RIVERSIDE MUNICIPAL AIRPORT LEASE
Limited Fixed Base Operations Lease
KEVIN BOOTH DBA MAINTENANCE ONE
On this → 2023, the CITY OF RIVERSIDE, a
alifornia charter city and municipal corporation of the State of California ("City"), and KEVI OOTH. an individual. doing business as MAINTENANCE ONE ("Lessee"), mutually agree :
1. LEASED PREMISES. City hereby exclusively leases real property to Lessee consisting of an office building and one hangar (building T-33), totaling approximately 5,861 square feet, located at 6779-C Airport Drive, Riverside, California at the Riverside Municipal Airport, all as described and depicted on Exhibit A, attached hereto, and incorporated herein by this reference ("Premises").
City on its behalf and for all other users of Riverside Municipal Airport reserves the right to use taxiways located between buildings on said Premises and marked by a yellow center line, which taxiways are joint use and common taxiways.
2. PURPOSE. Lessee shall use the Premises as an aircraft maintenance business. Vehicle parking secondary to the permitted uses is allowed on the Premises, but such parking shall not block or obstruct ingress or egress of any adjoining taxiways, which taxiways marked by a yellow center line are joint use and common taxiways and reserved by City for use on its own behalf and for all other users of the Riverside Municipal Airport. Lessee may use the Premises only for the use herein above authorized and for no other purpose.
3. TERM. This Lease shall be for a five (5) year tenancy commencing on October 1, 2023, and terminating on September 30, 2028.
3(a). OPTION TO EXTEND TERM. Upon mutual written consent of both parties, Lessee may exercise the option to extend the Lease for an additional five (5) year term ("Extension Term"). Lessee shall provide City, no later than ninety (90) calendar days before the expiration of the Term, written notice of its intent to exercise its Extension Term option.
RENT. Commencing with the rental payment due October 1, 2023, Lessee shall pay City a rental of One Thousand Three Hundred and Three Dollars and 57/100 ($1,303.57) per month, which shall be adjusted annually commencing with the monthly payment due on August 1, 2024, and every year thereafter, to reflect the percentage increase, if any, in the Consumer Price Index for All Urban Consumers (CPI-U) for the Riverside-San Bernardino-Ontario Statistical Area ("Index") published by the Bureau of Labor Statistics of the United States Department of Labor for the most recent 12-month published index, based upon the corresponding increase, if any, in the Index as it stands on May of that year over the Index as it stood on May of the prior year. -1-
The monthly rental shall be payable in advance on or before the first (Ist) day of each month and shall be paid by check made payable to the "City of Riverside" and sent to the Revenue Division, City of Riverside, 3900 Main Street, Riverside, California 92522.
A late fee equal to ten percent (10%) of the monthly rental shall be added to any monthly payment not received by the City by the tenth (10th) day of the month in which it is due. Any rental payment received after the tenth (10th) day of the month will be first credited to payment of the late fee. Said late fee shall be added for each month thereafter until said rental payment and late fee or fees are paid in full. Said late fee or fees shall be considered as part of the rent due City hereunder.
5. SECURITY DEPOSIT. Concurrent with the execution of the Limited Fixed Base Operations Lease, by and between City and Lessee dated November 15, 1994, Lessee provided a security deposit to City in the sum of Seven Hundred Sixty-Seven Dollars and Sixteen Cents ($767.16) as partial consideration, and therefore, Lessee is not required to deposit any additional sums for its leasing of the Leased Premises.
If Lessee defaults with respect to any provision of this Lease, including but not limited to the provisions relating to the payment of rent, City may (but shall not be obligated to) use, apply or retain all or any part of said security deposit for the payment of any rent or any other amount which City may spend or become obligated to spend by reason of Lessee's default, or to compensate City for any other loss or damage which City may suffer by reason of Lessee's default. The fact that City is holding or applying said security deposit shall not affect City's remedies upon any breach of this Lease by Lessee. If any portion of the security deposit is so used or applied, said application of funds shall not constitute liquidated damages for such default by Lessee, and Lessee shall, within five (5) days after written demand therefor, deposit cash with City in an amount sufficient to restore the security deposit to its original amount, and Lessee's failure to do so shall be a breach of this Lease.
City shall not be required to keep said security deposit separate from its general funds, and Lessee shall not be entitled to interest on such deposit.
At the termination of this Lease, the security deposit shall be returned to Lessee, less any amounts retained by City for any cleaning, repairs or damage to the Premises, or for any unpaid rental fee due City hereunder.
AIRPORT ACCESS BY EMPLOYEES, AGENTS, INVITEES AND GUESTS. City shall permit Lessee's employees, agents, invitees and guests unimpeded ingress and egress to the Premises for purposes of supporting, facilitating, or participating in Lessee's permitted use of the Premises. Notwithstanding the foregoing, Lessee acknowledges and agrees that any of its employees, agents, invitees, and guests that are present on the Riverside Municipal Airport shall be subject to all generally applicable Federal, State, local, and airport regulations, as may be amended from time to time, regarding the Riverside Municipal Airport. Lessee also acknowledges and agrees that City may, at its sole discretion, withhold or withdraw its permissions for accessing the Premises, based on an employee's, agent's, invitee's, or guest's -2-
non-compliance with any applicable Federal, State, City, or Airport rule, regulation, ordinance, or policy.
7. OWNERSHIP OF EXISTING IMPROVEMENTS. Lessee hereby acknowledges and agrees that the existing improvements located on the Premises, including the hangar/building (air conditioner/heater, roof and structural), are and shall remain the property of City. Lessee acknowledges that Lessee has inspected the Premises including the hangar/building and knows the condition thereof and hereby accepts them in their "as is" condition.
8. ADDITIONAL IMPROVEMENTS BY LESSEE. Lessee may make additional improvements to the Premises as may be appropriate subject to the prior written approval of the Airport Director of City. Lessee shall submit plans and specifications for such improvements to said Airport Director and obtain approval therefor prior to commencement of construction.
Lessee shall construct such improvements in accordance with the approved plans and specifications. Approval by the Airport Director shall not relieve Lessee from the obligation of obtaining any other necessary permits or approval from other City departments or governmental agencies having jurisdiction.
