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Duplicate Original RENEWAL OF THE LEASE AGREEMENT BY AND BETWEEN DALLAS C. “RUSTY” GANT, JR. (Lessee) AND THE TOWN OF WICKENBURG, A MUNICIPAL CORPORATION All terms of the original Lease Agreement, attached as Exhibit “A”, will remain in full effect with the following amendments: 4. Said period shall continue for a period of ten (10) years, retroactive to September 26, 2009. An automatic renewal for an additional ten (10) years shall be granted unless thirty (30) days prior to the end of the first ten (20) year renewal, Lessee notifies the Town, in writing, of his/her attention not to renew for additional ten (10) year period. The Lease payments due from Lessee for each ten (10) year term of this Agreement, commencing September 26, 2009, shall be an amount equal to thirteen percent (13%) of the gross rental received by Lessee from the rental of storage space for aircraft owned by third parties and/or by Lessee, with any space being utilized as storage space for aircraft owned or utilized by Lessee being computed at the same rate and under the same formula charged to third FWICKENBU LESSOR DALLAS C. “RUSTY” GANT, JR., LESSEE NERY C\pLUNT 7 DALLAS C. GAD, JR. Its: Mayor Its: : Date: U i Y ~ ll Date: LLY ATTEST: . Donna Riffel, Town Clerk 0 U APPROVED TO AS FORM: Nyda Be Retly ¥. Ssawhb, Town Attornay Curtis, Goodwin, Sullivan, Udall & Schwab, P.L.C. T:\CONTRACTS\201 1 \Gant-AirportHangarsRenewal.doc -_- S e LEASE AGREEMENT BY AND BETWEEN THE TOWN OF WICKENBURG, A MUNICIPAL CORPORATION, HEREINAFTER REFERRED TO AS “TOWN/LESSOR," AND A DALLAS C. "RUSTY" GANT, a a HEREINAFTER REFERRED TO AS “LESSEE” WHEREAS, Lessee presently, by Assignment Of Lease And Acceptance Of Assignment, dated February 1, 1988, possesses a leasehold interest in certain property, hereinafter more fully described, owned by Town/Lessor, at Wickenburg Municipal Airport, and WHEREAS, certain improvements, consisting of T-hangars, exist on said portion of the hereinafter described premises and are "owned" by Lessee, and WHEREAS, it is Lessee's desire to add additional T-hangars in the same area of the T-hangars presently owned by Lessee, and, accordingly, enter into this Lease Agreement so as to allow for the addition, and the Town/Lessor is also desirous of leasing and/or letting to Lessee additional space for construction of additional T-hangars by Lessee at Lessee's sole expense, and WHEREAS, it is the parties’ desire to enter into this lease Agreement so as to define and refine the respective rights of the parties hereto in such a manner so as to provide that such rights supersede any previous rights Lessee acquired in any prior Lease Agreement, Renewal Of Tease Agreement and Assignment Of Lease in respect to the specific space hereinafter described; said previous Lease Agreement and Renewal Of Lease Agreement having heretofore been executed and entered into by and between Town/Lessor and Douglas H. Moreton; TT IS THEREFORE MUTUALLY AGREED by and between the parties hereto as follows: 1. That certain Lease Agreement entered into by and between the Town of Wickenburg as Lessor, and Douglas H. Moreton as Lessee, dated October 1, 1974, is hereby superseded by this Agreement insofar as the real property hereinafter described as the lease property in this Agreement is concerned. It is agreed and understood by and between the parties hereto that the above mentioned Lease Agreement, the Renewal of said Lease Agreement, dated August 6, 1984, and the Assignment of a portion of said Lease Agreement, dated February 1, 1988, contimes in full force and effect only insofar as the above mentioned Agreements are not inconsistent with this Agreement and do not hypothecate the right of the Lessee in this Agreement. It is further understood by the parties hereto that any and all rights and obligations accruing to or imposed upon either party hereto by any of the above mentioned Agreements are extinguished and/or superseded by the rights and obligations of the parties hereto in this Agreement, including, but not limited to, any rights Lessee has or had arising out of the Assignment Of Lease dated February 1, 1988, and on file with the Town of Wickenburg; this Agreement being herein contemplated, by the parties hereto, as granting to Lessee, at least, equal rights and interest in the leased premises as now held by Lessee. 2. The leased premises are denoted on Exhibit 1, attached hereto, and further denoted on Exhibit 1 as Area A, which is highlighted in yellow on Exhibit 1. This area is further described as being the T- hangar area lying on the airport proper, north of U.S. Highway 60 and south of the existing tie-down area, which tie-down area lies between Area 2 on Exhibit 1 and the existing taxiway as denoted on Exhibit 1. 33 It is agreed by the parties hereto that Lessee, at his sole expense, will construct, within one hundred eighty (180) days of execution of this Lease, T-hangars (or a T-hangar building), having the sate general size and dimensions as the existing T-hangars on the above described leased premises, but in every event having a minimum area of thirty (30') feet in width and two hundred (200') feet in length. Said T-hangars to be constructed shall be consistent with the height and appearance of the existing T-hangars, and shall be placed on a pad in an area designated for same on the Airport Master Plan. Lessee shall be responsible not only for the furnishing of materials and labor utilized in construction of the pad and the T-hangars thereon, but also for all costs related to the layout and design of the T-hangars building. It is agreed by Lessee that the Town/Lessor shall preapprove the design and/or construction of the T-hangars building and that prior thereto, the Lessee shall be required to furnish a rendering of said building to Town/Lessor's Building Official for review and approval. 