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HomeMy WebLinkAbout14 070 Airport Hangar Lease Agreement (Ian Brown) By-law THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE I*Oil • , � N PALIIY OF KINCP BY -LAW NO. 2014 - 070 BEING A BY -LAW TO AUTHORIZE THE SIGNING OF A LEASE AGREEMENT FOR THE RENTAL OF LAND AT THE KINCARDINE MUNICIPAL AIRPORT (Ian Brown) 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 Ian Brown for the rental of land to house an airplane hangar at the Kincardine municipal airport located at1987 Highway 21, R.R. #2 Kincardine, Ontario; 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 Ian Brown for the rental of land to house an airplane hangar at the Kincardine municipal airport located at 1987 Highway 21, R.R. #2 Kincardine, Ontario. 2. That the Mayor and Chief Administrative Officer be authorized and directed to execute, on behalf of the Council of The Corporation of the Municipality of Kincardine, the lease agreement with Ian Brown attached hereto as Schedule `A', and to affix the corporate seal. 3. This by -law shall come into full force and effect upon its final passage. 4. This by -law may be cited as the "Airport Hangar Lease Agreement (Ian Brown) By -law ". READ a FIRST and SECOND TIME this 14th day of May, 2014. READ a THIRD TIME and FINALLY PASSED this 14th day of May, 2014. 1111 Dovr,„ ,)Mayor Clerk This is Schedule " " to By -Law No 2O i 4 -0 l passed the 1 day of ra3,9 20 ( -¢- This LEASE made this day of C C J , 2014. In Pursuance of the SHORT FORMS OF LEASES ACT, R.S.O. 1990, Chapter S.11. BETWEEN THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE (hereinafter called the "Landlord ") and IAN BROWN (hereinafter called the "Tenant ") WHEREAS the Landlord is a Municipal Corporation in the Province of Ontario incorporated pursuant to the Municipal Act, 2001; AND WHEREAS the Landlord is the Owner of the lands located at 1987 Highway 21, R.R. #2, Kincardine, Ontario N2Z 2X4 ( "Airport Land ") and the Tenant wishes to lease from the Landlord a portion of the Airport land identified in the sketch attached hereto and marked as Schedule "A" for the purpose of constructing and erecting a Hangar, hereinafter referred to as the "Leased Lot "; IN CONSIDERATION of the rents reserved and covenants and agreements contained in this lease on the part of the Tenant, the Landlord leases to the Tenant for the term and upon the conditions in this lease the Leased Lot, together with a right of way, marked as "right of way" on "Schedule A ". 1. GRANT OF LEASE (a) The Landlord leases the Leased Lot, which includes the right of way, to the Tenant: (i) For the Term set forth in Section 2; (ii) At the Rent set forth in Section 4; and (iii) Subject to the conditions and in accordance with the covenants, obligations and agreements contained herein. (b) The Landlord covenants that it has the right to grant the leasehold interest in the Leased Lot free from encumbrances except as disclosed on title. 2. TERM (a) The Landlord leases to the Tenant the Leased Lot for the term of Twenty (20) years, commencing on the 1st day of June 2014 and ending on the 31S day of May 2034, hereinafter referred to as "the Term ". Airport Lease 1 IPage 3. RENEWAL (a) Provided always it is agreed between the parties: (i) If the Tenant is not in arrears of the payment of Rent and has not breached the covenants contained herein at the time of the expiration of the Term granted by this Lease then, the Landlord shall, upon the written request of the Tenant received by the Landlord at least six (6) months prior to the termination of the Lease, grant to the Tenant a renewal of the Lease for a further term of five (5) years upon the same terms and conditions as are contained in this Lease save and except with respect to Rent and Additional Rent; provided that the Rent and Additional Rent for the renewal Lease shall be agreed upon by the parties and further provided that, in the event that the Landlord and Tenant cannot agree upon the amount of Rent to be paid by the Tenant 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. (ii) The Tenant may assign this Lease to a third party so long as the conditions set forth in Section 16 herein have been satisfied. (iii) Notwithstanding any term or condition contained herein, this contract shall be null and void if the Leased Lot falls Within and /or conflicts with the Landlord's future expansion and development plans and then the following shall apply: (a) The Tenant shall vacate the Leased Lot within twelve (12) months of receiving written