The term "improvement" as used herein shall include but not be limited to painting, signs and landscaping.
OWNERSHIP OF ADDITIONAL IMPROVEMENTS. Any additional improvements installed upon the Premises by Lessee as herein above provided shall become the absolute property of City and title shall automatically vest in City without payment therefor by City upon the expiration of this Lease or upon the earlier termination of this Lease as hereinafter provided.
Notwithstanding anything to the contrary herein above, City reserves the right to require Lessee to remove any or all of the said improvements and restore the leased Premises to its condition at the commencement of this Lease.
10. UNDERGROUND FUEL TANKS. The parties hereto acknowledge and agree that the Lessee may not provide aviation fueling service on the Premises and may not install underground fuel tanks on the Premises.
DAMAGE OR DESTRUCTION. Lessee shall be responsible for any damages or destruction to the Premises resulting from acts or omissions of Lessee or the employees, agents invitees, or guests of Lessee, and shall repair or compensate City for such damages or destructior and shall return the Premises to City, upon termination of this Lease, in its original condition except for reasonable wear and tear.
12. SIGNS. Lessee shall not erect or display or permit to be erected or displayed on the Premises any sign or advertising matter without first obtaining the written approval of the Airport Director of City. Any signs which Lessee desires to install shall be submitted first to the Airport Director for approval as to number, design, size, color, and location. The Airport Director shall not approve any sign which is not in harmony with the City's General Plan, Municipal Code, or the appearance of the Riverside Municipal Airport. Consent by the Airport -3-
Director shall not relieve Lessee from the responsibility of adhering to and conforming with any applicable City, State or Federal law, ordinance, or regulation thereon.
13. MAINTENANCE AND CITY'S RIGHT TO INSPECT. Lessee agrees at Lessee's own expense to maintain and keep the entire Premises and all improvements located thereon or therein, in a good condition and repair, and to keep the Premises, in an attractive, neat, clean, and orderly condition. This includes, but is not limited to, any refuse or waste materials which might be or constitute a fire hazard or a public or private nuisance; and the disposal in a safe and proper manner, and in accordance with any applicable law, ordinance, statute, rule, or regulation, of any industrial or hazardous waste including engine oil, paint and other waste placed upon the Premises following the commencement of this Lease. If the Premises are landscaped, Lessee shall at Lessees expense, maintain the landscaping in a presentable fashion consistent with existing Airport landscaping.
City, through its duly authorized representatives, may enter upon the Premises during regular business hours for the purpose of inspecting any or all of said Premises and the improvements and facilities thereon. The Airport Director of City or other duly authorized representative may from time to time after said inspection of the Premises and after observation of the operation of the business thereon, require all such repairs or changes as shall be reasonable and consistent with maintaining the leased Premises and any improvements thereon in a manner consistent with businesslike operations. Lessee agrees to make all necessary repairs or changes within the period which may be reasonably required by the City's Airport Director.
In the event the Airport Director determines that repairs or improvements to the Premises are necessary due to Lessee's activity and in order to maintain the Premises for the uses contemplated herein, such requests shall be in writing and delivered or mailed to Lessee. Lessee shall promptly commence making such repairs or improvements within ten (10) days after service of such notice and diligently pursue such repair to completion. If within ten days after service of notice Lessee fails to commence repairs, or if after what the Airport Director deems a reasonable time the Lessee fails to complete said repairs or maintenance, City may cause such repair or maintenance to be made and add the cost thereof to the rent thereafter accruing. If City causes such repair or maintenance to be completed by other than Lessee, and if said costs are not promptly paid by Lessee to City, this Lease shall be deemed to be in default, and City shall be entitled to all legal remedies provided hereunder.
14. MECHANICS' LIENS AND PAYMENT BONDS. Lessee agrees to keep the Premises tree from any and all claims of persons or tirms or corporations, who at the request of Lessee or Lessee's contractor, furnish labor or materials to or for the benefit of the leased Premises. Lessee further agrees to indemnify and hold City harmless from any and all such claims.
City at any time may post and keep posted on the Premises appropriate notices to protect City against the claims of any persons, firms or corporations for work done, labor performed, or materials furnished to the Premises. Before commencing any work relating to alterations or improvements affecting the Premises, Lessee shall notify City in writing of the expected date of the commencement of such work so that City can post and record the appropriate notices of non- responsibility to protect City from any mechanics' liens, materialmen's liens, or any other liens. -4-
Prior to the commencement of any construction on the Premises when it is estimated that the cost of construction of such improvement shall be Twenty-Five Thousand Dollars ($25,000, or more, Lessee shall post a payment bond with City in an amount equal to the proposed cost of construction. All such bonds must be issued by a company qualified to do business in the State of California and acceptable to the City Attorney. Such bonds shall be in a form acceptable to the City Attorney.
15. UTILITIES AND SERVICES. Lessee shall be responsible for the installation of any necessary utilities for the Premises, including the installation of separate meters therefor, if such utilities have not been previously installed. Lessee shall pay for sewer, gas, water, clectricity, and other utilities supplied to and used on the Premises during the term of this Lease and shall hold City harmless therefrom.
Further, Lessee agrees to provide at Lessee's own expense a commercial-type dumpster for the trash generated on the leased Premises, which dumpster shall be placed at a location designated by the City's Airport Director. The dumpster must be emptied on a regular basis, no less frequently than required by ordinance of the City of Riverside. The top of the dumpster must remain closed at all times when trash is not being placed into, or being removed from, the dumpster, so that the trash is not exposed to view. Lessee also agrees at Lessee's own expense to remove any waste oils, fuels, paint and other hazardous materials and chemicals placed on the Premises following the commencement of the term of this Lease. All such hazardous materials and waste shall be removed in accordance to and in compliance with, any applicable City, County, State and Federal laws and regulations.
