Okaloosa County BOCC — October 15, 2013 — AOL Blue Horizon JR Skyways to Williams — reading text

CONTRACT & LEASE INTERNAL COORDINATION SHEET em a JIT ES a fi pp of ~ E14 -A] Tracking Number: £54-/3 Contract/Lease Number: & ai ; i ej " ~t _ ; ; > Contractor/Lessee Name: igh ve Hor, Gan 4 TK Sky wee Grant Funded: YES___ NO.“N Purpose: Frel. Te Navy “4 ia | i, an S Date/ferm:__ July 15, 2235 1. [A GREATER THAN $50,000 Amount: 7.5, 580. © aanvelly pl us teK 2. L] GREATER THAN $25,000 Department: A ports 3. [J $25,000 OR LESS Dept. Monitor Name: Na vid Wh ree Document has been reviewed and includes any attachments or exhibits. Purchasing Review Procurement requirements are met: DP £4, yy, <x DALiM Date: Lf? (gs PureRasing Director or designee Risk Management Review Approved as itteps folds Risk WOnager or designee Z County Afforney Reviewr marin. | pA Sunjel Bom apr hy / Z| fipted tek 5D y i. aRpIeved asitte sex LE UG of eve | Date: 7 b/AS Couhfy Attorney ‘ Following Okaloosa County approval: Contract & Grant Document has been received: Date: Contracts & Grants Manager ASSIGNMENT OF HANGAR LEASE This ASSIGNMENT OF LEASE FOR HANGAR SPACE, fully executed this day of , 2013, by and between the BLUE HORIZON AVIATION, INC. AND J & R SKYWAYS, INC. (hereinafter called “FIRST PARTY”) and HARVEY WILLIAMS (hereinafter called “SECOND PARTY” or “LESSEE”). WITNESSETH: WHEREAS, the FIRST PARTY entered into a Lease Agreement for a hangar at the Bob Sikes Airport, original lease dated May 7, 2002 with a current expiration date of April 30, 2022. WHEREAS, the SECOND PARTY, by execution of this ASSIGNMENT OF LEASE, and in consideration of approval by Okaloosa County of the same does hereby assume all responsibilities, duties, obligations, rights, and privileges as set forth in the original lease except as hereinafter stipulated, and does hereby expressly relieve and indemnify the FIRST PARTY against any duty or responsibility for the same. COUNTY hereby lets to SECOND PARTY and SECOND PARTY hereby hires and takes from COUNTY at the Bob Sikes Airport in the County of Okaloosa, State of Florida (hereinafter referred to as AIRPORT”), that certain location designated as Block 2 Lot 3 as shown on file in the office of the Airports Director, which is hereby incorporated herein by reference, and COUNTY hereby gives to SECOND PARTY permission to occupy and maintain one (1) hangar for the storage of individually-owned/corporate- owned aircraft at the aforesaid location. Additional aircraft may be stored in the hangar with proper notice to the COUNTY provided that proof of required insurance coverage is provided to the COUNTY. This Lease for Hangar Space (hereinafter called “LEASE”) is subject to all terms, covenants, conditions, and agreements to be kept, performed, and observed by the SECOND PARTY. SECTION 1: TERM This LEASE shall have an expiration date of July 15, 2033. The expiration date has been extended due to Mr. Williams’s extensive renovation of the existing hangar. Mr. Williams plans to enclose the current hangar, install a hydraulic door and other upgrades. The total price of the renovation is $117,462.00. SECTION 2: AIRCRAFT OWNERSHIP LESSEE shall provide written confirmation to the COUNTY of proof of ownership of individually-owned/corporate-owned aircraft to be stored pursuant to this LEASE. In the event LESSEE’s aircraft is sold, LESSEE shall have one year to replace said aircraft; otherwise this lease shall be voided at the COUNTY’s discretion. SECTION 3: IMPROVEMENTS TO COUNTY Any and all improvements hereafter installed, erected, or placed within the Leased Premises, including alterations and repairs shall become, upon the termination of this LEASE for any cause, the absolute and sole property of COUNTY and shall not be removed from the Leased Premises. If on termination of this LEASE, LESSEE is not in default, LESSEE shall have the right to remove from the Leased Premises any equipment or trade fixtures that can be removed without damage to the Leased Premises (and if any damage does occur on any such removal, LESSEE shall promptly repair the same). SECTION 4: BUILDING, ALTERATIONS, AND PERMITS LESSEE shall at its expense apply for and obtain any and all building, construction, or other permits and licenses to build, repair, or maintain the improvements contemplated by this LEASE. COUNTY makes no representations or warranty relative to the availability of such licenses or permits, and LESSEE assumes full responsibility for securing same. No construction, modification, or alterations of improvements to include antennas or other devices are permitted without prior written approval by COUNTY. SECTION 5: RENTALS a. GROUND LEASE: LESSEE shall pay in advance an annual ground lease fee established by an independent appraisal. The fee shall be adjusted in accordance with Section 6. The ground lease and applicable sales tax will be billed annually, in advance, and is payable to the Airports Director, Okaloosa County Airports, 1701 Highway 85 North, Eglin Air Force Base, Florida, 32542-1498. The lease includes FIVE THOUSAND FIVE HUNDRED (5,500) square feet at ONE ($1.00) dollar per square foot per year for a total annual cost of FIVE THOUSAND FIVE HUNDRED DOLLARS ($5,500.00) plus tax. b. LATE CHARGES: If LESSEE fails to pay within THIRTY (30) days of date of billing of invoices by COUNTY for applicable rents and charges as herein described, LESSEE shall then pay interest to the COUNTY at the maximum legal allowable rate authorized by the State of Florida. If any rental fee or other charge remains delinquent for a period of sixty days, LESSOR shall have the option to terminate this Agreement. SECTION 6: ESCALATION CLAUSE: The ground lease shall be increased annually to reflect the increase in the Consumer Price Index (“CPI”) from the date of the original execution hereof by both parties. The “CPI” shall be the revised Consumer Price Index for all Urban Consumers for all items — U.S. City Average, published by