notice from the Landlord that the Landlord requires the Leased Lot for future expansion and /or development purposes; (b) If the Landlord terminates this Agreement for this reason, the Landlord shall reimburse the Tenant the Tenant's actual cost to construct the Hangar, as determined by receipts provided by the Tenant to the Landlord divided by the Term of the Lease multiplied by the remaining number of years left until the end of the Term; (c) The payment referred to in paragraph 3(iii)(b) above shall become due and payable by the Landlord to the Tenant within fifteen (15) business days from the date the Tenant has vacated the Leased Lot and has given the Landlord notice of same so long as the Tenant has provided the Landlord with all receipts necessary to calculate the amount outstanding; Airport Lease 2Ifage (d) After receiving the Notice referred to in paragraph 3(iii)(a) above, and until the Tenant vacates the Leased Lot, the Tenant shall continue to pay Rent and Additional Rent unless agreed otherwise by the Landlord and the Tenant; (e) If the Tenant fails to vacate the Leased Lot within twelve (12) months from receipt of Notice in paragraph 3(iii)(a) above, then the Landlord shall be permitted to enter onto the Leased Lot and take possession of the Hangar and any items not removed by the Tenant and the Landlord shall be deemed to be the owner of the Hangar and the property and any obligation on the part of the Landlord to pay the Tenant a monetary amount pursuant to paragraph 3(iii) shall be null and void; and, (f) Nothing in this Section prevents the Landlord from pursuing the Tenant for Rent, Additional Rent, Interest and /or Costs. 4. RENT (a) "Rent" means the amounts payable by the Tenant to the Landlord pursuant to this Section and includes Additional Rent. (b) The Tenant covenants to pay to the Landlord, during the Term of this Lease, without abatement or set -off, rent as follows: (i) a base rent of $0.33 per square foot plus HST for the Leased Lot payable at the commencement of the Term of this Lease and the 1St day of month thereafter; (ii) For the purposes of calculating Rent pursuant to paragraph 4(b)(i), the Leased Lot shall include the surrounding two (2) feet on all sides of the exterior sides of the Hangar, and the apron area; (iii) The parties agree that the square footage of the Leased Lot has been calculated and confirmed by each of the parties; (iv) On the anniversary date of the Commencement of this Lease, and each year thereafter, the base rent, referred to in paragraph 4(b)(i) herein, 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 this new base rent shall become Rent due and payable under this section; and (v) All Rent payable by the Tenant shall be paid in advance, without prior demand, to the Landlord. (c) The Tenant hereby acknowledges that the foregoing Rent payable is solely for the Leased Lot, which is comprised of the land and the use of the right of way, and the Tenant further acknowledges and agrees that the Rent provided for by this Lease shall be payable whether or not a Hangar is erected on the Leased Lot and the Rent is payable, due and owing by the Tenant even in the event that the Hangar is partially damaged or totally destroyed. There shall be no abatement of Rent. Airport Lease 3 1 Page (d) The Tenant acknowledges and agrees that the payments of Rent and Additional Rent provided for in this Lease shall be made without any deduction for any reason whatsoever unless expressly allowed by the terms of this Lease or as agreed to by the Landlord in writing. (g) The Tenant acknowledges that there will be a charge for aircraft tie - down fees and said fees will be deemed Additional Rent. The parties agree that the Tenant will not be charged aircraft tie -down fees until the Hangar is substantially complete. (h) Any and all payments to be made by the Tenant pursuant to this Lease shall be delivered to the Landlord at the Landlord's address for service set out in Section 26 or to such other place as the Landlord may from time to time direct in writing. (i) No partial payment by the Tenant which is accepted by the Landlord shall be considered as other than a partial payment on account of Rent or Additional Rent owing and shall not prejudice the Landlord's right to recover any Rent or Additional Rent owing. 