16. HAZARDOUS MATERIALS. As used in this paragraph, the term "hazardous material" shall mean any hazardous or toxic substance, material or waste that is or becomes regulated by the United States, the State of California or any local government authority having jurisdiction over the Premises. Hazardous material includes:
Any "hazardous substance," as that term is defined in the Comprehensive Environment Response, Compensation, and Liability Act of 1980 (CERCLA) (42 United States Code Sections 9601-9675);
b. "Hazardous waste," as that term is defined in the Resource Conservation and Recovery Act of 1976 (RCRA) (42 United States Code Sections 6901-6992k); Any pollutant, contaminate, or hazardous, dangerous, or toxic chemical, material, or substance, within the meaning of any other applicable federal, state, or local law, regulation, ordinance, or requirement (including consent decrees and administrative orders imposing liability or standards of conduct concerning any hazardous, dangerous, or toxic waste, substance, or material, now or hereafter in effect);
d. Petroleum products;
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e. Radioactive material, including any source, special nuclear, or by-product material as defined in 42 United States Code Sections 2011-2297g-4; f. Asbestos in any form or condition; and,
g. Polychlorinated biphenyls (PCBs) and substances or compounds containing PCBs.
Lessee shall at all times observe and satisfy the requirements of, and maintain the Premises including the use and disposal of all hazardous material in compliance with all federal. state and local environmental protection, occupational, health and safety and similar laws, ordinances, restrictions, licenses and regulations, including but not limited to, the Federal Water Pollution Control Act (33 U.S.C. Section 1251 et seq.), Resource Conservation and Recovery Act (42 U.S.C. Section 6901 et seq.), Safe Drinking Water Act (42 U.S.C. Section 300(f) et seq.), Toxic Substances Control Act (15 U.S.C. Section 2601 et seq.), Clean Air Act (42 U.S.C.
Section 7401 et seq.), Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. Section 9601 et seq.), California Health and Safety Code (Section 25100 et seq., Section 25300 et seq., Section 39000 et seq.), California Water Code (Section 13000 et seq.), and the Environmental Responsibility Acceptance Act (California Civil Code Section 850 et seq.).
If, during the term of this Lease, Lessee becomes aware of (a) any actual or threatened release of any hazardous material on, under, or about the Premises or (b) any inquiry, investigation, proceeding, of claim by any governmental agency or other person regarding the presence of hazardous material on, under or about the Premises, Lessee shall give City written notice of the release or investigation within five (5) days after learning of it and shall simultaneously furnish to City copies of any claims, notices of violation, reports, or other writings received by Lessee that concern the release or investigation.
Lessee hereby indemnifies City and agrees to defend with counsel selected by City and hold City harmless for any loss incurred by or liability imposed on City by reason of Lessee's failure to perform or observe any of its obligations or agreements under this agreement, including but not limited to any damage, liability, fine, penalty, punitive damage, cost or expense (including without limitation all clean up and removal costs and expenses) arising from or out of any claim, action, suit or proceeding for personal injury (including sickness, disease or death, tangible or intangible property damage, compensation for lost wages, business income, profits, or other economic loss, damage to the natural resources or the environment, nuisance, pollution, contamination, leak, spill, release or other adverse effect on the environment.
If the presence of any hazardous material brought onto the Premises by Lessee or Lessee's employees, agents, contractors or invitees results in contamination of the Premises, Lessee shall promptly take all necessary and appropriate actions, at Lessee's sole expense, to return the Premises to the condition that existed before the introduction of such hazardous material and City shall in no event be liable or responsible for any costs or expenses incurred in doing so. Lessee shall first obtain City's approval of the proposed remedial action. This provision does not limit the indemnification obligations set forth above. -6-
17. PERMITS/LICENSES. Lessee shall be responsible for obtaining all AQMD, health and safety, Federal, State, County and City licenses and permits before occupying the Premises.
Lessee understands that the aircraft maintenances services performed under this Lease constitutes doing business in the City of Riverside, and Lessee agrees that Lessee will register for and pay a business tax pursuant to Chapter 5.04 of the Riverside Municipal Code and keep such tax certificate current during the term of this Agreement.
18. COMMUNICATIONS. Except for the payment of rent as herein above provided, all notices, requests, consents, approvals or other communications between the parties in connection with this Lease shall be in writing and personally delivered or mailed to the recipient party by certified mail at its last known address as follows:
City Lessee
Airport Director Kevin Booth
Riverside Municipal Airport Maintenance One
6951 Flight Road 6779-C Airport
Riverside, CA 92504 Riverside, CA 92504
The parties may, from time to time, change their respective addresses for the purpose of this paragraph by sending notice of such change to the other as provided herein.
Any notice given pursuant to this paragraph shall be deemed served when personally served or when placed in the U. S. mails with postage prepaid and addressed to the recipient at the recipient's latest known address.
19. POSSESSORY INTEREST AND PAYMENT OF TAXES. Lessee recognizes and understands that this Lease may create a possessory interest subject to property taxation and that the Lessee may be subject to the payment of property taxes levied on such interest.
Lessee agrees to pay or reimburse the City for any and all taxes and assessments charged or assessed on the land and improvements described in this Lease and on Lessee's possessory such tax payment shall not reduce any payment due the City hereunder.
If Lessee shall, in good faith, desire to contest the validity, the imposition, or the amount of any tax or assessment or any other governmental charge herein agreed to be paid by Lessee, Lessee shall be permitted to do so; provided, however, the Lessee shall not permit or allow any lien to be placed or assessed upon the real property or any improvements thereon.
20. INDEMNIFICATION. Except for City's sole negligence or willful misconduct, Lessee shall fully defend, indemnify and hold the City, its officers and employees, harmless from any and all loss, damage, claim for damage, liability, expense or cost, including attorney's fees, which arises out of or is in any way connected with the performance of Lessee's responsibilities under this Lease by Lessee in the operation of Lessee's business, or any of Lessee's employees, -7-
agents, contractors, subcontractors or consultants and from all claims by Lessee's employees, agents, contractors, subcontractors or consultants for compensation for services rendered to Lessee in connection with this Lease, notwithstanding that City may have indirectly benefitted from their services. This indemnification provision shall apply to any acts or omissions, willful misconduct, or negligent conduct, whether active or passive, on the part of Lessee or any of Lessee's employees, agents, contractors, subcontractors, or consultants.
