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RENEWAL OF THE LEASE AGREEMENT BY AND BETWEEN DALLAS C. “RUSTY” GANT, JR. (LESSEE) AND THE TOWN OF WICKENBURG, A MUNICIPALCORPORATION Allterms of the original Lease Agreement, attached as Exhibit “A”, will remain in full effect with the following amendments: Iv. Said period shall continue fora period of five (5) years, retroactive to August 19, 2016. The Lease Payments due from Lessee for the five (5) yearterm of this Agreement, commencing August 19, 2016, 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 atthe same rate and underthe same formula charged to third parties forsimilaruse. TOWN OF WICKENBURG, LESSOR DALLAS C. “RUSTY” GANT, JR., LESSEE 7 Lit By: By: Va Everett Sickles Ballas C. Gant, Its: MNovyvorm Its: OO, 7 Date: s/ vi Lis Date: Thaw, 4, Zo1s ATIEST: L Buz Amy Brown, Yown Clerk ‘Trish Stuhan, Town Attorney Gust Rosenfeld, P.L.C. LEASE AGREEMENT Dupleat BY AND BETWEEN Original THE TOWN OF WICKENBURG, A MUNICIPAL CORPORATION, HEREINAFTER REFERRED TO AS “TOWN/LESSOR,” AND DALLAS C. “RUSTY” GANT, dba BONANZA LEASING, HEREINAFTER REFERRED TO AS “LESSEE” WHEREAS, the TOWN/LESSOR advertised, pursuant to law, Request For Proposals, seeking proposals to construct aircraft hangars to be located on TOWN/LESSOR’s Municipal Airport, and WHEREAS, LESSEE submitted the only proposal for the construction of such hangars via letter dated May 24, 1996, and attached hereto and denoted as Exhibit “A,” and WHEREAS, on July 1, 1996, the Wickenburg Common Council, with Mayor Dallas “Rusty” Gant neither being in attendance nor otherwise voting, accepted Bonanza Leasing/LESSEE’s proposal. IT IS THEREFORE MUTUALLY AGREED by and between the Parties hereto as follows: I. Exhibit “A” attached hereto is incorporated herein by reference the same as if fully set forth in this Agreement. 60701K010 1 II. The leased premises are denoted on Exhibit B, attached hereto, and further denoted on Exhibit B as Area A (1996) and as Area B (1996). These areas are further described as being the hangar area, so denoted, lying on the airport proper, north of U.S. Highway 60. Il. It is agreed by the parties hereto that LESSEE, at its sole expense, will construct, within one hundred eighty (180) days of execution of this Lease, two (2) hangars, one conventional and one tee-hangar, having the same general size and dimensions as described in Exhibit “A.” Said hangars to be constructed shall be consistent with the height and appearance of the existing hangars. LESSEE shall be responsible not only for the furnishing of materials and labor utilized in construction of the pads and the hangars thereon, but also for all costs related to the layout and design of the hangar buildings. It is agreed by LESSEE that the TOWN/LESSOR shall preapprove the design and/or construction of the hangar buildings 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. IV. The term of this Lease shall commence after the affixing of the authorized signature for the TOWN/LESSOR and the affixing of the LESSEE’s authorized signature. Said term shall continue for a period of ten (10) years from 60701K010 2 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 its intention not to renew for an additional ten (10)-year term or the parties hereto mutually agree to not extend this Agreement for the additional ten (10)- year term. If this Agreement automatically renews for the additional ten (10)-year term, all obligations, terms, conditions and rights herein set forth shall continue in full force and effect throughout the second ten (10)-year term. The lease payments due from LESSEE to TOWN/LESSOR for each ten (10)-year term of this Agreement shall be an amount equal to ten (10%) percent of the gross rental received, payable quarterly, 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 parties for similar use. In the event LESSEE chooses not to renew this Lease Agreement for the additional ten (10)-year period, it is agreed that the TOWN/LESSOR may purchase both 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 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 (10)-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 60701K010 3 Agreement beyond the second ten (10)-year term, at its sole option TOWN/LESSOR may purchase said hangars, in place, at true market value, 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 leave the premises in a clean and orderly state of repair. Vv. If a dispute arises in connection with the interest, ownership, breach, alleged breach, rental payments, value of improvements or any other term or condition of this Agreement, 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. VI. LESSEE shall pay for any utility connections in addition to existing 60701K010 4 ones necessary to serve said premises, and shall pay all costs in connection with any utility service furnished said premises. VII. Allimprovements 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. VIII. 