Supporting Document (65de62e0...)

Item 14
CITY COUNCIl
REPORT
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Meeting Date:
General Plan Element: 
General Plan Goal:
June 9, 2026 
Economic Vitality
Utilize redevelopment and revitalization efforts to sustain 
economic well-being
ACTION
Adopt Resolution No. 13654, Authorizing a Lease Agreement with SDL AZ Holdings doing business as 
Atlantic Aviation (2026-062-COS) for the North General Aviation Executive Box Hangar Space at the 
Scottsdale Airport.
BACKGROUND
The current Airport Master Plan for the Scottsdale Airport identified the potential for the 
development of individual executive box hangars on the western edge of the Kilo ramp to 
accommodate smaller general aviation aircraft.
A "North General Aviation Hangar Development Analysis" report completed in April 2017 evaluated 
the maximum hangar size and placement, identified potential aircraft that could use the hangars, 
and estimated the hangar development costs. A further financial lease analysis of the project costs 
and potential lease revenues resulted in a recommendation to pursue the project to maximize the 
efficiency of the Airport and its desire to serve the overall aviation community.
Building A (Phase I) and Building B (Phase II) each consist of seven contiguous executive box 
hangars, each dimensioned at 62 feet wide by 47 feet deep. Phase I construction was completed in 
December 2020 and Phase II construction was completed in October 2021.
Six executive box hangar units in Building A (Phase I) are leased out, and all seven units in Building B 
(Phase II) have been leased. Lease Agreement 2026-062-COS for box hangar unit A102 and A106 
replaces lease agreement 2023-040-COS that was recently terminated on schedule in accordance 
with the lease agreement terms. Monthly base rent will vary based on amenities requested and 
terms negotiated. The monthly base rents from all leased box hangar units will generate over 
$464,400.00 in revenues to the Aviation Enterprise Fund.
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City Council Report | Scottsdale Airport North General Aviation Box Hangar Lease Agreement
ANALYSIS & ASSESSMENT 
Community Involvement
The public was provided with an opportunity to comment on the lease agreement at the Airport 
Advisory Commission meeting on May 20, 2026. No negative comments were received, and the 
Airport Advisory Commission approved a motion with a unanimous vote to recommend the City 
Council adopt Resolution No. 13654.
RESOURCE IMPACTS 
Staffing, Workload Impact
No additional City staff or overtime will be necessary to administer the amendment to the lease 
agreement.
Maintenance Requirements
The maintenance of the structural integrity of the box hangar units, including doors, roof, and 
exterior walls, is the responsibility of the existing Aviation Maintenance staff. No new staff will be 
required to maintain the buildings or satisfy this Lease agreement.
The leased premises' base rent includes sewer and waste disposal service fees. Each individual 
tenant will be responsible for electricity and water service charges.
OPTIONS & STAFF RECOMMENDATION 
Recommended Approach
Adopt Resolution No. 13653, Authorizing Lease Agreement with SDL AZ Holdings doing business 
as Atlantic Aviation (2026-062-COS) for the lease of the North General Aviation Executive Box 
Hangar Space at the Scottsdale Airport.
Proposed Next Steps
If this resolution is approved by the City Council, the Aviation Department will take the appropriate 
steps to initiate the changes with Lessee.
RESPONSIBLE DEPARTMENT(S)
Aviation Department
STAFF CONTACTS (S)
Richard Formo, Assistant Aviation Director, (480) 312-7735, rformo(5)scottsdaleaz.gov
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City Council Report | Scottsdale Airport North General Aviation Box Hangar Lease Agreement
APPROVED BY
5/20/26
Rick Wielebski, Aviation Director 
480-312-8475, rwielebski@scottsdaleaz.gov
Date
5/20/26
Judy Doyle, Deputy City Manager 
480-312-2697. idovle@scottsdaleaz.gov
Date
5/21/26
Greg Caton, City Manager 
480-312-7759, gcaton@scottsdaleaz.gov
Date
ATTACHMENTS
1. 
Resolution No. 13654
2. 
Contract No. 2026-062-COS
3. 
Location Map of the General Aviation Executive Box Hangars
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RESOLUTION NO. 13654
A RESOLUTION OF THE COUNCIL OF THE CITY OF SCOTTSDALE, 
MARICOPA COUNTY, ARIZONA AUTHORIZING THE MAYOR TO EXECUTE 
LEASE AGREEMENT 2026-062-COS WITH SDL AZ HOLDINGS, LLC DBA 
ATLANTIC AVIATION, FOR THE LEASE OF HANGAR SPACE AT THE 
SCOTTSDALE AIRPORT.
WHEREAS, the City is the owner of certain real property known as the Scottsdale Airport;
WHEREAS, the City desires to lease box hangar space to SDL AZ Holdings, LLC dba 
Atlantic Aviation pursuant to the terms set forth in lease agreement 2026-062-COS:
NOW, THEREFORE, be it resolved by the Council of the City of Scottsdale as follows;
Section 1: The Mayor is authorized and directed to execute on behalf of the City of 
Scottsdale, lease agreement 2026-062-COS with SDL AZ Holdings, LLC dba Atlantic Aviation., a 
Delaware limited-liability company, for the lease of hangar space at the Scottsdale Airport.
PASSED AND ADOPTED by the Council of the City of Scottsdale this 
dav of
_____________2026.
CITY OF SCOTTSDALE, an Arizona 
municipal Corporation
ATTEST:
Lisa Borowsky, Mayor
Ben Lane, City Clerk
APPROVED AS TO FORM;
Luist/Santaella, City Attorney 
By: Joe Padilla, Deputy City Attorney
ATTACHMENT 1
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Docusign Envelope ID: 3A764A46-A8DA-8D15-a047-CB9AC00A461E
Contract No. 2026-062-COS 
Resolution No. 13654
HANGAR LEASE AGREEMENT
THIS LEASE AGREEMENT is made and entered into this
day of.
2026, by and between the CITY OF SCOTTSDALE, an Arizona municipal corporation ("Lessor"), 
and SDL AZ Holdings, LLC dba Atlantic Aviation an Delaware limited-liability company 
authorized to transact business in the State of Arizona ("Lessee").
WilNesseih
A. 
Lessor is the owner of certain real property at the Scottsdale Airport (the "Airport”) 
and the North General Aviation Box Hangare (the "Box Hangars") located thereon, The Box 
Hangars are located airside on the Kilo Ramp north of the wash rack.
B. 