The parties expressly agree that any payment, attorney's fees, cost, or expense the City incurs or makes to or on behalf of an injured employee under its self-administered workers' compensation program is included as a loss, expense, or cost for the purposes of this section, and that this section shall survive the expiration or early termination of this Lease.
21. INSURANCE. Lessee shall obtain and keep in full force and effect during the entire term of this Lease, commercial general liability and property damage insurance (including but not limited to premises operations liability, products-completed operations liability, independent contractor's liability, personal injury liability and contractual liability) in an amount not less than $1,000,000 per occurrence and a general aggregate limit in an amount not less than $2,000,000; automobile liability coverage covering both bodily injury and property damage in an amount not less than $1,000,000 per occurrence and an aggregate limit of not less than $1,000,000. Further, Lessee shall obtain and keep in full force and effect during the entire term of this Lease Hangar Keeper's Liability insurance in an amount not less than $1,000,000 per occurrence. Lessee agrees to deposit with City prior to execution of this Lease by City, certificates of insurance evidencing the required insurance with coverage at least equal to the above types and amounts as a minimum, and further agrees to file certificates with City during the entire term of this Lease showing that continued coverage is being maintained.
To be acceptable, the insurance coverage must meet the following requirements:
a. Such policy must provide that the policy shall not be canceled or materially changed unless thirty (30) days' prior written notice thereof by certified or registered mail has been given to City.
Such policy must provide that City shall be named as additional insured as respects all operations of the insured, which insurance shall be primary insurance and not contributing with any other insurance available to the City under any other third-party liability policy or any self-insurance retention.
Such policy shall contain either a provision for a broad form of contractual liability including leases, or an endorsement providing for such coverage. City shall have the right at any time during the term of this Lease to review the type, form, and coverage limits of the insurance enumerated herein. If, in the opinion of City reasonably obtained, the insurance provisions in this Lease are not sufficient to provide adequate protection for City and the members of the public using Riverside Municipal Airport, City may require Lessee to maintain insurance sufficient to provide such adequate protection. -8-
d. Each policy must be placed with a company authorized to do business in the State of California, having a policy holder rating of A or higher and a Financial Class of at least VIl or higher.
If the Lessee maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or higher limits maintained by the Lessee. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
City shall notify Lessee in writing of any change in the insurance provisions necessary to provide adequate protection. If Lessee does not deposit acceptable copies of valid insurance policies acceptable in form and content to City, incorporating such changes, within sixty (60) days of receipt of such notice, this Lease shall be in default without further notice to Lessee and City shall be entitled to all legal remedies provided herein.
The procuring of such policy of insurance shall not be construed to be a limitation upon Lessee's liability nor as a full performance of its part of the indemnification provisions of this Lease. Lessee's obligation being, notwithstanding said policy or policies of insurance, the full and total amount of any damage, injury or loss caused by the negligence or neglect connected with the operation under this Lease.
Lessee shall provide a valid certificate of insurance and additional insured endorsement prior to occupying the leased property under this Lease. No certificate of insurance and additional insured endorsement shall be acceptable unless first approved by the City's Risk Manager
WORKERS' COMPENSATION. Lessee shall obtain and maintain in full force and effect during the term of this Lease workers' compensation insurance coverage with Statutory Limits and Employer's Liability insurance with a limit of no less than $1,000,000 per accident, injury, or disease, in accordance with the provisions and requirements of the Labor Code of the State of California and any other applicable law. A certificate of insurance evidencing such coverage shall be filed with the City Clerk of City, which certificate shall provide that City will be given at least thirty (30) days' notice prior to cancellation.
RELEASE. City shall not be responsible for theft, loss, injury, damage or destruction of any aircraft or other property on the Premises, or accident or injury to Lessee, its officers, employees, agents, or invitees. Lessee hereby releases and discharges City from any and all claims and demands of Lessee for loss or of damage to Lessee's property or injury to Lessee or Lessee's officers, employees, agents, and invitees.
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24. ASSIGNMENT AND SUBLETTING.
a. Lessee shall not voluntarily or by operation of law assign, transfer, mortgage, sublet, or otherwise transfer or encumber any part of Lessee's interest in this Lease or in the Premises without City's prior written consent, which consent shall be at City's sole discretion.
Should City consent to any such transfer, assignment or subletting, such consent shall not constitute a waiver of any of the restrictions of this paragraph and the same shall apply to each successive transfer, assignment or subletting hereunder, if any. b. If Lessee shall submit a request to City for City's consent to an assignment, sublease or other transfer by Lessee of all or a portion of Lessee's interest under this Lease or to the Premises, Lessee shall pay, or cause to be paid, to City at the time of such request, a processing fee of Two Hundred Fifty Dollars ($250) to cover administrative, accounting and other related expenses.
C. If Lessee desires at any time to assign this Lease or sublet the Premises or any portion thereof, Lessee shall first notify City of Lessee's desires to do so and shall submit in writing to City (1) the name of the proposed sublessee or assignee; (2) the nature of the proposed sublessee's or assignee's business to be carried on in the subject Premises; (3) the terms and provisions of the proposed sublease or assignment; and (4) such financial information as City may reasonably request concerning the proposed sublessee or assignee. Lessee's failure to comply with the provisions of this subparagraph shall be a breach of this Lease. d. City shall respond to Lessee's request for consent hereunder in a timely manner and any attempted assignment, transfer, mortgage, encumbrance or subletting without such consent shall be void and shall constitute a breach of this Lease. e. If City consents to Lessee assigning, subleasing, or transferring (hereinafter collectively "transfer") Lessee's interest under this Lease, Lessee shall pay to City (in addition to rent and all other amounts payable by Lessee under this Lease) ninety percent (90%) of the consideration payable by such transferee to Lessee for such transfer. Said amount shall be paid to City immediately upon receipt by Lessee of such consideration from the transferee. Any transfer entered into by Lessee in connection with the Premises shall contain a representation by Lessee and the transferee which states the amount of any consideration payable by such transferee. If such representation understates the amount of such consideration or is false or misleading in any other material respect, City shall have the right to treat any such misrepresentation as a non-curable default and terminate this Lease as to Lessee and the proposed transferee.
