HomeMy WebLinkAboutResolution No. 2022-56Sponsored by: Administration
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WHEREAS, the lease was signed by, the City and a State of Alaska Procurement Specialist and recordeci
on April 27, 2022; and,
WHEREAS, the City has recently been notified by the State, that the Division of Forestry did not have
authority to enter into the lease with the City, and that the State will not sign the City'si Standard Lease
Form-, and,
WHEREAS, it is in the best interest of the City and State to approve certain revisions to the Standard
Lease Form, and execute a revised lease that does not require the State to indemnify the City, recognizes
that the State is, self -insured, that its future financial commitments are subject to appropriation and only
requires arbitration after mediation.
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Section 1. That a revised lease of Airport Lands is approved and the City Manager is authorized to
execute the Attached Lease between the City of Kenai, Lessor, and State of Alaska, Department of
Transportation & Public Facilities, Division of Facilities Services-10, Lessee.
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City of Kenai 1 210 Fidal o Ave, Kenai, AK 99611.7794 190T283,7535 1 www.6naixity
MEMORANDUM
TO: Mayor Gabriel and Council Members
FROM: Scott Bloom, City Attorney
DATE: June 28, 2022
SUBJECT: Resolution 2022-56 — Approving Amendments to the Standard Lease
Form
On March 2, 2022 the Council, through Resolution 2022-10, approved a lease of Airport reserve
lands between the City and Division of Forestry using the City's Standard Lease Form. The leased
land is used by the State as an airtanker reload base for wild land fire protection and suppression.
After the City and Division of Forestry executed and recorded the lease, the City was contacted
by the State and informed that the State's position is that the person who signed the lease on
behalf of the State did not have authority to sign and that there are provisions in the City's
Standard Lease Form that the State cannot agree to. In recognition of the public benefit this lease
provides to City Residents and others, I recommend that it is in the City's best interest to go
through the exercise of approving an amended lease form. In the meantime, until a new lease is
approved, I expect the State to utilize the Airport property for the intended lease purpose in light
of the existing recorded lease.
Outlined below are the changes requested by the State. In light of the public benefit of the lease,
the nature of the use, duration of the lease, recognition of the existing fire season we are in and
the generally strong financial position of the State, I recommend acceptance of these requested
changes in this case.
1. Change of contracting agency from Division of Forestry to Department of Transportation.
2. Removal of indemnification language. The State has taken position that it cannot
indemnify other parties. This is the most controversial change to accept, and not
necessarily a position I would recommend accepting on other transactions, however for
the reasons stated above I recommend acceptance in this particular lease.
3. Recognition that State is self -insured and has provided the City a letter of self-insurance.
4. Recognition that the State's future payments are subject to future approval of
appropriation of funds.
5. Agreement that in case of condemnation, City and State will try and mediate any dispute
prior to submitting to binding arbitration.
Your consideration is appreciated.
KENAI MUNICIPAL AIRPORT
LEASE OF AIRPORT RESERVE LANDS
THIS LEASE AGREEMENT entered into this 1st day of July, 2022, by and between the
CITY OF KENAI, 210 Fidalgo Avenue, Kenai, Alaska 99611-7794, and STATE OF ALASKA
Ih: .III Ih: Ih IF AIf n lM Ih I�J..U.. Q n IRAIN S IPOIR n A n 11 OI�J IP U IB IC_ II C Ih� AC II IC -II U II Ih S
.......................................................................................................................................................................................................................................................................................................................................................................................................................................................A.
II:)IIVIISOIN OII�� II��ACIIIC.JI U IIII S Sl 1RVIICl S-10 whose address is 550 W. 7th Avenue Suule 200
Anchorage, Alaska 99501, ("Lessee").
DEFINITIONS
For the purposes of this Lease the following terms are defined in KMC 21.10.020 (effective as of
the date of execution of the lease) as follows:
Airport — the Kenai Municipal Airport, including all the runways, taxiways, aprons, water
lanes, water taxiways, and all City -owned real estate located within the boundaries of the
Airport Reserve as defined in KMC Chapter 21.05, Airport Administration and Operation.
2. Airport Manager — the official to whom the City Manager of the City has delegated the
authority and responsibility of managing and directing the activities of the Airport. "Airport
Manager" includes that person's authorized representative.
3. City— the City of Kenai, its elected officials, officers, employees or agents.
4. City Manager —the official to whom the Kenai City Council has delegated the responsibility
of managing and directing all activities of the City.
5. Contamination — the unpermitted presence of any released Hazardous Substance.
6. Environmental Law — any applicable federal, state, or local statute, law, regulation,
ordinance, code, permit, order, decision, judgment of any governmental entity relating to
environmental matters, including littering and dumping.
7. FAA — the abbreviation for the Federal Aviation Administration.
8. Hazardous Substance — any substance that is defined under an Environmental Law as
hazardous waste, Hazardous Substance, hazardous material, toxic, pollutant,
contaminant, petroleum, petroleum product, or oil.
9. KMC — the abbreviation for the Kenai Municipal Code.
10. Permanent Improvement — a fixed addition or change to land that is not temporary or
portable, including a building, building addition, gravel fill, pavement, retaining wall,
storage tank, well, and remediation of contamination for what the lessee is not responsible
LEASE OF AIRPORT RESERVE LANDS Page 1 of 29
ARTICLE I
PREMISES LEASED
A. PREMISES: In consideration of Lessee's payment of the rents and performance of all the
covenants of this Lease, the City leases to the Lessee, and the Lessee leases from the City, the
following described property ("Premises") in the Kenai Recording District, Third Judicial District,
State of Alaska and located on the Airport; to wit:
Lot 4A, FBO Subdivision No.11, according to the
official plat thereof, filed under Plat No. 2021-44,
Records of the Kenai Recording District, Third
Judicial District, State of Alaska.
B. NO WARRANTY: Except as may be provided in this Lease, the City makes no specific
warranties, expressed or implied, concerning the condition of the Premises including, survey,
soils, wetlands, access, and suitability or profitability for any use including those authorized by
this Lease, its environmental condition, or the presence or absence of Hazardous Substances in,
on, and under the surface. The Lessee takes the Premises on an "as is" basis and without
warranty, subject to any and all of the covenants, terms, and conditions affecting the City's title to
the Premises.
ARTICLE II
RIGHTS AND USES
A. AUTHORIZED USES:
USE OF PREMISES: The City authorizes the Lessee to use the Premises for the
following purposes only:
Air Tanker Reload Base
2. CONTINUOUS OPERATIONS: Unless the City approves otherwise in writing, the
Lessee will operate on the Premises on a continuous basis, uninterrupted by any
period of closure over 15 consecutive days. The Lessee will give the City written
notice before closing the Lessee's business on the Premises for more than 10
consecutive days. The notice must state the reason for the closure and the date
on which the Lessee will re -open for business. This provision does not apply to
any period during which the Lessee is unable to operate its business as a result of
an act or directive of the City, or as a result of a closure of the Airport or loss of the
Lessee's buildings on the Premises due to fire or natural disaster.
B. RIGHTS RESERVED TO THE CITY:
RIGHT TO GRANT TO OTHERS: The City reserves the right to grant to others
any rights and privileges not specifically granted to the Lessee on an exclusive
basis. The rights and privileges granted to the Lessee in this Lease are the only
rights and privileges granted to the Lessee by this Lease.
LEASE OF AIRPORT RESERVE LANDS Page 2 of 29
2. EASEMENTS: The City reserves the right to make grants to third parties or
reserve to the City easements or rights of way through, on, or above the Premises.
The City will not grant or reserve any easement or right of way that unreasonably
interferes with the Lessee's authorized uses of the Premises.
3. INGRESS, EGRESS AND INSPECTION: The City reserves the right of ingress to
and egress from the Premises and the right to enter any part of the Premises,
including buildings, for the purpose of inspection or environmental testing at any
time. Except in the case of an emergency, all inspections and environmental
testing will be coordinated with the Lessee to minimize interference with the
Lessee's authorized uses of the Premises.
4. RIGHT OF FLIGHT: There is hereby reserved to the City, its successors and
assigns, for the use and benefit of the public, a right of flight for the passage of
aircraft in the airspace above the surface of the Premises. This public right of flight
will include the right to cause in the airspace any noise inherent in the operation of
any aircraft used for navigation or flight through the airspace or landing at, taking
off from, or operation on the Airport.
C. PROHIBITED USES: Unless specifically authorized by this Lease or an amendment to
this Lease, the following are prohibited:
1. Any use of the Premises other than those authorized in this Lease.
2. Any use of the Premises that is in violation of a City Ordinance or an Airport
regulation.
3. The outside storage on the Premises of junk, salvage aircraft or vehicle parts, non-
operational support equipment, unused or damaged equipment or material, or solid
waste or debris unless allowed pursuant to a conditional use permit under KMC
14.20.
4. The disposal on the Premises or the Airport of waste materials generated by the
Lessee, including any Hazardous Substance, slash, overburden, and construction
waste.
5. The stripping, wasting, or removing any material from the Premises without the
prior written approval of the City.
6. Erecting structures or allowing growth of natural objects that would constitute an
obstruction to air navigation, or allowing any activity on the Premises that would
interfere with or be a hazard to the flight of aircraft, or interfere with air navigation
or communication facilities, serving the Airport.
7. Any use or activity that is prohibited by applicable law or regulation.
ARTICLE III
TERM & HOLDOVER
LEASE OF AIRPORT RESERVE LANDS Page 3 of 29
A. TERM: The initial term of this Lease is for five (5) years, from the 1st day of July, 2022,
to the 30th day of June, 2027.
B. HOLDOVER: If the Lessee holds over and remains in possession of the Premises after
the expiration, cancellation or termination of this Lease, the holding over will not operate as an
extension of the term of this Lease, but only creates a month -to -month tenancy, regardless of any
rent payments accepted by the City. The Lessee's obligations for performance under this Lease
will continue during the month -to -month tenancy. The City or Lessee may terminate the Lessee's
holdover with ten days' advance written notice.
ARTICLE IV
RENTS AND FEES
A. RENT: The initial rent for the Premises is $ 18,250.62 per year, as established by the City
pursuant KMC 21.10.090 and as subject to annual adjustment on July 1 of each year under Article
V of this Lease, plus applicable sales tax. The rent shall be payable annually in advance of the
first day of each year of the term of this Lease. All payments required by this Lease must be
made in U.S. dollars. If the annual rent exceeds $2,400, the Lessee may, upon written notice to
the City, choose to pay the rent in equal monthly installments, payable in advance on or before
the anniversary date of the term of this Lease and thereafter at monthly intervals. No conversion
of the payment schedule from annual to monthly shall result in the City receiving less rent than it
would have received had the conversion not taken place.
Rent Credit: A rent credit may be applied for a maximum of five years of lease
payments as provided in KMC 21.10.100 (as effective at the time this lease is
executed). Once the work is completed and value determined, a credit will be
applied to the lease payments, prorated as necessary for the successive five
years.
B. RENT PRORATED: Rental for any period less than one year shall be prorated on the
basis of the rent payable under this Lease in last full year previous to the prorating.
C. ADDITIONAL RENT: In addition to the rent specified in (a) of this Article, Lessee agrees
to pay to the appropriate parties all levies, assessments, and charges as follows:
Taxes pertaining to the leasehold interest of the Lessee.
2. Sales tax now enforced or levied in the future, computed upon rent payable in
monthly installments whether the Lessee pays rent under this Lease on a monthly
or annual basis.
3. All taxes and assessments levied in the future by the City, as if Lessee was the
legal owner of record of the Premises.
D. PAYMENTS: The Lessee shall make checks, bank drafts, or postal money orders payable
to the City of Kenai and deliver payments to City of Kenai, Finance Department, 210 Fidalgo
Avenue, Suite 200, Kenai, Alaska 99611-7794 or any other address the City may designate in
writing to the Lessee.
LEASE OF AIRPORT RESERVE LANDS Page 4 of 29
E. INTEREST: Beginning the day after payment is due, all unpaid rents, charges, and fees
required under this Lease will accrue interest at the rate of eight percent (8.0%) per annum.
Interest on disputed amounts will not be charged to the Lessee if the dispute is resolved in the
Lessee's favor.
F. LATE PAYMENT PENALTY: In addition to any interest payable under Provision (E) of
this Article, each time the Lessee fails to pay any rent or fee by the date required in this Lease,
the City will charge, and the Lessee shall pay, an administrative penalty of ten percent (10.0%) of
the amount due and unpaid.
G. COURTESY BILLINGS: Lessee acknowledges that any billing statement issued by the
City is provided only as a courtesy. The Lessee is obligated to pay all rents and fees when due,
regardless of whether or not the Lessee receives a billing statement from the City.
H. LIEN AGAINST LESSEE: Any rent, charge, fee, or other consideration which is due and
unpaid at the expiration, termination, or cancellation of this Lease will be a lien against the
Lessee's property, real or personal.
I. PAYMENT OF CITY'S COSTS: The Lessee will pay all reasonable actual expenses,
costs, and attorney fees City may incur, with or without formal action, to enforce, defend, or protect
this Lease or City's rights under this Lease, including any expense incurred with respect to
environmental compliance, bankruptcy or any proceeding that involves the Lessee, the Lease,
the Premises, or improvements or personal property on the Premises. The Lessee will make
payment within 30 days of the date of each notice from City of any amounts payable under this
provision.
J. PAYMENT FOR SPECIAL SERVICES: Lessee agrees to pay the City a reasonable fee
for any special services or facilities the City agrees to perform, which the City is not otherwise
obligated by this Lease to provide and which the Lessee requests from the City in writing.
ARTICLE V
ADJUSTMENT OF RENT AND FEES
A. RENT OR FEE ADJUSTMENT: The City shall adjust rent or fees payable by the Lessee
under Article IV or other provisions of this lease on July 1 of each year of the lease as proved in
KMC 21.10.090 (as effective at the time this lease is executed) and shall make any other
adjustments to rent as allowed for in KMC 21.10.090.
No rent or fee change shall be effective until 30 days after the date of the City's written notice to
the Lessee. If the Lessee believes that any changed rent exceeds the fair market rent for the
Premises, the Lessee may appeal a rent change to the City as provided in KMC 21.10.090.
ARTICLE VI
ASSIGNMENT & SUBLETTING
A. INVALID WITHOUT CITY'S CONSENT: The Lessee may not assign, sublet, or grant a
LEASE OF AIRPORT RESERVE LANDS Page 5 of 29
security interest in, by grant or implication, the whole or any part of this Lease, the Premises, or
any improvement on the Premises without the written consent of the City. Any proposed
assignment, sublease, or security interest must be written and must be submitted to the City
bearing the original, notarized signature of all parties. The Lessee may submit unsigned draft
documents for the City's conceptual review. However, the City's conceptual approval of a draft
document may not be construed as the City's consent to any assignment, sublease, or security
interest. All provisions in this Lease extend to and bind the assignees and sub -lessees of the
Lessee.
B. NO WAIVER OF CONSENT: The City's consent to one assignment, sublease, or security
interest will not waive the requirement for the Lessee to obtain the City's consent to any other
assignment, sublease, or security interest.
C. ASSIGNEE / LESSEE OBLIGATIONS: An assignment must include a provision stating
that the assignee accepts responsibility for all of the assignor's (Lessee's) obligations under this
Lease, including environmental liability and responsibility. However, unless the City specifically
releases the Lessee in writing, the City may hold the Lessee responsible for performing any
obligation under this lease which an assignee fails to perform.
D. OCCUPANCY BEFORE CITY CONSENT: An assignee or sub -lessee may not occupy
the Premises before the City consents to the assignment or sublease in writing.
E. CONFLICT OF PROVISIONS: In the event of a conflict between this Lease and an
assignment or a sublease, the terms of this Lease control.
F. LESSEE NOT RELIEVED OF OBLIGATIONS: The City's consent to any sublease does
not relieve or otherwise alter the Lessee's obligations under this Lease.