Lessor desires to lease to Lessee, and Lessee desires to lease Building A units 
A102 and A106, two large 62’ x 47’ box hangars (the "Leased Premises") generally depicted on 
Exhibit “A" consisting of approximately 2914 square feet of hangar space solely for the storage of 
the aircraft identified in the approved Scottsdale Airport Aircraft Storage Permit application (or any 
replacement aircraft as approved in writing by the Aviation Director).
NOW, therefore, for and in consideration of the foregoing, the rent hereinafter to be 
paid by Lessee, and the covenants and agreements contained herein to be kept and performed by 
Lessee, and other good and valuable consideration. Lessor and Lessee agree as follows:
I. RECITALS
1. 
Recitals. The foregoing recitals are incorporated into this Agreement.
II. PREMISES
2. 
Premises and Fixtures.
2.1 Agreement to Lease. Lessor hereby agrees to lease the Leased Premises to 
Lessee and Lessee hereby agrees to lease the Leased Premises from Lessor, subject to the terms 
and conditions of this Agreement.
2.1.1 Lessor’s Fixtures Included. The Leased Premises also includes all fixtures 
attached to the Leased Premises, which, once attached, are owned by the Lessor.
III. TERM OF LEASE
3. 
Term of Lease. Lessee is currently in possession of the Leased Premises pursuant to a 
prior Hangar Lease Agreement approved by the City Council Contract No. 2023-040-COS. This 
Lease Agreement is effective starting January 1, 2026 ("Effective Date”). Lessee’s occupation of 
the Leased Premises is subject to the following provisions and conditioned upon Lessee’s full, 
timely, complete and faithful performance of all obligations and things to be performed or done 
hereunder by Lessee. By entering this Lease, Lessee accepts the Leased Premises as is. The 
term of the Leased Premises shall be for a period of 36 months from January 1, 2026 to
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ATTACHMENT 2

Docusign Envetope ID: 3A764A46-A8DA-8D15-8047-CB9ACOOA461E
Contract No. 2026-062-COS
December 31,2029.
3.1 
Holding Over. In any circumstance whereby Lessee should hold over and remain in 
possession of the Leased Premises after the expiration of this Agreement, such holding over shall 
not be considered to operate as a renewal or extension of this Agreement, but shall only create a 
tenancy from month to month which may be terminated at any time by Lessor upon 30 days' notice 
to Lessee. During any such holdover period. Lessor may increase the Base Rent to 150% of its 
previous rate applicable in the last month of the Lease term and shall be prorated to the date 
Lessee vacates the Leased Premises.
IV. LEASE PAYMENTS
4. Lease Payments. Lessee shall pay to Lessor all of the following payments together with ail 
other payments required by this Agreement (all payments by Lessee to Lessor required by this 
Agreement for any reason are collectively the "Rent"):
4.1 
Rent Payment Date. All Rent shall be payable in advance on the 25th day of the 
preceding calendar month. For example, the Rent for September shall be payable on or before 
August 25th. The first installment of Rent prorated for the portion of the month remaining in the 
month in which the term of the Leased Premises will begin is due at least five days prior to the 
estimated delivery of possession of the Leased Premises as determined by the Aviation Director.
4.2 
Rent. The rental amount (the "Rent”) Lessee shall pay to Lessor each month from 
the commencement of the term of this Agreement is $9,600.00, and due and payable as set forth 
in Section 4.1.
4.3 
Rent Adjustment. The Rent shall be automatically adjusted upward on the one-year 
anniversary of the commencement of the term of this Agreement and every year thereafter on the 
basis of changes in the United States Consumer Price Index for all Urban Consumers (CPI-U), 
U.S. City Average published by the United States Bureau of Labor Statistics as of the date two (2) 
months prior to the adjustment date (the "Cost of Living Index"). The amount of each adjusted 
monthly rent installment of Rent (represented by the letter "R" in the formula set forth below) shall 
be equal to the then current Cost of Living Index number (represented by the letter "C" in the 
formula set forth below) divided by the Cost of Living Index number for the month during which the 
term of this Lease commences (represented by the letter "M" in the formula set forth below), and 
multiplied by the original monthly Rent amount (represented by the "$" symbol in the formula set 
forth below). This computation is expressed by the following formula:
R
_C
M
X
$
provided, that in no event shall the Rent be adjusted downward from any previous period. If such 
Cost of Living Index shall no longer be published at the adjustment date, then another similar index 
published by any federal agency shall be substituted by Lessor in Lessor's reasonable discretion, 
in the event of a holdover \without Lessor's consent. Rent shall be increased by an additional 150% 
over the amount of Rent otherwise payable.
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Contract No. 2026-062-COS
4.4 
Security Deposit. At the time of execution of this Agreement, Lessee shall provide 
to, and maintain with Lessor at all times during the term of this Agreement, a security deposit 
guaranteeing the faithful performance of this Agreement in the name of Lessor, in the sum of 
$9,600.00. Any portion of said security deposit to which Lessee may then be entitled, net of any 
setoff or other obligation of Lessee to Lessor, shall be paid to Lessee by the Lessor within 60 days 
after termination of this Agreement.
4.5 
Taxes. Liens and Assessments. In addition to all other Rent herein provided. 
Lessee shall pay, when due and as the same become due and payable, all taxes and general and 
special fees, charges, and assessments of every description which during the term of this 
Agreement may be levied upon or assessed against the Leased Premises, the operations 
conducted therein, any Rent paid or other performances under this Agreement by either party, and 
all possessory interest in the Leased Premises and improvements and other property thereon, 
whether belonging to the Lessor or Lessee. Lessee agrees to indemnify, defend, and hold 
harmless Lessor and the Leased Premises and such property and all interest therein and 
improvements thereon from any and all such taxes and assessments, including any interest, 
penalties and other expenses that may be imposed, and from any lien therefor or sale or other 
proceedings to enforce payment thereof. Lessee shall have the right to contest, but not the right to 
refuse to timely pay, any taxes and assessments. Lessor shall have the right from time to time to 
require that all of the foregoing payments be made by Lessee through Lessor. Lessee shall pay all 
sales, transaction privilege, and similar taxes.
4.6 
Late Fees. Should any installment of Rent not be paid on or before the date due, a 
10% late fee shall be added to the amount due or found to be due. Furthermore, any and all 
amounts payable by Lessee under this Agreement that are not timely paid shall accrue interest at 
the rate of 1% per month from the date the amount first came due until paid. Lessee expressly 
agrees that the foregoing represents a reasonable estimate of Lessor's costs in the event of a 
delay in payment of Rent.
4.7 
Rent Amounts Cumulative. All amounts payable by Lessee hereunder or under any 
tax, assessment or other existing or future ordinance or other law of the City of Scottsdale or the 
State of Arizona shall be cumulative and payable in addition to each other payment required 
hereunder, and such amounts shall not be credited toward, substituted for, or setoff against each 
other in any manner.