f. City may collect rent from the assignee, sublessee, occupant, or other transferee, and apply the amount so collected, first to the rent herein imposed, then to any additional rent due and payable, and refund the balance (if any) to Lessee, but no such assignment, subletting, occupancy, transfer or collection shall be deemed a waiver of City's rights under this paragraph or the acceptance of the proposed assignee, sublessee, occupant or transferee, or a release of Lessee from the further performance of the covenants obligating Lessee under this Lease. -10-
g. Lessee may enter into a valid assignment or sublease with respect to the Premises, provided that City consents thereto pursuant to this paragraph, and provided further that (1) such assignment or sublease is executed within ninety (90) days after City has given its consent to same; (2) Lessee pays (or causes to be paid) all amounts owed to City under subparagraph (b) above, (3) Lessee is not in default under this Lease as of the effective date of the assignment or sublease, (4) there have been no material changes (since the date on which City's consent was given) with respect to the financial condition of the proposed sublessee or assignee or the business which said party plans to conduct on the Premises, and (5) a fully executed original of such assignment or sublease (either of which shall state that the assignee or sublessee agrees to be bound by all of the terms, covenants, and conditions of this Lease) is delivered promptly to the City Clerk of City.
Lessee agrees to fully defend and indemnify City with respect to all costs (including attorneys' fees expended by City in connection with any such claim) and liability for compensation claimed by any broker or agent employed by Lessee in connection with any assignment, subletting or other transfer of Lessee's interest under this Lease.
1. The voluntary or other surrender of this Lease by Lessee or a mutual termination hereof shall not work a merger, and shall, at City's option either terminate all or any existing subleases or subtenancies or shall operate as an assignment to City of Lessee's interest under such sublease or subtenancy.
Regardless of City's consent, no subletting or assignment for financing purposes shall release Lessee of Lessee's obligations or alter the primary liability of Lessee to pay the rent and to perform all other obligations to be performed by Lessee hereunder. The acceptance of rent by City from any other person shall not be deemed to be a waiver by City of any provisions hereof. Consent to one assignment or subletting shall not be deemed consent to any subsequent assignment or subletting.
25. INSOLVENCY OR BANKRUPTCY. Lessee agrees that if all or substantially all of Lessee's assets are placed in the hands of a receiver or trustee, and such receivership or trusteeship continues for a period of 30 days, or should Lessee make an assignment for the benefit of creditors or be adjudicated a bankrupt, or should Lessee institute any proceedings under the Bankruptcy Act or under any amendment thereof which may hereafter be enacted, or under any other act relating to the subject of bankruptcy wherein Lessee seeks to be adjudicated a bankrupt, or to be discharged of Lessee's debts, or to effect a plan of liquidation, composition, arrangement or reorganization under such bankruptcy, or should an involuntary proceeding be filed against Lessee under any such bankruptcy laws and Lessee consents thereto or acquiesces therein by pleading or default, then any such act shall be deemed a breach of this Lease, and neither this Lease nor any interest in and to the Premises shall become an asset in any of such proceedings and, in any such event and in addition to any and all rights or remedies of City hereunder or by law provided, this Lease shall terminate automatically as of the date on which any one or more of the above-described occurrences takes place, and in such event, it shall be lawful for City to re-enter the leased Premises and take possession thereof and remove all persons and all of Lessee's personal property, including trade fixtures and equipment therefrom, and Lessee shall have no further claim to the Premises or under this Lease. -11-
26. DEFAULT; REMEDIES.
a. Default. The occurrence of any one or more of the following events shall constitute a default under this Lease:
(1) Non-curable defaults:
a) The vacation or abandonment of the Premises by Lessee. b) Any attempted or involuntary transfer of Lessee's interest in this Lease without the City's prior written consent.
c) If Lessee makes (or has made) or furnishes (or has furnished) any warranty, representation, or statement to City in connection with this d) Any breach under the paragraph entitled Insolvency or Bankruptcy.
(2) Curable defaults:
The failure by Lessee to make any payment of rent, fee or any other payment required to be made by Lessee hereunder as and when due.
If Lessee does not fully cure such default within three (3) days after Lessee has been served with a notice of such default, this Lease shall be The failure by Lessee to observe or perform any non-monetary covenants, conditions, or provisions of this Lease to be observed or performed by Lessee, other than the aforementioned non-curable defaults.
If Lessee does not fully cure any such non-monetary default within ten (10) days after Lessee has been served with a notice of such default, this Lease shall be terminable at City's option; provided, however, that if the nature of Lessee's default is such that more than ten days are reasonably required for its cure, then City shall not be entitled to terminate this Lease on account of such default if Lessee commences such cure within said ten- day period and thereafter diligently prosecutes such cure to completion.
If the leaschold interest of Lessee is levied upon under execution or is attached by process of law.
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b. Remedies.
(1) In addition to all other rights and remedies it might have, City shall have the right to terminate this Lease and Lessee's right to possession of the leased Premises in the event of any non-curable default as set forth above or if a curable default is not fully cured within the cure period designated above for such default. ermination of Lessee's right to possession of the Premises shail terminate thi ease and vice-versa. However, if Lessee has abandoned or vacated th Premises, the mere taking of possession of same by City in order to perform acts ot maintenance or preservation or to attempt to re-let the Premises, or the appointment of a receiver in order to protect City's interests under this Lease, shall not be deemed a termination of Lessee's right to possession of the Premises or a termination of this Lease unless City has notified Lessee in writing that the Lease is terminated. The notification provided for herein for curable defaults shall be in lieu of, and not in addition to, any notice required under Section 1161, et seq., of the California Code of Civil Procedure. If City terminates this Leasc my recoves thigh to wisem of the Premises pursuant to this paragraph, City the worth at the time of award of the unpaid rent, which was due, owing, and unpaid by Lessee to City at the time of termination; plus b) the worth at the time of award of the amount by which the unpaid rent which would have come due after termination until the time of award exceeds the amount of rental loss that Lessee proves could have been reasonably avoided; plus
c) the worth at the time of award of the amount by which the unpaid rent for the balance of the lease term after the time of award exceeds the amount of rental loss which Lessee proves could be reasonably avoided; plus
d) all other amounts necessary to compensate City for all of the detriment proximately caused by Lessee's failure to perform its obligations under this Lease or which in the ordinary course of things are likely to result therefrom.
e) At City's election, such other amounts in addition to, or in lieu of the foregoing, as may be permitted from time to time by applicable California law.
