Okaloosa County BOCC — December 4, 2012 — RONDAN Lease and Internal Coordination Sheet — reading text

LEASE AGREEMENT BETWEEN OKALOOSA COUNTY BOARD OF COMMISSIONERS AND RONDAN INVESTMENTS, LLC THIS LEASE, is entered into effective this day of January, 2013, by and between OKALOOSA COUNTY, FLORIDA, a political subdivision of the State of Florida (COUNTY or LESSOR) and RONDAN INVESTMENTS, LLC, a Florida corporation (LESSEE). WITNESSETH WHEREAS, the LESSOR and the LESSEE, each in consideration of the agreements to be performed by the other, intending to be legally bound, hereby agree as follows: 1. LEASED PROPERTY: LESSOR does hereby lease to LESSEE certain property at the Bob Sikes Airport, Crestview, Florida, 32539, more specifically described and diagrammed on Exhibit “A” appended hereto and specifically incorporated herein and made a part hereof by reference (hereinafter referred to as the “Property”). The Property together with the existing improvements and those improvements to be constructed thereon by LESSEE, are hereinafter referred to as the “Leased Premises”. 2. PUBLIC USE AREA(if any): As part of this lease, the LESSEE is hereby granted use of the Public Use Area as depicted in Exhibit “A” on a “Preferential Use” basis from time to time, with the extent and duration of such use to be determined according to the requirements and security level of any contract being performed. LESSEE is required to notify the Airports Director, at least twenty-four (24) hours in advance, of the need to utilize the Public Use Area along with the time required. 3. LEASE TERM: The LESSEE shall have and hold the Property for and during the Lease Term which shall be, unless sooner terminated pursuant to the other provisions hereof, the period of time which shall commence on the date (The “Commence Date”) which is the earliest to occur of: a. The date LESSEE commences operations on improved leased land; b. The date the LESSEE occupies any portion of the new hangar building for its business purposes, or c. The twelfth month (12'") anniversary of the date of this Lease. The Lease Term shall expire THIRTY (30) calendar years after the last day of the month in which the Commencement Date occurs, which Lease Term may be extended pursuant to the terms and conditions of this Lease as set forth hereinafter. 4. OPTIONS: LESSEE is hereby granted the option to extend this lease for one (1) additional period of ten (10) years followed by negotiations for an additional period of time not to exceed ten (10) years, by providing not less than sixty (60) days’ written notice to LESSOR prior to the expiration date of the then expiring term of this lease. 5. RENT: A basic ground lease rent of THIRTY ($0.30) CENTS per square foot per year is established for the ONE HUNDRED THIRTY SEVEN THOUSAND FIVE HUNDRED (137,500) square foot area in Exhibit “A” The base annual Lease Rent will be FOURTY ONE THOUSAND TWO HUNDRED FIFTY ($41,250.00) DOLLARS plus tax. The Lease Rent provided for herein is all inclusive of any amounts to be paid to LESSOR by LESSEE for occupancy, except that the LESSEE shall be responsible for the payment of any taxes that may be applicable. The LESSEE shall pay to LESSOR at the office of the Airports Director, or at such other place as may be designated by LESSOR, the Lease Rents as provided for in this Section 5, payable in advance in equal successive installments upon the first day of each calendar month, beginning the effective date of this lease. All costs for hangar/apron/parking design and construction shall be the sole responsibility of the LESSEE. An annual cost of living adjustment shall begin when the Hangar is occupied and extend throughout the term of the LEASE including any option period. For the purpose of calculating the cost of living adjustment, the term “C.P.1.” 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.”). In the event the U.S. Department of Labor, Bureau of Labor Statistics ceases to publish the C.P.I. the parties hereby agree to substitute another equally authoritative measure of change in the purchasing power of the U.S. dollar as may be then available. The annual adjustment shall be effective on each anniversary date of the Lease Term beginning with year 10 and shall be based upon the percentage difference between the C.P.I. for the previous twelve (12) month period ending December 31 and the C.P.I. for the twelve (12) month period ending December 31 of that year of the lease term multiplied by the then in force Lease Rent. Rent will be abated for a period of THREE (3) years in recognition of LESSEE’S investment in construction. 6. CONSTRUCTION OF HANGAR: Vertical construction of the hangar must be started within one (1) year and hangar must be completed within two (2) years of execution of this LEASE. Failure to comply with this requirement may result in automatic termination of this LEASE without prior written notice by COUNTY. LESSEE shall furnish one (1) set of building drawings to COUNTY upon completion of hangar. 7. UTILITIES: The LESSEE agrees to pay all charges for utility services including water, heat, light, power, sewage, and garbage. LESSOR agrees to provide all necessary easements for public utilities and shall, as its sole expense, bring public water and sewer lines to the boundary of the Property. Monthly telephone and janitorial expenses will be borne by LESSEE. The LESSEE agrees to pay all on-site costs of utility installation. Except as set forth in this paragraph, LESSOR does not assume any responsibility in providing utilities. LESSEE shall be responsible for the payment of any tap on or utility connection fees to LESSOR for water and sewer utilities. 