4. The term of this Lease shall commence after approval of same by the Mayor and Common Council of Town/Lessor, signature by Lessee and signature by an authorized agent of Town/Lessor. Said term shall continue for a period of ten (10) years from the date of the last of the affixing of the above mentioned signatures, with an automatic renewal of an additional ten (10) years, unless thirty (30) days prior to the end of the first ten-year term, Lessee notifies the Town/Lessor in writing of his intention not to renew for an additional ten-year term or the parties hereto mitually agree to not extend this Agreement for the additional ten- year term. If this Agreement automatically renews for the additional ten- year term, all obligations, terms, conditions and rights herein set forth shall continue in full force and effect throughout the second ten-year term. The lease payments due from Lessee to Town/Lessor for each ten-year term of this Agreement shall be an amount equal to ten (10%) percent of the gross rental received by lessee from the rental of storage space for aircraft owned by third parties and/or by Lessee, with any space being utilized as storage space for aircraft owned or utilized by Lessee being -2- computed at the same rate and under the same formula charged to third parties for similar use. In the event Lessee chooses not to renew this Lease Agreement for the additional ten-year period, it is agreed that the Town/Lessor may purchase any T-hangars on the leased premises at a purchase price to be negotiated by the parties hereto. If the parties are unable to negotiate the purchase price of the T-hangars then, and in that event, the issue of the purchase price shall be resolved through arbitration as hereinafter provided. Upon expiration of the second ten- year term of this Agreement, Town/Lessor may, at its sole option, enter into negotiations with Lessee for a new lease or an additional extension of this Agreement. In the event, however, this Lease Agreement is terminated or Town/Lessor determines not to extend this Agreement beyond the second ten-year term, at its sole option Town/Lessor may purchase said T-hangar(s) in place or Town/Lessor may require Lessee to remove all improvements placed on the leased premises during the term or renewal of this Agreement by Lessee. In the event improvements are required to be removed, pursuant to this paragraph or any other provisions of this Agreement, Lessee agrees to restore the leased premises to their original condition and to the satisfaction of Town/Lessor, with said restoration to be completed in no more than one hundred eighty (180) days from the date of written notice by the Town/Lessor to Lessee to remove and restore the premises. It is further understood that Lessee shall not otherwise remove any T-hangars during the term of this Agreement or any renewal (s) thereof without the express written consent of Town/Lessor. 5. If a dispute arises in comnection with the interest, ownership, breach, alleged breach, rental payments, value of improvements or any other term or condition of this Agreement, including the parties’ inability to negotiate the rental payments for the second ten-year term, the parties hereby agree to submit same to arbitration, with the sole arbitrator to be mutually agreed upon by the parties hereto. In the event the parties hereto cannot mutually agree upon an arbitrator within sixty (60) days after the event giving rise to arbitration has been noticed by one party to the other party, each party shall select an arbitrator of his or its choice, and the two selected arbitrators shall, within fifteen (15) days thereafter, select a third arbitrator to arbitrate the matter. In the event three (3) arbitrators are needed to arbitrate the issue, an agreement by two (2) of said three (3) arbitrators shall constitute an arbitration decision, and said decision shall become binding upon the parties hereto without right of suit or litigation. 6. Lessee shall pay for all utility connections in addition to existing ones necessary to serve said premises, and shall pay all costs in connection with any utility service furnished said premises. 7. All improvements and structures placed on said premises by Lessee or with his permission shall be maintained in good order and repair at the cost of Lessee, and Lessee shall keep said premises, buildings, and improvements in good, clean and sanitary condition and shall dispose of all debris and other waste matter in a sanitary manner satisfactory to the Town/Lessor. 8. Lessee, his successors or assigns, shall not at any time during the term of this Lease, or in any manner directly or indirectly by operation of law or otherwise, assign, hypothecate or transfer this Agreement or any interest therein without the written consent of Town/Lessor. Lessee may rent hangar space for aircraft storage. Rental charges made shall be not less than those charges made by the commercial operators for like aircraft storage space on said airport. 