4.8 
No Setoffs. All Rents shall be paid in full directly to Lessor \Aflthout setoff or 
deduction of any description. Lessee expressiy waives any right of setoff.
4.9 
Utilities. Lessor will pay all charges, fees, deposits and other amounts for sewer 
and waste disposal services at the applicable rates as determined by Lessor. Lessee will pay all 
electricity and water service charges and fees for the Leased Premises.
4.10 
Maintenance by Lessor. Lessor will maintain the structural integrity of the box 
hangar units comprising the Leased Premises (including without limitation doors, roof and exterior 
walls). Lessor is not responsible for maintenance of a routine or minor nature or of Lessee’s 
furnishings, fixtures or improvements.
4.11 
Maintenance bv Lessee. Lessee is responsible for the following:
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Doojsign Envelope ID: 3A764A46-A8DA-8D15-8047-CB9AC00A461E
Contract No. 2026-062-COS
4.11.1 Janitorial and ait other cleaning service in the Leased Premises.
4.11.2 Adequate and sanitary handling and disposal of all trash, garbage and other 
refuse related to Lessee’s use of the Leased Premises.
4.11.3 All other repairs and maintenance of the Leased Premises not specifically 
required to be performed by Lessor, except that if it is determined by the Lessor that the failure of 
any of the systems described in this section is due to the negligence of the Lessee, the Lessee will 
be responsible for the costs of any such repairs.
V. USE RESTRICTIONS AND COMPLIANCE WITH ALL LAWS
5. Use Restrictions. Lessee’s use and occupation of the Leased Premises shall in all 
respects conform to all and each of the following cumulative provisions:
5.1 
Permitted Uses. Lessee will use the Leased Premises for aircraft storage only and 
for occasional vehicle parking as permitted in Section 5.10, with the exception that the Lessor may 
give written consent to allow other accessory and related to aviation storage uses from time to 
time. Such accessory and related to aviation storage uses may only be conducted following the 
Aviation Director giving to Lessee written notice of consent, which will not be unreasonably 
withheld, and Lessor through the Aviation Director may impose conditions and limitations on 
such consent and the Aviation Director may later revoke and retract any prior written consent at 
any time. Lessee and its sublessees shall further be allowed to service its aircraft(s) on the 
Leased Premises in the Box Hangars in accordance with the Scottsdale Airport Rules and 
Regulations.
5.2 
Compliance with Law. Lessee shall perform its obligations under this Agreement in 
accordance with all federal, state, county and local laws, ordinances, regulations or other rules or 
policies as are now in effect or as may hereafter be adopted or amended.
5.3 
Airport Regulations. Lessor reserves the right to adopt, amend and enforce against 
Lessee rules and regulations governing the operation of the Airport, including the Leased 
Premises, Lessee's activities therein and thereon, and the public areas and facilities used by 
Lessee in connection therewith.
5.4 
Aviation Reoulations. Lessee shall comply with any and all rules, regulations, laws, 
ordinances, statutes or orders of the FAA and any other governmental authority, whether federal, 
state, county, or Lessor, lawfully exercising authority over the Airport.
5.5 
Liability and Indemnity. Lessee shall be liable to Lessor, and shall pay, indemnify, 
defend and hold harmless Lessor against any and all claims, demands, damages, fines or 
penalties of any nature whatsoever which may be imposed upon Lessor, including attorneys' fees, 
arising from any violation of law caused directly or indirectly by act, omission, negligence, abuse or 
carelessness on the part of Lessee, its employees, agents, customers, visitors, suppliers, or 
invitees, except to the extent caused by Lessor’s gross negligence or willful misconduct. Without 
limitation, the preceding sentence requires the payment by Lessee of any fines or penalties for any 
breach of security arising from the unauthorized entry of any of the aforementioned persons or their
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Docusign Envelope ID; 3A764A46-A8DA-8D15-8047-CB9AC00A461E
Contract No. 2026-062-COS
vehicles onto the passenger loading areas, taxiways, runways, aircraft movement areas and any 
other restricted portion of the Airport.
5.6 
Grant Agreement Assurances. Lessee shall observe and comply with the following 
covenants and conditions:
5.6.1 
No person shall be excluded from participation, denied the benefits of, or be 
otherwise subjected to discrimination in the use of the Leased Premises on the grounds of race, 
color, handicap, or national origin. No person shall be excluded on the grounds of race, color, 
handicap, or national origin from participation in, denied the benefits of, or otherwise be subject to 
discrimination in the constmction of any improvements on, over, or under the Leased Premises and 
the furnishing of services thereon.
5.6.2 
Lessee shall use the Leased Premises in compliance with all other 
requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of 
Transportation, 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.
5.6.3 
Lessee shall furnish its accommodations and/or sen/ices on a fair, equal 
and not unjustly discriminatory basis to all users thereof, and it 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 purchases.
5.6.4 
Lessee agrees that it shall insert this article and all of the other provisions of 
this article titled "Grant Agreement Assurances" in any agreement, lease, contract, etc. by which 
Lessee grants a right or privilege to any persons, fimn or corporation to render accommodations 
and/or services to the public on the Leased Premises together with a provision that the "Grant 
Agreement Assurances" shall constitute a material breach thereof, and in the event of such non- 
compliance Lessor shall have the right to terminate the agreement and the estate thereby created 
without liability therefore. Either or both Lessor or the United States shall have the right to enforce 
the "Grant Agreement Assurances."
5.7 
Federal Agreements. This Agreement shall be subordinate to the provisions and 
requirements of any existing or future agreement between the Lessor and the United States, 
relative to the development, operation or maintenance of the Airport.
5.8 
War or National Emergency. This Agreement shall be subject to whatever right the 
United States Government now has or in the future may have or acquire, affecting the control, 
operation, regulation and taking over of the Airport or the exclusive or non-exclusive use of the 
Airport by the United States during the time of war or national emergency.