G. SECURITY ASSIGNMENTS AND FINANCING:
Subject to the requirements of (A) of this Article VI, the Lessee may assign a
security interest in this Lease. The security interest may be in the form of a
mortgage, deed of trust, assignment or other appropriate instrument, provided
a. the security interest pertains only to the Lessee's leasehold interest;
b. the security interest does not pertain to or create any interest in City's title
to the Premises; and
C. the documents providing for the security interest are acceptable to the City.
2. If the assignment of a security interest to which the City has consented shall be
held by an established lending or financial institution, including a bank, an
established insurance company and qualified pension or profit sharing trust, and
the lending institution acquires the Lessee's interest in this Lease as a result of a
foreclosure action or other remedy of the secured party, or through any transfer in
lieu of foreclosure, or through settlement of or arising out of any pending or
contemplated foreclosure action, the lending institution may transfer its interest in
this Lease to a nominee or a wholly owned subsidiary corporation with the prior
LEASE OF AIRPORT RESERVE LANDS Page 6 of 29
written consent of the City, provided, the transferee assumes all of the covenants
and conditions required to be performed by the Lessee (including payment of any
monies owed by Lessee to the City under the lease). In the event of such a
transfer, the lending institution shall be relieved of any further liability under this
Lessee.
3. A holder of a security interest in this Lease consented to by the City shall have,
and be subrogated to, any and all rights of the Lessee with respect to the curing of
any default of this Lease by Lessee.
4. A holder of a security interest consented to by the City that takes possession of
this Lease shall not be released from the obligations and liabilities of this Lease
unless the holder assigns its leasehold estate to an assignee who is financially
capable and otherwise qualified to undertake to perform and observe the
conditions of this Lease and the City consents to the assignment. The City's
consent will not be unreasonably withheld.
ARTICLE VII
MAINTENANCE, SNOW REMOVAL & UTILITIES
A. MAINTENANCE:
At no cost to the City, the Lessee will keep the Premises and all improvements on
the Premises clean, neat and presentable, as reasonably determined by the City.
2. At no cost to the City, the Lessee will provide for all maintenance and services at
the Premises as may be necessary to facilitate the Lessee's compliance with this
Lease and the Lessee's use of the Premises.
3. The Lessee shall comply with all regulations or ordinances of the City that are
promulgated for the promotion of sanitation. At no cost to the City, the Lessee
shall keep the Premises in a clean and sanitary condition, and control activities on
the Premises to prevent the pollution of water.
4. The Lessee agrees to comply with all decisions and directions of the City's Airport
Manager regarding maintenance and operation of the Airport, and the use of the
Airport by the Lessee.
At no cost to the City, the Lessee is responsible for snow removal on the Premises.
The Lessee shall dispose of snow in an off -Premises location approved in writing
by the City or provide suitable snow storage within the boundaries of the Premises
in accordance with all applicable federal and state laws. At the request of the
Airport Manager, the Lessee shall submit a snow removal plan for the Premises to
the Manager for review. Upon approval of the Lessee's plan by the Airport
Manager, the Lessee shall conduct all snow removal operations on the Premises
in accordance with the approved plan.
LEASE OF AIRPORT RESERVE LANDS Page 7 of 29
2. Lessee shall not deposit snow on an apron, taxiway, safety area, or other aircraft -
maneuvering surface provided for common use by others without the prior written
of the Airport Manager.
3. Lessee agrees to not allow an accumulation of snow on the Premises that would
cause interference with adjoining leaseholders or other users of the Airport.
C. UTILITIES: Unless specifically provided otherwise in this Lease, the Lessee shall, at
no cost to the City, provide for all utilities at the Premises necessary to facilitate the Lessee's use
of the Premises.
ARTICLE VIII
OPERATIONS
A. OPERATIONS ON THE AIRPORT: The Lessee will ensure that the Lessee, its
employees, guests, contractors, sub -lessees, and vendors that perform any activity or function
authorized under this Lease shall do so in a manner that ensures the safety of people, the
protection of public health and the environment, and the safety and integrity of the Airport and the
Premises.
B. LESSEE'S CONTROL AND RESPONSIBILITY:
The Lessee will assume full control and sole responsibility as between Lessee and
City for the activities of the Lessee, the Lessee's personnel and employees, and
anyone else acting by, on behalf of, or under the authority of the Lessee on the
Airport, including the Premises.
2. The Lessee will immediately notify the City of any condition, problem, malfunction
or other occurrence that threatens the safety of people or the Airport, harm to public
health or the environment, or the safety or integrity of the Premises.
C. RADIO INTERFERENCE: The Lessee will discontinue the use of any machine or device
that interferes with any government -operated transmitter, receiver, or navigation aid until the
cause of the interference is eliminated.
D. WILDLIFE: The Lessee acknowledges that a concentration of birds or other wildlife on an
airport constitutes a significant hazard to aircraft operations. The Lessee agrees to keep the
Premises clean of fish slime, fish waste, or any other material that might attract birds or other
wildlife. The Lessee accepts full responsibility to maintain the Premises, control operations, and
take all reasonable measures to prevent a concentration of birds or other wildlife on the Premises.
E. PARKING: The Lessee will provide adequate vehicle, equipment, and aircraft parking
space on the Premises for Lessee's business or activities, or confine parking to such other places
on the Airport as may be approved or designated in writing by the Airport Manager.
ARTICLE IX
ENVIRONMENTAL PROVISIONS
LEASE OF AIRPORT RESERVE LANDS Page 8 of 29
A. HAZARDOUS SUBSTANCE:
The lessee will conduct it business and/or operation on the Premises in compliance
with all environmental laws and permits. If hazardous substances are handled on
the Premises, the Lessee agrees to have properly trained personnel and adequate
procedures for safely storing, dispensing, and otherwise handling Hazardous
Substances in accordance with all applicable federal, state and local laws.
2. Lessee will promptly give the City notice of proceeding to abate or settle matters
relating to the presence of a Hazardous Substance on the Premises or from
Lessee's operations on the Airport. The Lessee will allow the City to participate in
any such proceedings.
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'I REMEDIATION:
In the event of a Hazardous Substance spill on the Premises, the Lessee will
immediately notify the City and the Alaska Department of Environmental
Conversation and act, promptly, at its sole expense, to contain the spill, repair, any
damage, absorb and clean up the spill area, and restore the Premises to a
condition satisfactory to the City and otherwise comply with the applicable portions
of any environmental law.
2. In addition to any notices required by this Lease, the Lessee will immediately notify
and copy the City in writing of any of the following:
LEASE OF AIRPORT RESERVE LANDS Page 9 of 29
a. Any permit, enforcement, clean up, lien, removal or other governmental or
regulatory action instituted, completed, or threatened pursuant to an
Environmental Law.
b. Any claim made or threatened by any person against the Lessee or arising
from the Lessee's operations authorized by this Lease, relating to damage,
contribution, compensation, loss or injury resulting, from, or claimed to
result from any Hazardous Substances in, on, or under the Airport; or
C. Any report made by, or on behalf of, the Lessee to any environmental
agency arising out of or in connection with any Hazardous Substances in,
on, or removed from the Premises, including any complaints, notices,
warnings, or asserted violations.
3. Remediation and restoration of the contaminated area must meet all applicable
state and federal regulations and must meet the requirements of all governing
regulatory authorities.
D. ENVIRONMENTAL AUDIT: The Lessee will provide the City with all investigative data,
test results, reports, and any other information gathered or analyzed as part of or in relation to
any Environmental Assessment, characterization or audit on the Premises or the Airport that
Lessee performs or causes to be performed after the starting date of this Lease. The Lessee will
submit the data, result, report or information to the City within 60 days following the date on which
it becomes available to the Lessee.
E. RELEASE OF LESSEE: The City releases the Lessee from liability to the City for
Contamination and the presence of Hazardous Substances that existed prior to the
commencement date of this lease unless caused or materially contributed to by the Lessee.
F. SURVIVAL OF OBLIGATIONS: The obligations and duties of the City and Lessee under
Article IX of this lease shall survive the cancellation, termination or expiration of this lease.
ARTICLE X
Vie' ""INSURANCE
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LEASE OF AIRPORT RESERVE LANDS Page 10 of 29
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B. INSURANCE: At no expense to the City, the Lessee will obtain and keep in force during
the term of this Lease, insurance of the type and limits required by this provision. Where specific
limits are set, they will be the minimum acceptable limits. If the Lessee's policy contains higher
limits, the City will be entitled to coverage to the extent of the higher limits. At the time insurance
in obtained by the Lessee, all insurance shall be by a company/corporation rated "A-" or better by
A.M. Best. The following policies of insurance are required with the following minimum amounts:
Commercial General Liability, including Premises, all operations, property
damage, products and completed operations, and personal injury and death,
broad -form contractual, with a per -occurrence limit of not less than $1,000,000
combined single limit. If this lease authorizes the Lessee to engage in the sale or
the commercial dispensing or storage of aviation fuel, the policy must not exclude
of Lessee's fuel handling activities. This policy must name the City as an additional
insured.
2. Commercial Automobile Coverage with not less than $1,000,000 combined single
limit per occurrence. This insurance must cover all owned, hired, and non -owned
motor vehicles used by the Lessee.
3. Workers Compensation Insurance. The Lessee will provide and maintain, for all
employees, coverage as required under AS 23.30.045, and, where applicable, any
other statutory obligations. The policy must waive subrogation against the City.
4. The Lessee will provide the City with proof of insurance coverage in the form of a
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LEASE OF AIRPORT RESERVE LANDS Page 11 of 29
,. f thiat......a.. p r ., ., p ° ...y.....s.
•. f � All insurance required by this provision must provide
that the City be notified at least 30 days prior to any termination, cancellation, or
material change in the insurance coverage.
5. If the Lessee's insurance coverage lapses or is canceled, Lessee will immediately,
upon written notice by the City, halt all operations on the Airport, including the
Premises. The Lessee will not resume operations until the City receives evidence
that the Lessee has obtained current insurance coverage meeting the
requirements of this Lease.
6. The City may, at intervals of not less than five years from the beginning date of the
term of this Lease and upon written notice to Lessee, revise the insurance
requirements required under this Lease. City's determination to revise the
insurance requirements will be based on the risks relative to the Lessee's
operations, any insurance guidelines adopted by the City, and any applicable law.
7. If the Lessee subleases all or any portion of the Premises under the provisions of
this Lease, the Lessee will require the sub -lessee to provide to the insurance
coverage required of the Lessee under this Article X.
ARTICLE XI
LAWS & TAXES
A. COMPLIANCE WITH LAW: Lessee shall comply with all applicable laws, ordinances, and
regulations of public authorities now or hereafter in any manner affecting the Airport, the Premises
or the sidewalks, alleys, streets, and ways adjacent to the Premises, or any buildings, structures,
fixtures and improvements or the use thereof, whether or not any such laws, ordinances, and
regulations which may be hereafter enacted involve a change of policy on the part of the
governmental body enacting the same. Lessee agrees to hold City financially harmless:
From the consequences of any violation of such laws, ordinances, and/or
regulations; and
2. From all claims for damages on account of injuries, death, or property damage
resulting from such violation.
B. UNLAWFUL ACTIVITY: The Lessee shall not permit any unlawful use, occupation,
business, or trade to be conducted on the Premises contrary to any law, ordinance, or regulation,
including zoning ordinances, rules and regulations.
C. LICENSES AND PERMITS: The Lessee will obtain all necessary licenses and permits,
pay all taxes and special assessments lawfully imposed upon the Premises, and pay other fees
and charges assessed under applicable law. Nothing in this Lease prevents the Lessee from
challenging any taxes or special assessments to the appropriate authority.
D. LITIGATION: The Kenai municipal code, including regulations promulgated thereunder,
and the laws of the State of Alaska will govern in any dispute between the Lessee and City. If a
dispute continues after exhaustion of administration remedies, any lawsuit must be brought in the
LEASE OF AIRPORT RESERVE LANDS Page 12 of 29
courts of the State of Alaska, in Kenai, Alaska.
E. LESSEE TO PAY TAXES: Lessee shall pay all lawful taxes and assessments which,
during the term of this Lease may become a lien upon or which may be levied by the State,
Borough, City, or any other tax levying body, upon any taxable possessory right which Lessee
may have in or to the Premises or improvements on the Premises by reason of its use or
occupancy or the terms of this Lease provided, however, that nothing in this provision shall
prevent Lessee from contesting any increase in a tax or assessment under any applicable law,
ordinance, or regulation.
F. PARTIAL INVALIDITY: If any term, provision, condition, or part of this Lease is declared
by a court of competent jurisdiction to be invalid or unconstitutional, the remaining terms,
provisions, conditions, or parts shall continue in full force and effect as though the declaration had
not been made.
ARTICLE XII
LEASE TERMINATION
A. CANCELLATION: The City may, after 30 days' written notice to the Lessee, cancel this
Lease and recover possession of the Premises if any of the following violations occur, unless the
violation is cured within the 30 days:
The Lessee fails to pay when due the rents, additional rents, charges, or other
sums specified in this Lease, including any increases made under this Lease.
2. The Lessee's check for payment of any sum due under this Lease is returned for
insufficient funds.
3. The Lessee uses or authorizes the use of the Premises for any purpose not
authorized by this Lease.
4. The Lessee fails to fully perform and comply with any provision in this Lease.
5. The Lessee violates a provision of Kenai Municipal Code applicable to this Lessee.
6. The court enters a judgment of insolvency against the Lessee.
7. A trustee or receiver is appointed for the Lessee's assets in a proceeding brought
by or against the Lessee, or the Lessee files a voluntary petition in bankruptcy.
8. Failure by the Lessee to comply with any land development or permanent
improvement construction required by this Lease.
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LEASE OF AIRPORT RESERVE LANDS Page 13 of 29
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detfl�ulll Ib llhe L�:ALe.
C. ENTRY AND RE-ENTRY: In the event that the Lease should be terminated in accordance
..................................................
with this Article XII, or by summary proceedings or otherwise, or upon the Lessee's abandonment
of the Premises or a portion of the Premises, the City or its agents, servants, or representatives
may, immediately or any time thereafter, re-enter, and resume possession of the Premises or
portion thereof, and remove all persons and property therefrom, without being liable for any
damages therefore. No re-entry by the City shall be deemed an acceptance of a surrender of the
Lease.
III:. CONTINUING OBLIGATIONS UNTIL PREMISES VACATED: The Lessee will continue
to.........
pay City rent after the expiration, termination, or cancellation of this lease and to abide by the
lease obligations, including providing proof of insurance coverage, through the date Lessee
relinquishes possession of and completely vacates the Premises. City will consider the Premises
completely vacated if the Lessee has
Remediated any environmental contamination for which the Lessee is responsible;
2. Restored the Premises to a neat and clean physical condition acceptable to the
City.
Ih:dh . REASONABLE CURE:
In the case of a violation that cannot be reasonably cured within 30 days, a notice
of cancellation issued by the City to the Lessee under this Article is stayed if, within
the 30-day notice period, the Lessee begins and continues expeditious action to
cure the violation. The City will determine if a violation cannot be reasonably cured
within 30 days and what constitutes expeditious action.
2. In the case where, in City's sole determination, Lessee's violation is considered an
imminent threat to the airport, public health or safety, or the environment, City will
direct the Lessee to stop the activity immediately and may reduce the period to
cure the violation, or the City may correct the violation pursuant to (E) of this Article.
Ih IF F. RIGHT OF CITY TO PERFORM:
If, after 30 days following notice the Lessee fails or refuses to perform any action
required by this Lease, the City will have the right, but not the obligation, to perform
any or all such actions required by this Lease at the sole expense of the Lessee.
The City will not take action if the Lessee begins and continues expeditious action
to perform any action required by this Lease that cannot be reasonably completed
within 30 days. The City will, at its sole discretion, determine what constitutes
expeditious action and if an action cannot be reasonably performed in 30 days.
The City will submit to the Lessee an invoice for the expenses incurred by the City
in the performance by the City of any required action. The Lessee will pay the
amount of each invoice within 30 days from issuance.
