LAND LEASE AGREEMENT
BETWEEN
CASPER / NATRONA COUNTY INTERNATIONAL AIRPORT
AND
BUREAU OF LAND MANAGEMENT
2987 PROSPECTOR DRIVE
CASPER, WY 82604
TABLE OF CONTENTS
ARTICLE PAGE NO.
1 General Agreement 3
2 Term 3
3 Fees and Rentals 3
4 Rights and Privileges of Lessee 4
5 Rights and Privileges of Lessor 4
6 Obligations of Lessee 5
7 Insurance 7
8 Indemnification and Hold Harmless 8
9 Subleases; Responsibility for Sublessees 9
10 Defaults and Remedies 9
11 Additional Termination Rights 10
12 Cancellation by Lessee 10
13 Waiver of Subrogation 11
14 Remedies Cumulative; No Waiver 11
15 Damage to Property of Lessee and Others 11
16 Damage to Leased Premises and Property by Lessee and Others 11
17 Lessor Representative 12
18 Subordination 12
19 Governing Law; Venue for Disputes 12
20 Counterparts 12
21 Severability 12
22 Independence of Contract 12
23 Survival of Obligations/Successors and Assigns Bound 12
24 Entire Agreement 13
25 No Assignment 13
26 Holdover Possession of Leased Premises by Lessee 13
27 Paragraph Headings 13
28 Amendments 13
29 Notices 14
30 Exhibits 14
LAND LEASE RENTAL AGREEMENT
- Bureau of Land Management -
Article 1
General Agreement
THIS AGREEMENT made and entered into this 1st day of March, 2009, by and between the Board of Trustees of Casper/Natrona County International Airport, County of Natrona, State of Wyoming, a corporate body, hereinafter referred to as the "LESSOR", and the Bureau of Land Management, hereinafter referred to as the "LESSEE".
PRELIMINARY RECITALS
WHEREAS, the Lessor is the owner and operator of Casper/Natrona County International Airport, an airport situated in Casper, Wyoming (the "Airport"); and
WHEREAS, Lessee desires to lease from Lessor a parcel of land approximately Six Thousand Eight Hundred Fifty Four (6,854) square feet in size, hereinafter referred to as the "Leased Premises", shown on Exhibit "A" attached hereto and made part hereof. The Leased Premises shall be used for the storage of fire retardant chemical, and the transfer of fire retardant chemical and water into an aircraft.
WHEREAS, Lessor deems it advantageous to the operation of its Airport to grant the Lessee use of the Leased Premises with the rights and privileges as herein set forth.
NOW, THEREFORE, for and in consideration of the rents, fees, covenants, and agreements contained herein, and for other good and valuable consideration, it is mutually agreed and understood between the Lessor and the Lessee the following.
Article 2
Term
2.1 Term - The term of this Agreement shall be for a period of three (3) years commencing in full force and effect on the 1st day of March, 2009, through the 29th day of February, 2012, unless sooner terminated or canceled as herein provided.
2.2 Renewal – Provided Lessee is not in default of any terms and conditions of this Agreement, at the expiration of the Agreement term, this Agreement shall automatically renew under the same terms and conditions for one (1) three (3) year term unless Lessor or Lessee gives the other notice in writing prior to December 31, 2011 expressing its desire to not renew the Agreement.
Article 3
Fees and Rentals
From and after the effective date hereof, the Lessee agrees to pay to the Lessor for the rights and privileges herein provided, the following rentals and fees.
3.1 Leased Premises Rent - shall be Eight Hundred Seventy Eight dollars and 00/100 cents ($878) per year, payable in advance on March 1, 2009, and the first day of March of each agreement year, as well as any extension. For the agreement year beginning March 1, 2010, and each agreement year thereafter including any extension, the annual rent for the Leased Premises shall be increased by 3.75%. No demand for rent or fees need at any time be given, and it shall be the duty of Lessee to pay all monies when due.
