HomeMy WebLinkAbout07 105 Airport Hanger Lease Agreement (Matchett)
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THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE
BY-LAW
NO. 2007 - 105
BEING A BY-LAW TO AUTHORIZE THE SIGNING OF A LEASE AGREEMENT
FOR THE RENTAL OF LAND AT THE KINCARDINE MUNICIPAL AIRPORT
(Matchett Financial Services)
WHEREAS Sections 11 (1) and (3) of the Municipal Act, 2001, S.O. 2001, c. 25
as amended gives broad authority to lower-tier municipalities to provide any
service or thing that the municipality considers necessary or desirable for the
public and respecting matters within the sphere of jurisdiction of transportation
systems, other than highways;
AND WHEREAS pursuant to the said Municipal Act, Section 8 (1) and 9 provide
that the powers of a municipality under this or any other Act shall be interpreted
broadly so as to confer broad authority on the municipality to enable the
municipality to govern its affairs as it considers appropriate and to enhance the
municipality's ability to respond to municipal issues and has the capacity, rights,
powers and privileges of a natural person for the purpose of exercising its
authority under this or any other Act;
AND WHEREAS it is deemed expedient to enter into a lease agreement with
Matchett Financial Services Inc. for the rental of land to house an airplane hangar
at the Kincardine municipal airport located on Concession A, pt Lots 26 to 29, RP
3R-438, Parts 2 to 8, RP 3R-3803, Parts 1 to 5, RP 3613, Part 1;
NOW THEREFORE the Council for The Corporation of the Municipality of
Kincardine ENACTS as follows:
1.
That the Corporation of the Municipality of Kincardine enter into a lease
agreement with Matchett Financial Services Inc. the rental of land to house
an airplane hangar on lands located at the Kincardine municipal airport and
known as Concession A, pt Lots 26 to 29, RP 3R-438, Parts 2 to 8, RP 3R-
38803, Parts 1 to 5, RP 3613, Part 1.
2. That the term of this lease be for a twenty (20) year period, to be computed
from the first day of July 2007 and ending on the 30th day of June 2027.
3. That the Mayor and CAO be hereby authorized to sign, on behalf of the
Council for The Corporation of the Municipality of Kincardine the lease
agreement with Matchett Financial Services attached hereto as Schedule
"A".
4. This by-law shall come into full force and effect upon its final passage.
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Page 2
Airport Hangar Lease Agreement (Matchett) By-law
By-law No. 2007 - 105
5.
This by-law may be cited as the "Airport Hangar Lease Agreement
(Matchett) By-law".
READ a FIRST and SECOND TIME this 11th day of July, 2007.
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READ a THIRD TIME and FINALLY PASSED this 11th day of July, 2007.
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This is Schedule" ./L " to By-Law
No,;)t:t>7-/aSPassed the I ~ay
This LEASE made this J / ~ day of ~, !t)~200:J
In Pursuance of the SHORT FORMS OF L"AS~CT,
473.
BETWEEN
THE CORPORATION OF 'THE MUNICIPALITY OF KINCARDINE
(hereinafter called the "Landlord")
and
Matchett Financial Services Inc
(hereinafter called the "Tenants")
WHEREAS The Landlord is a Municipal Corporation in the Province of Ontario;
AND WHEREAS The Landlord is the Owner in fee simple of certain lands situate
in the Municipality of Kincardine, County of Bruce, Province of Ontario, which
lands are more fully described in the attached Schedule "A"( Pryde Schropp
McComb Inc Site plan dated 2007/05/04 revision # 4) and are called the "Airport
Lands" in this Lease.
IN CONSIDERATION of the rents reserved and covenants and agreements
contained in this lease on the part of the Tenants, the Landlord leases to the
Tenants for the term and upon the conditions in this lease that portion of the
Airport Lands, together with certain rights of way, as described in the attached
Schedule "A" and hereinafter referred to as the "Leased Land".
1. TERM
The Tenants are to hold the Leased Land for the term of twenty (20)
years, to be computed from the first day of July 2007 and from thenceforth
ensuing and to be fully completed and ended on the 31st day of June,
2027.