5.9 
Control of Common Areas. All parking areas, driveways, entrances and exits 
thereto, landscaping areas, aircraft wash rack and all other Common Areas and facilities provided 
by Lessor for the common use of the users of the Airport, shall at all times be subject to the 
exclusive control and management of Lessor, and Lessor shall have the right from time to time to 
establish, modify and enforce reasonable rules and regulations with respect to the use of all the
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Docusign Envelope ID: 3A764A46-A8DA-8D15-8047-CB9AC00A461E
Contract No. 2026-062-COS
Common Areas and facilities. Lessor shall have the right to operate and maintain the same in such 
manner as Lessor, in its sole discretion, shall determine from time to time, including without 
limitation the right to employ all personnel and to make all rules and regulations pertaining to and 
necessary for the proper operation and maintenance of the Common Areas and facilities. Lessor 
shall have the exclusive right at any and all times to alter, construct, re-construct, enlarge, contract, 
modify or relocate any of the Common Areas, to close any portion of the Common Areas for the 
purpose of making repairs, changes or additions thereto and may change the size, area, layout or 
arrangement of the parking areas or the number of spaces or the lighting thereof, within or adjacent 
to the existing areas and may enter into agreements with adjacent owners for cross-easements for 
parking, ingress or egress. The Lessor shall also have the right to place vending or amusement 
devices in the Common Areas and any other use which, in the Lessor’s judgment, tends to benefit 
the Airport.
5.10 
Parking. Vehicle parking will be allowed inside the hangars only when the aircraft is 
not occupying the hangar. Vehicle parking shall be subject to current and future rules and 
regulations governing parking at aircraft hangars and the Airport.
5.11 
Aimort Operations. Lessee acknowledges that Lessee's use of the Leased 
Premises shall be subject and subordinate to Lessor's operation of the Airport, which will 
necessarily directly and indirectly affect Lessee, the Leased Premises, and Lessee’s use of the 
Leased Premises. Lessee's use of the Leased Premises shall not be permitted by Lessee to in 
any way adversely affect Lessor's use or operation of the Airport. Without limitation:
5.11.1 Lessor reserves the right but shall not be obligated to Lessee to maintain 
and keep in repair the landing area of the Airport and all publicly-owned facilities of the Airport, 
together with the right to direct and control all activities of Lessee in this regard.
5.11.2 There is hereby reserved to Lessor, its successors and assignees, for the 
use and benefit of Lessor and the public, a right of flight for the passage of aircraft in the 
airspace above the surface of the Leased 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 
Airport.
5.11.3 Lessee by accepting this Agreement agrees for itself, its successors and 
assigns that it will not make use of the Leased Premises in any manner that might interfere with 
the taxiing, landing and taking off of aircraft from the Airport, the loading or unloading of 
passengers or cargo or other aircraft operations or otherwise constitute a hazard. Whether any 
particular conduct complies with the foregoing shall be determined by Lessor.
5.12 
Communications Operations Restriction. Lessee shall not install, operate, or 
allow the use of equipment, methodology or technology that may or would interfere with the 
optimum effective use or operation of Lessor's fire, emergency or other communication 
equipment, methodology or technology (i.e., voice or other data carrying, receiving or 
transmitting equipment) that is presently in use or could be in use in the future, if such 
interference should occur. Lessee shall immediately discontinue using such equipment, 
methodology or technology that causes the interference until corrective measures are taken. 
Any such corrective measures shall be made at no cost to Lessor.
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Docusign Envelope ID: 3A764A46-A8DA-8D15-6047-CB9AC00A461E
Contract No. 2026-062-COS
5.12.1 Lessor has not relinquished or limited any right of condemnation or eminent 
domain over the Leased Premises or any other property related to this Agreement.
5.12.2 This Agreement does not impair City of Scottsdale's power to enact, apply 
or enforce any laws or regulations, or exercise any governmental powers affecting in any way 
Lessee or the Leased Premises. Lessor's rights and remedies hereunder for Lessee’s failure to 
comply with all applicable laws supplement and are in addition to and do not replace otherwise 
existing powers of the City of Scottsdale or any other governmental body.
VI. BREACH
6 Breach by Lessee. Lessee shall comply with, perform and do each performance and thing 
required of Lessee herein and Lessee's failure to do so shall be a breach by Lessee of this 
Agreement.
6.1 Events of Default. This entire Agreement is made upon the condition that each and 
every one of the following events shall be deemed an "Event of Default" and a material breach by 
Lessee of Lessee's material obligations under this Agreement:
6.1.1 If Lessee shall be in arrears in the payment of Rent or the Security Deposit 
and shall not cure such arrearage within 15 days after Lessor has notified Lessee in writing of such 
arrearage.
6.1.2 If Lessee shall fail to maintain the Leased Premises as required in this
Agreement.
6.1.3 
If Lessee shall fail to timely pay any taxes or other amounts herein required 
to be paid by Lessee to Lessor or to any other person.
6.1.4 
If Lessee shall fail to obtain or maintain any licenses, permits, or other 
governmental approvals from Lessor or any other governmental body or timely pay any taxes with 
respect to this Agreement, the Leased Premises or Lessee's use of the Leased Premises.
6.1.5 
If Lessee shall engage In a pattern of repeated failure (or neglect) to timely 
do or perform or observe any provision contained herein. Three or more failures to comply with any 
provision of this Agreement during any 12 month period constitutes a repeated failure by Lessee to 
comply with such provision.
6.2 Lessor's Remedies. Upon the occurrence of any Event of Default or at any time 
thereafter. Lessor may, at its option and from time to time, without further demand or notice, 
exercise any or all or any combination of the following remedies in any order and repetitively at 
Lessor's option:
6.2.1 
Terminate this Agreement.
6.2.2 
Enter into and upon the Leased Premises or any part thereof, and expel 
Lessee and those claiming by, through or under it, and remove their effects, if any, forcibly if 
necessary, without being deemed guilty of trespass and without prejudice to any other remedy.
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Contract No. 2026-062-COS
6.2.3 Abate at Lessee's expense any violation of this Agreement.
6.3 
Notice of Breach. Lessee shall promptly give notice to Lessor of any event or 
circumstance that is (or with the passing of time or the giving of notice or both will become) an 
Event of Default under this Agreement.
6.4 
Non-waiver. Lessee acknowledges Lessee's unconditional obligation to comply 
with this Agreement. No failure by Lessor to demand any performance required of Lessee under 
this Agreement, and no acceptance by Lessor of any imperfect or partial performance under this 
Agreement, shall excuse such performance or impair in any way Lessor's ability to insist, 
prospectively and retroactively, upon full compliance with this Agreement. No acceptance by 
Lessor of Rent or other performances hereunder shall be deemed a compromise or settlement of 
any claim Lessor may have for additional or further payments or performances. Any waiver by 
Lessor of any breach of condition or covenant herein contained to be kept and performed by 
Lessee shall not be deemed or considered as a continuing waiver and shall not operate to bar or 
otherwise prevent Lessor from declaring a default for any breach or succeeding breach either of 
the same condition or covenant or otherwise. No statement, bill or notice by Lessor concerning 
payments or other performances due hereunder shall excuse Lessee from compliance with this 
Agreement nor estop Lessor (or otherwise impair Lessor's ability) to at any time correct such notice 
and/or insist prospectively and retroactively upon full compliance with this Agreement. No waiver 
of any description (including any waiver of this sentence or article) shall be effective against Lessor 
unless made in writing by a duly authorized representative of Lessor specifically identifying the 
particular provision being waived and specifically stating the scope of the waiver. LESSEE 
EXPRESSLY DISCLAIMS AND SHALL NOT HAVE THE RIGHT TO RELY ON ANY SUPPOSED 
WAIVER OR OTHER CHANGE OR MODIFICATION, WHETHER BY WORD OR CONDUCT OR 
OTHERWISE, NOT CONFORMING TO THIS ARTICLE.