8. BUILDING —_ CONSTRUCTION/ALTERATIONS/AND__ PERMITS: LESSEE shall at its expense apply for and obtain any and all building, construction, or other permits and licenses to construct the aircraft hangar contemplated by this lease from Okaloosa County, or any other authority having jurisdiction to require the same. 9. IMPROVEMENTS: The LESSEE shall at its own expense make any and all alterations, additions and improvements to the Property which it deems necessary for carrying on its business and the occupancy of the Property. LESSEE shall not encumber or allow the property to be encumbered and shall immediately satisfy and remove from the public record any claims of liens of mechanics, material men, contractors, subcontractors or laborers which arise out of LESSEE’s alterations, additions or improvements to the Property. Notwithstanding this prohibition of mechanic’s liens the LESSEE shall be allowed to grant mortgages of the Leasehold interest created by this lease to banks or other lending entities. Any and all improvements hereinafter installed, erected, or placed on the Property, including alterations and repairs shall become, upon the expiration or earlier termination of this LEASE and any extensions, for any cause, the property of LESSOR, and shall not be removed from the Property except by proper legal process. If upon termination or expiration 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). 10. PERMITTED USAGE: LESSEE covenants and agrees with LESSOR that it will occupy the Property and use it for aeronautical and related services; that it will not make or permit any unlawful use of the Property or maintain any use amounting to a public or private nuisance, and further at the expiration of the term of this Lease, or at an earlier time as permitted under the terms hereof, will quit and deliver up the Property in as good condition as they now are, ordinary wear, decay and damage by the elements excepted. LESSOR will not encumber or restrict ingress and egress to and from Property, including aircraft or other large equipment. 11. RESTRICTIONS ON MECHANIC’S LIENS: Nothing in this lease shall be deemed or construed in any way as constituting the consent or request of COUNTY, express or implied, by inference or otherwise, to any contractor, sub-contractor, laborer, or material man for the performance of any labor or the furnishing of any materials for any specific improvement, alteration to, or repair of the Property or any part thereof, nor as giving LESSEE any right, power, or authority to contract for a permit the rendering of any services or the furnishing of any materials that would give rise to the filing of any lien against the Property or any part thereof. Such liens are hereby strictly prohibited. 12. MAINTENANCE AND REPAIRS: LESSEE shall keep and maintain the Premises in a clean, neat and orderly condition consistent with the permitted business thereof. All maintenance, repair and replacement of the building and any other improvements thereto, shall be the responsibility of the LESSEE. LESSEE shall not store anything on the Leased Premises other than those items specifically required with the business. 13. SOLID AND HAZARDOUS WASTE: A. If Lessee is deemed to be a generator of hazardous waste, as defined by federal, State or local law, Lessee shall obtain a generator identification number from the U.S. Environmental Protection Agency (AEPA”) and the appropriate generator permit and shall comply with all federal, State and local laws, and any rules and regulations promulgated there under, including but not limited to, ensuring that the transportation, storage, handling and disposal of such hazardous wastes are conducted in full compliance with applicable law. B. Lessee agrees to provide County within ten (10) days after the County’s request copies of all hazardous waste permit application documentation, permits, monitoring reports, transportation, responses, storage and disposal plans and material safety data sheets prepared or issued in connection with Lessee’s use of the Leased Premises. C. Hazardous Substances: The term “Hazardous Substance” means any substance: 1. The presence of which requires or may later require notification, investigation or remediation under any environmental law; or 2s That is or becomes defined as a “hazardous waste”, hazardous material”, “hazardous substance”, “pollutant” or “contaminant” under any environmental law, including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C '9601 et seq.), the Resource Conservation and Recovery Act (42 U.S.C. '6901 et seq.) and the associated regulations; or 3. That is toxic, explosive, corrosive, flammable, infectious, radioactive, carcinogenic, mutagenic or otherwise hazardous and is or becomes regulated by any governmental County, agency, department, commission, board, agency or instrumentality of the United States, any state of the United States, or any political subdivision within any state; or 4. The presence of which on the Leased Premises causes or threatens to cause a nuisance on the Leased Premises or to adjacent properties or poses or threatens to pose a hazard to the Leased Premises or to the health or safety of persons on or about the Leased Premises; or 5. That contains gasoline, diesel fuel or other petroleum hydrocarbons or volatile organic compounds; or 6. That contains polychlorinated biphenyls (PCBs), asbestos or urea formaldehyde foam insulation; or hs That contains or emits radioactive particles, waves or materials, including, without limitation, radon gas. 14. COMPLIANCE WITH GOVERNMENTAL PROCEDURES: LESSEE shall conform to all the requirements of applicable State and Federal statutes and regulations and all County and Fire District 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 LESSOR or any Fire District having jurisdiction