2. RENEWAL
Provided always it is agreed between parties:
a) . If the Tenants are not in arrears of the payment of rent and has not
breached the covenants herein at the time of the expiration of the
term granted by this Lease then, the Landlord shall, upon the
written request of the Tenants received by the Landlord at least six
(6) months prior to the termination of the Lease, grant to the Tenant
a renewal Lease of the Leased Lands for a further term of five (5)
years upon the same terms and conditions as are contained in this
Lease save and except rent; provided that the rent for the renewal
Lease shall be agreed upon by the parties and further provided
that, in the event that the Landlord and Tenants cannot agree upon
the amount of rent to be paid by the Tenants during the term of the
renewal Lease within thirty (30) days of the commencement of the
new term under the renewal Lease then the issue of rent only is to
be determined at the instance of either party under the Arbitrations
Act in force from time to time in the Province of Ontario through a
single arbitrator whose award is subject to appeal to a Judge in
Court and from a Judge in Court to the Ontario Court of Appeal.
Page ~
Airport Lease
3. RENEGOTIATE
This contract is to be renegotiated to the mutual satisfaction of all parties if
the existing leased site conflicts with future expansion and development
plans.
4. RENT
i) The Tenants paying therefor, without abatement or set-off, rent to
the Landlord as follows:
(a) a base rent of $.30 per square foot per year for an area
occupied by Hangar. ( 2,304 square foot)
(b) the area to be leased will include two (2) feet on all the
exterior sides of Hangar.
(c) Yearly on each anniversary date of each year thereafter the
base rent shall be increased in proportion to the increase in
the Ontario Consumer Price Index as published by Statistics
Canada for the immediately preceding calendar year and
that rent shall become the new base rent.
(d) all rent shall be paid in advance, without prior demand, to the
Landlord.
ii) The Tenants hereby acknowledge that the foregoing rent payable is
solely for the leased premises which is comprised of the land and
the Tenants further acknowledge and agree that the rent provided
for by this Lease shall be payable whether or not a building is
erected on the leased premises and the rent is payable, due and
owing by the Tenants even in the event that the building is partially
damaged or totally destroyed. There shall be no abatement of rent.
5. TAXES
The Tenants covenant to pay, as and when they fall due, all municipal and
other real property taxes, including charges for local improvements,
assessments and other rates and levies assessed, levied, or imposed on
the Leased Land and any improvements thereon and to provide to the
Landlord receipts for the payment thereof. Such taxes shall include a
proportionate share of any taxes levied against the Airport Lands as a
whole.
The Landlord, at its sole option, may pay the taxes referred to herein on
behalf of the Tenants and collect such money from the Tenants as
additional rent.
6. UTILITIES
All utilities are at the option of the Tenants. The Tenants covenant to pay,
as and when they fall due, all charges for installation and use of electricity,
gas, water, and telephone service which may be supplied to the Leased
Land. All services are to be underground. Further, the Municipality of
Kincardine agrees to extend the main hydro power source to a central
point, from which the tenant may connect.
Page 3
Airport Lease
7. TENANT TO ERECT IMPROVEMENTS
(a) From and after the execution of this lease by the parties hereto, the
Tenant shall proceed with due diligence to prepare plans for the
improvement of the Leased Lands in such detail as the Landlord
may reasonably require,
(b) The improvements described in the plans shall be in accordance
with the Site Plan Agreement attached hereto as Schedule "A". In
addition, the planned improvements shall meet the following
criteria:
(i) hangars must comply with all building code requirements of
the Municipality of Kincardine;
(ii) uniformity of design including roof style and window size and
location;
(iii) compliance with height restrictions as outlined in the Site
Plan Agreement;
(iv) exterior colours for the entire leased area, to conform with
existing buildings;
(v) metal siding;
(vi) grading to be in accordance with the Site Plan Agreement.
Site to be prepared for construction by Tenants, including
excavating, filling and grading.
(vii) all hangers must have main entrance aircraft doors.
(viii) all hangers must be heated with propane only.
(c) The Tenants shall submit the plans referred to in subparagraph (b)
to the Landlord for approval which shall not be unreasonably
withheld.
(d) The Tenants shall not commence any improvement to the Leased
Land without the prior approval of the Landlord as set out in
subparagraph (c).
(e) All construction of improvements, including excavation, grading,
etc. shall be done at the sole expense of the Tenant and shall not
operate to set off or abate the rent reserved herein but such
expenses shall be in addition thereto.
(f) The Tenants shall discharge at their own expense, any lien filed
against the Leased Land or the Airport Lands in respect of work
carried out upon the Leased Land, and it shall pay any legal or
other costs, fees or disbursements howsoever incurred by the
Landlord in connection with such lien. . The Landlord may, at its
sole option, discharge such liens by paying into court or otherwise
and such amounts paid are recoverable by the Landlord from the
Tenants as additional rent.