6.5 
Reimbursement of Lessor's Expenses. Lessee shall pay to Lessor upon demand 
any and ail amounts expended or incurred by Lessor in performing Lessee's obligations.
6.6 
Default by Lessor. Notwithstanding anything in this Agreement to the contrary, in 
the event Lessor at any time is required to render any performance, such performance is not due 
until 30 days after notice by Lessee to Lessor that that the performance is due. If a cure cannot be 
affected during that period. Lessor shall not be in default so long as Lessor commences cure 
during the period and diligently prosecutes the cure to completion provided such cure must be 
completed within 60 days after it is due. In the event Lessor fails to render the required 
performance or cure a default for which it receives notice, Lessee may terminate this Agreement 
upon fifteen (15) days advance notice to Lessor.
VII. TERMINATION
7 Rights at Termination. The following provisions shall apply upon expiration or other 
termination of this Agreement at any time for any reason:
7.1 Surviving Obligations. Lessee's obligations existing or arising prior to or 
simultaneous with, or attributable to, the termination or events leading to or occurring before 
termination shall survive and not terminate.
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7.2 
Delivery of Possession. Lessee shall, without demand, peaceably and quietly quit 
and deliver up the Leased Premises to Lessor thoroughly cleaned, in good repair, maintained and 
repaired and in as good order and condition, reasonable use and wear excepted, as the same or in 
such better condition as the Leased Premises may hereafter be delivered to Lessee's possession 
at the beginning of the lease term.
7.3 
Mutual Termination. If it is in the best interests of the City, the Aviation Director may 
agree with Lessee to a mutual termination of this Lease upon commercially reasonable terms that 
account for the circumstances existing at the time of the termination.
VIII. INDEMNITY AND INSURANCE
8 Indemnity and Insurance. Lessee shall insure the Leased Premises and its property and 
activities at and about the Leased Premises and shall provide insurance and indemnification as 
follows:
8.1 Insurance Required. Prior to entering, occupying or using the Leased Premises in 
any way thereafter, and in any event not later than the date 30 days after the dale of this 
Agreement, and at all times thereafter. Lessee shall obtain and cause to be in force and effect the 
following insurance:
8.1.1 
Airport Premises Liability Insurance. Lessee shall provide aircraft liability 
insurance that covers damages for bodily injury or property damage arising out of the use of airport 
premises including ramps and taxiways for the parking and storage of aircraft. Such insurance shall 
have a minimum limit of One Miliion Doiiars ($1,000,000) for each occurrence and a One Million 
Dollar ($1,000,000) aggregate if applicable.
8.1.2 
Special Perils or All Risk Property Coverage. Lessee shall maintain Special 
Risk Causes or Loss Property coverage, as defined by Insurance Services Office, Inc. in an 
amount per occurrence equal to the full replacement cost of the Lessee or Sublessee's 
betterments and improvements and naming the Lessor as loss payee for the damage or 
destruction of that property. Lessee's Property coverage shaii include debris removal coverage in 
an amount sufficient to clear the Leased Premises of Lessee or Lessee's customers disabled or 
destroyed property.
8.1.3 
Hangar Keeper's Liability. If Lessee will store other than owned aircraft. 
Lessee shall carry Hangar Keeper’s Liability coverage covering the portions of the Leased 
Premises used for aircraft storage in an amount equal to the full replacement cost of aircraft subject 
to loss or damage while in the care, custody, or control of Lessee for safekeeping, storage, service, 
or repair. The minimum insurance limits for this coverage shall be One Million Dollars ($1,000,000).
8.1.4 
Other Insurance. Any other insurance Lessor may reasonably require for 
the protection of Lessor and Lessor's employees, officials, representatives, officers, directors, and 
agents (collectively “Additional Insureds"), the Leased Premises, surrounding property. Lessee, or 
the activities carried on or about the Leased Premises. Likewise, Lessor may elect by notice to 
Lessee to increase the amount of any insurance to account for inflation, changes in risk, or any 
other factor that Lessor reasonably determines to affect the prudent amount of insurance to be
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provided. Any modification or variation from these insurance requirements must be made by the 
Lessor’s Risk Manager, whose decision is final. Such action will not require a formal Contract 
amendment but may be made by administrative action by written notice providing no less than 
ninety (30) days advance notice for compliance.
8.2 
Form of All Insurance. All insurance policies shall meet the following requirements:
8.2.1 
All policies except workers’ compensation must name Lessor and the other 
Additional Insureds as additional insureds. Lessee shall cause coverage for Additional Insureds to 
be incorporated into each insurance policy by endorsement.
8.2.2 
Lessee or Lessee’s Insurer shall provide Lessor with at least 30 days prior 
notice of any cancellation, reduction or other material change in coverage.
8.2.3 
All policies shall require that notices be given to Lessor in the manner 
specified for notices to Lessor under this Agreement.
8.2.4 
"Occurrence” coverage is required. “Claims made" insurance is not 
permitted except for Environmental Impairment Liability and employment liability insurance.
8.2.5 
Policies must also cover and insure Lessee's activities relating to the 
business operations and activities conducted from the Leased Premises.
8.2.6 
All insurance policies shall contain a waiver of any transfer rights of recovery 
(subrogation) against Lessor, and all other Additional Insureds.
8.2.7 
No deductibles, retentions, or “self-insured" amounts shall exceed Seven 
Hundred Fifty Thousand Dollars ($750,000) in the aggregate per year, per policy. If Lessee desires 
higher deductibles, retentions, or “self-insured" amounts, Lessee shall notify Lessor in writing not 
more often than once per year requesting a change in the amount. Lessor shall have the right to 
accept, modify, limit, or reject Lessee’s request. Lessee shall be solely responsible for any self- 
insurance amount or deductible. Lessor may require Lessee from time to time to secure payment 
of such deductible or self-insured retention by a surety bond or irrevocable and unconditional letter 
of credit.