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, provided TOWN/LESSOR shall not unreasonably withhold its consent. LESSEE may rent hangar space for aircraft storage, or other uses with the written consent of LESSSOR. Rental charges made shall be not less than those charges made by the commercial operators for like aircraft storage space on said airport, and provided, however, that the westernmost hangar being constructed by LESSEE, pursuant to this Agreement, may be used with the consent of LESSOR, in addition to storage for aircraft, for other aviation-related businesses or activities. 60701K010 5 IX. 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. X. 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. XI. 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 any renewalls] thereof), 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 same, provided, however, this provision shall not apply 60701K010 6 if the injury or damages are occasioned solely by the intentional or negligent acts of the TOWN/LESSOR, its agents or employees. 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 terms 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. XII. 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. 60701K010 VA XIII. 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. XIV. Rents or any other payments provided for in this Agreement are due and payable in quarterly installments payable on the last day of each quarter. 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. XV. TOWN/LESSOR, at its option, may terminate this Lease by giving ten (10) days written notice of such intention to LESSEE upon the breach of any material 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 60701K010 8 the same or different condition or covenant. Notwithstanding the first paragraph of this section, LESSEE shall have the right to remedy or cure any breach or condition of this Agreement so long as said remedy or cure is accomplished within thirty (30) days after notification by LESSOR, in writing, of the breach or condition. XVI. 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. XVII. 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, 155 North Tegner Street, Wickenburg, Arizona 85390, and any such notice required to be given to LESSEE may be delivered in person or mailed to Dallas C. "Rusty" Gant, 1551 South Vulture Mine Road, Wickenburg, Arizona 85390. XVIII. LESSEE shall pay any and all taxes or special assessments (including transaction privilege taxes) which may be levied or assessed against (1) the leased premises, and (2) LESSEE’s interest in the leased premises. 60701K010 9 This Agreement becomes effective upon completion of construction of each respective building and each building is available for use as rental properties. ATTEST: hx: LESSOR: TOWN OF WICKENBURG Carol Ann Beard, Vice Mayor pate beg , 19-96 LESSEE: J 4] Dallas C/“"Rusty" Gani Bonanza Leasing / Date: August i? 19 Edna Grieves, Town Clerk Date: ¥, Lap] Lb APPROVED AS TO FORM: SS Harry ©. Cr raig, Town Attoyney Ser 2, LIPO Attachments: Exhibits A and B 60701K010 10 19-9 AM Attachment "A" - Page 1 of 2 od) S/ulte BONANZA LEASING Te tefl 1551 S. Vulture Mine Road Wickenburg, AZ 85390 May 24, 1996 The Town of Wickenburg 155 N. Tegner Wickenburg, AZ 85390 ATTN: Dave Siegel Dear Dave: | would like to propose building two steel hangar buildings at Wickenburg Municipal Airport sometime with in the next six months. This addition would consist of a six-unit tee-hangar approximately 30-35’X200' located directly East of the present tee-hangars and one conventional hangar building approximately 45'X200’ located West of the existing tee-hangars. This building would consist of four or five bays with the doors facing East. Please see enclosure for proposed location. These sites seem to work with the present airport design but alternate/additional sites are also possible. The proposed buildings would match the present hangars in appearance and construction and of course would be subject to approval by the Town Planning Department. | propose to furnish all labor and materials for this project including any grading, asphalt work and necessary drainage alternations. | would propose a lease arrangement similar to the one Bonanza Leasing has with the Town of Wickenburg at this time. | am requesting a ten year ground lease under each of these buildings with an option for an additional ten years with the rent consisting of 10% of income from the occupied space in each hangar. For budget purposes, the tee-hangar unit would consist of six spaces with target rent of $175.00 per space per month. The conventional hangar would consist of four or five bays to rent at a target rate of $300.00 per unit per month for aircraft storage or possible commercial use. | believe these proposed rates are at or below the market for hangars in the area and feel they would rent easily as there is a back-log of demand as evidenced by the present hangar wait list. | would appreciate your passing this proposal on to the Airport Commission and/or Town Council as appropriate along with any thoughts you might have in regards to this project. Sincerely, yp OGiIIt oAles = . \2 oe OO ven \ ° ee Attachment "A" - Page 2 of 2 \ -8 FZ a: vi _ : PRITAM UNICIPAL AIRPORT q 1 Any =e a J LE POSE AA ANC AL CODA) rynpi|e _—s, ‘one