(g) Within six (6) months of the commencement of this lease, to
commence the construction of a hangar on the demised premises
and to complete the construction within twelve (12) months of the
commencement of this lease. Upon completion, all improvements
constructed upon the leased land shall be vested in the Tenants. If
the construction of the said hangar is not completed within the said
Page 4
Airport Lease,
twelve (12) month period, this lease shall terminate at the end of
such period and, notwithstanding any other term to the contrary, the
Tenants shall have thirty (30) days in which to remove any partially
constructed hangar on the demised premises. If not removed
within such period, any partially constructed hangar or the remains
thereof shall become the property ofthe Landlord.
(h) In the event that the Tenants refuse or neglect to renew the Lease
after the expiration of the term of the Lease in accordance with the
provisions of Paragraph 2 herein then the Tenant within thirty (30)
days after the expiration of the term of this Lease, shall remove the
building and improvements erected upon the leased land (including
any plumbing, heating, ventilating plant or other building service)
solely at the cost of the Tenants. In the event that the Tenants
irrevocably covenants and agrees that the Landlord shall have the
right to purchase the building for the sum of one dollar ($1.00) and
the Tenants shall grant a Bill of Sale and execute any additional
documentation required to transfer title to the building and the
Tenants' improvements, to the Landlord.
8. MAINTENANCE AND REPAIR
(a) The Tenants agree to operate, maintain, and keep the premises in
such good order and condition both inside and out as they would be
kept by a reasonably careful and prudent owner and promptly to
make all needed repairs and replacements as shall be reasonably
necessary including, while not limiting the generality of the
foregoing, the roof, foundations and appurtenances including
fixtures, facilities and equipment belonging to and forming part of
the premises; provided, however, that the foregoing obligations of
the Tenants shall include repairs required by reasonable wear and
tear.
(b) If the Tenants fail to maintain the building, the Landlord may, on
written notice to the Tenant, perform such maintenance and repairs
as the Landlord in its sole discretion deems appropriate and
necessary and the cost of thereof shall be payable by the Tenant
as additional rent.
(c) In the event of loss, damage or partial loss or damage to the
building, the Tenants shall replace or repair the building with due
diligence and dispatch and in the event that the Tenants fail to
repair or replace with due diligence and dispatch the Landlord has
the right to rebuild, repair or demolish and remove, at the
Landlord's sole discretion, the building and the costs incurred by
the Landlord in relation thereto shall be payable by the Tenants as
additional rent; provided that, notwithstanding any other provision to
the contrary, in the event of substantial damage or total loss which
the Tenants neglect or refuse to repair or rebuild with due dispatch
and. diligence, then the Landlord shall have the unilateral right to
terminate the Lease.
(d) The Tenants shall, at his own expense, repair, replace, rebuild or
restore the buildings to their original condition.
9. INSURANCE
Insurance
The Tenant shall put in effect and maintain in its name, at its expense, all the
necessary insurance that would be considered appropriate for a prudent tenant
Page &\
Airport Lease.
undertaking this type of operation for the period during which the Agreement is in
effect with insurers acceptable to the Municipality, including:
(a) Commercial General Liability Insurance, for third party bodily injury,
personal injury and property damage to an inclusive limit of not less
than Two Million Dollars ($2,000,000.00) per occurrence. The policy
shall include:
(b) The Corporation of the Municipality of Kincardine as an additional
insured;
(c) Cross liability
(d) Contractual liability;
(e) Tenant's Legal Liability
(f) Contents coverage on a replacement cost basis for all property owned
by the Tenant
(g) A thirty (30) day written notice of cancellation
(h) Non-Owned automobile coverage with blanket contractual and physical
damage coverage for hired automobiles; and
(i) The Tenant shall provide the Municipality with a valid Certificate of
Insurance as evidence of the above coverage's upon signing the
agreement. The Tenant shall provide the Municipality with any
renewal replacement certificates as may be necessary during the
term of the Agreement.
m Insurance against fire and other perils providing for replacement
cost and rebuilding.
1 o. VACANT PREMISES
If the leased land becomes vacant and remains so for a period of three (3)
months or is used by any person other than the Tenants for a purpose
other than that for which they are leased without the written consent of the
Landlord, the then current month's rent and the three (3) month's rent
following will immediately become due and payable and the term will at
the option of the Landlord and the Landlord at any time thereafter may re-
enter and repossess the leased land as in its former state.
