLISTER FIELD AND JAMES KEENE AMENDMENT 2 THIS LEASE AMENDMENT is executed this 1st clay of September, 2021, between the YAKIMA AIR TERMINAL-MCALLSTER FIELD, a department of the City of Yakima, Washington, hereinafter referred to as "LESSOR", THE KEENE LIVING TRUST, through its Trustees, James R. Keene and T. Darlene Keene (successors in interest to James Keene) hereinafter referred to as "KEENE", and IKE O'DELL, L.L.C., a Washington limited liability company and successor in interest to a portion of the property held under the original Lease between LESSOR and KEENE, hereinafter referred to as "IKE O'DELL". WITNESSETH: WHEREAS, LESSOR operates the Yakima Air Terminal -McAllister Field, hereafter referred to as "Airport" and as part of those operations has property available for lease for activities consistent with Airport use; and WHEREAS, KEENE entered into an Airport Lease Agreement (hereinafter sometimes referred to as the "Original Agreement") on or about April 2, 2014 to lease approximately 7,747 square feet of land at 2000 West Washington Avenue, in the City of Yakima, for a specific term; and WHEREAS, KEENE entered into a lease amendment on or about August 5, 2014 (hereinafter sometimes referred to as the "First Amendment") which increased the amount of square footage leased by 6,435 square feet of land located at 2002 West Washington Avenue, in the City of Yakima, leaving the remaining lease provisions in place; and WHEREAS, KEENE, after providing the required notice to the LESSOR, sold a portion of its lease agreement to IKE O'DELL and would now like to amend the Original Agreement to include IKE O'DELL as a responsible party and clearly state which portions of the property each of them must take responsibility; and WHEREAS, the LESSOR agrees to the amendments below which will outline which portions of the leased premises are leased to each party, as well as clarify that both parties are responsible and subject to the lease provisions herein; and WHEREAS, this lease amendment is intended to fully encompass the prior agreements and amendments; NOW, THEREFORE, in consideration of the mutual promises contained herein and the benefit to be derived by each party, the parties agree to amend the Original Lease to read as follows: A. Parties. The parties to the Agreement shall be amended as follows with the intent that, as necessary, this Amendment also serves as an assignment of all rights and liabilities of the original parties to the successor parties listed herein: JAMES KEENE hereby assigns all rights and liabilities under the Original Agreement with regards to Parcel B to THE KEENE LIVING TRUST, with James R. Keene and T. Darlene Keene, trustees. JAMES KEENE and THE KEENE LIVING TRUST, with James R. Keene and T. Darlene Keene, trustees, assign the rights and liabilities under the Original Agreement with regards to Parcel A to IKE O'DELL, L.L.C., a Washington limited liability company. The parties to the Agreement are amended due to the fact that James Keene and The Keene Living Trust, sold a portion of the premises covered by the Original Agreement to Ike O'Dell, L.L.C. The City, as LESSOR, consents to the assignment of the interest, rights and liabilities, and approves the transfer pursuant to the terms and conditions of the Original Agreement. The intent of all parties is to continue the Original Agreement with the Parties that currently have an interest in the premises covered by the Original Agreement. Unless stated otherwise herein, the term "LESSEE" when found in the Original Agreement shall mean either KEENE or IKE O'DELL. B. Amendment to the Original Agreement. The following sections of the Original Agreement shall be amended to read as follows: 1. PREMISES: KEENE hereby leases from LESSOR the following real property (hereinafter described as Parcel B): That portion of the Southeast quarter of Section 35, Township 13 North, Range 18 East, W.M. described as follows: Commencing at the East quarter corner of said Section 35; Thence South 89°54'32" West along the North line of said Southeast quarter 967.07 feet; Thence South 00°05'28" East 46.00 feet to the Southerly right of way line of Washington Avenue; and the Point of Beginning; Thence South 89°54.32" West along said right of way line 162.47 feet; Thence South 00°05'28" East 95.36 feet to the Northwesterly line of Yakima Air Terminal's Object Free Area for Runway 4-22 as designated in the Airport Layout Plan; Thence North 59°29'51" East along said Northwesterly line 188.39 feet to the Point of Beginning. Situate in Yakima County, Washington. (Containing 7,747 ± square feet, more or less) IKE O'DELL hereby leases from LESSOR the following real property (hereinafter described as Parcel A): That portion of the Southeast quarter of Section 25, Township 13 North, Range 18 East, W.M. described as follows: Commencing at the East quarter corner of said Section 35; Thence South 89°54'32" West along the North line of said Southeast quarter 967.07 feet; Thence South 00°05'28" East 46.00 feet to the Southerly right of way line of Washington Avenue; Thence South 89°54'32" West along said right of way line 162.47 feet to the Point