(2) Upon termination of this Lease, whether by lapse of time or otherwise, Lessee shall immediately vacate the Premises and deliver possession thereof to City.
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(3) If Lessee violates any of the terms or provisions of this Lease or defaults in any of its obligations hereunder, other than the payment of rent or other sums payable hereunder, such violation may be restrained, or such obligation enforced by injunction.
(4) Pursuit of any of the foregoing remedies shall not preclude pursuit of any of the other remedies herein provided or any other remedies provided at law or in equity.
(5) No act or thing done by City or its agents during the term hereof shall be deemed an acceptance or a surrender of the Premises, and no agreement to accept a surrender of the Premises shall be valid unless made in writing and signed by City. Neither the reference in this Lease to any particular remedy nor the pursuit of any particular remedy shall preclude City from any other remedy City might have, either at law or in equity.
27. ABANDONMENT. If Lessee shall abandon the Premises at any time during the term of this Lease or be dispossessed therefrom by process of law or otherwise, any personal property belonging to Lessee and left on the Premises thirty (30) days after such abandonment or dispossession shall be deemed to have been transferred to City, and City shall have the right to remove and to dispose of the same without liability to account to Lessee or to any person claiming under Lessee.
28. TERMINATION BY LESSEE. If any law or ordinance should come into effect during the term of this Lease, the terms of which so restrict the use to which the Premises can be put so that the Lessee is unable to use the Premises in the manner contemplated herein, then Lessee may, upon thirty (30) days' written notice to City, terminate this Lease.
29. WAIVER OF DEFAULT. Acceptance by either party of performance following a default will not be deemed a waiver of such default. No waiver of a default will constitute a waiver of any other default.
30. EMINENT DOMAIN. In the event all or any part of the Premises is taken or damaged by the exercise of the power of eminent domain, all compensation and damages payable by reason of the condemnation of the real property shall be payable to City without any apportionment to Lessee, Lessee hereby waiving any claim for leasehold damages attributable to this Lease having any bonus value, but Lessee shall have the right to claim and receive from the condemning authority (but not from City) any relocation assistance pursuant to Section 7260 et seq. of the Government Code of the State of California.
31. EXISTING TITLE TO LEASED PROPERTY. Lessee accepts the conditions of City's title to the Premises as the same now exists without representation or warranty of any kind, and Lessee shall be bound by any reservations, restrictions, easements, or encumbrances thereon which an examination of title would disclose.
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32. QUITCLAIM OF LESSEE'S INTEREST UPON EXPIRATION OR TERMINATION.
Upon the termination of this Lease for any reason, including but not limited to termination because of default by Lessee, at the request of City Lessee shall execute, acknowledge, and deliver to City within thirty (30) days after receipt of written demand therefor a good and sufficient deed whereby all right, title and interest of Lessee in the Premises, including any improvements thereon, is quitclaimed to the City. Should Lessee fail or refuse to deliver the required deed to City, City may prepare and record a notice reciting the failure of Lessee to execute, acknowledge, and deliver such deed and said notice shall be conclusive evidence of the termination of this Lease, and of all right of Lessee or those claiming under Lessee in and to the Premises, and any improvements thereon.
33. VENUE/ATTORNEY'S FEES. Any action at law or in equity brought by either party hereto for the purpose of enforcing a right provided for by this Lease shall be tried in a court of competent jurisdiction in the County of Riverside, California, and the parties hereby waive all provisions of law providing for a change of venue in such proceedings to any other county. In the event either party shall bring suit to enforce any covenant of this Lease or to recover any damages for and on account of the breach of any covenant of this Lease, it is mutually agreed that the prevailing party in such action shall recover all costs thereof including reasonable attorneys' fees to be set by the court in such action.
34. PROVISIONS BINDING ON SUCCESSORS. Each and all of the covenants, conditions and agreements herein contained shall, in accordance with the context, inure to the benefit of and be binding upon the parties hereto, and the successors-in-interest, agents and assigns of such parties, or any person who may come into possession or occupancy of the Premises, or any part thereof, in any manner whatsoever. Nothing in this paragraph shall in any way alter the provisions in this Lease against assignment or subletting or other transfers.
35. PARTIAL INVALIDITY. If any term, covenant, condition, or provision of this Lease is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions hereof shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby.
36. MARGINAL CAPTIONS. The various headings and numbers herein and the groupings of the provisions of this Lease into separate sections and paragraphs are for the purpose of convenience only and shall not be considered a part hereof.
37. RESERVATIONS TO CITY. The Premises herein leased is hereby accepted by Lessee subject to any and all existing easements and other encumbrances. In addition, City hereby reserves and Lessee hereby expressly agrees that City shall have the right to install, lay, construct, maintain, repair and operate sanitary sewers, storm drains, electric lines, telephone lines, telegraph lines, water pipelines, oil pipelines, and gas pipelines and such other appliances and appurtenances necessary or convenient to all of the above-listed, over, in, upon, through, across, and along the Premises or any part thereof as will not interfere with Lessee's operations hereunder and to enter upon the Premises for any and all such purposes. City also reserves the right to grant franchises, easements, rights of way and permits in, over, upon, along and across any and all portions of said Premises as City may elect so to do; provided, however, that no right -15-
of City provided for in this paragraph shall be so executed as to interfere unreasonably with Lessee's operations hereunder.
City agrees that any right as set forth in this paragraph shall not be exercised unless a prior written notice of thirty (30) days is given to Lessee; provided, however, that in case of emergency such right may be exercised without such prior 30 days' notice, in which event City will give Lessee such notice in writing as is reasonable under the then existing circumstances.