11. QUIET ENJOYMENT
The Landlord covenants with the Tenants for quiet enjoyment.
12. INDEMNIFICATION
The Tenant agrees to indemnify and hold harmless the Municipality from
and against all suits, judgments, claims, demands, expenses actions,
causes of action and losses and for any and all liability for damages to
property and injury to persons (including death) which the Municipality
may incur, otherwise than by reason of their own negligence or willful
misconduct, as a result of or arising out of or in relation to any breach of
the terms of this Agreement, or the Municipality's own negligence or willful
misconduct.
13. USE OF LEASED LAND OUTSIDE OF BUILDING
The uncovered portion of the leased land .shall not be used except for
aircraft taxiways. Landscaping shall be maintained at all times in a neat
and tidy condition and if not so maintained, may be maintained by the
Landlord and the expense for such maintenance is recoverable as
Additional Rent.
Page 6
Airport Lease -
14. SERVICE ROAD AND TAXIWAY
Construction of any required service roadway/taxiway between the
Tenants' lot line and the airport-paved finger taxiway is at the Tenants'
expense.
15. GRASS CUTTING AND SNOW PLOUGHING
The Landlord at its discretion agrees to provide snow ploughing for the
finger taxiway to the lot line. The Landlord agrees to regularly cut the
grass around the Leased Land.
16. RIGHT TO ASSIGN
The Tenants may assign this lease provided that the Landlqrd has
provided written consent, such consent to be granted or withheld at the
sole, unfettered discretion of the Landlord.
17. RIGHT TO INSPECT
The Landlord may enter upon and inspect the Leased Land at any time
during the currency of this lease.
18. GASOLINE AND OIL STORAGE
No gasoline, or any other flammable material, with the exception of engine
oil may be stored on the premise~. The Tenants covenant not to keep any
oil on the premises other than for the Tenants' own use.
19. INTEREST ON AMOUNT OWING
Where any amount is due and owing by either party to this lease to the
other, compound interest shall be paid on such amount commencing
fifteen 15) days after the date on which the amount was payable at the
rate of 1.25 percent per month.
20. PERMITTED USE OF LEASED LAND
The Tenants acknowledge that, in accordance with the present Site Plan
Agreement with the Municipality of Kincardine, the permitted use of the
Leased Land is Aircraft Storage.
. Commercial operations such as charter operators, flight. schools,
aircraft rental or leasing, aircraft repair, avionics repair, avionics sales,
aircraft parts sales, aircraft refinishing, aircraft manufacturing, aircraft
parts manufacturing, gasoline and oil sales, car rentals, food sales are
prohibited on the leased Land.
21. RULES AND REGULA liONS
The Tenants agree to observe all rules, regulations and laws laid down by
Transport Canada and the rules and regulations laid down by the Landlord
or its agents concerning the proper conduct of the Airport. Upon any
breach of such rule or regulation by the Tenants, the Landlord may at its
sole discretion immediately terminate this Lease, re-enter and take
possession of the Leased Land.
22. BINDING EFFECT'
Page 7
Airport Lease
This lease is, where the context permits, binding on, extends to and
ensures to the benefit of the parties hereto and their successors and
assigns.
The Municipality of Kincardine assigns the right to make minor changes to
this agreement to the Chief Administrative Officer and all major changes
must be ratified by Council by-law. .
23. GENDER
The word "Owner", or the words, "he" or "his" where used in this
Agreement, in addition to their accepted meanings, shall mean and
include an individual, an associate, a partnership or an incorporated
company and also includes heirs, successors and assigns. Wherever the
singular is used herein, it shall be 'construed as including the plural, and
wherever the masculine is used herein it shall be construed as including
the feminine, and vice versa. in all cases.
24. TERMINATION CLAUSE
In the event that either party requests termination of this agreement a 120
day notice period, with written notice to both parties must be conducted.
The hanger may be sqld to another party, subject to the completion of an
Airport Lease with the Municipality of Kincardine.
WITNESS the corporate seals of the parties, attested by their duly
authorized officers.
SIGNED, SEALED AND DELIVERED )
in the presence of )
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=#:"L- ).~~Q,'^ ~!
. C.A.O. - John e osenro
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)
)
)
)
) Mitehett Financial Services
) Robin Matchett
) I have authority to bind the corporation.
)
) Matchett Financial Services
Witness/date
Witness/date
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Witness/date
Witness/date
THE CORPORATION OF
THE MUNICIPALITY OF
KINOARDIN
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