LEASE OF AIRPORT RESERVE LANDS Page 14 of 29
2. If Lessee fails or refuses to perform any action that has been deemed an imminent
threat the City will have the right, but not the obligation, to perform any or all such
actions required to expeditiously correct the imminent threat. Lessee shall
reimburse the City for any cost, including legal fees and administrative costs
reasonably incurred by the City in acting to correct the imminent threat violation.
IG. WAIVER: A waiver by the City of any default by the Lessee of any provision of this Lease
will not operate as a waiver of any subsequent default. If the City waives a default, the City is not
required to provide notice to the Lessee to restore or revive any term or condition under this
Lease. The waiver by the City of any provision in this Lease cannot be enforced or relied upon
unless the waiver is in writing and signed on behalf of the City. The City's failure to insist upon
the strict performance by the Lessee of any provision in this Lease is not a waiver or
relinquishment for the future, and the provision will continue in full force.
GH. AIRPORT CLOSURE:
If the City closes the airport to aircraft operations for sixty days or less, this Lease
will remain in full force and effect without adjustment
2. If the City closes the Airport to aircraft operations for more than sixty days, but not
permanently, and this Lease is for aviation or direct aviation support uses, the
Lessee may, upon written notice to the City, either terminate the Lease or retain
the Lease and receive a fifty (50%) percent rent reduction or credit for that portion
of the closure that exceeds sixty days.
3. If the City permanently closes the Airport to aircraft operations and
a. this Lease is for aviation or direct aviation support uses, the Lessee may
terminate this agreement by written notice to the City; or
b. this Lease is for non -aviation uses, the Lessee may request in writing to
have the Lease terminated. The City will consider the Lessee's request in
light of the City's best interest and either terminate the Lease, or deny the
Lessee's request in writing.
k4-.1I1. DISASTERS: The Lessee or City may cancel this lease upon written notice to the other
party if:
the Premises becomes unusable through no fault of either party and performance
under this lease becomes impossible; or
2. the Airport becomes unusable through no fault of either party and the performance
under this lease becomes impossible.
If the Lessee elects in writing that it will continue to operate after notice from City to Lessee that
the Airport has become unusable, the Lessee's obligations under the Lease will continue, but City
shall be under no obligation to continue to perform.
LEASE OF AIRPORT RESERVE LANDS Page 15 of 29
Causes for termination of the lease under this provision (G) include acts of God, the public enemy,
and the United States.
ICU. NATIONAL EMERGENCY: If the federal government declares a national emergency,
neither party may hold the other liable for any inability to perform any part of this Lease as a result
of the national emergency.
JIK. SURRENDER ON TERMINATION: Except as provided otherwise in this Article XII,
Lessee shall, on the last day of the term of this Lease (including any extension or renewal thereof)
or upon any earlier termination of this Lease, surrender and deliver up the premises into the
possession and use of City without fraud or delay in good order, condition, and repair, except for
reasonable wear and tear since the last necessary repair, replacement, restoration or renewal,
free and clear of all lettings and occupancies unless expressly permitted by the City in writing,
and free and clear of all liens and encumbrances other than those created by and for loans to
City.
IIKIC... OWNERSHIP AND DISPOSITION OF IMPROVEMENTS:
Ownership of Permanent Improvements: Permanent improvements on the
Premises, excluding Site Development Materials, constructed, placed, or
purchased by the Lessee remain the Lessee's property as long as this Lease
remains in effect, including any period of extension or holdover with the consent
of the Lessor.
2. Disposition of Site Development Materials: The Lessee acknowledges that,
once placed by the Lessee, the removal from the Premises of Site
Development Materials can damage the Premises, adversely affect surface
water drainage patterns, and destabilize adjacent structures. When placed on
the Premises by the Lessee, Site Development Materials, including building
pads, parking areas, driveways, and similar structures:
a. become a part of the realty and the property of the City of Kenai;
b. unless otherwise directed by the Lessor, must be maintained by the Lessee
throughout the term of this Lease, including any extensions and periods of
holdover; and
C. may not be removed by the Lessee without the prior written approval of the
Lessor.
3. Disposition of Personal Property and Permanent Improvements Other Than Site
Development Materials:
a. Unless the Lessor otherwise directs as provided below, when this Lease
expires, terminates, or is cancelled and is neither extended nor followed by
a successive lease, the departing Lessee may do one or more of the
following:
LEASE OF AIRPORT RESERVE LANDS Page 16 of 29
remove Lessee -owned Permanent Improvements from the
Premises, remediate any Contamination for which the Lessee is
responsible, and restore the Premises to a clean and neat
physical condition acceptable to the Lessor within 60 days after
the expiration, cancellation, or termination date of this Lease;
with written approval from the Lessor, sell Lessee -owned
Permanent Improvements to the succeeding lessee, remove all
personal property, remediate, any Contamination for which the
Lessee is responsible and leave the Premises in a clean and
neat physical condition acceptable to the Lessor within 60 days
after notice from the Lessor that the Lessor has approved an
application for a lease of the Premises by another person or such
longer period specified in the notice, but in no event more than
180 days after the expiration, termination, or cancellation date of
this Lease;
iii. elect to have the Lessor sell Lessee -owned Permanent
Improvements at public auction as provided below, remediate
any Contamination for which the Lessee is responsible, and
restore the premises to a clean and neat physical condition
acceptable to the Lessor. If the Lessor sells Permanent
Improvements under this Paragraph for removal from the
Premises, the departing Lessee's obligation under this
Paragraph continues until the Premises are remediated and
restored to a clean and neat physical condition acceptable to the
Lessor after the improvements have been removed.
b. If the departing Lessee elects to have the Lessor sell Lessee -owned
Permanent Improvements at public auction per this Section, the Lessee
shall, within 30 days after the expiration, cancellation, or termination of this
Lease:
submit to the Lessor a written request and authorization to sell
the Permanent Improvements by public auction;
provide to the Lessor an executed conveyance document
transferring clear title to the Permanent Improvements to the
successful bidder at the public auction, along with authorization
to the Lessor, as agent for the Lessee for purposes of the sale
only, to endorse the name of the successful bidder on the
conveyance document upon receipt of payment of the successful
bid price; and
iii. before the date of the public auction, remove all personal
property, remediate any Contamination for which the Lessee is
responsible and leave the Premises in a neat and clean physical
condition acceptable to the Lessor.
LEASE OF AIRPORT RESERVE LANDS Page 17 of 29
C. When selling Lessee -owned Permanent Improvements at public auction for
the departing Lessee, the Lessor will establish the terms and conditions of
the sale. The Lessor shall pay the Lessee any proceeds of the sale of the
Permanent Improvements, less the administrative costs of the public
auction and any financial obligation the Lessee owes to the Lessor under
this Lease. Payment will be made within a reasonable time after the Lessor
completes the sale transaction and receives the proceeds, but not to
exceed 60 days. If all or a portion of the Permanent Improvements do not
sell at public auction, the Lessee will remove those Permanent
Improvements, remediate any Contamination for which the Lessee is
responsible and restore the Premises to a clean and neat physical condition
acceptable to the Lessor within 60 days after the auction.
d. If the Lessee shows good cause to the Lessor and if it is not inconsistent
with the best interest of the City of Kenai, the Lessor will grant an extension
of time that is sufficient to allow the Lessee to remove or sell Lessee -owned
Permanent Improvements, remediate any Contamination for which the
Lessee is responsible and to restore the Premises to a clean and neat
physical condition acceptable to the Lessor.
e. The Lessor will, by written notice, direct the departing Lessee to remove
Lessee -owned Permanent Improvements from the Premises, to remediate,
consistent with applicable law, any Contamination for which the Lessee is
responsible and to restore the Premises to a clean and neat physical
condition acceptable to the Lessor if the Lessor determines in writing:
that the continued presence of the Permanent Improvements
on the Premises are not consistent with any written Airport
program or plan required for compliance with applicable
federal, state, or local law;
that the continued presence of the Permanent Improvements on
the Premises is not in the best interest of the City of Kenai; or
iii. that the Permanent Improvements present a hazard to public health
or safety.
The departing Lessee to whom the Lessor has issued direction under
Paragraph e of this Section shall comply with the Lessor's direction within
60 days after issuance of the direction and at no cost to the Lessor. If the
departing Lessee shows good cause to the Lessor, continues to work
diligently to comply with Lessor's direction, and if it is not inconsistent with
the best interest of the City of Kenai, the Lessor will allow in writing a longer
period that is sufficient to allow the Lessee to comply with the Lessor's
direction. A departing Lessee who fails to comply with a direction issued
by the Lessor under Paragraph e of this Section, shall, within 30 days of
being billed by the Lessor, reimburse the Lessor for any costs reasonably
incurred by the Lessor, including legal fees and administrative costs, to
enforce the Lessor's direction or to remove and dispose of unremoved
LEASE OF AIRPORT RESERVE LANDS Page 18 of 29
Lessee -owned improvements, remediate any Contamination for which the
Lessee is responsible and restore the Premises.
g. If the departing Lessee does not timely remove or sell the Lessee -owned
Permanent Improvements on the Premises in accordance with the
requirements of this Section, any remaining Permanent Improvements and
any remaining personal property of the departing Lessee will be considered
permanently abandoned. The Lessor may sell, lease, demolish, dispose
of, remove, or retain the abandoned property for Airport use as the Lessor
determines is in the best interest of the City of Kenai. The departing Lessee
shall, within 30 days after being billed by the Lessor, reimburse the Lessor
for any costs reasonably incurred by the Lessor, including legal and
administrative costs, to demolish, remove, dispose, clear title to, or sell the
abandoned property and to remediate and restore the Premises.
h. After the expiration, termination, or cancellation of the Lease, including any
holdover, the departing Lessee loses all right to occupy or use the premises
without the express or implied consent of the Lessor. Except as the Lessor
notifies the departing Lessee otherwise in writing, the Lessor consents to
the departing Lessee's continued use and occupancy of the Premises to
diligently accomplish the requirements of this Section. Until the departing
Lessee relinquishes possession of and completely vacates the Premises
and notifies the Lessor in writing that it has relinquished and vacated the
Premises, the departing Lessee shall perform the following as if the lease
were still in effect,
pay rent to the Lessor;
maintain the premises;
iii. provide the Lessor with evidence of each insurance coverage, if
any, required under the Lease; and
iv. cease using the premises other than to diligently accomplish the
requirements of this Section, and to comply with the other
requirements of the Lease.
A departing Lessee will not be considered to have relinquished possession
and completely vacated the Premises until
the departing Lessee has:
(a) remediated, consistent with applicable law, any
Contamination for which the Lessee is responsible;
and
(b) restored the Premises to a clean and neat physical
condition acceptable to the Lessor; and
LEASE OF AIRPORT RESERVE LANDS Page 19 of 29
either
(a) removed all of the Lessee's Permanent Improvements and
personal property from the premises or sold the Permanent
Improvements and personal property to a succeeding
Lessee under the provisions of this Lease; or
(b) transferred title to the Lessee's Permanent Improvements
and personal property that remain on the premises to the
Lessor.
ARTICLE XIII
GENERAL COVENANTS
A. USE OF THE AIRPORT: Except as provided herein, any regular use of Airport lands or
facilities without the written consent of the City is prohibited. This prohibition shall not apply to
use of areas designated by the City for specified public uses, such as passenger terminals,
automobile parking areas, and streets.
B. COSTS AND EXPENSES: Costs and expenses incident to this lease, including but not
limited to recording costs, shall be paid by Lessee.
C. CARE OF THE PREMISES: The Lessee shall keep the Premises clean and in good order
at the Lessee's own expense, allowing no damage, waste, nor destruction thereof, nor removing
any material therefrom, without written permission of the City. At the expiration of the term fixed,
or any earlier termination of the Lease, the Lessee will peaceably and quietly quit and surrender
the premises to the City.
D. CONSTRUCTION APPROVAL AND STANDARDS: Any building construction on the
Premises by the Lessee must be compatible with its surroundings and consistent with the uses
authorized under this Lease, as determined by the City. The Lessee must obtain the City's written
approval before placing fill material, beginning any land development, or constructing or
demolishing any improvements on the Premises, and before beginning any alterations,
modifications, or renovation of existing structures on the Premises. The Lessee must submit to
the City detailed drawings of the proposed development, alteration, modification, or renovation,
together with specifications or any other information the City reasonably requires. Further, the
Lessee will submit to City evidence of the Lessee's compliance with Federal Aviation
Administration regulation 14 CFR Part 77.
E. LEASE SUBORDINATE TO AIRPORT FINANCING REQUIREMENTS: Lessee agrees
that City may modify this Lease to meet revised requirements for Federal or State grants, or to
conform to the requirements of any revenue bond covenant. However, the modification shall not
act to reduce the rights or privileges granted the Lessee by this Lease, nor act to cause the Lessee
financial loss.
F. RIGHT TO ENJOYMENT AND PEACEABLE POSSESSION: City hereby agrees and
covenants that the Lessee, upon paying rent and performing other covenants, terms, and
conditions of this Lease, shall have the right to quietly and peacefully hold, use, occupy, and enjoy
LEASE OF AIRPORT RESERVE LANDS Page 20 of 29
the Premises, except that the following shall not construed as a denial of the right of quiet or
peaceable possession:
Any inconvenience caused by public works projects in or about the Premises; and
2. Any other entries by the City on the Premises reserved or authorized under other
provisions of this Lease.
G. NO PARTNERSHIP OR JOINT VENTURE CREATED: It is expressly understood that the
City shall not be construed or held to be a partner or joint venture of Lessee in the conduct of the
Lessee's activities or business on the Premises. The relationship between the City and the
Lessee is, and shall at all times remain, strictly that of landlord and tenant, respectively.
H. DISCRIMINATION: The Lessee will not discriminate on the grounds of race, color,
religion, national origin, ancestry, age, or sex against any patron, employee, applicant for
employment, or other person or group of persons in any manner prohibited by federal or state
law. The Lessee recognizes the right of the City to take any action necessary to enforce this
provision, including actions required pursuant to any federal or state law.
I. AFFIRMATIVE ACTION: If required by 14 CFR Part 152, subpart E, the Lessee will
undertake an affirmative action program to insure that no person will be excluded from
participating in any employment activities offered by the Lessee on the grounds of race, creed,
color, national origin, or sex. No person may be excluded on these grounds from participating in
or receiving the services or benefits of any program or activity covered by subpart E. The Lessee
further agrees that it will require its sub-organization(s) provide assurance to the City to the same
effect that they will also undertake affirmative action programs and require assurances from their
sub-organization(s) as required by 14 CFR, Part 152, subpart E.
Tenant shall use the premises in compliance with all other requirements imposed by or pursuant
to title 49, code of Federal Regulations, DOT, 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 the Regulation may be amended.
J. INTEGRATION, MERGER, AND MODIFICATION: This Lease sets out all the terms,
conditions, and agreements of the parties and supersedes any previous understandings or
agreements regarding the Premises whether oral or written. No modification or amendment of
this Lease is effective unless in writing and signed on behalf of the City and the Lessee.
K. RIGHT TO ADOPT RULES: City reserves the right to adopt, amend, and enforce
reasonable rules and regulations governing the Airport, including the Premises. The City shall
not be liable to Lessee for any diminution or deprivation of possession, or of Lessee's rights under
this Lease, on account of the exercise of the City's authority reserved under this provision.
Furthermore, the Lessee shall not be entitled to terminate the whole or any portion of the
leasehold estate created under this Lease, by reason of the exercise of the City's authority
reserved under this provision, unless the exercise thereof so interferes with Lessee's use and
occupancy of the Premises as to constitute a termination, in whole or in part, of this Lease by
operation of law under the laws of the State of Alaska and of the United States made applicable
to the states.
