Copies of Which Are Attached Hereto with Lessees Charles Pratt Robert Stonebrook
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BEFORE THE BOARD OF COUNTY COMMISSIONERS FOR JOSEPHINE COUNTY STATE OF OREGON In the Matter of Authorization of Execution of Lease Agreements with ORDER NO 2011 007 Charles Pratt Robert Stonebrook Derek Reed and Trenor Scott for lease of County Property at the Grants Pass Airport WHEREAS ORS 271360 requires that every lease entered into by Josephine County of its real property pursuant to ORS 271310 shall be authorized by order of the governing body executing the lease NOW THEREFORE IT IS HEREBY ORDERED that the Board of County Commissioners for Josephine County authorizes the execution of lease agreements copies of which are attached hereto with Lessees Charles Pratt Robert Stonebrook Derek Reed and Trenor Scott for lease of county property at the Grants Pass Airport Private Hangar Space numbers 77 83 88 and 89 DONE AND DATED this day of February 2011 JOSEPHINE COUNTY BOARD OF COMMISSIONERS S Cassanelli Chair Simon G Hare Vice Chair Dwight F Ellis Commissioner ORDER NO 2011 007 Building77 35 06 22D0 080077 00 JOSEPHINE COUNTY AIRPORT SITE LEASE FOR PRIVATE HANGAR THIS AGREEMENT is made this day of 2011 by and between JOSEPHINECOUNTYa politicalsubdivisionof the State of Oregon hereinaftercalled LESSOR anc Charles Pratt 3540 Bullock Lane San Luis Obispo CA 93401 Phone 805 543 0647 hereinafter called LESSEE IN CONSIDERATIONofthe mutualterms covenantsand conditionshereincontained the parties dc hereby agree as follows SECTION 100 MINIMUM STANDARDS RULES AND REGULATIONS It is expresslyunderstoodand agreed betweenthe partiesthat in additionto the terms covenantsandconditionsofthis Agreementthe partiesare furthersubjectto and will fully complywith all the terms covenantsandconditionscontainedwithinthe followingdocuments whichdocumentsincludingsubsequentamendmentsareincorporatedhereinbyreference a Minimum Standards for Fixed Base Operators Authorized Operators and Airports Tenants at the Josephine County Airport Grants Pass Oregon adopted by the Board of County Commissionersas Order No 2009 028 dated May 27 2009 b Josephine County Airports Rates and Charges Policy for Use at the Josephine County Airports adopted by the Board of County Commissionersas Order No 2007058 dated November21 2007 c Josephine County Airports Policy Operational Guidance Rules and Regulations and d Administrative Policy Regarding Ultralight Operations at Josephine County Airports adopted by the Board of County Commissioners as Order No 20023 dated January 16 2002 LESSEE acknowledges receipt of a copy of said documents LESSEEfurtheragreesto abideby andcomplywith all rulesandregulationsofLESSORand with all federal state andlocallawsand ordinancesand all the rulesand regulationsofthe Stateand FederalAviationAdministrationnow in existenceor as subsequentlyamended SECTION 2 00 LEASED PREMISES LESSORhereby leases to LESSEE and LESSEE hereby agrees to lease from LESSORthe real property depicted in Exhibit A attached heretoand made a part hereof The real property subject to the lease herein is commonly known as Space 77 Subsection 201 Premises Use It is contemplated that as a part of future development private hangars will be constructecasset forth in the AirportMasterPlanas administeredbythe JosephineCounty Departmen of Airports Use of the premises shall be for airport related purposes LESSEE Josephine CoJnty Airport Site Lease For Private Hangar Charles Pratt Page 1 of 8 shall use the premises primarily for storage of aircraft and related supplies LESSEE may choosetoperformanyserviceonits ownaircrafttheLESSEEislegallyqualifiedtoperform LESSEEshallnotusethe premisesforanypurposenotauthorizedbythe MinimumStandards referencedinSection1 00 hereon Commercialuseofthebuildingis notpermitted Subsection 202 Use of Common Areas LESSEEshall havethe right in commonwith other airporttenantsto use commonareas oftheAirportincludingrunwaystaxiwaysapronsroadwaysfloodlightslandinglightssignals andotherconveniencesforthe takeoff flyingand landingof aircraftownedor operatedby LESSEE SECTION 330 CONSIDERATION TERMS Subsection 301 Rental Payments in conformancewiththe Josephine CountyAirportsRatesand ChargesPolicyfor Use at the JosephineCountyAirports adoptedby the Boardof CountyCommissionersasOrder No 2007058 dated November21 2007 LESSEEshall pay LESSORas a base rentalfee for the land leased a sum not less than 68710 per year Saidamountis due annuallyon January 2 Rental for the first year will be prorated as of the date of execution of this lease The rental payments shall be increased each January 1 after the execution of this Lease Said annual increaseshall be baseduponand consistentwith the Portland OregonConsumerPriceIndex LESSORwill give written notice by mail or by personaldelivery of the rent increaseat