8.3 
Insurance Certificates. Lessee shall evidence all insurance by furnishing to Lessor 
certificates of insurance annually and with each change in insurance. Certificates must evidence 
that the policy referenced by the certificate is in full force and effect and that the policy satisfies 
each requirement of this Agreement applicable to the policy. For example, certificates must 
indicate that Lessor and the other Additional Insureds are additional insureds and waiver of 
subrogation and other provisions apply. Certificates must be in a form acceptable to Lessor. All 
certificates are in addition to the actual policies and endorsements required. Lessee shall provide 
updated certificates at Lessor’s request.
8.4 
Acceptable Insurers. All insurance policies shall be issued by insurers acceptable 
to Lessor. At a minimum, all insurers shall be duly licensed (or qualified unlicensed non-admitted 
insurer) by the State of Arizona, Department of Insurance. At a minimum, all insurers shall have 
and maintain an A.M. Best, Inc. rating of B++6.
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8.5 
Primary Insurance. Lessee’s insurance including excess liability policies shall be 
primary insurance. Any insurance or self-insurance maintained by Lessor shall not contribute to 
Lessee’s insurance.
8.6 
Indemnity. In addition to all other obligations hereunder, to the fullest extent 
permitted by law, throughout the term of this Agreement and until all obligations and performances 
under or related to this Agreement are satisfied and all matters described in this paragraph are 
completely resolyed, Lessee shall pay, indemnify, defend and hold harmless Lessor and all other 
Additional Insureds for, from and against any and all claims or harm related to the Leased 
Premises and/or this Agreement (the "Indemnity”). Without limitation, the Indemnity shall include 
and apply to any and all allegations, demands, judgments, assessments, taxes, impositions, 
expenses, proceedings, liabilities, obligations, suits, actions, claims (including without limitation 
claims of personal injury, bodily injury, sickness, disease, death, property damage, destruction, loss 
of use or other impairment), damages, losses, expenses, penalties, fines or other matters (together 
with all attorney fees, court costs, and the cost of appellate proceedings) which may arise in any 
manner out of any use of the Leased Premises or Lessor’s property related to this Agreement or 
any actions, acts, errors, mistakes or omissions relating to work or services in the performance of 
or related to this Agreement, including any injury or damages or cause of action claimed or caused 
by any employees, contractors, subcontractors, tenants, subtenants, agents or other persons upon 
or using the Leased Premises or surrounding areas related to this Agreement, including without 
limitation claims, liability, harm or damages caused in part by Lessor or any other Additional 
Insured or anyone for whose mistakes, errors, omissions or negligence Lessee or Lessor may be 
liable. The Indemnity shall also include and apply to any environmental, personal injury or other 
liability relating to Lessor’s or Lessee’s acquisition, ownership or use of real property developed, 
operated, owned, used, controlled or possessed by Lessor or Lessee under this Agreement.
Notwithstanding the foregoing, the Indemnity does not apply to:
8.6.1 
Claims arising only from the gross negligence of Lessor.
8.6.2 
Claims that the law prohibits from being imposed upon Lessee.
8.7 
Risk of Loss. Lessor is not required to carry any insurance covering or affecting the 
Leased Premises or use of Lessor's property related to this Agreement. Lessee assumes the risk 
of any and all loss, damage or claims to the Leased Premises or related to Lessee’s use of the 
Leased Premises or other property of Lessor, Lessee or third parties throughout the term hereof. 
Lessor expressly disclaims any representation that required insurance is adequate to protect any 
person or property against any risks related to the Leased Premises or any activities, uses or 
improvements related to the Leased Premises. Lessee’s obligations to indemnify do not diminish in 
any way Lessee’s obligations to insure; and Lessee’s obligations to insure do not diminish in any 
way Lessee's obligations to indemnify. Lessee’s obligations to indemnify and provide insurance are 
in addition to, and do not limit, any and all other liabilities or obligations of Lessee under or 
connected with this Agreement. Lessee shall be responsible for any and all damages to its property 
and equipment related to this Agreement and shall hold harmless and indemnify Lessor regardless 
of the cause of such damages. In the event Lessee secures other insurance related to the Leased 
Premises or any improvements, property or uses related thereto. Lessee shall effect an 
endorsement under such policy waiving any and all insurer’s rights of subrogation against Lessor 
and the other Additional Insureds.
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8.8 Insurance to be Provided bv Lessees. Sublessees, and Others. Any Sublessees, 
Contractors, or other persons occupying, working on or about, or using the Leased Premises 
pursuant to this Agreement must also provide for the protection of Lessor and all other Additional 
Insureds all of the insurance and indemnification required by this Agreement. The preceding 
sentence does not require such persons to provide insurance that merely duplicates insurance 
Lessee provides, Lessee shall cause any persons basing aircraft at the Leased Premises to name 
Lessee, Lessor, and the Additional Insureds as additional insureds under their aircraft liability 
policies. Such policies shali contain waivers of subrogation as to Lessee and Lessor and the other 
Additional Insureds. Lessee shall execute a written agreement with Subcontractors, Sublessees, or 
others occupying, working on or about, or using the Leased Premises pursuant to this Agreement 
containing the same Indemnification Clause and Insurance Requirements set forth herein 
protecting Lessor and Lessee. Lessee shall be responsible for executing the agreement with any 
Sublessees, Subcontractors or others occupying the Leased Premises and obtaining Certificates of 
Insurance verifying the insurance requirements.
IX. ASSIGNMENT/SUBLET
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9 Terms and Conditions Applicable to Assignment and Subletting.
9.1 
Lessee may not assign this Lease in total without the express written approval of 
Lessor, but Lessee may enter into subleases for a portion of the Leased Premises so long as such 
subleases are otherwise consistent with the terms of this Lease. Lessee shali notify Lessor and 
receive approval for any subleases. Regardless of Lessor’s consent, no assignment of Lessee's 
obligations under the Lease shall:
9.1.1 
Be effective without the express written assumption by such assignee or 
sublessee of the obligations of Lessee under this Lease;
9.1.2 
Release Lessee of any obligations hereunder; or
9.1.3 
Alter the primary liability of Lessee for the payment of Rent or for the 
performance of any other obligations to be performed by Lessee.
9.2 
Lessor may accept Rent or performance of Lessee's obligations from any person 
other than Lessee pending written approval or disapproval of an assignment. Neither a delay in the 
approval or disapproval of such assignment nor the acceptance of Rent or performance shall 
constitute a waiver or estoppel of Lessor's right to exercise its remedies for Lessee's Default or 
Breach.
9.3 
Lessor's consent to any assignment or subletting shall not constitute a consent to 
any subsequent assignment or subletting.