LEASE OF AIRPORT RESERVE LANDS Page 21 of 29
L. LESSEE'S OBLIGATION TO PREVENT AND REMOVE LIENS: Lessee will not permit
any liens including, but not limited to, mechanics', laborers', or materialmen's liens obtainable or
available under the then existing laws, to stand against the Premises or improvements on the
Premises for any labor or material furnished to Lessee or claimed to have been furnished to
Lessee or to the Lessee's agents, contractors, or sub -lessees, in connection with work of any
character performed or claimed to have been performed on the Premises or improvements by or
at the direction or sufferance of Lessee. Provided, however, the Lessee shall have the right to
provide a bond as contemplated by Alaska law and contest the validity or amount of any such lien
or claimed lien. Upon a final determination of the lien or claim for lien, the Lessee will immediately
pay any judgment rendered with all proper costs and charges and shall have such lien released
or judgment satisfied at Lessee's own expense.
M. CONDEMNATION: In the event the Premises or any part thereof shall be condemned
and taken for a public or a quasi -public use, then upon payment of any award or compensation
arising from the condemnation or taking, the City and the Lessee shall make a good faith effort to
agree upon
the division of the proceeds;
2. the abatement in rent payable during the term or any extension of the term of this
Lease; and
3. other adjustments as the parties may agree upon as being just and equitable under
all the circumstances.
If, within thirty days after the award has been paid into Court, the City and Lessee are unable to
agree upon what division, abatement in rent, and other adjustments as are just and equitable, the
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N. SUCCESSORS IN INTEREST: This Lease shall be binding upon and shall inure to the
benefit of the respective successors and assigns of the parties hereto, subject to such specific
limitations on assignment as are provided for in this Lease.
O. NOTICES:
Any notices required by this Lease must be in writing and must be delivered
personally or mailed by certified or registered mail in a prepaid envelope. A mailed
notice
a. must be addressed to the respective party at the address written on the
first page of this Lease or to the latest address designated in accordance
with (2) of this Provision (0); and
b. shall be deemed delivered on the date it is deposited in a U.S. general or
branch post office.
LEASE OF AIRPORT RESERVE LANDS Page 22 of 29
2. The City or the Lessee may, from time to time, designate a new address at which
they will receive notices by providing the other party with written notice at least 15
days prior to the effective date of the change. An address change notice must be
delivered according to the procedure set out in (1) of this Provision (0).
P. RETENTION OF RENTAL: In the event the City terminates this Lease because of any
breach by the Lessee, the City shall retain any unused balance of the rental payment last made
by the Lessee City as partial or total liquidated damages for the breach.
Q. FIRE PROTECTION: The Lessee will take all reasonable precautions to prevent, and
take all necessary action to suppress destructive or uncontrolled fires and comply with all laws,
regulations, and rules promulgated and enforced by the City for fire protection on the Airport.
R. PERSONAL USE OF MATERIALS: No interest in coal, oil, gas or any other mineral, or in
any deposit of stone or gravel valuable for extraction or utilization is included in the Premises or
in the rights granted by this lease. The Lessee shall not sell or remove from the Premises for use
elsewhere any timber, stone, gravel, peat moss, topsoil or any other material valuable for building
or commercial purposes.
S. APPROVAL OF OTHER AUTHORITIES: The granting of this lease by the City does not
relieve the Lessee of the responsibility to obtain any license or permit as may be required by
federal, state, or local law.
T. EXECUTION BY THE PARTIES: This Lease is of no effect unless signed by the Lessee,
or a duly authorized representative of Lessee, and an authorized representative of the City.
U. CAPTIONS: The captions of the provisions of this Lease are for convenience only and do
not necessarily define, limit, describe, or construe the contents of any provision.
V. RIGHTS OF CONSTRUCTION: This Lease is intended to make public property available
for private use, while at all times protecting the public interest to the greatest extent possible.
Following the rule that transfers of interest in public property are to be strictly construed in favor
of the public property landlord, all rights granted to the Lessee under this Lease will be strictly
construed, and all rights of the City and the protections of the public interest will be liberally
construed.
W. LESSEE ACKNOWLEDGEMENT: The Lessee acknowledges that the Lessee has read
this Lease and fully understands its terms, that the Lessee has been fully advised or has had the
opportunity of advice by separate legal counsel, and voluntarily executes this Lease. Lessee also
acknowledges and agrees that the rule of interpretation under which a document is construed
against the drafter will not apply to this Lease.
X. APPROVAL BY LESSOR: Any approval required of the Lessor by this Lease will not be
unreasonably withheld. The Lessor's approval does not waive the Lessee's legal responsibility
or liability to comply with all applicable federal and state laws and regulations.
ARTICLE XIV
SURVEY, IMPROVEMENTS AND PERFORMANCE BOND
LEASE OF AIRPORT RESERVE LANDS Page 23 of 29
A. SURVEY: The Lessee is solely responsible, at its sole expense, to confirm or establish
the physical location of the boundaries of the Premises prior to beginning any construction
thereon, including clearing grubbing, back -filling and environmental sampling. Any survey of the
Premises shall be performed by a Land Surveyor registered in the State of Alaska. The Lessee
shall furnish the City with a copy of the plat of any survey performed on the Premises by, or on
behalf of, the Lessee.
B. IMPROVEMENTS:
REQUIRED IMPROVEMENTS: At no cost to the City, Lessee agrees to complete
land development and construction of Permanent Improvements including
electrical service improvements and a concrete containment barrier, by no later
than June 30, 2024, with an aggregate cost of at least $ 10,000.00, excluding
financing costs. In addition to the as -built drawings required by this Lease, the
Lessee must submit to the City written evidence that the Lessee has completed
the land development and constructed improvements on the Premises with an
aggregate cost or investment of not less than $ 10,000.00.
Lot developments will prevent unauthorized access to the airfield;
Structures will be built behind the 100 foot building restriction line;
State of Alaska, Division of Forestry is responsible for all snow removal, and snow
may not touch the perimeter security fence or be piled to a height that would allow
access to the airport.
The evidence of cost must be submitted to the City within sixty days of the
completion of the development and improvements, but by no later than August 29,
2024.
a. Costs considered toward the aggregate cost of permanent improvements
include building construction, design, labor, materials, materials shipping,
permits, equipment, soil testing, environmental baseline report, and
environmental assessment directly related to the construction; premises
and as -built surveys; site preparation, including excavation, geotextile
fabric, filling, grading, fill material, gravel, and pavement, remediation of
environmental contamination (unless Lessee caused or Materially
Contributed To the Contamination); and utility connection costs.
b. The cost of Permanent Improvements excludes:
1. work performed by the City and not reimbursed by the Lessee;
and
2. work performed by the Lessee and reimbursed by the City.
2. FAILURE TO COMPLETE IMPROVEMENTS: If the Lessee fails to complete the
required construction within the time allowed under (b)(1) of this Article, including
any extensions granted, the City will execute against and the Lessee will forfeit,
any bond or other guarantee given by the Lessee and, as applicable, City will:
LEASE OF AIRPORT RESERVE LANDS Page 24 of 29
a. initiate cancellation of the lease; or
b. reduce the term of the lease to a period that is consistent with the portion
of the required construction timely completed.
3. APPEARANCE: When completed, all improvements on the Premises must be
neat, presentable, and compatible with the authorized use of the Premises under
this Lease, as determined by the City.
4. CITY APPROVAL REQUIRED: The Lessee must first obtain the City's written
approval before beginning any land development, construction or demolition of any
improvements on the Premises, or before beginning any alterations, modifications,
or renovation of existing structures on the Premises. The Lessee must submit to
the City detailed drawings of the proposed development, alteration, modification,
or renovation. Further, the Lessee will submit to City evidence of the Lessee's
compliance with the FAA regulation 14 CFR Part 77.
5. CITY APPROVAL WITHHELD: The City's approval of any construction, alteration,
modification, or renovation will not be withheld unless
a. the Lessee fails to demonstrate adequate financial resources to complete
the project;
b. the project plans, specifications, and agency approvals are incomplete;
C. the proposed project would result in a violation of an applicable ordinance,
regulation, or law;
d. the proposed project would interfere with or is incompatible with the safety,
security, maintenance, or operation of the airport;
e. the proposed project is inconsistent with the Airport Master Plan;
the proposed project is inconsistent with the terms of the lease, zoning
ordinances, or the City's Comprehensive Plan;
g. the project plans do not make sufficient provision for drainage, aircraft,
vehicle, and equipment parking, or for snow storage; or
h. the proposed project does not conform to generally recognized engineering
principles or applicable fire or building codes.
6. DEMOLITION: Prior to any demolition of any structure(s) on the Premises, Lessee
will deliver to City a written scope of work that, at a minimum, lists the structure(s)
that are to be demolished and the timeframe for demolition and removal of the
debris from the Airport. City will review Lessee's scope for demolition and issue
Lessee written approval for the work to be done.
LEASE OF AIRPORT RESERVE LANDS Page 25 of 29
7. BUILDING SETBACK: No building or other permanent structure may be
constructed or placed within twenty feet of any lot of the Premises without City's
prior written approval. In addition, no building or other permanent structure may
be constructed or placed within twenty feet of any boundary line of the Premises
which fronts on a landing strip, taxiway, or apron.
8. AS -BUILT DRAWINGS: Within sixty days after completion of construction or
placement of improvements upon the Premises, the Lessee will deliver to the City
a copy of an as -built drawing, acceptable to the City, showing the location and
dimensions of the improvements, giving distances to all Premises' boundaries. If
the Lessee constructs underground improvements, the Lessee will appropriately
mark the surface of the land with adequate surface markers. The type, quantity,
and distance between such markers will be subject to approval of the City.
9. AIRPORT SECURITY FENCING: If any construction by the Lessee requires a
realignment or alteration of an existing security fence on the Premises or boundary
of the Premises, the Lessee agrees to realign or alter the fence in a manner
approved in writing by the Airport Manager. Anytime the fence must be breached
to allow the Lessee to complete improvement construction or fence modifications,
the Lessee shall, at the Lessee's sole expense place temporary barriers to
maintain the security of the Airport, as determined by the Airport Manager. If
damage occurs to a security fence on the Premises or boundary of the Premises
in connection with the Lessee's use or occupation of the Premises, the Lessee
shall promptly repair the fence to the satisfaction of the Airport Manager.
10. DAMAGE TO IMPROVEMENTS: If Lessee's improvements on the Premises are
damaged or destroyed, Lessee will cause the improvements to be repaired or
rebuilt, and restored to normal function within two years following the damage or
destruction. If the Lessee fails to timely rebuild or restore the improvements, the
City may, at its sole discretion, either reduce the term of this Lease commensurate
with the estimated value of the Lessee's remaining, fully functional improvements
on the Premises, or cancel this Lease.
11. DAMAGE NEAR EXPIRATION: If Lessee's improvements are damaged to the
extent that more than 50% of the space is unusable and the damage occurs within
five years of the expiration of the term of this Lease, Lessee may remove the
damaged improvements, restore the Premises and terminate this Lease.
C. PERFORMANCE BOND (Optional): Prior to beginning the construction of permanent
improvements required under (1) of this Article, the Lessee shall submit to the City a performance
bond, deposit, or other security in the amount of $ performance bond not applicable. The form
of the bond or other security shall be subject to the City's approval.
D. SURRENDER ON TERMINATION: Lessee shall, on the last day of the term of this Lease
or upon any earlier termination of this Lease, surrender and deliver upon the premises into the
possession and use of City without fraud or delay in good order, condition, and repair, except for
reasonable wear and tear since the last necessary repair, replacement, restoration or renewal,
free and clear of all lettings and occupancies unless expressly permitted by the City in writing,
and free and clear of all liens and encumbrances other than those created by and for loans to
LEASE OF AIRPORT RESERVE LANDS Page 26 of 29
City. Upon the end of the term of this Lease, including any extension or renewal, or any earlier
termination thereof, title to the buildings, improvements and building equipment shall
automatically vest in City without requirement of any deed, conveyance, or bill of sale thereon.
However, if City should require any such document in confirmation hereof, Lessee shall execute,
acknowledge, and deliver the same and shall pay any charge, tax, and fee asserted or imposed
by any and all governmental unites in connection herewith.
E. NOTICE OF CONSTRUCTION: The Lessee agrees to notify the City in writing three days
prior to commencing any construction project valued in excess of $1,000.00 on the Premises.
The Lessee agrees to assist in the posting of a notice of non -responsibility and maintenance of
the notice on the Premises during construction. Lessee agrees that in the event the Lessee fails
to notify the City as required by this Provision (f), the Lessee shall indemnify the City against any
materialmen's liens as defined in AS 34.35.050 which arise as a result of construction on the
premises.
LEASE OF AIRPORT RESERVE LANDS Page 27 of 29
IN WITNESS WHEREOF, the parties hereto have hereunto set their hands, the day and year
stated in the individual acknowledgments below.
LESSEE:
STATE OF ALASKA DIVISION OF FORESTRY
M
Its:
STATE OF ALASKA
THIRD JUDICIAL DISTRICT
Date
LESSOR:
CITY OF KENAI
0
Paul Ostrander Date
Its: City Manager
ACKNOWLEDGMENTS
) ss.
THIS IS TO CERTIFY that on this day of 1 , ,
, of being personally known to me or
having produced satisfactory evidence of identification, appeared before me and acknowledged
the voluntary and authorized execution of the foregoing instrument on behalf of said limited liability
corporation.
Notary Public for Alaska
My Commission Expires:
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this day of , Paul Ostrander, City
Manager of the CITY OF KENAI, ALASKA, being personally known to me or having produced
satisfactory evidence of identification, appeared before me and acknowledged the voluntary and
authorized execution of the foregoing instrument on behalf of said City.
Notary Public for Alaska
My Commission Expires:
LEASE OF AIRPORT RESERVE LANDS Page 28 of 29
ATTEST:
Michelle Saner, City Clerk
SEAL:
Approved as to Lease Form
Scott Bloom, City Attorney
After Recording, Return to:
City of Kenai
210 Fidalgo Avenue
Kenai, AK 99611
LEASE OF AIRPORT RESERVE LANDS Page 29 of 29
KENAI MUNICIPAL AIRPORT
LEASE OF AIRPORT RESERVE LANDS
THIS LEASE AGREEMENT entered into this 1st day of July, 2022, by and between the
CITY OF KENAI, 210 Fidalgo Avenue, Kenai, Alaska 99611-7794, and STATE OF ALASKA
DEPARTMENT OF TRANSPORTATION & PUBLIC FACILITIES, DIVISON OF FACILITIES
SERVICES-10 whose address is 550 W. 7th Avenue, Suite 200 Anchorage, Alaska 99501,
("Lessee").
DEFINITIONS
For the purposes of this Lease the following terms are defined in KMC 21.10.020 (effective as of
the date of execution of the lease) as follows:
Airport — the Kenai Municipal Airport, including all the runways, taxiways, aprons, water
lanes, water taxiways, and all City -owned real estate located within the boundaries of the
Airport Reserve as defined in KMC Chapter 21.05, Airport Administration and Operation.
2. Airport Manager — the official to whom the City Manager of the City has delegated the
authority and responsibility of managing and directing the activities of the Airport. "Airport
Manager" includes that person's authorized representative.
3. City— the City of Kenai, its elected officials, officers, employees or agents.
4. City Manager —the official to whom the Kenai City Council has delegated the responsibility
of managing and directing all activities of the City.
5. Contamination — the unpermitted presence of any released Hazardous Substance.
6. Environmental Law — any applicable federal, state, or local statute, law, regulation,
ordinance, code, permit, order, decision, judgment of any governmental entity relating to
environmental matters, including littering and dumping.
7. FAA — the abbreviation for the Federal Aviation Administration.
8. Hazardous Substance — any substance that is defined under an Environmental Law as
hazardous waste, Hazardous Substance, hazardous material, toxic, pollutant,
contaminant, petroleum, petroleum product, or oil.
