HomeMy WebLinkAbout10 045 Airport Hangar Lease/Site Plan Agreement (Schropp) By-Law•
THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE
BY -LAW
NO. 2010 - 045
BEING A BY -LAW TO AUTHORIZE THE SIGNING OF A LEASE AGREEMENT
FOR THE RENTAL OF LAND AT THE KINCARDINE MUNICIPAL AIRPORT
(Bernhard Schropp)
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
Bernhard Schropp for the rental of land to house an airplane hangar at the
Kincardine municipal airport located on Concession A, Pt Lots 26 to 30, RP 3R-
438, Parts 2 to 8, RP 3R -3803, Parts 1 to 6.
NOW THEREFORE the Council of 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 Bernhard Schropp 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 30, RP 3R -438, Parts 2 to 8, RP 3R -3803,
Parts 1 to 6.
2. That the term of this lease be for a twenty (20) year period, to be computed
from the first day of April 2010 and ending on the 31 day of May 2030.
3. That the Mayor and Chief Administrative Officer be authorized and directed
to sign and execute, on behalf of the Council of The Corporation of the
Municipality of Kincardine, the lease agreement with Bernhard Schropp
attached hereto as Schedule `A', and to affix the corporate seal.
4. That the Site Plan Agreement for this lease be attached hereto as
Schedule 'B' to the Lease Agreement, and forms part of the By -law.
5. This by -law shall come into full force and effect upon its final passage.
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Page 2
Airport Hangar Lease /Site Plan Agreement (Schropp) By -Iaw
By -Iaw No. 2010 - 045
6. This by -Iaw may be cited as the "Airport Hangar Lease /Site Plan
Agreement (Schropp) By-law".
READ a FIRST and SECOND TIME this 7 day of April, 2010.
Mayor
READ a THIRD TIME and FINALLY PASSED this 7 day of April, 2010.
ayor
Clerk 1
Clerk
This LEASE made this "1+h day of Fph \ , 2010.
In Pursuance of the SHORT FORMS OF LEASES ACT, R.S.O. 1980, Chapter
473.
BETWEEN
THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE
(hereinafter called the "Landlord ")
1. TERM
2. RENEWAL
and
BERNHARD SCHROPP
Provided always it is agreed between parties:
(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" 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 ".
The Tenants are to hold the Leased Land for the term of twenty (20)
years, to be computed from the first day of April 2010 and from
thenceforth ensuing and to be fully completed and ended on the 31 day
of May, 2030.
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
Tenants 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.
3. RENEGOTIATE
4. RENT
Page 2
Airport Lease — Bernhard Schropp
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.
i) The Tenants paying therefore, without abatement or set -off, rent to
the Landlord as follows:
5. TAXES
6. UTILITIES
(a) a base rent of $.50 per square foot per year for an area
occupied by Hangar. ( 2,401 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.
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.
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,
water, and telephone service which may be supplied to the Leased Land.
All services are to be underground. All utility connection plans are the
responsibility of the Tenants and are subject to approval by the
Municipality of Kincardine.
Page 3
Airport Lease — Bernhard Schropp
7. TENANTS TO ERECT IMPROVEMENTS
(a) From and after the execution of this lease by the parties hereto, the
Tenants 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 attached hereto as Schedule `B'. In addition, the
planned improvements shall meet the following criteria:
(g)
(i)
the structural design of the hangar must be certified by a
professional engineer;
(ii) uniformity of design including roof style and window size and
location;
(iii) compliance with height restrictions as outlined in the Site
Plan;
(iv) exterior colours for the entire leased area, to conform with
existing buildings;
(v) metal siding;
(vi) Site to be prepared for construction by Tenants, including
excavating, filling and grading.
(vii) all hangers must have main entrance aircraft doors.
(viii) lighting to be installed in a manner as to deflect the light
away from adjacent streets and properties or so controlled in
intensity so as to prevent glare on adjacent streets and
properties.
(c) The Tenants agrees to prepare a grading and drainage plan
acceptable to the Landlord and all surface and roof drainage
shall be controlled in accordance with the approved plans in
manner satisfactory to the Landlord. Final Grading Certificate
completed by a Professional Engineer or a Registered Ontario
Land Surveyor must be submitted.
The Tenants shall submit the plans referred to in subparagraph (b)
to the Landlord for approval which shall not be unreasonably
withheld.
The Tenants shall not commence any improvement to the Leased
Land without the prior approval of the Landlord as set out in
subparagraph (d).
All construction of improvements, including excavation, grading,
etc. shall be done at the sole expense of the Tenants and shall not
operate to set off or abate the rent reserved herein but such
expenses shall be in addition thereto.
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
(i)
Page 4
Airport Lease — Bernhard Schropp
and such amounts paid are recoverable by the Landlord from the
Tenants as additional rent.
(h) 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
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 of the Landlord.
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 Tenants 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 Tenants, 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 Tenants
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.
Page 5
Airport Lease — Bernhard Schropp
(d) The Tenants shall, at his own expense, repair, replace, rebuild or
restore the buildings to their original condition.
9. INSURANCE
The Tenants 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
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 Tenants
(g) A thirty (30) day written notice of cancellation
(h) The Tenants shall provide the Municipality with a valid Certificate of
Insurance as evidence of the above coverage's upon signing the
agreement. The Tenants shall provide the Municipality with any
renewal replacement certificates as may be necessary during the term
of the agreement.
(i) Insurance against fire and other perils providing for replacement cost
and rebuilding.
10. 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 Tenants 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.
Page 6
Airport Lease — Bernhard Schropp
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.
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 Landlord 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 premises. 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,
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 REGULATIONS
The Tenants agrees 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
Page 7
Airport Lease — Bernhard Schropp
its sole discretion immediately terminate this Lease, re -enter and take
possession of the Leased Land.
22. BINDING EFFECT
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 sold 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 ) THE CORPORATION OF
in the presence of ) THE MUNICIPALITY OF
KINCARD
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Witness /date
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.A.O. —John de o:
.A.O. — John deRosenroll
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