of Beginning; Thence South 00°05'28" East 95.36 feet to the Northwesterly line of Yakima Air Terminal's Object Free Area for Runway 4-22 as designated in the Airport Layout Plan; Thence South 59°29'51" West along said Northwesterly line 9.16 feet; Thence South 89°54'32" West 56.63 feet; Thence North 00°05'28" West 100.00 feet to said Southerly right of way line of Washington Avenue; Thence North 89°54'32" East 64.53 feet to the Point of Beginning. Situate in Yakima County, Washington. (Containing 6,435 ± square feet, more or less) 3. RENT: A. KEENE promises and agrees to pay rent to LESSOR at the then current aviation land rate per square foot of property leased shown in Exhibit A for Parcel B, made in advance on or before the 10th day of each month. Payments shall be made to the City of Yakima, Accounts Receivable, 129 North 2nd Street, Yakima, WA 98901. Any rental payments/fees past due shall accrue a delinquency charge of twelve percent (12%) per annum. B. IKE O'DELL promises and agrees to pay rent to LESSOR at the then current aviation land rate per square foot of property leased shown in Exhibit A for Parcel A, made in advance on or before the 10th day of each month. Payments shall be made to the City of Yakima, Accounts Receivable, 129 North 2nd Street, 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 as provided for above shall be subject to review and modification every two years on the anniversary of the Original Lease and shall be set at the then -current Aviation Rate. 5. DEPOSIT: A. Upon execution of this Amendment by all Parties, IKE O'DELL shall deposit with LESSOR the amount of one-month's rent plus leasehold tax as a guarantee of IKE O'DELL's performance of the Original Lease and amendments and the timely payment of the rental provided for herein; and in the event IKE O'DELL shall fail to pay the rental 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 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. B. Upon execution of this Amendment by all Parties, KEENE shall deposit with LESSOR the amount of one-month's rent plus leasehold tax as a guarantee of KEENE's performance of the Original Lease and amendments and the timely payment of the rental provided for herein; and in the event KEENE shall fail to pay the rental 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 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. 6. TAXES AND LIENS: In addition to the rent payable above, KEENE and IKE O'DELL promise and agree to pay, as the same become due and payable, all licenses, fees and taxes, including but not limited to the leasehold excise, required to be paid by KEENE and/or IKE O'DELL by reason of this Lease and by reason of either party's use and occupancy of the leased premises and by reason of either party's construction or ownership of improvements to the leased premises. KEENE and IKE O'DELL shall neither suffer nor permit the attachment of any lien or other encumbrance on the leased premises by reason of either of their occupancy thereof. KEENE and IKE O'DELL agree to indemnify LESSOR and shall hold LESSOR harmless from any such taxes or liens. 8. UTILITIES: KEENE and IKE O'DELL shall be responsible for all utility services including, but not limited to, power, natural gas, water, sewer and garbage for their leased premises. 9. PREMISES CONDITION: KEENE and IKE O'DELL have made full inspection of the premises, are fully aware of their condition and accepts the premises on an "AS -IS" basis. KEENE and O'DELL agree to pay for any improvements, repairs and/or modifications necessary to the operation of their respective businesses. 10. MAINTENANCE: KEENE and IKE O'DELL agree to keep and maintain their premises in at least as good a condition as the condition of the premises at the beginning of their respective occupancies (KEENE upon entry of the Original Lease and IKE O'DELL upon entry of this Third Amendment), normal wear and tear excepted. KEENE and IKE O'DELL further agree that they 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 Director and consistent with other properties at the Airport. Maintenance shall include, but not be limited to, landscaping, weed control, garbage and debris removal, painting, ash or snow removal and pavement maintenance. 19. INDEMNITY/DUTY TO DEFEND: A. At no expense to LESSOR, KEENE 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, including reasonable attorney fees and costs, based on or arising from the occupancy or use of the leased premises by KEENE or as a result of KEENE'S operations at the Airport or from any other act or omission of KEENE, its servants, employees, agents, invitees, independent contractors or any other entity, person, firm or corporation acting on behalf of KEENE or under its direction, whether such claim shall be by KEENE or a third party; provided, however, that KEENE 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 KEENE prompt and reasonable notice of any such claims or actions and KEENE shall have the right to investigate, compromise and defend the same to the extent of its interest. B. At no expense to LESSOR, IKE O'DELL 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, including