9. KMC — the abbreviation for the Kenai Municipal Code.
10. Permanent Improvement — a fixed addition or change to land that is not temporary or
portable, including a building, building addition, gravel fill, pavement, retaining wall,
storage tank, well, and remediation of contamination for what the lessee is not responsible
LEASE OF AIRPORT RESERVE LANDS Page 1 of 28
ARTICLE I
PREMISES LEASED
A. PREMISES: In consideration of Lessee's payment of the rents and performance of all the
covenants of this Lease, the City leases to the Lessee, and the Lessee leases from the City, the
following described property ("Premises") in the Kenai Recording District, Third Judicial District,
State of Alaska and located on the Airport; to wit:
Lot 4A, FBO Subdivision No.11, according to the
official plat thereof, filed under Plat No. 2021-44,
Records of the Kenai Recording District, Third
Judicial District, State of Alaska.
B. NO WARRANTY: Except as may be provided in this Lease, the City makes no specific
warranties, expressed or implied, concerning the condition of the Premises including, survey,
soils, wetlands, access, and suitability or profitability for any use including those authorized by
this Lease, its environmental condition, or the presence or absence of Hazardous Substances in,
on, and under the surface. The Lessee takes the Premises on an "as is" basis and without
warranty, subject to any and all of the covenants, terms, and conditions affecting the City's title to
the Premises.
ARTICLE II
RIGHTS AND USES
A. AUTHORIZED USES:
USE OF PREMISES: The City authorizes the Lessee to use the Premises for the
following purposes only:
Air Tanker Reload Base
2. CONTINUOUS OPERATIONS: Unless the City approves otherwise in writing, the
Lessee will operate on the Premises on a continuous basis, uninterrupted by any
period of closure over 15 consecutive days. The Lessee will give the City written
notice before closing the Lessee's business on the Premises for more than 10
consecutive days. The notice must state the reason for the closure and the date
on which the Lessee will re -open for business. This provision does not apply to
any period during which the Lessee is unable to operate its business as a result of
an act or directive of the City, or as a result of a closure of the Airport or loss of the
Lessee's buildings on the Premises due to fire or natural disaster.
B. RIGHTS RESERVED TO THE CITY:
RIGHT TO GRANT TO OTHERS: The City reserves the right to grant to others
any rights and privileges not specifically granted to the Lessee on an exclusive
basis. The rights and privileges granted to the Lessee in this Lease are the only
rights and privileges granted to the Lessee by this Lease.
LEASE OF AIRPORT RESERVE LANDS Page 2 of 28
2. EASEMENTS: The City reserves the right to make grants to third parties or
reserve to the City easements or rights of way through, on, or above the Premises.
The City will not grant or reserve any easement or right of way that unreasonably
interferes with the Lessee's authorized uses of the Premises.
3. INGRESS, EGRESS AND INSPECTION: The City reserves the right of ingress to
and egress from the Premises and the right to enter any part of the Premises,
including buildings, for the purpose of inspection or environmental testing at any
time. Except in the case of an emergency, all inspections and environmental
testing will be coordinated with the Lessee to minimize interference with the
Lessee's authorized uses of the Premises.
4. RIGHT OF FLIGHT: There is hereby reserved to the City, its successors and
assigns, for the use and benefit of the public, a right of flight for the passage of
aircraft in the airspace above the surface of the Premises. This public right of flight
will include the right to cause in the airspace any noise inherent in the operation of
any aircraft used for navigation or flight through the airspace or landing at, taking
off from, or operation on the Airport.
C. PROHIBITED USES: Unless specifically authorized by this Lease or an amendment to
this Lease, the following are prohibited:
1. Any use of the Premises other than those authorized in this Lease.
2. Any use of the Premises that is in violation of a City Ordinance or an Airport
regulation.
3. The outside storage on the Premises of junk, salvage aircraft or vehicle parts, non-
operational support equipment, unused or damaged equipment or material, or solid
waste or debris unless allowed pursuant to a conditional use permit under KMC
14.20.
4. The disposal on the Premises or the Airport of waste materials generated by the
Lessee, including any Hazardous Substance, slash, overburden, and construction
waste.
5. The stripping, wasting, or removing any material from the Premises without the
prior written approval of the City.
6. Erecting structures or allowing growth of natural objects that would constitute an
obstruction to air navigation, or allowing any activity on the Premises that would
interfere with or be a hazard to the flight of aircraft, or interfere with air navigation
or communication facilities, serving the Airport.
7. Any use or activity that is prohibited by applicable law or regulation.
ARTICLE III
TERM & HOLDOVER
LEASE OF AIRPORT RESERVE LANDS Page 3 of 28
A. TERM: The initial term of this Lease is for five (5) years, from the 1st day of July, 2022,
to the 30th day of June, 2027.
B. HOLDOVER: If the Lessee holds over and remains in possession of the Premises after
the expiration, cancellation or termination of this Lease, the holding over will not operate as an
extension of the term of this Lease, but only creates a month -to -month tenancy, regardless of any
rent payments accepted by the City. The Lessee's obligations for performance under this Lease
will continue during the month -to -month tenancy. The City or Lessee may terminate the Lessee's
holdover with ten days' advance written notice.
ARTICLE IV
RENTS AND FEES
A. RENT: The initial rent for the Premises is $ 18,250.62 per year, as established by the City
pursuant KMC 21.10.090 and as subject to annual adjustment on July 1 of each year under Article
V of this Lease, plus applicable sales tax. The rent shall be payable annually in advance of the
first day of each year of the term of this Lease. All payments required by this Lease must be
made in U.S. dollars. If the annual rent exceeds $2,400, the Lessee may, upon written notice to
the City, choose to pay the rent in equal monthly installments, payable in advance on or before
the anniversary date of the term of this Lease and thereafter at monthly intervals. No conversion
of the payment schedule from annual to monthly shall result in the City receiving less rent than it
would have received had the conversion not taken place.
Rent Credit: A rent credit may be applied for a maximum of five years of lease
payments as provided in KMC 21.10.100 (as effective at the time this lease is
executed). Once the work is completed and value determined, a credit will be
applied to the lease payments, prorated as necessary for the successive five
years.
B. RENT PRORATED: Rental for any period less than one year shall be prorated on the
basis of the rent payable under this Lease in last full year previous to the prorating.
C. ADDITIONAL RENT: In addition to the rent specified in (a) of this Article, Lessee agrees
to pay to the appropriate parties all levies, assessments, and charges as follows:
Taxes pertaining to the leasehold interest of the Lessee.
2. Sales tax now enforced or levied in the future, computed upon rent payable in
monthly installments whether the Lessee pays rent under this Lease on a monthly
or annual basis.
3. All taxes and assessments levied in the future by the City, as if Lessee was the
legal owner of record of the Premises.
D. PAYMENTS: The Lessee shall make checks, bank drafts, or postal money orders payable
to the City of Kenai and deliver payments to City of Kenai, Finance Department, 210 Fidalgo
Avenue, Suite 200, Kenai, Alaska 99611-7794 or any other address the City may designate in
writing to the Lessee.
LEASE OF AIRPORT RESERVE LANDS Page 4 of 28
E. INTEREST: Beginning the day after payment is due, all unpaid rents, charges, and fees
required under this Lease will accrue interest at the rate of eight percent (8.0%) per annum.
Interest on disputed amounts will not be charged to the Lessee if the dispute is resolved in the
Lessee's favor.
F. LATE PAYMENT PENALTY: In addition to any interest payable under Provision (E) of
this Article, each time the Lessee fails to pay any rent or fee by the date required in this Lease,
the City will charge, and the Lessee shall pay, an administrative penalty of ten percent (10.0%) of
the amount due and unpaid.
G. COURTESY BILLINGS: Lessee acknowledges that any billing statement issued by the
City is provided only as a courtesy. The Lessee is obligated to pay all rents and fees when due,
regardless of whether or not the Lessee receives a billing statement from the City.
H. LIEN AGAINST LESSEE: Any rent, charge, fee, or other consideration which is due and
unpaid at the expiration, termination, or cancellation of this Lease will be a lien against the
Lessee's property, real or personal.
I. PAYMENT OF CITY'S COSTS: The Lessee will pay all reasonable actual expenses,
costs, and attorney fees City may incur, with or without formal action, to enforce, defend, or protect
this Lease or City's rights under this Lease, including any expense incurred with respect to
environmental compliance, bankruptcy or any proceeding that involves the Lessee, the Lease,
the Premises, or improvements or personal property on the Premises. The Lessee will make
payment within 30 days of the date of each notice from City of any amounts payable under this
provision.
J. PAYMENT FOR SPECIAL SERVICES: Lessee agrees to pay the City a reasonable fee
for any special services or facilities the City agrees to perform, which the City is not otherwise
obligated by this Lease to provide and which the Lessee requests from the City in writing.
ARTICLE V
ADJUSTMENT OF RENT AND FEES
A. RENT OR FEE ADJUSTMENT: The City shall adjust rent or fees payable by the Lessee
under Article IV or other provisions of this lease on July 1 of each year of the lease as proved in
KMC 21.10.090 (as effective at the time this lease is executed) and shall make any other
adjustments to rent as allowed for in KMC 21.10.090.
No rent or fee change shall be effective until 30 days after the date of the City's written notice to
the Lessee. If the Lessee believes that any changed rent exceeds the fair market rent for the
Premises, the Lessee may appeal a rent change to the City as provided in KMC 21.10.090.
ARTICLE VI
ASSIGNMENT & SUBLETTING
A. INVALID WITHOUT CITY'S CONSENT: The Lessee may not assign, sublet, or grant a
LEASE OF AIRPORT RESERVE LANDS Page 5 of 28
security interest in, by grant or implication, the whole or any part of this Lease, the Premises, or
any improvement on the Premises without the written consent of the City. Any proposed
assignment, sublease, or security interest must be written and must be submitted to the City
bearing the original, notarized signature of all parties. The Lessee may submit unsigned draft
documents for the City's conceptual review. However, the City's conceptual approval of a draft
document may not be construed as the City's consent to any assignment, sublease, or security
interest. All provisions in this Lease extend to and bind the assignees and sub -lessees of the
Lessee.
B. NO WAIVER OF CONSENT: The City's consent to one assignment, sublease, or security
interest will not waive the requirement for the Lessee to obtain the City's consent to any other
assignment, sublease, or security interest.
C. ASSIGNEE / LESSEE OBLIGATIONS: An assignment must include a provision stating
that the assignee accepts responsibility for all of the assignor's (Lessee's) obligations under this
Lease, including environmental liability and responsibility. However, unless the City specifically
releases the Lessee in writing, the City may hold the Lessee responsible for performing any
obligation under this lease which an assignee fails to perform.
D. OCCUPANCY BEFORE CITY CONSENT: An assignee or sub -lessee may not occupy
the Premises before the City consents to the assignment or sublease in writing.
E. CONFLICT OF PROVISIONS: In the event of a conflict between this Lease and an
assignment or a sublease, the terms of this Lease control.
F. LESSEE NOT RELIEVED OF OBLIGATIONS: The City's consent to any sublease does
not relieve or otherwise alter the Lessee's obligations under this Lease.
G. SECURITY ASSIGNMENTS AND FINANCING:
Subject to the requirements of (A) of this Article VI, the Lessee may assign a
security interest in this Lease. The security interest may be in the form of a
mortgage, deed of trust, assignment or other appropriate instrument, provided
a. the security interest pertains only to the Lessee's leasehold interest;
b. the security interest does not pertain to or create any interest in City's title
to the Premises; and
C. the documents providing for the security interest are acceptable to the City.
2. If the assignment of a security interest to which the City has consented shall be
held by an established lending or financial institution, including a bank, an
established insurance company and qualified pension or profit sharing trust, and
the lending institution acquires the Lessee's interest in this Lease as a result of a
foreclosure action or other remedy of the secured party, or through any transfer in
lieu of foreclosure, or through settlement of or arising out of any pending or
contemplated foreclosure action, the lending institution may transfer its interest in
this Lease to a nominee or a wholly owned subsidiary corporation with the prior
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written consent of the City, provided, the transferee assumes all of the covenants
and conditions required to be performed by the Lessee (including payment of any
monies owed by Lessee to the City under the lease). In the event of such a
transfer, the lending institution shall be relieved of any further liability under this
Lessee.
3. A holder of a security interest in this Lease consented to by the City shall have,
and be subrogated to, any and all rights of the Lessee with respect to the curing of
any default of this Lease by Lessee.
4. A holder of a security interest consented to by the City that takes possession of
this Lease shall not be released from the obligations and liabilities of this Lease
unless the holder assigns its leasehold estate to an assignee who is financially
capable and otherwise qualified to undertake to perform and observe the
conditions of this Lease and the City consents to the assignment. The City's
consent will not be unreasonably withheld.
ARTICLE VII
MAINTENANCE, SNOW REMOVAL & UTILITIES
A. MAINTENANCE:
At no cost to the City, the Lessee will keep the Premises and all improvements on
the Premises clean, neat and presentable, as reasonably determined by the City.
2. At no cost to the City, the Lessee will provide for all maintenance and services at
the Premises as may be necessary to facilitate the Lessee's compliance with this
Lease and the Lessee's use of the Premises.
3. The Lessee shall comply with all regulations or ordinances of the City that are
promulgated for the promotion of sanitation. At no cost to the City, the Lessee
shall keep the Premises in a clean and sanitary condition, and control activities on
the Premises to prevent the pollution of water.
4. The Lessee agrees to comply with all decisions and directions of the City's Airport
Manager regarding maintenance and operation of the Airport, and the use of the
Airport by the Lessee.
At no cost to the City, the Lessee is responsible for snow removal on the Premises.
The Lessee shall dispose of snow in an off -Premises location approved in writing
by the City or provide suitable snow storage within the boundaries of the Premises
in accordance with all applicable federal and state laws. At the request of the
Airport Manager, the Lessee shall submit a snow removal plan for the Premises to
the Manager for review. Upon approval of the Lessee's plan by the Airport
Manager, the Lessee shall conduct all snow removal operations on the Premises
in accordance with the approved plan.
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2. Lessee shall not deposit snow on an apron, taxiway, safety area, or other aircraft -
maneuvering surface provided for common use by others without the prior written
of the Airport Manager.
3. Lessee agrees to not allow an accumulation of snow on the Premises that would
cause interference with adjoining leaseholders or other users of the Airport.
C. UTILITIES: Unless specifically provided otherwise in this Lease, the Lessee shall, at
no cost to the City, provide for all utilities at the Premises necessary to facilitate the Lessee's use
of the Premises.
ARTICLE VIII
OPERATIONS
A. OPERATIONS ON THE AIRPORT: The Lessee will ensure that the Lessee, its
employees, guests, contractors, sub -lessees, and vendors that perform any activity or function
authorized under this Lease shall do so in a manner that ensures the safety of people, the
protection of public health and the environment, and the safety and integrity of the Airport and the
Premises.
B. LESSEE'S CONTROL AND RESPONSIBILITY:
The Lessee will assume full control and sole responsibility as between Lessee and
City for the activities of the Lessee, the Lessee's personnel and employees, and
anyone else acting by, on behalf of, or under the authority of the Lessee on the
Airport, including the Premises.
2. The Lessee will immediately notify the City of any condition, problem, malfunction
or other occurrence that threatens the safety of people or the Airport, harm to public
health or the environment, or the safety or integrity of the Premises.
C. RADIO INTERFERENCE: The Lessee will discontinue the use of any machine or device
that interferes with any government -operated transmitter, receiver, or navigation aid until the
cause of the interference is eliminated.
D. WILDLIFE: The Lessee acknowledges that a concentration of birds or other wildlife on an
airport constitutes a significant hazard to aircraft operations. The Lessee agrees to keep the
Premises clean of fish slime, fish waste, or any other material that might attract birds or other
wildlife. The Lessee accepts full responsibility to maintain the Premises, control operations, and
take all reasonable measures to prevent a concentration of birds or other wildlife on the Premises.
E. PARKING: The Lessee will provide adequate vehicle, equipment, and aircraft parking
space on the Premises for Lessee's business or activities, or confine parking to such other places
on the Airport as may be approved or designated in writing by the Airport Manager.
