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Airport Ground Lease - Billings

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Sectors: Transportation
Effective Date: September 28, 1999
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LIMITED COMMERCIAL AVIATION BUILDING AND GROUND LEASE
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THIS LEASE AGREEMENT, made and entered into this 28 day of Sept. 1999 by and between the following:


CITY OF BILLINGS, MONTANA, hereinafter
designated "Lessor"


and


ALPINE AVIATION, INC., d/b/a, ALPINE AIR, a
Utah Corporation, hereinafter designated "Lessee"


WITNESSETH
RECITALS
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1) Lessor owns and operates BILLINGS LOGAN INTERNATIONAL AIRPORT (hereinafter called the Airport) situated in the City of Billings, Montana, and


2) Lessor deems it advantageous to itself and the operation of the Airport to lease to the Lessee a certain parcel of land and aircraft hangar hereinafter described together with certain privileges, rights, uses and interests, and


3) Lessee is a firm wishing to engage in certain limited commercial aviation activities, proposes to lease on a net basis from Lessor said parcel of land and to avail itself of the same privileges, rights, uses and interests contemplated herein and,


4) Lessee has indicated a willingness and ability to properly keep, maintain and improve said land and building in accordance with standards established by Lessor.


NOW THEREFORE, the Parties hereto covenant and agree as follows:


ARTICLE I
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PREMISES AND PRIVILEGES
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A. Description of the Premises. Lessor hereby leases to Lessee and Lessee hereby hires and takes from Lessor that certain parcel of real property, together with improvements (hereinafter called the premises), for its exclusive use, specifically described as follows:


8,648 square feet, of hangar floor space, and 1,755 of office and storage area on the east side of one (1) metal aircraft hangar referred to as Industrial Park Hangar #5 for a total of 10,403 square feet. Includes 65,582 square feet of land underneath and contiguous to said building. The site is set forth on Exhibit A attached hereto and by this reference made a part hereof.


B. General Privileges, Uses and Rights. Lessor hereby grants to Lessee the following general privileges, uses and rights, all of which shall be subject to the terms, conditions and covenants herein set forth.


1) The general unrestricted use of all public Airport facilities and improvements which are now or may hereafter be connected with or appurtenant to said Airport, except as hereinafter provided, to be used by Lessee and its sublessees for limited commercial aviation activity as herein defined. For the purpose of this lease, public airport facilities shall include all necessary landing area appurtenances including but not limited to approach areas, runways, taxiways, aprons, aircraft and automobile parking areas, roadways, sidewalks, navigational aids, lighting facilities, terminal facilities or other public facilities appurtenant to said Airport.


2) The right of ingress to and egress from the premises over and across public roadways serving the Airport for Lessee, his agents and servants, patrons and invitees, suppliers of service and furnishers of material. Said right shall be subject to such ordinances, rules and regulations as now or may hereafter have application at the Airport.


C. Specific Privileges, Uses and Rights. In addition to the general privileges, uses and rights described above and without limiting the generality thereof, Lessor hereby grants to Lessee and sublessees the right to engage in limited commercial aviation activity on the premises as defined in sub-paragraphs 1 through 7 below, subject to the conditions and covenants hereafter set out:


1) The maintenance, storing and servicing of aircraft, which shall include overhauling, rebuilding, repairing, inspection and licensing of same, and the purchase of parts, equipment and accessories therefore.


2) The right to use vehicles necessary for the service of aircraft.


3) The storage of aircraft not owned by the Lessee.


4) The loading and unloading of aircraft in any lawful activity as incidental to the conduct of any services or operations outlined in this paragraph.


5) The operation of non-scheduled charter transportation business for hauling passengers.


6) The operation of scheduled or non-scheduled transportation business for hauling freight and/or mail by aircraft.


7) The maintenance of an office on the premises necessary for the conduct of the activities defined above.


8) The aforementioned rights shall apply to the persons, firms or corporations having actual possession and occupancy of the hangars described herein, and the agents, employees, and invitees of such persons, firms or corporations.


D. Concessions Excluded. The following concessions and services
and the establishment thereof shall be specifically excluded from this
Lease:


1) Ground transportation for hire.


2) Auto rental services.
3) Food sales (except the sale of tobacco, confections and refreshments through coin-operated vending machines).
4) News and sundry sales,
5) Barber, valet, and personal services-
6) Fuel sales.
7) On site fuel storage facilities.
8) The buying and selling of aircraft, parts and accessories, and aviation equipment of all descriptions either for retail, wholesale or as a deader, except for use in Lessee's own aircraft or operations.


9) Flight schools and flight instruction, except that Lessee's Chief Pilot shall have the right to give private instructions to employees.
10) Aircraft repair and servicing except on Lessee's own aircraft.


E. Reservation of Right-of-Way. Lessor hereby reserves a right-of-way easement for access purposes over the above described leasehold. Said reserved rights-of-way may be used by Lessor and all of Lessor's tenants, agents, employees of said tenants, and persons and entities serving said tenants.


ARTICLE II
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TERM OF LEASE
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A. Term. The term of this Lease shall be for a period of four (4) years, commencing on the 1st day of November, 1998 and terminating on the 31st day of October, 2002.


B. National Emergency. In the event the rights and privileges hereunder are suspended by reason of war of other national emergency, the term of this Lease shall be extended by the amount of the period of such suspension.


ARTICLE III
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RENTAL AND FEES
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A. Building and Ground Rental. For the building and land described in Article I, Paragraph A, Lessee shall pay to Lessor $1.44 per square foot per annum for the building space in this Lease for an annual rental of $14,980.32. Said rental shall be payable monthly in advance without billing on the first day of each month in an amount equal to one-twelfth of the annual rental, or $1,248.32.


B. Annual Readjustment of Ground Rental.. During the term of the Agreement the rental rate will be adjusted annually on the anniversary of the Agreement using the Consumer Price Index for all Urban User (CPI-U) for the previous twelve (12) month period. In no case shall the rate be less than the previous year.


ARTICLE IV
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OBLIGATIONS OF LESSOR
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A. Lessor Warranties. Lessor warrants all things have happened and have been done to make its granting of said least effective and that Lessee shall have peaceful possession and quiet enjoyment of the leased


premises during the term hereof, upon performance of Lessee's covenants herein.


B. Operation as Public Airport. Lessor shall during the term hereof, operate and maintain the airport and its public facilities, as defined hereinabove, as a public airport consistent with and pursuant to the sponsor's assurances given by Lessor to the United States Government under the Federal Airpor
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