City of Chandler Air Service Lease Amendment

CITY OF'CHANDLER
FIRST AMENDMENT TO
AIRPORT LEASE AGREEMENT
NO.018
RECITALS
A. 
The City of Chandler, an Arizona municipal corporation ("Landlord") and Chandler Air
Service Hanger LLC, an Arizona limited liability company, as assignee of Chandler Air Service,
Inc., an Arizona corporation, ("Tenant") (collectively, the "Parties") entered into that City of
Chandler Airport Lease Agreement No. 018, effective September 26,2022 (the "Lease").
B. 
Pursuantto the terms of the Lease, Tenant was to perform certain Project Work and complete
New Improvements on the Premises within timeframes defined in Section 4.2 of the Lease. The
Parties wish to revise those timeframes.
C. 
Tenant has obtained project fturding from Core Bank ("Lender") to complete the New
Improvements. Lender requires certain revisions to the Lease Exhibit "D."
D. 
The Parties wish to execute this First Amendment to Airport Lease Agreement No. 018
("First Amendment") in order to make the desired revisions.
AGREEMENT
1. 
The Recitals are incorporated herein. All capitalized terms are as defined in this First
Amendment or the Lease.
2, 
Section 4.2 of the Lease is deleted in its entirety and replaced with the following:
4.2 COI\4PLETION OF NEW IMPROVEMENTS. Tenant covenants and agrees that, no
later than August 31,2026, Tenant, at Tenant's expense, shall fully complete aproject (the
"Project Work") that includes: the demolition of any Existing Improvements and, the
construction of one (1) new building consisting of a minimum of fourteen thousand four-
hundred (14,400) square feet of hangar space and three-thousand (3,000) square feet of
office space, new aircraft parking/staging apron, and a surface parking lot ("New
Improvements"). The Project Work shall be done in accordance with plans and
specifications approved by Landlord in its reasonable discretion and, for purposes of
Paragraoh 6.2 (c), shall commence no later than August 31, 2025. Except for activities
identified in Paragraph 4.2(d), Tenant will obtain the approval of the final plans and
specifications by any and all federal, state, municipal and other govemmental authorities,
offices and departnents having jurisdiction in the matter and provide conformed copies of
executed approvals to Landlord. The execution of this Lease by Landlord does not, and
shall not be deemed to, constitute approval by the City of Chandler of such plans and
specifications. If Tenant is unable to complete the Project Work by the timeline as stated
in this Section 4.2,Tenantmay make a written request to the City Manager for additional
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time to complete the Project Work. Landlord's response to Tenant's request for approval
shall be prompt, and such approval shall not be unreasonably withheld.
(a) 
The Project Work shall be deemed fully completed when a final certificate
of occupancy is issued for the New Improvements by the Planning and Development Department
of the City of Chandler (or such other department of the City, however denominated, that is
responsible for issuing building permits and providing certificates of occupancy).
(b) 
Tenant will perform all of the Project Work, including, without limitation,
all demolition of Existing Improvements and conshuction of New Improvements, in a good,
careful, proper, and workmanlike manner in accordance with the approved plans and
specifications; all provisions of law and any and all permits and authority required by ordinance,
code, law, or public regulations or by any authority at any time having jurisdiction over the
Premises; and the requirements of any public or quasi-public body having similar jurisdiction.
(c) 
Landlord will be an additional insured on all liability insurance policies
maintained by Tenant and its contractor(s) during the performance of all of the Project Work.
(d) 
Tenant and Landlord acknowledge receipt of a Categorical Environmental
Exclusion from the Federal Aviation Administration (FAA), pursuant to the National
Environmental Policy Act of 1969, datedMay 23,2023 and valid for work commenced at the
Premises within three (3) years.
(e) In the event that, through no fault of the Tenant's actions, the period of the
Project Work is delayed by federal, state, regional, or county agencies, Landlord shall grant Tenant
a daily schedule credit for completion of the Project.
Exhibit "D" is deleted and replaced in its entirety with the "Revised Exhibit 'D"' inAttachment
This First Amendment is subject to A.R.S. g 38-511.
SIGNATURES ON FOLLOWING PAGE
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3.
1.
4.

IN WITMSS WHEREOF, the parties hereto have caused this Lease to be executed as of the day
and year first above written.
LANDLORD: CITY OF CHAIIDLE& an
Aizona municipal corporation
By:
Kevin Hartke
Its: Mayor
APPROVED AS TO FORM
Its: Sole Member
City Attorney
TENANT:
VICE
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ATTACHMENT I
REVISED EXHIBIT "D"
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