ARTICLE IX
ENVIRONMENTAL PROVISIONS
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A. HAZARDOUS SUBSTANCE:
The lessee will conduct it business and/or operation on the Premises in compliance
with all environmental laws and permits. If hazardous substances are handled on
the Premises, the Lessee agrees to have properly trained personnel and adequate
procedures for safely storing, dispensing, and otherwise handling Hazardous
Substances in accordance with all applicable federal, state and local laws.
2. Lessee will promptly give the City notice of proceeding to abate or settle matters
relating to the presence of a Hazardous Substance on the Premises or from
Lessee's operations on the Airport. The Lessee will allow the City to participate in
any such proceedings.
B. REMEDIATION:
In the event of a Hazardous Substance spill on the Premises, the Lessee will
immediately notify the City and the Alaska Department of Environmental
Conversation and act, promptly, at its sole expense, to contain the spill, repair, any
damage, absorb and clean up the spill area, and restore the Premises to a
condition satisfactory to the City and otherwise comply with the applicable portions
of any environmental law.
2. In addition to any notices required by this Lease, the Lessee will immediately notify
and copy the City in writing of any of the following:
a. Any permit, enforcement, clean up, lien, removal or other governmental or
regulatory action instituted, completed, or threatened pursuant to an
Environmental Law.
b. Any claim made or threatened by any person against the Lessee or arising
from the Lessee's operations authorized by this Lease, relating to damage,
contribution, compensation, loss or injury resulting, from, or claimed to
result from any Hazardous Substances in, on, or under the Airport; or
C. Any report made by, or on behalf of, the Lessee to any environmental
agency arising out of or in connection with any Hazardous Substances in,
on, or removed from the Premises, including any complaints, notices,
warnings, or asserted violations.
3. Remediation and restoration of the contaminated area must meet all applicable
state and federal regulations and must meet the requirements of all governing
regulatory authorities.
D. ENVIRONMENTAL AUDIT: The Lessee will provide the City with all investigative data,
test results, reports, and any other information gathered or analyzed as part of or in relation to
any Environmental Assessment, characterization or audit on the Premises or the Airport that
Lessee performs or causes to be performed after the starting date of this Lease. The Lessee will
submit the data, result, report or information to the City within 60 days following the date on which
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it becomes available to the Lessee.
E. RELEASE OF LESSEE: The City releases the Lessee from liability to the City for
Contamination and the presence of Hazardous Substances that existed prior to the
commencement date of this lease unless caused or materially contributed to by the Lessee.
F. SURVIVAL OF OBLIGATIONS: The obligations and duties of the City and Lessee under
Article IX of this lease shall survive the cancellation, termination or expiration of this lease.
ARTICLE X
INSURANCE
B. INSURANCE: At no expense to the City, the Lessee will obtain and keep in force during
the term of this Lease, insurance of the type and limits required by this provision. Where specific
limits are set, they will be the minimum acceptable limits. If the Lessee's policy contains higher
limits, the City will be entitled to coverage to the extent of the higher limits. At the time insurance
in obtained by the Lessee, all insurance shall be by a company/corporation rated "A-" or better by
A.M. Best. The following policies of insurance are required with the following minimum amounts:
Commercial General Liability, including Premises, all operations, property
damage, products and completed operations, and personal injury and death,
broad -form contractual, with a per -occurrence limit of not less than $1,000,000
combined single limit. If this lease authorizes the Lessee to engage in the sale or
the commercial dispensing or storage of aviation fuel, the policy must not exclude
of Lessee's fuel handling activities. This policy must name the City as an additional
insured.
2. Commercial Automobile Coverage with not less than $1,000,000 combined single
limit per occurrence. This insurance must cover all owned, hired, and non -owned
motor vehicles used by the Lessee.
3. Workers Compensation Insurance. The Lessee will provide and maintain, for all
employees, coverage as required under AS 23.30.045, and, where applicable, any
other statutory obligations. The policy must waive subrogation against the City.
4. The Lessee will provide the City with proof of insurance coverage in the form of a
Letter of Sefl-Insurance.. All insurance required by this provision must provide that
the City be notified at least 30 days prior to any termination, cancellation, or
material change in the insurance coverage.
5. If the Lessee's insurance coverage lapses or is canceled, Lessee will immediately,
upon written notice by the City, halt all operations on the Airport, including the
Premises. The Lessee will not resume operations until the City receives evidence
that the Lessee has obtained current insurance coverage meeting the
requirements of this Lease.
6. The City may, at intervals of not less than five years from the beginning date of the
term of this Lease and upon written notice to Lessee, revise the insurance
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requirements required under this Lease. City's determination to revise the
insurance requirements will be based on the risks relative to the Lessee's
operations, any insurance guidelines adopted by the City, and any applicable law.
7. If the Lessee subleases all or any portion of the Premises under the provisions of
this Lease, the Lessee will require the sub -lessee to provide to the insurance
coverage required of the Lessee under this Article X.
ARTICLE XI
LAWS & TAXES
A. COMPLIANCE WITH LAW: Lessee shall comply with all applicable laws, ordinances, and
regulations of public authorities now or hereafter in any manner affecting the Airport, the Premises
or the sidewalks, alleys, streets, and ways adjacent to the Premises, or any buildings, structures,
fixtures and improvements or the use thereof, whether or not any such laws, ordinances, and
regulations which may be hereafter enacted involve a change of policy on the part of the
governmental body enacting the same. Lessee agrees to hold City financially harmless:
From the consequences of any violation of such laws, ordinances, and/or
regulations; and
2. From all claims for damages on account of injuries, death, or property damage
resulting from such violation.
B. UNLAWFUL ACTIVITY: The Lessee shall not permit any unlawful use, occupation,
business, or trade to be conducted on the Premises contrary to any law, ordinance, or regulation,
including zoning ordinances, rules and regulations.
C. LICENSES AND PERMITS: The Lessee will obtain all necessary licenses and permits,
pay all taxes and special assessments lawfully imposed upon the Premises, and pay other fees
and charges assessed under applicable law. Nothing in this Lease prevents the Lessee from
challenging any taxes or special assessments to the appropriate authority.
D. LITIGATION: The Kenai municipal code, including regulations promulgated thereunder,
and the laws of the State of Alaska will govern in any dispute between the Lessee and City. If a
dispute continues after exhaustion of administration remedies, any lawsuit must be brought in the
courts of the State of Alaska, in Kenai, Alaska.
E. LESSEE TO PAY TAXES: Lessee shall pay all lawful taxes and assessments which,
during the term of this Lease may become a lien upon or which may be levied by the State,
Borough, City, or any other tax levying body, upon any taxable possessory right which Lessee
may have in or to the Premises or improvements on the Premises by reason of its use or
occupancy or the terms of this Lease provided, however, that nothing in this provision shall
prevent Lessee from contesting any increase in a tax or assessment under any applicable law,
ordinance, or regulation.
F. PARTIAL INVALIDITY: If any term, provision, condition, or part of this Lease is declared
by a court of competent jurisdiction to be invalid or unconstitutional, the remaining terms,
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provisions, conditions, or parts shall continue in full force and effect as though the declaration had
not been made.
ARTICLE XII
LEASE TERMINATION
A. CANCELLATION: The City may, after 30 days' written notice to the Lessee, cancel this
Lease and recover possession of the Premises if any of the following violations occur, unless the
violation is cured within the 30 days:
The Lessee fails to pay when due the rents, additional rents, charges, or other
sums specified in this Lease, including any increases made under this Lease.
2. The Lessee's check for payment of any sum due under this Lease is returned for
insufficient funds.
3. The Lessee uses or authorizes the use of the Premises for any purpose not
authorized by this Lease.
4. The Lessee fails to fully perform and comply with any provision in this Lease.
5. The Lessee violates a provision of Kenai Municipal Code applicable to this Lessee.
6. The court enters a judgment of insolvency against the Lessee.
7. A trustee or receiver is appointed for the Lessee's assets in a proceeding brought
by or against the Lessee, or the Lessee files a voluntary petition in bankruptcy.
8. Failure by the Lessee to comply with any land development or permanent
improvement construction required by this Lease.
B. FISCAL NECESSITY — NON -APPROPRIATION OF FUNDS: The State has the right to
terminate this lease in whole, or in part, if (1) the Alaska State Legislature fails to appropriate
funds budgeted for continuation of this lease, and/or (2) the Alaska State Legislature fails to
appropriate funds to the occupying agency(s) that results in a material alteration or
discontinuance, in whole or in part, of the occupying agency(s)' programs. The termination of the
lease for fiscal necessity and non -appropriation of funds under this section shall not cause any
penalty or liability to be charged to the State and shall not constitute a breach or an event of
default by the State.
C. ENTRY AND RE-ENTRY: In the event that the Lease should be terminated in accordance
with this Article XII, or by summary proceedings or otherwise, or upon the Lessee's abandonment
of the Premises or a portion of the Premises, the City or its agents, servants, or representatives
may, immediately or any time thereafter, re-enter, and resume possession of the Premises or
portion thereof, and remove all persons and property therefrom, without being liable for any
damages therefore. No re-entry by the City shall be deemed an acceptance of a surrender of the
Lease.
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D. CONTINUING OBLIGATIONS UNTIL PREMISES VACATED: The Lessee will continue
to pay City rent after the expiration, termination, or cancellation of this lease and to abide by the
lease obligations, including providing proof of insurance coverage, through the date Lessee
relinquishes possession of and completely vacates the Premises. City will consider the Premises
completely vacated if the Lessee has
Remediated any environmental contamination for which the Lessee is responsible;
2. Restored the Premises to a neat and clean physical condition acceptable to the
City.
E. REASONABLE CURE:
In the case of a violation that cannot be reasonably cured within 30 days, a notice
of cancellation issued by the City to the Lessee under this Article is stayed if, within
the 30-day notice period, the Lessee begins and continues expeditious action to
cure the violation. The City will determine if a violation cannot be reasonably cured
within 30 days and what constitutes expeditious action.
2. In the case where, in City's sole determination, Lessee's violation is considered an
imminent threat to the airport, public health or safety, or the environment, City will
direct the Lessee to stop the activity immediately and may reduce the period to
cure the violation, or the City may correct the violation pursuant to (E) of this Article.
F. RIGHT OF CITY TO PERFORM:
If, after 30 days following notice the Lessee fails or refuses to perform any action
required by this Lease, the City will have the right, but not the obligation, to perform
any or all such actions required by this Lease at the sole expense of the Lessee.
The City will not take action if the Lessee begins and continues expeditious action
to perform any action required by this Lease that cannot be reasonably completed
within 30 days. The City will, at its sole discretion, determine what constitutes
expeditious action and if an action cannot be reasonably performed in 30 days.
The City will submit to the Lessee an invoice for the expenses incurred by the City
in the performance by the City of any required action. The Lessee will pay the
amount of each invoice within 30 days from issuance.
2. If Lessee fails or refuses to perform any action that has been deemed an imminent
threat the City will have the right, but not the obligation, to perform any or all such
actions required to expeditiously correct the imminent threat. Lessee shall
reimburse the City for any cost, including legal fees and administrative costs
reasonably incurred by the City in acting to correct the imminent threat violation.
G. WAIVER: A waiver by the City of any default by the Lessee of any provision of this Lease
will not operate as a waiver of any subsequent default. If the City waives a default, the City is not
required to provide notice to the Lessee to restore or revive any term or condition under this
Lease. The waiver by the City of any provision in this Lease cannot be enforced or relied upon
unless the waiver is in writing and signed on behalf of the City. The City's failure to insist upon
the strict performance by the Lessee of any provision in this Lease is not a waiver or
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relinquishment for the future, and the provision will continue in full force.
H. AIRPORT CLOSURE:
party if:
If the City closes the airport to aircraft operations for sixty days or less, this Lease
will remain in full force and effect without adjustment
2. If the City closes the Airport to aircraft operations for more than sixty days, but not
permanently, and this Lease is for aviation or direct aviation support uses, the
Lessee may, upon written notice to the City, either terminate the Lease or retain
the Lease and receive a fifty (50%) percent rent reduction or credit for that portion
of the closure that exceeds sixty days.
3. If the City permanently closes the Airport to aircraft operations and
a. this Lease is for aviation or direct aviation support uses, the Lessee may
terminate this agreement by written notice to the City; or
b. this Lease is for non -aviation uses, the Lessee may request in writing to
have the Lease terminated. The City will consider the Lessee's request in
light of the City's best interest and either terminate the Lease, or deny the
Lessee's request in writing.
DISASTERS: The Lessee or City may cancel this lease upon written notice to the other
the Premises becomes unusable through no fault of either party and performance
under this lease becomes impossible; or
2. the Airport becomes unusable through no fault of either party and the performance
under this lease becomes impossible.
If the Lessee elects in writing that it will continue to operate after notice from City to Lessee that
the Airport has become unusable, the Lessee's obligations under the Lease will continue, but City
shall be under no obligation to continue to perform.
Causes for termination of the lease under this provision (G) include acts of God, the public enemy,
and the United States.
J. NATIONAL EMERGENCY: If the federal government declares a national emergency,
neither party may hold the other liable for any inability to perform any part of this Lease as a result
of the national emergency.
K. SURRENDER ON TERMINATION: Except as provided otherwise in this Article XII,
Lessee shall, on the last day of the term of this Lease (including any extension or renewal thereof)
or upon any earlier termination of this Lease, surrender and deliver up the premises into the
possession and use of City without fraud or delay in good order, condition, and repair, except for
reasonable wear and tear since the last necessary repair, replacement, restoration or renewal,
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free and clear of all lettings and occupancies unless expressly permitted by the City in writing,
and free and clear of all liens and encumbrances other than those created by and for loans to
City.
L. OWNERSHIP AND DISPOSITION OF IMPROVEMENTS:
Ownership of Permanent Improvements: Permanent improvements on the
Premises, excluding Site Development Materials, constructed, placed, or
purchased by the Lessee remain the Lessee's property as long as this Lease
remains in effect, including any period of extension or holdover with the consent
of the Lessor.
2. Disposition of Site Development Materials: The Lessee acknowledges that,
once placed by the Lessee, the removal from the Premises of Site
Development Materials can damage the Premises, adversely affect surface
water drainage patterns, and destabilize adjacent structures. When placed on
the Premises by the Lessee, Site Development Materials, including building
pads, parking areas, driveways, and similar structures:
a. become a part of the realty and the property of the City of Kenai;
b. unless otherwise directed by the Lessor, must be maintained by the Lessee
throughout the term of this Lease, including any extensions and periods of
holdover; and
C. may not be removed by the Lessee without the prior written approval of the
Lessor.
3. Disposition of Personal Property and Permanent Improvements Other Than Site
Development Materials:
a. Unless the Lessor otherwise directs as provided below, when this Lease
expires, terminates, or is cancelled and is neither extended nor followed by
a successive lease, the departing Lessee may do one or more of the
following:
remove Lessee -owned Permanent Improvements from the
Premises, remediate any Contamination for which the Lessee is
responsible, and restore the Premises to a clean and neat
physical condition acceptable to the Lessor within 60 days after
the expiration, cancellation, or termination date of this Lease;
with written approval from the Lessor, sell Lessee -owned
Permanent Improvements to the succeeding lessee, remove all
personal property, remediate, any Contamination for which the
Lessee is responsible and leave the Premises in a clean and
neat physical condition acceptable to the Lessor within 60 days
after notice from the Lessor that the Lessor has approved an
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application for a lease of the Premises by another person or such
longer period specified in the notice, but in no event more than
180 days after the expiration, termination, or cancellation date of
this Lease;
iii. elect to have the Lessor sell Lessee -owned Permanent
Improvements at public auction as provided below, remediate
any Contamination for which the Lessee is responsible, and
restore the premises to a clean and neat physical condition
acceptable to the Lessor. If the Lessor sells Permanent
Improvements under this Paragraph for removal from the
Premises, the departing Lessee's obligation under this
Paragraph continues until the Premises are remediated and
restored to a clean and neat physical condition acceptable to the
Lessor after the improvements have been removed.
b. If the departing Lessee elects to have the Lessor sell Lessee -owned
Permanent Improvements at public auction per this Section, the Lessee
shall, within 30 days after the expiration, cancellation, or termination of this
Lease:
submit to the Lessor a written request and authorization to sell
the Permanent Improvements by public auction;
provide to the Lessor an executed conveyance document
transferring clear title to the Permanent Improvements to the
successful bidder at the public auction, along with authorization
to the Lessor, as agent for the Lessee for purposes of the sale
only, to endorse the name of the successful bidder on the
conveyance document upon receipt of payment of the successful
bid price; and
iii. before the date of the public auction, remove all personal
property, remediate any Contamination for which the Lessee is
responsible and leave the Premises in a neat and clean physical
condition acceptable to the Lessor.