the Bureau of Labor Statistics, U. S. Department of Labor, 1982-84=100 (CPI-U). SECTION 7; UTILITIES COUNTY does not assume any responsibility in providing utilities to the Leased Premises. LESSEE will pay all utility charges and costs of installation. SECTION 8: RIGHTS OF LESSOR a. It is understood and agreed that COUNTY may, in connection with the future development of said AIRPORT, require the space hereinabove for permanent buildings and/or other development. In such case, COUNTY shall give written notice to LESSEE. After THIRTY (30) days from said written notice, COUNTY shall have the right at COUNTY’s expense, to remove said hangar and erect it at said AIRPORT as designated in writing by COUNTY, provided that said new location is reasonably, feasibility, accessible to the taxiways and runways. b. COUNTY reserves itself, its successors, and assigns for the use and benefits of the public, a right of flight for the passage of aircraft in the airspace above the surface of the real property hereinafter described together with the right to cause in said airspace such noises as may be inherent in the operations of aircraft, now known or hereafter used for navigation of or flight in the said airspace, and for use of said airspace for landing on, taking off from, or operating on the AIRPORT. c. LESSEE expressly agrees for itself, its successors, and assigns to prevent any use of the hereinafter-described real property, which would interfere with or adversely affect the operation or maintenance of the AIRPORT, or otherwise constitute an airport hazard. d. LESSEE expressly agrees for itself, its successors, and assigns, to restrict the height of structures, objects, of natural growth, and other obstructions on the hereinafter described real property to such height so as to comply with the Federal Aviation Regulations, Part 77. SECTION 9: COMPLIANCE WITH GOVERNMENTAL PROCEDURES LESSEE shall conform to all the requirements of applicable State and Federal statutes and regulations and all County Ordinances and regulations, and shall secure such permits and licenses as may be duly required by any such laws, ordinances, or regulations as may be promulgated by COUNTY. In addition, Lessee shall comply with all policies, rules, regulations, or ordinances of the County, which are currently, or may be hereinafter adopted relating to County owned airport facilities. SECTION 10: CARE OF LEASED PREMISES LESSEE shall keep said hangar and premises neat, clean, and orderly at all times. LESSEE shall not store anything on the premises other than those items specifically required to maintain the owner’s aircraft in accordance with Federal Aviation Regulations (FAR’s). All petroleum products, solvents, cleaners and flammable material shall be stored in an approved fireproof rated cabinet. Used petroleum products, solvents, cleaners and cleaning materials shall be disposed of both in accordance with all governmental regulations and off the County premises. SECTION 11: MAINTENANCE IN LEASED PREMISES LESSEE shall insure that all aircraft maintenance performed in the leased premises is in accordance with Federal Aviation Regulations (FAR’s). SECTION 12: TAXES LESSEE shall pay all taxes or other governmental charges of any nature or kind which may be imposed on rental or lease payments or assessed upon the hangar or improvements and upon any aircraft or other property kept therein promptly when due. SECTION 13: ASSIGNMENT AND SUBLEASE All subsequent transfers and assignments of any interest, including mortgages thereon, require written approval in advance by COUNTY and payment of an Approval Fee of ONE THOUSAND ($1,000.00) dollars. During the initial 20 year term a new lease fee will be established upon assignment or transfer based on an independent appraisal conducted at the direction of the COUNTY. LESSEE shall have thirty (30) days from the furnishing of the copy of the appraisal to exercise a right of transfer or assign. Otherwise, the transfer or assignment shall not be approved and the ONE THOUSAND ($1,000.00) DOLLAR approval fee shall be refunded. Following the initial 20 year term, rent will be based on the ground values by an independent appraisal. Except as hereinabove set out, the Leased Premises may not be sublet, in whole or in part, and LESSEE shall not assign this LEASE or any portion of this LEASE at any given time without prior written consent of COUNTY. , SECTION 14: INSPECTION ON ASSIGNMENT LESSEE agrees that upon assignment of this Lease by LESSEE, LESSOR shall have the right to inspect the leased premises and require that the hangar and property be repaired or restored to the condition that it existed upon execution hereof. SECTION 15: RISK OF LOSS OR DAMAGE TO HANGAR LESSEE assumes the risk of loss or damage to the hangar and its contents, whether from windstorm, fire, earthquake, or any other causes whatsoever. SECTION 16: RIGHTS OF ENTRY RESERVED COUNTY has the right to inspect the Leased Premises at any time upon reasonable notice. SECTION 17: INSURANCE a. LIABILITY: LESSEE agrees that LESSEE, shall, during the entire term or any extension of this LEASE, keep in full force and effect, a policy or policies of aircraft liability and public liability insurance with respect to the Leased Premises. The limits of aircraft liability and public liability shall not be less than ONE MILLION _($1,000,000.00) dollars Combined Single Limit (CSL) each. The COUNTY reserves the right to increase the minimal aircraft liability and public liability insurance requirements as circumstances may warrant. b. PROPERTY: The damage, destruction, or partial destruction of any permanent building or other improvement which is part of the Leased Premises shall not release LESSEE from any obligations hereunder nor shall it cause a rebate or an abatement in rent then due or thereafter becoming due under the terms hereof. In case of damage to or destruction of any such building or improvement, LESSEE shall at its own expense,