reasonable attorney fees and costs, based on or arising from the occupancy or use of the leased premises by IKE O'DELL or as a result of IKE O'DELL'S operations at the Airport or from any other act or omission of IKE O'DELL, its servants, employees, agents, invitees, independent contractors or any other entity, person, firm or corporation acting on behalf of IKE O'DELL or under its direction, whether such claim shall be by IKE O'DELL or a third party; provided, however, that IKE O'DELL 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 IKE O'DELL prompt and reasonable notice of any such claims or actions and IKE O'DELL shall have the right to investigate, compromise and defend the same to the extent of its interest. C. LESSOR agrees to defend, indemnify and hold KEENE 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. LESSOR agrees to defend, indemnify and hold IKE O'DELL 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 Third Amendment to the Original Lease, and the introduction to the premises of such materials due to LESSOR'S activities or under its control. E. KEENE 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 attorney fees and costs, incidental to the investigation and defense thereof, resulting from, arising out of, or caused by KEENE 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 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 the Lease. F. IKE O'DELL 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 attorney fees and costs, incidental to the investigation and defense thereof, resulting from, arising out of, or caused by IKE O'DELL 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 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 the Lease. 20. INSURANCE: A. KEENE shall file with LESSOR a certificate of insurance as proof of comprehensive general liability insurance coverage with a total 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. 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 during the duration of this Agreement. The policy shall name the City of Yakima, its elected and appointed officials, officers, agents, employees, and volunteers as additional insureds, and shall contain a clause that the insurer will not cancel or change the insurance without first giving the LESSOR thirty (30) calendar days prior written notice (any language in the clause to the effect of "but failure to mail such notice shall impose no obligation or liability of any kind upon the company" shall be crossed out and initialed by the insurance agent). 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. B. IKE O'DELL shall file with LESSOR a certificate of insurance as proof of comprehensive general liability insurance coverage with a total 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. 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 during the duration of this Agreement. The policy shall name the City of Yakima, its elected and appointed officials, officers, agents, employees, and volunteers as additional insureds, and shall contain a clause that the insurer will not cancel or change the insurance without first giving the LESSOR thirty (30) calendar days prior written notice (any language in the clause to the effect of "but failure to mail such notice shall impose no obligation or liability of any kind upon the company" shall be crossed out and initialed by the insurance agent). 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. C. KEENE and IKE O'DELL specifically agree that insurance limits shall be reviewed at least every five (5) years and that LESSOR may make reasonable adjustments to the required limits. 26. AIRPORT SECURITY AND ACCESS CONTROL A. Access to Non -Movement Area/Ingress and Egress. KEENE and IKE O'DELL are granted only that vehicular and/or pedestrian access which is reasonably necessary to allow them access to the hangar ramp/apron once they are on Airport property. Vehicular access to and egress from the Airport by either KEENE or IKE O'DELL shall be made into and out of only Airport Gate No. 2008, vehicle gate, unless otherwise permitted in writing from Airport Director. B. 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. C. There will be one Authorized Signatory for airport security, airport ID, and access control for Parcel B (KEENE) and one Authorized Signatory for airport security, airport ID, and access control for Parcel A (IKE O'DELL). D. Access identification (ID). Airport Administration will assign one (1) Yakima Air Terminal (YAT) identification card to KEENE's Authorized Signatory, and one (1) Yakima Air Terminal (YAT) identification card to IKE O'DELL's Authorized Signatory only. The cost of the badge is dependent on costs associated with the requisite and mandatory background check and will be paid by KEENE and IKE O'DELL. E. A request by either KEENE or IKE O'DELL for an additional ID card(s) shall be made in writing by the Authorized Signatory and 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 their 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, KEENE or IKE O'DELL will pay the applicable fine and costs associated with the issuance of a new or replacement badge in effect at that time. F. 