1 THIRD ADENDUM TO
FUEL FACILITY LEASE
THIS THIRD ADDENDUM TO FUEL FACILITY LEASE AGREEMENT
(“Addendum”), made and entered into this 1st day of July, 2022, by and between the City of Salinas, a California charter city and municipal corporation of the State o f California (“Lessor”) and Jet West, Inc., a California Corporation (“Lessee”).
RECITALS
WHEREAS, on September 14, 2004, by way of Resolution No. 19123, the Lessor and Central Coast Aviation Services, Inc. entered into a Fuel Facility Lease (“Lease”) for certain real property (the “Leased Premises”) as more particularly described in the Lease; and
WHEREAS, on September 17, 2008, the Lessor and Lessee , amended the Lease (Addendum No. 1) to clarify the City’s and Central Coast’s rights and obligations of the lease with regards to the demised premis e following the expansion of the Terminal Building as more particularly described in Addendum No. 1; and
WHEREAS, on March 15, 2012, the Lessor and Lessee, amended the Lease (Addendum No. 2) to clarify the City’s and Central Coast’s rights and obligations of the lease with regards to pass due rents from Central Coast to the City of Salinas as more particu larly described in Addendum No. 2; and
WHEREAS, on July 1, 2012, the Lessor consented to Central Coast Aviation Services and Jet West, LLC entering into an Assignment and Assumption of Lease Agreement, whereby Central Coast assigned conveyed, transferred, and set over unto Jet West all rights, title, interest, and estate under the Lease; and
WHEREAS, Lessor and Lessee, subject to the terms and conditions set forth below, desire to amend the Lease by amending the Uses of the Premise, Term, and Rent, and to clarify Exhibit A – Fuel Farm Premise; and
WHEREAS, Lessor and Lessee desire to enter into this Addendum to memorialize these changes; and
WHEREAS, all terms not expressly defined herein shall have the same meaning as defined in the Lease and subsequent Addendums.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants, conditions, representations, and warranties cont ained in this Addendum, the part ies agree to enter into this transaction based on the following terms and conditions:
2 1. Use of Premise. Section 1, Paragraph 1 Leased Premises; Uses of Leased Premises, of the Lease shall be replaced in whole by the following (Paragraphs A. Fuel Facility, and Paragraph B. Office Space of Section 1, Leased Premise, Use of Leased Premise shall remain the same):
“Leased Premises,” as that term is used in this Lease, shall mean that portion of the Airport used by Lessee for the operation and maintenance of an aviation -related fuel facility, operation and maintenance of an aircraft electric charging station, and that portion of the Airport Terminal Building used by the Lessee as office space, as follows:
2. Electric Charging Station. The following paragraph shall be added to Section 1 as Paragraph D, Electric Aircraft Charging Station:
D. Electric Aircraft Charging Station. Lessee hereby leases a portion of the Airport, as more particularly shown and described on Exhibit A for the purposes of operating an Electric Aircraft Charging Station.
i. A portion of the leased Premises, adjac ent to the southerly side of the Electric Aircraft Charging Station is specifically included to allow for it’s use by p atrons of the Lessee accessing the Electric Aircraft Charing Station operated by the Lessee. Its use is not intended for the l ocation of a ny structure, barrier, or other temporary or permanent restriction of use of the area by operators of aircraft.
ii. Lessee shall have the right to sublet the operation and contract the maintenance of the electric aircraft charging station.
3. Term. Under the terms and conditions of this Addendum, Lessee shall have no option to renew the Lease beyond 2036 . Section 3, Term, of the Lease shall be replaced in whole by the following:
Term. This Lease shall commence on December 12, 2006, and shall continue in full fo rce and effect for a period of thirty (30) years thereafter terminating on December 11, 2036 (“Original Term”) unless otherwise terminated sooner or extended in a manner and under the conditions provided herein.
4. Rent. Section 4, Paragraph D shall be removed from the Lease.
5. Rent. Section 4, Paragraph E shall be replaced in whole by the following Paragraph:
E. Annual Rent Adjustment. Commencing on the anniversary of the Original Lease Commencement Date, the annual rent due under this Agreement shall be increased by an amount equal three percent (3%) of the annual rent in effect during the immediately preceding year.
6. Rent. The following paragraph shall be added to Section 4 as Paragraph G, Electric Aircraft Charging Station Fees:
3 G. Electric Aircraft Charging Station Fees. Lessee shall pay or shall arrange with Lessee ’s subtenant(s) to pay, to Lessor a gross revenue of sales fees of one percent (1%) of commercial sales generated from the Electric Aircraft Charging Station. The gross revenue of sales fee may be adjusted by the Lessor’s City Council, from time to time, as is commercially reasonable. The gross revenue fee shall be payable to the Lessor on an annual basis on the first day of January (calculated on the basis of sales during the preceding 12 calendar months). If Lessee of subtenant fail(s) to make payment by the 31st day of January, then upon written notice of such non-payment by Lessor to Lessee, lessee shall within ten (10) days of the sate of such notice pay the gross revenue fees owed.
7. Exhibit A. Exhibit A – Central Coast Fuel Lease, of the Lease (dated November 15, 2006) shall be replaced in whole with the Attached Exhibit A.
8. Effective Date. This Amendment shall be effective as of June 1, 2022.
9. No Further Modifications. Except as expressly modified herein, all other provisions of the Lease, Addendum No. 1, and Addendum No. 2 shall remain in full fo rce and effect without amendment or modification.
4 In Witness Whereof, the undersigned have executed this Lease Amendment to Ground Lease as of the dates written below.
LESSOR:
CITY OF SALINAS
Dated:
Kimbley Craig, Mayor
APPROVED AS TO FORM:
Dated:
Christopher A. Callihan, City Attorney
ATTEST:
Dated:
Patricia M. Barajas, City Clerk
RECOMMENDED FOR APPROVAL:
Dated:
Brett J. Godown, Airport Manager
LESSEE:
Jet West, Inc.
Dated:
Ryan Gauger, President
EXHIBIT A
MAP OF LEASED PREMISES
(see attached document)
6 Exhibit A
Fuel Farm Premise
200’
200’
67’