3.2 Water Use Charge – Lessee shall pay Lessor a $50.00 one-time fire hydrant permit fee. Lessee shall additionally pay to Lessor a water usage fee of $3.10 per 1,000 gallons of water metered. Lessor may from time to time increase said water rate based upon the City of Casper’s charge to Lessor.
Lessor shall read the meter monthly, will invoice Lessee for water usage based upon the meter reading, said invoicing to occur by the end of the month following the month of usage. Water usage payment will be due by the 10th of the month after the month of billing. For example, water usage for June will be read the beginning of July, will be billed by the end of July, and will be due by August 10th.
Payments received later than these dates are subject to interest in the amount of 1½% per month. The implementation of the interest provision shall not preclude the Lessor from terminating this Agreement for default in the payment of rentals as specified in Article 10, Defaults and Remedies.
Article 4
Rights and Privileges of Lessee
Subject to the terms and conditions hereinafter set forth, the Lessee is hereby given the following rights and privileges.
4.1 Leased Premises Use - Lessee has the right to use the Leased Premises for the placement of a storage tank, the storage and transfer of fire retardant chemical, the transfer of water onto an aircraft through the use of a fire hydrant and hose, and the parking of aircraft during the transfer of chemical and water onto the aircraft. The Lessee shall not engage in any other business, storage, operation, or activity without the written consent of the Lessor. The Lessee understands that a violation of this paragraph is a material default and breach of this Agreement that gives the Lessor the rights set forth in Article 10, Defaults and Remedies.
4.2 Ingress and Egress - Subject to rules and regulations governing the use of the Airport as may be established by the Airport Manager, the Lessee, its employees, suppliers of materials, and furnishers of service shall have the right of ingress and egress to and from the Leased Premises.
4.3 Quiet Enjoyment - The Lessor covenants that upon paying the rent and performing the covenants and conditions herein contained, the Lessee shall peacefully and quietly have, hold, and enjoy the Leased Premises for the term of this Agreement. The Lessee agrees that temporary inconveniences, such as noise, disturbances, traffic detours and the like, caused by or associated with the construction of Airport improvements or Airport events shall not constitute a breach of quite enjoyment of the Leased Premises. The Lessee further agrees not to disturb Lessor or any other tenant of the Airport by creating or permitting any disturbance or other unusual noise or other undesirable condition on or about the Airport.
Article 5
Rights and Privileges of Lessor
In addition to other rights and privileges, the Lessor has the following rights and privileges:
5.1 Airport Development - The Lessor has the right, but shall not be obligated to Lessee, to develop or improve the landing areas and other portions of the Airport as it sees fit, regardless of the desires or views of the Lessee, and without interference or hindrance. In the event that Lessor makes improvements which benefit Lessee, Lessee agrees to negotiate with Lessor fair and reasonable modifications to the Fees and Rentals as specified in Article 3, or the establishment of new fees as the case may be.
5.2 Aerial Approaches - The Lessor has the right to take any action it considers necessary to protect the aerial approaches and transition surfaces of the Airport against obstruction, together with the right to prevent the Lessee or sub-lessees from erecting or permitting to be erected any building or other structure on the Airport, which, in the opinion of the Airport Board of Trustees would limit the usefulness of the Airport or constitute a hazard to aircraft. Further, Lessee hereby covenants, for itself and its successors and assigns, at all times hereafter, that it will not take any action, cause or allow any electronic, electromagnetic or light emissions which would conflict or interfere with or infringe on Lessor’s rights herein, including unobstructed aerial approaches.
5.3 War, National Emergency, Riot, or Natural Disaster - During time of war, national emergency, riot or natural disaster, the Lessor shall have the right to lease the entire Airport or any part thereof to the United States or State of Wyoming for military or National Guard use and, in such event, the provisions of this Agreement, insofar as they are inconsistent with the provisions of any lease to any such unit of government, shall be suspended for the term of such government lease.
5.4 Access to Leased Premises - To the extent necessary to protect the rights and interests of the Lessor, or to investigate compliance with the terms of this Agreement, the Airport Manager or his designee shall at any and all times have the right to inspect the Leased Premises, including all buildings, structures, and improvements erected thereon.