City agrees that it will cause the surface of the Premises to be restored to its original condition upon the completion of any construction permitted hereunder. City further agrees that. should the exercise of these rights temporarily interfere with the use of any or all of the Premises by Lessee, the rental due to City by Lessee shall be reduced in a proportion of the amount said interference bears to the total use of the Premises.
38. UNLAWFUL USE. Lessee agrees no improvements shall be erected, placed upon, operated nor maintained on the Premises, nor shall business be conducted or carried on thereon in violation of the terms of this Lease, or any regulation, order, law, statute, bylaw or ordinance of any governmental agency having jurisdiction there over.
39. AIRPORT RULES AND REGULATIONS. Lessee, as well as the employees, agents, invitees, and guests of Lessee, shall obey all rules and regulations and ordinances of City or other competent authority, as may be amended from time to time, pertaining to the Riverside Municipal Airport. Such rules and regulations include but are not limited to procedures prescribed by a United States Government authority possessing applicable jurisdiction regarding the Riverside Municipal Airport.
40. NONDISCRIMINATION, COMPLIANCE WITH TITLE 49. Lessee, on Lessee's own behalf and on the behalf of Lessee's personal representatives, successors in interest and assigns, as a part of the consideration hereof does hereby covenant and agree as a covenant running with the land that in the event facilities are constructed, maintained, or otherwise operated on the property described in this Lease for a purpose for which a Department of Transportation (hereinafter referred to as ("DOT") program or activity is extended or for another purpose involving the provision of similar services or benefits, Lessee shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, DOT, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination 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.
Lessee, on Lessee's own behalf and on behalf of the personal representatives, successors in interest and assigns of Lessee, as a part of the consideration hereof, does hereby covenant and agree as a covenant running with the land that:
no person on the grounds of race, religious creed, color, national origin, ancestry, age, physical disability, mental disability, medical condition including the medical condition Acquired Immune Deficiency Syndrome, or any condition related thereto, marital status, sex or -16-
sexual orientation shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities; b. that in the construction of any improvements on, over, or under such land and the furnishing of services thereon, no person on the grounds of race, religious creed, color, national origin, ancestry, age, physical disability, mental disability, medical condition including the medical condition Acquired Immune Deficiency Syndrome or any condition related thereto, marital status, sex or sexual orientation shall be excluded from participation in, denied the benefits of, or otherwise be subject to discrimination; and C. that Lessee shall use the Premises in compliance with all other requirements imposed Ay or pc oft co Tie Pat Pat Noteril Noteril rigilation, Dedermily Arised progi, of the Department of Transportation - Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended.
Lessee acknowledges and agrees that in the event of breach of any of the nondiscrimination covenants set forth in this paragraph, City shall have the right to terminate this Lease and re-enter and repossess said land and the facilities thereon and hold the same as if said Lease had never been made or issued. The provision of this paragraph does not become effective until the procedures of 49 CFR Part 21 are followed and completed including expiration of appeal rights.
41. ACCOMMODATIONS AND SERVICES. Lessee shall furnish Lessee's accommodations and/or services on a fair, equal, and not unjustly discriminatory basis to all users thereof and Lessee shall charge fair, reasonable, and not unjustly discriminatory prices for each unit or service; Provided, that Lessee may be allowed to make reasonable and nondiscriminatory discounts, rebates, or other similar type of price reductions to volume purchasers.
Noncompliance with this paragraph shall constitute a material breach thereof and in the event of such noncompliance City shall have the right to terminate this Lease and the estate hereby created without liability therefor or at the election of City or the United States either or both said governments shall have the right to judicially enforce said provisions.
42. INSERTION. Lessee agrees that Lessee shall insert the above Paragraphs 40 and 41 in ny license, lease, agreement, or contract by which said Lessee grants a right or privilege to an erson, firm, or corporation to render accommodations and/or services to the public on th Premises herein leased.
43. AFFIRMATIVE ACTION. Lessee assures that Lessee will undertake an affirmative action program as may be required by 14 CFR Part 152, Subpart E, to ensure that no person shall on the grounds of race, religious creed, color, national origin, ancestry, age, physical disability, mental disability, medical condition including the medical condition Acquired Immune Deficiency Syndrome or any condition related thereto, marital status, sex or sexual orientation be excluded from participating in any employment activities covered in 14 CFR Part 152, -17-
Subpart E. Lessee assures that no person shall be excluded on these grounds from participating in or receiving the services or benefits of any program or activity covered by this Subpart.
Lessee assures that Lessee will require that Lessee's covered suborganizations provide assurances to Lessee that they similarly will undertake affirmative action programs and that they will require assurances from their suborganizations, as may be required by 14 CFR Part 152, Subpart E, to the same effect.
44. DEVELOPMENT OF LANDING AREA. City reserves the right to further develop or improve the landing area of the Riverside Municipal Airport, at its sole discretion, regardless of the desires or view of Lessee and without interference or hindrance.
MAINTENANCE OF LANDING AREA. City reserves the right to maintain and keep in repair the landing area of the Riverside Municipal Airport and all publicly-owned facilities of the Airport, together with the right to direct and control all activities of Lessee in this regard.
LEASE SUBORDINATE. This Lease shall be subordinate to the provisions and requirements of any existing or future agreement between City and the United States of America relative to the development, operation, or maintenance of the Riverside Municipal Airport.
RIGHT OF FLIGHT. There is hereby reserved to City, its successors, and assigns, for the use and benefit of the public, a right of flight for the passage of aircraft in the airspace above the surface of the Premises. This public right of flight shall include the right to cause in said airspace any noise inherent in the operation of any aircraft used for navigation or flight through the said airspace or landing at, taking off from or operation on the Riverside Municipal Airport.
USE TO CONFORM WITH FAA REGULATIONS. Lessee agrees that Lessee's use of the Premises, including all construction thereon, shall conform to applicable regulations issued by the U.S. Federal Aviation Administration (FAA), Department of Transportation, or other applicable federal agency.
Lessee agrees to comply with the notification and review requirements covered in Part 77 of Title 14, Code of Federal Regulations (as same may be amended from time to time, or such other regulations replacing Part 77 as may be adopted by Federal authority) prior to the construction of any improvements, future structure or building upon the leased Premises, or in the event of any planned modification or alteration of any present or future building or structure situated on the Premises.