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 reporting the situation within twenty-four hours or the next business day, not including weekends or holidays. In all cases a preliminary email should be sent to rob peterson@yarnawa govalerting the Airport of the loss or theft, as soon as practical. A new card may then be issued by Airport Administration bearing a number different from the one lost or stolen. G. 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. H. 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. I. 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 LESSEES' files. J. Airport Safety and Security. In the interest of Airport safety and security, in the event either LESSEE fails to abide by this Agreement, the Airport Director is authorized to immediately declare this Lease void, to cancel the same without any legal proceeding and take possession of the premises. C. Remaining Terms of Original Agreement Still In Effect Aside from the specific amendments listed in Sections A & B, all other terms, conditions, requirements, and obligations outlined and agreed to in the Original Agreement and Amendments, remain in full force and effect and are not altered or amended unless specifically set forth herein. A copy of the Original Agreement and Amendment thereto are attached to this Amendment. DATED this day of August, 2021. LESSOR: YAKIMA AIR TERMINAL—MCALLISTER FIELD CITY OF YAKIMA 2406 W. Washington Avenue, Suite B Yakima, WA 98903 (509) 575-6149 (phone) (509) 575-6185 (fax) ROBERT HARRISON, City Manager LESSEE: KEENE JAMES KEENE 50 Dalton Lane Zillah, WA 98953 (509) 961-5352 (phone) T. DARLENE KEENE 50 Dalton Lane Zillah, WA 98953 T. DARLENE KEENE CITY CONTRACTNO,° RESOLUTION NO. KEEN LIVING TRUST James Keene and T. Darlene Keene as Trustees T. DARLENE KEENE LESSEE: IKE O'DELL, L.L.C. IKE O'DELL, L.L.C. A Washington Limited Liability Company BY: (Print erne): Lz-te. (2)* f ciwrt4 ITS: (Title STATE OF WASHINGTON ) ) ss, County of Yakima I certify that I know or have satisfactory evidence that Robert Harrison signed this instrument, on oath stated that he is authorized to execute this instrument on behalf of the City of Yakima, and acknowledged it as the City Manager to be the free and voluntary act of the City of Yakima for the uses and purposes mentioned in the instrument. Dat By: Notary Publi Residing at: Commission pires: t te of Washington STATE OF OF WASHINGTON ) ) ss. County of Yakima I certify that I know or have satisfactory evidence that James Keene and T. Darlene Keene signed this instrument, on oath stated that they authorized to execute this instrument and acknowledged it to be their free and voluntary act for the uses and purposes mentioned in the instrument. Date: / 9 By Notary Public fthe State of Washington Residing at: a. 1(17, Commission expires: If - 3)-0d STATE OF WASHINGTON ) ) ss. County of Yakima I certify that I know or have satisfactory evidence that James Keene and T. Darlene Keene, Trustees of the Keene Living Trust, signed this instrument, on oath stated that they are authorized to execute this instrument on behalf of the Keene Living Trust, and acknowledged it as the Trustees to be the free and voluntary act of the Keene Living Trust for the uses and purposes mentioned in the instrument. Date: By: Notary Public r t State of VVashington Residing at: oxi Commission expires: STATE OF WASHINGTON ) ) ss. County of Yakima I certify that I know or have satisfactory evidence that ci eIt signed this instrument, on oath stated that they are authorized to execute this instrument on behalf of Ike O'Dell, L.L.C., and acknowledged it as the poi-44)4,r to be the free and voluntary act of Ike O'Dell, L.L.C. for the uses and purposes mentioned in the instrument. Date: By: Notary Public f e State of W§shington Residing at: ek,F4 14/n. Commission expires: 01111:1111ilitt, .11A0; 4 ** *..10 • • • 111111111 EXHIBIT A ,003)t 3 ,9t AO,Z0 z,.) 7.) SZ 4.0 •!.; 00 001. Nt 0 -0,0 Z .40 el w.i, Yakima Air Term Lease Desert • Pi9ngrey FNL,A Protect No.1404*8 March 26, 2014 Parcel A That portaon of Me So: he E: qminer of , T desert es Wows Cornmencinly et the East quarter comer €i said Section 35; Thence South 891432` West eking the North of said Sant t Thence South ter '0528' Emit 46.CO fest to the Scuthe ty right o way Avenue. Their South SQ 54'3;2' West along said right at wsyr Tine 162.47 feel to the of Beginning; Thence South 00'05'28` 9630 feet to the Nrart of YskOna ' Terminal's (fit. Free Area for Runway 4.2.2 ae soneted in the Airport Layout Phan; Thence South 59'2051" Woe! Northweite4iy sne 9,16 feet: *64'3r West 56. '05.26' West 1pty, toSoutherly right of way tine of Washington Than N Avenue; Thence North 89'64'32' East 64.53 feet to Beginning. 967 07 feet, as.hirgtenn Situate In Y a' aria County. Washington (Containing 6,435 s square feet, more or Parcel 8 TbM , a described as E Tt Avenues; Thence Soot Thence South 'i't5 28 Ea °bled Free Area fear Runway 4, Thereat North 59`29'5 r East along inning $4uate in Yak s County. W T 0* sects No sting 7 747 * 8 Ernst, W.M- 0 47 ire of Yakima Terminers La? 3€ of