5.5 Unrestricted Right of Flight - The Lessor, for the use and benefit of the public, has a free and unrestricted right of flight for the passage of aircraft in the airspace above the surface of the Leased Premises, together with the right to cause in said airspace such noise as may be inherent in the operation of aircraft, now known or hereafter used for navigation of or flight in the air, using said airspace or landing at, taking off from, or operating on or about the Airport.
5.6 Government Use of Airport - This Agreement shall be subordinate to the provisions of any existing or future agreement between the Lessor and the United States Government, relative to the operation or maintenance of the Airport, the execution of which has been, or may be required as a condition precedent to the expenditure of federal funds for the development of the Airport.
Article 6
Obligations of Lessee
Except as otherwise specifically provided herein, the Lessee shall have the following obligations.
6.1 Condition of Leased Premises – The Lessee shall use the Leased Premises in its present condition and, without expense to the Lessor, will maintain any installations thereon.
6.2 Environmental Compliance - Lessee shall comply with all laws relating to hazardous materials on the Leased Premises or related to Lessee’s activities at the Leased Premises. Lessee shall not use or store hazardous materials on the Leased Premises or surrounding area, except as reasonable necessary for its permitted use of the Leased Premises. Lessee shall not dispose of any hazardous materials on the Leased Premises or surrounding lands or waters. Lessee shall promptly notify the Airport of any material spills, releases, or other discharges of hazardous materials by Lessee at the Leased Premises, and promptly abate and remove any such discharges. From and after acceptance of this Agreement by Lessee, all reporting requirements under any laws with respect to spills, releases, or discharges of hazardous materials by Lessee at the Leased Premises under any law are the responsibility of Lessee. Prior to the end of the Agreement Term or earlier termination of the Agreement, Lessee shall remove or remediate all hazardous materials from the Leased Premises and surrounding lands and waters.
6.3 Maintenance, Exterior Storage, and Housekeeping - Lessee shall at its sole expense, keep, maintain, and repair the Leased Premises, any improvements thereto, consistent with good business practices, and in a manner to preserve and protect the general appearance and value of other premises in the immediate vicinity. At the end of the Agreement, Lessee shall surrender the Leased Premises in good condition, normal wear and tear aside.
In the event Lessee does not keep the Leased Premises in a presentable condition, the Lessor has the right to issue a written notice to remedy the condition forthwith. Should Lessee fail to perform satisfactorily within ten (10) days of such notification, or show cause for extension of said time period, the Lessor shall have the right to perform, or have performed by an outside contractor the necessary work without liability, and Lessee agrees to pay the Lessor one hundred twenty five percent (125%) of such expenses within fifteen (15) days upon invoice receipt.
6.4 Additions or Alterations – The Lessee is prohibited from making alterations, attaching external fixtures, or making other changes to the Leased Premises unless approved in advance in writing by the Airport Manager. All such changes to become part of the realty upon which they were constructed.
6.5 Signage and Illumination – Lessee shall not paint upon, attach, exhibit or display in or about said Leased Premises any sign without the written consent of the Airport Manager first obtained regarding the nature and construction of said sign, said approval not to be unreasonably withheld.
6.6 Utilities – Except as otherwise specified here, the Lessee agrees to provide its own connections with utilities and to make separate arrangements with the agencies responsible for these utilities. The Lessee shall pay for all utility service supplied to the Leased Premises, and if required by the utility agencies as a condition of providing the services, the Lessee will install and pay for standard metering devices for the measurement of such services. In the event it shall become necessary to make utility service or facility changes, the Lessee will either make such changes and installations, at its expense, as directed and required by the utility organizations, or pay the utility organization for such changes made. The Lessor shall have the right, without cost to Lessee, to install and maintain in, on or across the Leased Premises, sewer, water, gas, electric, and telephone lines, electric substations, or other installations necessary to the operation of the Airport, or to service other tenants of the Lessor; provided, however, that the Lessor shall carry out such work and locate any above-ground structures in a manner so as not to unreasonably interfere with Lessee's use of the Leased Premises.