9.4 
In the event of any Default or Breach by Lessee, Lessor may proceed directly 
against Lessee, any Guarantors or anyone else responsible for the performance of Lessee's 
obligations under this Lease, including any assignee or sublessee, without first exhausting Lessor's 
remedies against any other person or entity responsible therefore to Lessor, or any security held by 
Lessor.
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9.5 
Each request for consent to an assignment shall be in writing, accompanied by 
information relevant to Lessor's determination as to the financial and operational responsibility and 
appropriateness of the proposed assignee or sublessee, including but not limited to the intended 
use and/or required modification of the Leased Premises, if any, $500 as consideration for Lessor's 
considering and processing said request, Lessee agrees to provide Lessor with such other or 
additional information and/or documentation as may be reasonably requested.
9.6 
Any assignee of, or sublessee under, this Lease shall, by reason of accepting such 
assignment or entering into such sublease, or entering into possession of the Leased Premises or 
any portion thereof, be deemed to have assumed and agreed to conform and comply with each 
and every term, covenant, condition and obligation herein to be observed or performed by Lessee 
during the term of said assignment or sublease, other than such obligations as are contrary to or 
inconsistent with provisions of an assignment or sublease to which Lessor has specifically 
consented to in writing.
9.7 
Lessor’s consent to any assignment or subletting shall not transfer to the assignee 
or sublessee any Option granted to the original Lessee by this Lease unless such transfer is 
specifically consented to by Lessor in writing.
9.8 
Additional Terms and Conditions Applicable to Subletting. The following terms and 
conditions shall apply to any subletting by Lessee of all or any part of the Leased Premises and 
shall be deemed included in all subleases under this Lease whether or not expressly incorporated 
therein:
9.8.1 
Lessee hereby assigns and transfers to Lessor all of Lessee's interest in all 
Rent payable on any sublease, and Lessor may collect such Rent and apply 
same toward Lessee's obligations under this Lease; provided, however, that 
until a Breach shall occur in the performance of Lessee's obligations. 
Lessee may collect said Rent. In the event that the amount collected by 
Lessor exceeds Lessee's then outstanding obligations any such excess 
shall be refunded to Lessee. Lessor shall not, by reason of the foregoing or 
any assignment of such sublease, nor by reason of the collection of Rent, 
be deemed liable to the sublessee for any failure of Lessee to perform and 
comply with any of Lessee's obligations to such sublessee. Lessee hereby 
irrevocably authorizes and directs any such sublessee, upon receipt of a 
written notice from Lessor stating that a Breach exists in the performance of 
Lessee’s obligations under this Lease, to pay to Lessor all Rent due and to 
become due under the sublease. Sublessee shall rely upon any such 
notice from Lessor and shall pay all Rents to Lessor without any obligation 
or right to inquire as to whether such Breach exists, notwithstanding any 
claim from Lessee to the contrary.
9.8.2 
In the event of a Breach by Lessee, Lessor may, at its option, require 
sublessee to attorn to Lessor, in which event Lessor shall undertake the 
obligations of the sublessor under such sublease from the time of the 
exercise of said option to the expiration of such sublease; provided, 
however. Lessor shall not be liable for any prepaid rents or security deposit
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paid by such sublessee to such sublessor or for any prior Defaults or 
Breaches of such sublessor.
9.8.3 
Any matter requiring the consent of the sublessor under a sublease shall 
also require the consent of Lessor.
9.8.4 
No sublessee shall further assign or sublet alt or any part of the Leased 
Premises without Lessor's prior written consent.
9.8.5 
Lessor shall deliver a copy of any notice of Default or Breach by Lessee to 
the sublessee, who shall have the right to cure the Default of Lessee within 
the grace period, if any, specified in such notice. The sublessee shall have 
a right of reimbursement and offset from and against Lessee for any such 
Defaults cured by the sublessee.
X. MISCELLANEOUS
Miscellaneous. The following additional provisions shall apply:
10.1 
Amendments. This Agreement may not be amended except by a formal writing 
executed by the parties, including the approval of the City Council. Provided, however, the Aviation 
Director is authorized to approve minor administrative amendments to the provisions of this Lease 
which allow for relocation of Lessee to a comparable premises with additional or different features 
(such as a mezzanine) as long as the amount of the Rent as set forth in Section 4 is adjusted to 
account for the reasonable rental value of such new premises
10.2 
Limited Severability. In the event any term, condition, covenant, stipulation, 
agreement or provision herein contained is held to be invalid or unenforceable for any reason, the 
invalidity of such term, condition, covenant, stipulation, agreement or provision shall in no way 
affect any other term, condition, covenant, stipulation, agreement or provision herein contained. 
Further, this Agreement shall be deemed automatically reformed to secure to Lessor the legal, 
equitable, practical and other benefits of the provisions of this Agreement as written to the very 
maximum extent permitted by law.
10.3 
Conflicts of Interest. No member, official or employee of Lessor shall have any 
direct or indirect interest in this Agreement, nor participate in any decision relating to the 
Agreement, that is prohibited by law.
10.4 
No Partnership. This Agreement and the transactions and performances 
contemplated hereby shall not create any sort of partnership, joint venture or similar relationship 
between the parties.
10.5 
Time of Essence. Time is of the essence of each and every provision of this 
Agreement. Any payments due on Saturday, Sunday or an Arizona legal holiday shall be due on 
the next succeeding day that is not a Saturday, Sunday or an Arizona legal holiday.
10.6 
Non-Llabilitv of Lessor Officials and Employees. No member, official, representative 
or employee of Lessor shall be personally liable to any party, or to any successor in interest to any
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party, in the event of any default or breach by Lessor or for any performance or amount that rriay 
become due to any party or successor or with respect to any obligation of Lessor or otherwise 
under the terms of this Agreement or related to this Agreement.
10.7 
Notices. Except as otherwise indicated, all notices, waivers, demands, requests 
and other communications required or permitted by this Agreement (collectively, "Notices”) shall be 
in writing and shall be effective only if sent by one or more of the following methods: (a) personal 
delivery: (b) generally recognized overnight commercial courier regularly providing proof of 
delivery, with delivery charges prepaid or duly charged; (c) United States registered or certified 
mail, return receipt requested, postage prepaid, or (d) electronic mail (email) addressed to the 
parties at the respective addresses set forth opposite their names below, or to any other address or 
addresses as any party shall designate from time to time by notice given to the other in the manner 
provided in this article:
If to Lessor: 
Scottsdale Aviation Director
15000 North Airport Drive, Suite 100 
Scottsdale, AZ 85260
AND
City of Scottsdale
3939 North Drinkwater Boulevard
Scottsdale, AZ 85251
Attn: City Attorney
If to Lessee: 
SDL AZ Holdings, LLC dba Atlantic Aviation - Scottsdale
14600 North Airport Drive 
Scottsdale, AZ 85260 
ATTN: General Manager
AND
Atlantic Aviation FBO Inc.