9. This Lease shall be subject to all Federal laws, rules or regulations governing the use of said airport, and shall be subordinate to any conditions imposed by the Federal government necessary for Town/Lessor to procure Federal aid in the development of said airport. 10. Lessee shall observe and obey all laws, ordinances , rules and regulations promulgated and enforced by Town/Lessor and by any other proper authority having jurisdiction or control over the conduct or operation or over improvements or structures Upon the Wickenburg Municipal Airport. 11. The Town/Lessor shall be free from all liabilities and claims for damages and/or suits for or by reason of any injury or injuries to any person or persons Or property of any kind or nature whatsoever, from any cause or causes whatsoever while in or upon or about said demised premises, or any part thereof, during the term of this Lease, or occasioned by any occupancy or use of said premises by Lessee, or any activity carried on by the Lessee in connection therewith; and Lessee hereby covenants and agrees to indemnify and save harmless the Town/Lessor from all liabilities, claims, charges and expenses, including counsel fees and costs, on account of, or by reason of, any such injury or injuries, liabilities, claims, suits or losses occurring, or damages growing out of sate. Lessee covenants to carry liability insurance of not less than One Million ($1,000,000.00) Dollars, per occurrence, as and for bodily injury liability insurance, and Three Hundred Thousand ($300,000.00) Dollars, per occurrence, property damage liability insurance, insuring Town/Lessor against damage therefrom. Lessee is hereby required to furnish to Town/Lessor a Certificate Of Insurance at the commencement of any insured. period, wherein the Town/Lessor shall be named as an additional insured. The Lessee is also required to see that any insurance company providing coverage under the tems of this paragraph shall notify the Town/Lessor of any anticipated cancellation or termination of insurance coverage in respect to the leased premises at least thirty (30) days prior to the termination or cancellation, irrespective of the reason for said termination or cancellation, and Town/Lessor shall be entitled to obtain and maintain insurance coverage during the term of this Agreement or any renewals thereof where insurance coverage, pursuant to this paragraph, has been terminated, cancelled or is reasonably perceived to be in jeopardy by Town/Lessor, and charge Lessee the cost of any insurance premiums incurred by the Town, plus a ten (10%) percent administrative surcharge. 12. Lessee shall have peaceable possession of said premises during the term of this Agreement so long as no covenants or conditions contained herein are breached. -4- 13. In the event said airport is closed by any lawful authority, restricting the use of said airport in such a manner as to interfere substantially with the use of the same by Lessee, the rent due hereunder shall abate for the period of such interference, and the Lessee shall have the option of determining whether this Lease shall be terminated or the period of such closure shall be added to the term of this Lease. 14. Rents or any other payments provided for in this Agreement are due and payable on or before the 30th of the month after such rent or other payment becomes due or ig accrued. Failure on the part of Lessee to pay the rent, or other required payments, provided hereunder within thirty (30) days after the same shall become due, shall authorize the Town/Lessor at its option, and without any legal proceedings, to declare this Lease to be terminated, and to reenter and take possession of the premises and remove all persons and property therefrom. 15. Town/Lessor, at its option, may temninate this Lease by giving ten (10) days written notice of such intention to Lessee upon the breach of any covenant or condition contained herein, and if Town/Lessor so exercises its option, it may reenter said premises without process of law and remove therefrom all persons and property. The waiver of any breach of any condition or covenants shall not constitute a waiver of any subsequent breach of the same or different condition or covenant. 16. Town/Lessor shall have the right to further develop or improve the landing area of said airport, or any portion of said airport, as it sees fit, regardless of desires and views of the Lessee, whereas said improvements or developments do not alter or interfere with the terms of this Lease. 17. Town/Lessor reserves the right to enter upon the premises at any reasonable time for the purpose of inspecting the same to determine that Lessee is complying with all the terms, covenants and conditions contained herein. 18. Any written notice required to be given to Town/Lessor may be delivered in person or mailed to the Town Manager of Town/Lessor addressed to Town Manager, Town Hall, P.O. Box 1269, Wickenburg, Arizona 85358, and any such notice required to be given to Lessee may be delivered in person or mailed to Dallas C. "Rusty" Gant, P.O. Box 1148, Wickenburg, Arizona 85358. 19. Lessee shall pay any and all taxes or special assessments which may be levied or assessed against (1) the leased premises, and (2) Lessee's interest in the leased premises. This Agreement becomes effective upon the date the last of the s of the parties hereto is affixed. required signature: Date: Z Me ATIEST: Sha Srscree Edna Grieves, Town Clerk APPROVED AS TO FORM: Worn & Cones Harry EB. @faltg; Town coca i Attachment: Exhibit 1