C. When selling Lessee -owned Permanent Improvements at public auction for
the departing Lessee, the Lessor will establish the terms and conditions of
the sale. The Lessor shall pay the Lessee any proceeds of the sale of the
Permanent Improvements, less the administrative costs of the public
auction and any financial obligation the Lessee owes to the Lessor under
this Lease. Payment will be made within a reasonable time after the Lessor
completes the sale transaction and receives the proceeds, but not to
exceed 60 days. If all or a portion of the Permanent Improvements do not
sell at public auction, the Lessee will remove those Permanent
Improvements, remediate any Contamination for which the Lessee is
responsible and restore the Premises to a clean and neat physical condition
acceptable to the Lessor within 60 days after the auction.
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d. If the Lessee shows good cause to the Lessor and if it is not inconsistent
with the best interest of the City of Kenai, the Lessor will grant an extension
of time that is sufficient to allow the Lessee to remove or sell Lessee -owned
Permanent Improvements, remediate any Contamination for which the
Lessee is responsible and to restore the Premises to a clean and neat
physical condition acceptable to the Lessor.
e. The Lessor will, by written notice, direct the departing Lessee to remove
Lessee -owned Permanent Improvements from the Premises, to remediate,
consistent with applicable law, any Contamination for which the Lessee is
responsible and to restore the Premises to a clean and neat physical
condition acceptable to the Lessor if the Lessor determines in writing:
that the continued presence of the Permanent Improvements
on the Premises are not consistent with any written Airport
program or plan required for compliance with applicable
federal, state, or local law;
that the continued presence of the Permanent Improvements on
the Premises is not in the best interest of the City of Kenai; or
iii. that the Permanent Improvements present a hazard to public health
or safety.
The departing Lessee to whom the Lessor has issued direction under
Paragraph e of this Section shall comply with the Lessor's direction within
60 days after issuance of the direction and at no cost to the Lessor. If the
departing Lessee shows good cause to the Lessor, continues to work
diligently to comply with Lessor's direction, and if it is not inconsistent with
the best interest of the City of Kenai, the Lessor will allow in writing a longer
period that is sufficient to allow the Lessee to comply with the Lessor's
direction. A departing Lessee who fails to comply with a direction issued
by the Lessor under Paragraph e of this Section, shall, within 30 days of
being billed by the Lessor, reimburse the Lessor for any costs reasonably
incurred by the Lessor, including legal fees and administrative costs, to
enforce the Lessor's direction or to remove and dispose of unremoved
Lessee -owned improvements, remediate any Contamination for which the
Lessee is responsible and restore the Premises.
g. If the departing Lessee does not timely remove or sell the Lessee -owned
Permanent Improvements on the Premises in accordance with the
requirements of this Section, any remaining Permanent Improvements and
any remaining personal property of the departing Lessee will be considered
permanently abandoned. The Lessor may sell, lease, demolish, dispose
of, remove, or retain the abandoned property for Airport use as the Lessor
determines is in the best interest of the City of Kenai. The departing Lessee
shall, within 30 days after being billed by the Lessor, reimburse the Lessor
for any costs reasonably incurred by the Lessor, including legal and
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administrative costs, to demolish, remove, dispose, clear title to, or sell the
abandoned property and to remediate and restore the Premises.
h. After the expiration, termination, or cancellation of the Lease, including any
holdover, the departing Lessee loses all right to occupy or use the premises
without the express or implied consent of the Lessor. Except as the Lessor
notifies the departing Lessee otherwise in writing, the Lessor consents to
the departing Lessee's continued use and occupancy of the Premises to
diligently accomplish the requirements of this Section. Until the departing
Lessee relinquishes possession of and completely vacates the Premises
and notifies the Lessor in writing that it has relinquished and vacated the
Premises, the departing Lessee shall perform the following as if the lease
were still in effect,
pay rent to the Lessor;
maintain the premises;
iii. provide the Lessor with evidence of each insurance coverage, if
any, required under the Lease; and
iv. cease using the premises other than to diligently accomplish the
requirements of this Section, and to comply with the other
requirements of the Lease.
A departing Lessee will not be considered to have relinquished possession
and completely vacated the Premises until
the departing Lessee has:
(a) remediated, consistent with applicable law, any
Contamination for which the Lessee is responsible;
and
(b) restored the Premises to a clean and neat physical
condition acceptable to the Lessor; and
either
(a) removed all of the Lessee's Permanent Improvements and
personal property from the premises or sold the Permanent
Improvements and personal property to a succeeding
Lessee under the provisions of this Lease; or
(b) transferred title to the Lessee's Permanent Improvements
and personal property that remain on the premises to the
Lessor.
LEASE OF AIRPORT RESERVE LANDS Page 18 of 28
ARTICLE XIII
GENERAL COVENANTS
A. USE OF THE AIRPORT: Except as provided herein, any regular use of Airport lands or
facilities without the written consent of the City is prohibited. This prohibition shall not apply to
use of areas designated by the City for specified public uses, such as passenger terminals,
automobile parking areas, and streets.
B. COSTS AND EXPENSES: Costs and expenses incident to this lease, including but not
limited to recording costs, shall be paid by Lessee.
C. CARE OF THE PREMISES: The Lessee shall keep the Premises clean and in good order
at the Lessee's own expense, allowing no damage, waste, nor destruction thereof, nor removing
any material therefrom, without written permission of the City. At the expiration of the term fixed,
or any earlier termination of the Lease, the Lessee will peaceably and quietly quit and surrender
the premises to the City.
D. CONSTRUCTION APPROVAL AND STANDARDS: Any building construction on the
Premises by the Lessee must be compatible with its surroundings and consistent with the uses
authorized under this Lease, as determined by the City. The Lessee must obtain the City's written
approval before placing fill material, beginning any land development, or constructing or
demolishing any improvements on the Premises, and before beginning any alterations,
modifications, or renovation of existing structures on the Premises. The Lessee must submit to
the City detailed drawings of the proposed development, alteration, modification, or renovation,
together with specifications or any other information the City reasonably requires. Further, the
Lessee will submit to City evidence of the Lessee's compliance with Federal Aviation
Administration regulation 14 CFR Part 77.
E. LEASE SUBORDINATE TO AIRPORT FINANCING REQUIREMENTS: Lessee agrees
that City may modify this Lease to meet revised requirements for Federal or State grants, or to
conform to the requirements of any revenue bond covenant. However, the modification shall not
act to reduce the rights or privileges granted the Lessee by this Lease, nor act to cause the Lessee
financial loss.
F. RIGHT TO ENJOYMENT AND PEACEABLE POSSESSION: City hereby agrees and
covenants that the Lessee, upon paying rent and performing other covenants, terms, and
conditions of this Lease, shall have the right to quietly and peacefully hold, use, occupy, and enjoy
the Premises, except that the following shall not construed as a denial of the right of quiet or
peaceable possession:
Any inconvenience caused by public works projects in or about the Premises; and
2. Any other entries by the City on the Premises reserved or authorized under other
provisions of this Lease.
G. NO PARTNERSHIP OR JOINT VENTURE CREATED: It is expressly understood that the
City shall not be construed or held to be a partner or joint venture of Lessee in the conduct of the
Lessee's activities or business on the Premises. The relationship between the City and the
Lessee is, and shall at all times remain, strictly that of landlord and tenant, respectively.
LEASE OF AIRPORT RESERVE LANDS Page 19 of 28
H. DISCRIMINATION: The Lessee will not discriminate on the grounds of race, color,
religion, national origin, ancestry, age, or sex against any patron, employee, applicant for
employment, or other person or group of persons in any manner prohibited by federal or state
law. The Lessee recognizes the right of the City to take any action necessary to enforce this
provision, including actions required pursuant to any federal or state law.
I. AFFIRMATIVE ACTION: If required by 14 CFR Part 152, subpart E, the Lessee will
undertake an affirmative action program to insure that no person will be excluded from
participating in any employment activities offered by the Lessee on the grounds of race, creed,
color, national origin, or sex. No person may be excluded on these grounds from participating in
or receiving the services or benefits of any program or activity covered by subpart E. The Lessee
further agrees that it will require its sub-organization(s) provide assurance to the City to the same
effect that they will also undertake affirmative action programs and require assurances from their
sub-organization(s) as required by 14 CFR, Part 152, subpart E.
Tenant shall use the premises in compliance with all other requirements imposed by or pursuant
to title 49, code of Federal Regulations, DOT, 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 the Regulation may be amended.
J. INTEGRATION, MERGER, AND MODIFICATION: This Lease sets out all the terms,
conditions, and agreements of the parties and supersedes any previous understandings or
agreements regarding the Premises whether oral or written. No modification or amendment of
this Lease is effective unless in writing and signed on behalf of the City and the Lessee.
K. RIGHT TO ADOPT RULES: City reserves the right to adopt, amend, and enforce
reasonable rules and regulations governing the Airport, including the Premises. The City shall
not be liable to Lessee for any diminution or deprivation of possession, or of Lessee's rights under
this Lease, on account of the exercise of the City's authority reserved under this provision.
Furthermore, the Lessee shall not be entitled to terminate the whole or any portion of the
leasehold estate created under this Lease, by reason of the exercise of the City's authority
reserved under this provision, unless the exercise thereof so interferes with Lessee's use and
occupancy of the Premises as to constitute a termination, in whole or in part, of this Lease by
operation of law under the laws of the State of Alaska and of the United States made applicable
to the states.
L. LESSEE'S OBLIGATION TO PREVENT AND REMOVE LIENS: Lessee will not permit
any liens including, but not limited to, mechanics', laborers', or materialmen's liens obtainable or
available under the then existing laws, to stand against the Premises or improvements on the
Premises for any labor or material furnished to Lessee or claimed to have been furnished to
Lessee or to the Lessee's agents, contractors, or sub -lessees, in connection with work of any
character performed or claimed to have been performed on the Premises or improvements by or
at the direction or sufferance of Lessee. Provided, however, the Lessee shall have the right to
provide a bond as contemplated by Alaska law and contest the validity or amount of any such lien
or claimed lien. Upon a final determination of the lien or claim for lien, the Lessee will immediately
pay any judgment rendered with all proper costs and charges and shall have such lien released
or judgment satisfied at Lessee's own expense.
LEASE OF AIRPORT RESERVE LANDS Page 20 of 28
M. CONDEMNATION: In the event the Premises or any part thereof shall be condemned
and taken for a public or a quasi -public use, then upon payment of any award or compensation
arising from the condemnation or taking, the City and the Lessee shall make a good faith effort to
agree upon
the division of the proceeds;
2. the abatement in rent payable during the term or any extension of the term of this
Lease; and
3. other adjustments as the parties may agree upon as being just and equitable under
all the circumstances.
If, within thirty days after the award has been paid into Court, the City and Lessee are unable to
agree upon what division, abatement in rent, and other adjustments as are just and equitable, the
parties shall undergo mediation chosen by mutual agreement of the parties. If disputes are not
resolved through mediation, then the parties may submit to binding arbitration.
N. SUCCESSORS IN INTEREST: This Lease shall be binding upon and shall inure to the
benefit of the respective successors and assigns of the parties hereto, subject to such specific
limitations on assignment as are provided for in this Lease.
O. NOTICES:
Any notices required by this Lease must be in writing and must be delivered
personally or mailed by certified or registered mail in a prepaid envelope. A mailed
notice
a. must be addressed to the respective party at the address written on the
first page of this Lease or to the latest address designated in accordance
with (2) of this Provision (0); and
b. shall be deemed delivered on the date it is deposited in a U.S. general or
branch post office.
2. The City or the Lessee may, from time to time, designate a new address at which
they will receive notices by providing the other party with written notice at least 15
days prior to the effective date of the change. An address change notice must be
delivered according to the procedure set out in (1) of this Provision (0).
P. RETENTION OF RENTAL: In the event the City terminates this Lease because of any
breach by the Lessee, the City shall retain any unused balance of the rental payment last made
by the Lessee City as partial or total liquidated damages for the breach.
Q. FIRE PROTECTION: The Lessee will take all reasonable precautions to prevent, and
take all necessary action to suppress destructive or uncontrolled fires and comply with all laws,
regulations, and rules promulgated and enforced by the City for fire protection on the Airport.
LEASE OF AIRPORT RESERVE LANDS Page 21 of 28
R. PERSONAL USE OF MATERIALS: No interest in coal, oil, gas or any other mineral, or in
any deposit of stone or gravel valuable for extraction or utilization is included in the Premises or
in the rights granted by this lease. The Lessee shall not sell or remove from the Premises for use
elsewhere any timber, stone, gravel, peat moss, topsoil or any other material valuable for building
or commercial purposes.
S. APPROVAL OF OTHER AUTHORITIES: The granting of this lease by the City does not
relieve the Lessee of the responsibility to obtain any license or permit as may be required by
federal, state, or local law.
T. EXECUTION BY THE PARTIES: This Lease is of no effect unless signed by the Lessee,
or a duly authorized representative of Lessee, and an authorized representative of the City.
U. CAPTIONS: The captions of the provisions of this Lease are for convenience only and do
not necessarily define, limit, describe, or construe the contents of any provision.
V. RIGHTS OF CONSTRUCTION: This Lease is intended to make public property available
for private use, while at all times protecting the public interest to the greatest extent possible.
Following the rule that transfers of interest in public property are to be strictly construed in favor
of the public property landlord, all rights granted to the Lessee under this Lease will be strictly
construed, and all rights of the City and the protections of the public interest will be liberally
construed.
W. LESSEE ACKNOWLEDGEMENT: The Lessee acknowledges that the Lessee has read
this Lease and fully understands its terms, that the Lessee has been fully advised or has had the
opportunity of advice by separate legal counsel, and voluntarily executes this Lease. Lessee also
acknowledges and agrees that the rule of interpretation under which a document is construed
against the drafter will not apply to this Lease.
X. APPROVAL BY LESSOR: Any approval required of the Lessor by this Lease will not be
unreasonably withheld. The Lessor's approval does not waive the Lessee's legal responsibility
or liability to comply with all applicable federal and state laws and regulations.
ARTICLE XIV
SURVEY, IMPROVEMENTS AND PERFORMANCE BOND
A. SURVEY: The Lessee is solely responsible, at its sole expense, to confirm or establish
the physical location of the boundaries of the Premises prior to beginning any construction
thereon, including clearing grubbing, back -filling and environmental sampling. Any survey of the
Premises shall be performed by a Land Surveyor registered in the State of Alaska. The Lessee
shall furnish the City with a copy of the plat of any survey performed on the Premises by, or on
behalf of, the Lessee.
B. IMPROVEMENTS:
REQUIRED IMPROVEMENTS: At no cost to the City, Lessee agrees to complete
land development and construction of Permanent Improvements including
electrical service improvements and a concrete containment barrier, by no later
than June 30, 2024, with an aggregate cost of at least $ 10,000.00, excluding
LEASE OF AIRPORT RESERVE LANDS Page 22 of 28
financing costs. In addition to the as -built drawings required by this Lease, the
Lessee must submit to the City written evidence that the Lessee has completed
the land development and constructed improvements on the Premises with an
aggregate cost or investment of not less than $ 10,000.00.
Lot developments will prevent unauthorized access to the airfield;
Structures will be built behind the 100 foot building restriction line;
State of Alaska, Division of Forestry is responsible for all snow removal, and snow
may not touch the perimeter security fence or be piled to a height that would allow
access to the airport.