5525 Granite Parkway, Suite 1700 
Plano, TX 75024 
Attn: General Counsel
Notices to Lessee may also be hand delivered to Lessee’s management office at the Aviation 
Business Center Building. Notices given or served by personal delivery shall be deemed to have 
been received upon lender to the respective party. Notices given or served by mail or commercial 
courier shall be deemed to have been given or served as of the date of delivery (whether accepted 
or refused). Notice given or served by electronic mail shall be deemed to have been given or 
served upon confirmation of receipt from the receiving party.
10.8 
Funding. This article shall control notwithstanding any provision of this Agreement 
or any exhibit or other agreement or document related hereto. If funds necessary to fulfill Lessor’s 
obligations under this Agreement are not appropriated by the Scottsdale City Council, Lessor may 
terminate this Agreement by 30 days’ notice to Lessee. Termination in accordance with this
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provision shall not constitute a breach of this Agreement by Lessor. No person will be entitled to 
any compensation, damages or other remedy from Lessor if this Agreement is terminated pursuant 
to the terms of this subsection.
10.9 
Article Headings. The article headings contained herein are for convenience in 
reference and not intended to define or limit the scope of any provision of this Agreement.
10.10 Lessor's Right of Entry. Lessor reserves the right at all reasonable times during the 
term for Lessor or Lessor's agents to enter the Leased Premises for the purpose of inspecting and 
examining the same, and to show the same to actual or prospective tenants or lenders, and to 
make such repairs, alterations, improvements or additions as Lessor may deem necessary or 
desirable, and for any other purposes Lessor deems necessary. During the 90 days prior to the 
expiration of the temn or any renewal term. Lessor may exhibit the Leased Premises to prospective 
tenants, and place upon the Leased Premises customary "For Lease” signs, as the case may be, 
which signs Lessee shall permit to remain thereon without molestation. If Lessee shall not be 
personally present to open and permit entry into said Leased Premises, at any time, when for any 
reason an entry therein shall be necessary or permissible. Lessor or Lessor's agents may forcibly 
enter the same, without rendering Lessor or such agents liable therefor, and without any manner 
affecting the obligations and covenants of this Lease. Nothing herein contained, however, shall be 
deemed or construed to impose upon Lessor any obligation, responsibility or liability whatsoever 
for the care, maintenance or repair of the building or any part thereof, except as otherwise herein 
specifically provided. No exercise by Lessor of any rights under this Article 16 shall entitle Lessee 
to any damages for inconvenience, disturbance, constructive eviction, loss of business or other 
damage to Lessee occasioned thereby, nor to any abatement of rent.
10.11 Attorneys’ Fees. In the event any action or suit or proceeding is brought by either 
Lessor or Lessee to enforce compliance with this Agreement or for failure to observe any of the 
covenants of this Agreement or to vindicate or exercise any rights or remedies hereunder, the 
prevailing party shall be entitled to recover reasonable attorneys' fees, accounting fees, and 
other costs incurred in that action or proceeding, in addition to any other relief to which it may be 
entitled.
10.12 No Third-Party Beneficiaries. Except as otherwise expressly provided, no person or 
entity shall be a third-party beneficiary to this Agreement or shall have any right or cause of action 
hereunder.
10.13
reference.
Exhibits. All exhibits attached hereto are incorporated into this Agreement by this
10.14 Further Assurances. Lessee agrees to do such further acts and things and to 
execute and deliver such additional agreements and instruments as Lessor may reasonably 
require to evidence, confirm or carry out the agreement contained herein.
10.15 Construction. Whenever the context of this Agreement requires, the singular shall 
include the plural, and the masculine shall include the feminine. This Agreement shall be 
construed according to its plain meaning and neither for nor against any party hereto. Lessee 
acknowledges that the Rent payable hereunder was negotiated in light of the plain meaning of this 
Agreement and this Agreement shall therefore be interpreted according to its plain meaning and
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without regard to rules of interpretation, if any, which might otherwise favor Lessee.
10.16 Survival of Liability. All obligations of Lessee and Lessor hereunder and all 
warranties and indemnities of Lessee and Lessor hereunder shall survive termination of this 
Agreement for any reason.
10.17 Choice of Law. This Agreement is governed by, and shall be construed and 
enforced in accordance with, the laws of the State of Arizona, without giving effect to any 
conflict of laws rules, and each party irrevocably submits to the exclusive jurisdiction of the 
federal and state courts located in Maricopa County, Arizona for the purposes of any action or 
proceeding arising out of or relating to this Agreement. Each party hereby consents to such 
jurisdiction and agrees that venue shall lie in the state or federal courts within Maricopa County, 
Arizona with respect to any claim or cause of action arising under or relating to this Agreement. 
Each party hereby waives any objection based on forum non conveniens and waives any 
objection to venue of any action instituted hereunder
10.10 Approvals and Inspections. All approvals, reviews and inspections by Lessor under 
this Agreement or otherwise are for Lessor’s sole benefit and not for Lessee’s benefit.
10.19 Statutory Cancellation Right. In addition to its other rights hereunder. Lessor shall 
have the cancellation rights specified in A.R.S. § 38-511.
[Signature pages follow]
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EXECUTED as of the date first given above.
LESSEE:
By:
Contract No. 2026-062-COS 
■DocuSigned by:
■Q66ECABEE/^,6F410,
Timothy M. Bannon, COO
STATE OF
County of CoW tO
)
)ss.
)
The foregoing instrument was acknowledged before me this \0^ day of 
^pri i 
2026, by Timothy M. Bannon, COO.
My Commission Expires:
y
.4
I
Janet M Virga 
My Commlitlon Expirci 
2/22/2027
Notary I0130109942
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Contract No. 2026-062-COS
LESSOR: 
CITY OF SCOTTSDALE,
an Arizona municipal corporation
ATTEST:
By;
Lisa Borowsky, Mayor
:
Ben Lane, City Clerk
STATE OF ARIZONA)
)ss.
County of Maricopa )
The foregoing instrument was acknowledged before me this____day of________
2026 by Lisa Borowsky, Mayor of the City of Scottsdale, an Arizona municipal corporation.
Notary Public
i
My Commission Expires:
APPROVED AS TO FORM:
i
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uyE. Santaella, Interim City Attorney
y Joe PadilLrf,X)eputy Ofty Attorney
Rick Wielebski, Aviation Director
GeorgewKosJrTDirector of Risk Management
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Contract No. 2026-062-COS
Exhibit “A”
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