least thirty 30 days prior to the effective date of the increase Subsection 302 Lease Term The term of this Agreementshall commenceon the 1st day of January 2010 and continueuntI December31 2019 unlessearlierterminatedas otherwiseprovidedherein Subsection 303 Administrative Charges and Late Payments If anypaymentis notreceivedbythe LESSORbyJanuary2ndof eachcalendaryear LESSEE shall pay LESSOR an administrative charge of nine 9 percent of the payment due in additionto any rent paymentsthen due Said charge shall be consideredpart of rent Payments not received in full within thirty 30 days of the due date shall at LESSORs discretion constitutea breachof this Agreementand LESSORshall have the rightto terminate this Agreement Subsection 304 Option To Renew If the LESSEE is not in default hereunder upon the termination of the original term hereof LESSEEshallhavethe optionto renewthis Leasefor an additionalten10 yearperiod by givingthe LESSORwritten noticeof same not lessthan one hundredand eighty180 days priorto the last day of the original term hereof Providedhowever that the terms and conditions for the extended period shall be subject to renegotiationby the parties hereto and shall be agreeduponmutuallybeforesaidextendedtermshallcommence Inthe eventthatthe parties are unable to mutually agree on the terms and conditions for said extended term this lease shall terminate on the date specified herein Josephine County Airport Site Lease For Private Hangar Charles Pratt Page 2 of 8 SECTION 400 TRANSFER Subsection 401 Sale or Transfer of Improvements LESSEEshallnot sell assign transfer pledge or sublet or in anyway encumberthe sitesubjecttothisleaseoranyrightsorprivilegesconferredbythisleasewithouttheexpress written consent of LESSOR However if LESSEE desires to sell the improvements as described in Subsection 402 below the buyer of said improvementsmust meet the requirements of and enter into a new lease with the LESSOR The term of such new lease with buyershallnot be lessthan the unexpiredtermof LESSEEs leasegrantedherein The leasehereunderwillremainin full forceandeffectandLESSEEmustcomplywith all terms and conditions hereof unless and until the buyer of the improvements describedin Subsection402 below executesanewleaseof thesubjectrealpropertywithLESSOR Upon the executionof such a new lease the leasehereinis terminatedandthe obligationsand responsibilities between LESSOR and LESSEE named herein are terminated Subsection 402 Improvements at Lease Termination Upor terminationof this lease LESSEEshall have so long as LESSEEis not in default underthis lease an optionrelatingto any improvementfixture buildingor structureplaced uponthe leasedsite by LESSEEduringthe termof this lease includingextendedtermsduring the lifeof the improvements to sellsaidimprovementstoanybuyerqualifiedandableto enter into a leaseof the subjectsite with LESSOR as determinedby mutualagreementbetweensaid buyerand LESSOR or to removefrom the leasedsite all said improvementswithinsixty 60 daysfollowingthe leasetermination and restorethe premisesto its originalcondition Any improvementfixture building or structureremaininguponthe leasedpremisessixty60 days followingthe leaseterminationshallbe and remainthe propertyof the LESSOR Josephine County SECTION 500 LIABILITY INSURANCETAXES INDEMNIFICATION Section 501 Comprehensive General Liability Insurance At all times during the term hereof the LESSEEwill at the LESSEEs own expense keep in effect and deliver to the LESSOR liability insurance policies in form and with an insurer satisfactory to the LESSOR Such policies shall insure both the LESSOR and the LESSEE against all liability for damage to persons or property in upon or about the premises The amount of such insurance shall be not less that 100000 for injury to one person not less than 500000 for injuriesto all personsarising out of any single incident and not less than 100000 for damage to property or a combined single limit of not less than 500000 It shall be the responsibility of LESSEE to purchase casualty insurance with extended coverage so as to insure any structure on the premises against damage caused by fire or the effects of fire smoke heat means of extinguishment etc or any other means of loss It shall be the responsibility of the LESSEE to insure all of the LESSEEs belongings upon the premises of whatsoever nature against the same With respect to these policies LESSEE shall cause the LESSOR to be named as an additional insured party The documents showing current insurance and endorsements must be current and on file with the aosephineCountyRisk Managerand the Airport Director Josephine County Airport Site Lease For Private Hangar Charles Pratt Page 3 of 8 It is further understoodthat LESSOR reserves the right in the future as the law and circumstancesaresubjectto change to requirean increasein said