The evidence of cost must be submitted to the City within sixty days of the
completion of the development and improvements, but by no later than August 29,
2024.
a. Costs considered toward the aggregate cost of permanent improvements
include building construction, design, labor, materials, materials shipping,
permits, equipment, soil testing, environmental baseline report, and
environmental assessment directly related to the construction; premises
and as -built surveys; site preparation, including excavation, geotextile
fabric, filling, grading, fill material, gravel, and pavement, remediation of
environmental contamination (unless Lessee caused or Materially
Contributed To the Contamination); and utility connection costs.
b. The cost of Permanent Improvements excludes:
1. work performed by the City and not reimbursed by the Lessee;
and
2. work performed by the Lessee and reimbursed by the City.
2. FAILURE TO COMPLETE IMPROVEMENTS: If the Lessee fails to complete the
required construction within the time allowed under (b)(1) of this Article, including
any extensions granted, the City will execute against and the Lessee will forfeit,
any bond or other guarantee given by the Lessee and, as applicable, City will:
a. initiate cancellation of the lease; or
b. reduce the term of the lease to a period that is consistent with the portion
of the required construction timely completed.
3. APPEARANCE: When completed, all improvements on the Premises must be
neat, presentable, and compatible with the authorized use of the Premises under
this Lease, as determined by the City.
4. CITY APPROVAL REQUIRED: The Lessee must first obtain the City's written
approval before beginning any land development, construction or demolition of any
improvements on the Premises, or before beginning any alterations, modifications,
LEASE OF AIRPORT RESERVE LANDS Page 23 of 28
or renovation of existing structures on the Premises. The Lessee must submit to
the City detailed drawings of the proposed development, alteration, modification,
or renovation. Further, the Lessee will submit to City evidence of the Lessee's
compliance with the FAA regulation 14 CFR Part 77.
5. CITY APPROVAL WITHHELD: The City's approval of any construction, alteration,
modification, or renovation will not be withheld unless
a. the Lessee fails to demonstrate adequate financial resources to complete
the project;
b. the project plans, specifications, and agency approvals are incomplete;
C. the proposed project would result in a violation of an applicable ordinance,
regulation, or law;
d. the proposed project would interfere with or is incompatible with the safety,
security, maintenance, or operation of the airport;
e. the proposed project is inconsistent with the Airport Master Plan;
the proposed project is inconsistent with the terms of the lease, zoning
ordinances, or the City's Comprehensive Plan;
g. the project plans do not make sufficient provision for drainage, aircraft,
vehicle, and equipment parking, or for snow storage; or
h. the proposed project does not conform to generally recognized engineering
principles or applicable fire or building codes.
6. DEMOLITION: Prior to any demolition of any structure(s) on the Premises, Lessee
will deliver to City a written scope of work that, at a minimum, lists the structure(s)
that are to be demolished and the timeframe for demolition and removal of the
debris from the Airport. City will review Lessee's scope for demolition and issue
Lessee written approval for the work to be done.
7. BUILDING SETBACK: No building or other permanent structure may be
constructed or placed within twenty feet of any lot of the Premises without City's
prior written approval. In addition, no building or other permanent structure may
be constructed or placed within twenty feet of any boundary line of the Premises
which fronts on a landing strip, taxiway, or apron.
8. AS -BUILT DRAWINGS: Within sixty days after completion of construction or
placement of improvements upon the Premises, the Lessee will deliver to the City
a copy of an as -built drawing, acceptable to the City, showing the location and
dimensions of the improvements, giving distances to all Premises' boundaries. If
the Lessee constructs underground improvements, the Lessee will appropriately
mark the surface of the land with adequate surface markers. The type, quantity,
and distance between such markers will be subject to approval of the City.
LEASE OF AIRPORT RESERVE LANDS Page 24 of 28
9. AIRPORT SECURITY FENCING: If any construction by the Lessee requires a
realignment or alteration of an existing security fence on the Premises or boundary
of the Premises, the Lessee agrees to realign or alter the fence in a manner
approved in writing by the Airport Manager. Anytime the fence must be breached
to allow the Lessee to complete improvement construction or fence modifications,
the Lessee shall, at the Lessee's sole expense place temporary barriers to
maintain the security of the Airport, as determined by the Airport Manager. If
damage occurs to a security fence on the Premises or boundary of the Premises
in connection with the Lessee's use or occupation of the Premises, the Lessee
shall promptly repair the fence to the satisfaction of the Airport Manager.
10. DAMAGE TO IMPROVEMENTS: If Lessee's improvements on the Premises are
damaged or destroyed, Lessee will cause the improvements to be repaired or
rebuilt, and restored to normal function within two years following the damage or
destruction. If the Lessee fails to timely rebuild or restore the improvements, the
City may, at its sole discretion, either reduce the term of this Lease commensurate
with the estimated value of the Lessee's remaining, fully functional improvements
on the Premises, or cancel this Lease.
11. DAMAGE NEAR EXPIRATION: If Lessee's improvements are damaged to the
extent that more than 50% of the space is unusable and the damage occurs within
five years of the expiration of the term of this Lease, Lessee may remove the
damaged improvements, restore the Premises and terminate this Lease.
C. PERFORMANCE BOND (Optional): Prior to beginning the construction of permanent
improvements required under (1) of this Article, the Lessee shall submit to the City a performance
bond, deposit, or other security in the amount of $ performance bond not applicable. The form
of the bond or other security shall be subject to the City's approval.
D. SURRENDER ON TERMINATION: Lessee shall, on the last day of the term of this Lease
or upon any earlier termination of this Lease, surrender and deliver upon the premises into the
possession and use of City without fraud or delay in good order, condition, and repair, except for
reasonable wear and tear since the last necessary repair, replacement, restoration or renewal,
free and clear of all lettings and occupancies unless expressly permitted by the City in writing,
and free and clear of all liens and encumbrances other than those created by and for loans to
City. Upon the end of the term of this Lease, including any extension or renewal, or any earlier
termination thereof, title to the buildings, improvements and building equipment shall
automatically vest in City without requirement of any deed, conveyance, or bill of sale thereon.
However, if City should require any such document in confirmation hereof, Lessee shall execute,
acknowledge, and deliver the same and shall pay any charge, tax, and fee asserted or imposed
by any and all governmental unites in connection herewith.
E. NOTICE OF CONSTRUCTION: The Lessee agrees to notify the City in writing three days
prior to commencing any construction project valued in excess of $1,000.00 on the Premises.
The Lessee agrees to assist in the posting of a notice of non -responsibility and maintenance of
the notice on the Premises during construction. Lessee agrees that in the event the Lessee fails
to notify the City as required by this Provision (f), the Lessee shall indemnify the City against any
LEASE OF AIRPORT RESERVE LANDS Page 25 of 28
materialmen's liens as defined in AS 34.35.050 which arise as a result of construction on the
premises.
IN WITNESS WHEREOF, the parties hereto have hereunto set their hands, the day and year
stated in the individual acknowledgments below.
LESSEE:
LESSOR:
STATE OF ALASKA DIVISION OF FORESTRY CITY OF KENAI
LEASE OF AIRPORT RESERVE LANDS Page 26 of 28
M
Its:
STATE OF ALASKA
THIRD JUDICIAL DISTRICT
0
Date Paul Ostrander
Its: City Manager
ACKNOWLEDGMENTS
) ss.
Date
THIS IS TO CERTIFY that on this day of 1 , ,
, of being personally known to me or
having produced satisfactory evidence of identification, appeared before me and acknowledged
the voluntary and authorized execution of the foregoing instrument on behalf of said limited liability
corporation.
Notary Public for Alaska
My Commission Expires:
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this day of , Paul Ostrander, City
Manager of the CITY OF KENAI, ALASKA, being personally known to me or having produced
satisfactory evidence of identification, appeared before me and acknowledged the voluntary and
authorized execution of the foregoing instrument on behalf of said City.
ATTEST:
Michelle Saner, City Clerk
SEAL:
Notary Public for Alaska
My Commission Expires:
After Recording, Return to:
City of Kenai
210 Fidalgo Avenue
Kenai, AK 99611
LEASE OF AIRPORT RESERVE LANDS Page 27 of 28
Approved as to Lease Form
Scott Bloom, City Attorney
LEASE OF AIRPORT RESERVE LANDS Page 28 of 28
ME
M I YK01 2 1 1 A � MM
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA APPROVING THE
EXECUTION OF A LEASE OF AIRPORT RESERVE LANDS USING THE STANDARD LEASE
FORM BETWEEN THE CITY OF KENAI AND STATE OF ALASKA, DIVISION OF FORESTRY
ON LOT 4A, FBO SUBDIVISION NO. 11.
WHEREAS, the special use permit to State of Alaska, Division of Forestry, for that portion of Lot
4f, FBO Subdivision No. 7 as delineated as Lot 4A of the preliminary plat of FBO Subdivision
No. 11 expires on June 30, 2022; and,
WHEREAS, on January 10, 2022, State of Alaska, Division of Forestry submitted an applicati
for a lease of City owned properties within the Airport Reserve, described as Lot 4A, FB 19
Subdivision No. 11 to use as an air tanker reload base for wildland fire prevention a
suppression; and,
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investment that gives a lease term of 5 years according to the term table in Kenai Municipal Code
21.10.080; and,
Layout Plan, Federal Aviation Administration regulations, Airport Master Plan, Airport
Improvement Program grant assurances, and Airport operations-, and,
of publishing a public notice of the lease application from State of Alaska, Division of Forestry;
and,
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BE IT RESOLT,'ED BTTME CO441CIL OF TME CIT'T OF kEiRAI, ALAZYrfi
as follows:
Section 1. That a Lease of Airport Reserve Lands is approved and the City Manager is
authorized to execute a lease between the City of Kenai, Lessor, and State of Alaska, Division of
Forestry, Lessee, with the fo,llowing conditions:
Page 2 of 2
1, Lot improvements as outlined in lease application from State of Alaska, Division of
Forestry include at a minimum electrical service improvements and a concrete
containment barrier with an estimated $10,000 minimum value to be completed within two
(2) years of signing the lease;
2. Evidence must be submitted to the City within 60 days of the completion of the
development and improvements;
3. The lease term will be 5 years;
4. Lot developments are required to prevent unauthorized access to the airfield;
5. Structures must be built behind the 100 foot building restriction line;
6. State of Alaska, Division of Forestry is responsible for all snow removal, and snow may
not touch the perimeter security fence or be piled to a height that would allow access to
the airport.
Section 2. That this Resolution takes effect immediately upon passage.
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ATTEST:
Michelle M. Saner, MMC, City Clerk
New Text Underlined; [DELETED TEXT BRACKETED]
KENA
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TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Ryan Foster, Planning Director
DATE: February 22, 2022
SUBJECT: Resolution No. 2022-10 — Approving the Execution of a Lease to State
of Alaska, Division of Forestry.
On July 1, 2021, State of Alaska, Division of Forestry entered into a Special Use Permit for portirrT
of Lot 4, FBO Subdivision No. 7 as delineated as Lot 4A of the preliminary plat of FBO Subdivisi
No. 11. The Special Use Permit was the only option available for continuing Division of Forest
utilization of the property since the subdivision for the City Sand Storage Facility was n
completed/recorded at the time their previous lease expired on June 30, 2021 . The Special U
Permit terminates on June 30, 2022
The Division of Forestry proposes electrical service improvements and a concrete containment
barrier with an estimated $10,000 value of improvements to be completed within two (2) years of
signing the lease, Activities noted on the application is an air tanker reload base for wildland fire
prevention and suppression, The requested lease term is 5 years with a starting annual lease rate
of $18,250.62.
'10
9.
on February 26, 2022 and no competing applications have been submitted to the City.
The parcel is within the Airport Light Industrial (ALI) Zone. Pursuant to KMC 14.20.065, the
purpose of the ALI Zone is to protect the viability of the Kenai Municipal Airport as a significant
resource to the community by encouraging compatible land uses and reducing hazards that may
endanger the lives and property of the public and aviation users, The proposed aeronautical use
is a permitted and compatible use in the ALI Zone.
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Goal 7 — Natural Hazards and Disasters: Prepare and protect the citizens of Kenai from natural
hazards ands disasters
At their regular meeting on February 9, 2022, the Planning and Zoning Commission reviewed the
lease application and recommended approval by the City Council, At their regular, meeting on
February 10, 2022, the Airport Commission reviewed the lease application and recommended
approval by the City Council,
Thank you for your consideration.
Attachments:
City of Kenai Land Lease Application from State of Alaska, Division of Forestry
Plat of FBO, Subdivision No. 11
Page 2 of 2
TIDE? It of Kenai I wwwkenaixity
................
'Proposed Use (check one)- xI Aeronautical I Non -Aeronautical
Do you plan to construct new or additional improvements? (if Yes, answer next five questions) Ix YES L N(
1, Will the improvement change or alter the use under an existing lease? 11 YES
... . ........................ . ....... . . . ...... . . . . ................... -
2. What is the proposed use of the improvement? Air tanker reload infrastructure
. .. . . .......... . ..... ............. .
— ---------------
3. What is the estimated value of the improvement? $10,000
4. What is the nature and type of improvement?
Containment barriers, electrical service improvements
- - -- ----------- . ....... . ......... . . .. .................. .... ..
5. What are the dates construction is estimated to commence and be completed?
(generally, construction must be completed within two years)
Estimated Start N. july 1, 2022 Estimated Completion Date: June 30,2024
— -------------
Describe the proposed business or activity intended:
Air Tanker Reload Base
- - - --------- - ------------
IHow does the proposed lease support a thriving business, residential, recreational, or cultural community?
Utilized for wildland fire prevention and suppression.
Lease Assignment Only: What is the name of the individual or legal entity the lease is to be assigned?
State of Alaska
I/
, IMOME
Renewal of an Existing Lease (at least one year of term remaining): Requires new development.
Lease Term based on: Estimated cost of new improvements and � Purchase Price (optional)
Renewal of an Expiring Lease (less than one year of term remaining): Does not require new development.
'Lease Term based on- � Purchase Price L Professional Estimate of Remaining Useful Life
Fair Market Value appraisal and/or 7 Estimated cost of new improvements (optional)
— — - - - - - - ___ .. .......... ..... . .............. . . . ... . .. . . .. .............................. . . ...
'Requested Term for Renewal Based on Term Table, not to exceed 45 Years:
Submitting an application for a lease does not give the applicant a right to lease or use the land requested in the application, The application
shall expire twelve (12) months after the date the application has been made if the City and the applicant have not, by that time, entered into a
lease, unless the City Council for good cause grants an extension for a period not to exceed six (6) months. The City has no obligation to
iamend, renew or extend a lease and may decline to do so upon making specific findings as to why a lease renewal, extension, or amendment is
�not in the best interest of the City
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�'Signature:
Print Name: e I Burkhead Procurement Specialist I
or City Use Only. Date Application Fee Received�
* General Fund 0 Airport Reserve Land Date Application Determined Complete:
* Airport Fund 0 Outside Airport Reserve 30-Day Notice Publication Date,,,
Account Number. City Council Action/Resolution��
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July 1, 2021
Certificate of Self -Insurance
To Whom It May Concern,
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The State of Alaska and its agencies are covered for property and liability exposures. Losses that
fall within these self -insured levels, including those for which we are contractually liable, are
covered by the financial resources of the State and are administered under the self -insured claims
program handled by this office. Workers' Compensation coverage is also provided through the
State of Alaska self -insured program (authorized by AS 23.30.090).
Given the State of Alaska self -insures the insurance protection you are requesting evidence for;
we are unable to name additional insureds or produce a standard certificate of insurance that you
would commonly receive from other entities. The State of Alaska, through this office, provides
the comprehensive liability insurance coverage through our program of self-insurance for the
activities and operations of the Department of Natural Resources.
Please call me at (907) 465-5724 if you have any questions or need further clarification of the
State's self-insurance program.
Sincerely,
Sheri Gray
Risk Manager