HEIGHT RESTRICTIONS. Lessee by accepting this Lease expressly agrees for and on behalf of Lessee and on behalf of Lessee's successors and assigns that Lessee will not erect nor and to remove the offending structure or object and cut the offending trees, all of which shall be at the expense of Lessee.
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NON-INTERFERENCE WITH LANDING AND DEPARTURE OF AIRCRAFT.
Lessee by accepting this Lease expressly agrees on Lessee's own behalf and on the behalf of Lessee's successors and assigns that Lessee will not make use of the Premises in any manner which might interfere with the landing and taking off of aircraft from the Riverside Municipal Airport or otherwise constitute a hazard. In the event the aforesaid covenant is breached, City reserves the right to enter upon the Premises hereby leased and cause the abatement of such interference at the expense of the Lessee.
NO EXCLUSIVE RIGHT GRANTED. It is understood and agreed that nothing herein contained shall be construed to grant or authorize the granting of an exclusive right within the meaning of Section 308a of the Federal Aviation Act of 1958 (49 U.S.C. 1349a).
LEASE SUBJECT TO. U.S. GOVERNMENT ACQUISITION AND CONTROL. This Lease and all the provisions hereof shall be subject to whatever right the United States overnment now has or in the future may have or acquire, affecting the control, operation egulation and taking over of the Riverside Municipal Airport or the exclusive or nonexclusiv use of the Airport by the United States during time of war or national emergency.
ISIGNATURES ON FOLLOWING PAGE.J
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IN WITNESS WHEREOF, the parties hereto have caused this Lease to be executed the day and year first above written.
CITY OF RIVERSIDE KEVIN BOOTH doing business as
MAINTENANCE ONE
Kenant
By_
Airport Director Kevin Booth
Attest_
City Clerk
APPROVED AS TO FORM:
Susan Whos
Deputy City Attorney
13-2567.1 BGS 9/13/23
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JAXIIVAT
2500 Square Feet of Hanger Space
Maintenance One
6779-C Airport Drive
405
110-8 19311750
55io
57 AN 00 €
:
EXHIBIT A
-
All that portion of Section 31, Township 2 South, Range 5 West, s. B.M., described as follows:
COMMENCING at the northwesterly corner of Gafford Gardens, as showr by map on file in Book 12, Page 97 of Maps, records of Riverside County, California;
feet to a line which is parallel with
northerly, as measured at right angles, frow said northerly boundary:
THENCE North 89 ' 44' 00" West, along sald parallel line, a distance of 713.77 feet;
THENCE North 0° 16' 00" East, a distance of 272.43 feet to the POINT OF BEGINNING;
THENCE North 60 • 30 ' 50" West, a distance of 54.00 feet; THENCE North 29' 29' 10" East, a distance of 108.53 feet; THENCE South 60 • 30' 50" East, a distance of 54.00 feet; THENCE South 29: 29' 10" West, a distance of 108.53 feet to the POINT OF BEGINNING.
Area - 5,861 square feet, more or less.
airprt1/saw
DESCRIPTION APPROVAL $/ 26,95
URVEYOR' CITY OF RMENSIO GEORGE P.
(HUTCHINSON
L. S. 3593
LATE OF CAMERANN
EXHIBIT B
70.50'
1. 55= =45'₴
5600
30°
6Ó' 5047ISE 108.53
N290
30'
N89°12'45'E
N0°47'15" W
V
34.98'
5894775E
200,74'
12'45" W
т. 25.
SEC. 31 568 S.B. /i
R.5W.
272.437
133.73 N 89475'W CORNER GARDENS
NN MB 12/97
GAFFORD
55.05' - 768.82-213.37.
-ая
N89:44 W
AIRPORT 1660/63 G.G
R/S 42/70
• CITY OF RIVERSIDE, CALIFORNIA
THIS PLAT IS SOLELY AN AID IN LOCATING THE PARCEL (S) DESCRIBED IN THE SHEET LOF L 4/9 ATTACHED DOCUMENT. IT IS NOT A PART OF THE WRITTEN DESCRIPTION THEREIN.
SCALE: "N.T. S. CRAWN BY LUI DATE 4/12/23 SUBJECT AIRPORT LEASE PARCELS
GRANTOR'S
EXHIBIT "A"
COPY
All that portion of Section 31, Township 2 South, Range 5 West
3.B.M., described ag follows:
county, California;
line which
northerly, as measured at right angles, from said northerly boundary:
THENCE North 89° 44' 00" West, along said parallel line, a distance of 713.77 feet;
THENCE North O° 16' 00" East, a distance of 272.43 feet to the POINT OF BEGINNING;
THENCE North 60 ° 30' 50" West, a distance of 54.00 feet; THENCE North 29° 29 ' 10" East, a distance of 108.53 feet; THENCE South 60 • 30' 50" East, a distance of 54.00 feet; THENCE South 29° 29' 10" West, a distance of 108.53 feet to the POINT OF BEGINNING.
• Area - 5,861 square feet, more or less.
airprt1/saw
70.50'
V 89°12'45"8
60' 5047 IS"E 29'10" E 6o'FO'E
N290 108.53
30'
N89°2'45'€ 29 0'E
~ 0°47'15'W V 250085g-
44.94'
34,98
S89 4715E
200.74'
97541 50072'45"W • 25. NOTGE
SEC. 31
S.B.M.
R.5W.
272.43T
733.73 N85:475'W CORNER
GAFFORD NN AN ARDENS
55.05 11377-1
768.82
L010
N 89°44 W
R/S 42/70 G. G.
·A
• CITY OF RIVERSIDE, CALIFORNIA •
THIS PLAT IS SOLELY AN AID IN LOCATING THE PARCEL (SI DESCRIBED IN THE SHEET LOF L 4/9 ATTACHED DOCUMENT. IT IS NOT A PART OF THE WRITTEN DESCRIPTION THEREIN.
SCALE:/": N.T. S. DRAWN BY SUN DATE 1/12/23 SUBJECT AIRPORT LEASE PARCELS