5. TAXES (a) The Tenant covenants to pay, as and when they fall due, all municipal taxes, including charges levied or imposed on the Leased Lot on any improvements thereon. (b) The Landlord, at its sole option, may pay the taxes referred to herein on behalf of the Tenant and collect such money from the Tenant as Additional Rent. (c) The assessment of municipal taxes is determined through the Municipal Property Assessment Corporation (MPAC). The Tenant is expected to pay taxes based on the assessed value of their Hangar and the Leased Lot the hangar occupies. 6. UTILITIES (a) The Tenant shall pay all utilities with respect to the Leased Lot. The Tenant covenants to pay, as and when they fall due, all charges for installation and use of electricity and water, or any other utilities as may be deemed necessary, which may be supplied to the Leased Lot. All services are to be underground. (b) The Tenant shall be responsible for the electricity use and energy costs of his own Hangar. Based on readings of the central hangar electrical meter, the hangar owners group will disburse charges to the individual hangar owners and provide a consolidated payment for energy charges to the Landlord. (c) The Tenant will submit an electrical design plan to the Landlord for its review and approval prior to installation. The Landlord's approval will not be unreasonably withheld and will make best efforts to support the Tenant's proposal. (d) If the Tenant or hangar owners group defaults on payment of the utilities referred to herein, the Landlord, at its sole option, may pay the outstanding utilities on behalf of the Tenant and collect such money from the Tenant as Additional Rent, including interest and any costs incurred by the Landlord. Airport Lease 4IPee 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 engineered plans and drawings for the improvement of the Leased Lot. Said application and drawings /plans shall contain such detail as the Landlord may reasonably require. (b) Notwithstanding any other requirements of the Landlord, the improvements shall meet the following criteria: (i) the structural design of the hangar must be certified by a professional engineer and designed in accordance with the drawings referred to in paragraph 7(a) above; (ii) uniformity of design with existing buildings, including roof style and window size and location; (iii) compliance with height restrictions, as required by the Comprehensive Zoning By -Law, and must comply with applicable I.L.S. and TP 312 O.L.S. requirements; (iv) exterior colours for the entire Leased Lot, to conform with existing buildings; (v) metal siding; (vi) grading to be in accordance with the engineered drawings. The Tenant shall be responsible for the preparation of the site for construction, including excavating, filling, grading and drainage plan as approved by the Landlord; (vii) all hangers must have main entrance aircraft doors and one 3'8" x 6'8" man access steel door and there shall be the capability of performing an emergency door opening should the permanent power supply be unavailable. This will require a portable generator that could be used to power the door operating electric or hydraulic system. (viii) the two foot perimeter around the Hangar shall consist of granular material, as per the Landlord's specifications and requirements; (ix) any landscaping shall conform to the Landlord's requirements and specifications and any applicable legislation, bylaws, etc; and (c) The Tenant shall submit drawings /plans referred to in paragraph 7(a) herein to the Landlord for review and approval prior to any construction. The Landlord's approval shall not be unreasonably withheld. (d) The Tenant shall not commence any improvements to the Leased Lot without the prior written approval of the Landlord. (e) All construction of improvements, including excavation, grading, landscaping, etc. shall be done at the sole expense of the Tenant. (f) The Tenant shall discharge, at his own expense, any lien filed against the Leased Lot or the Airport land in respect of work carried out to and upon the Leased Lot, and the Tenant 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 Airport Lease 51 Page option, discharge such liens by paying into court or otherwise and such amounts, including any costs incurred by the Landlord to do so, are recoverable by the Landlord from the Tenant as Additional Rent. (g) Within six (6) months of the commencement of this lease, the Tenant shall commence the construction of a hangar on the Leased Lot and shall 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 Tenant. 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 Tenant 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. (h) In the event that the Tenant refuses or neglects to renew the Lease after the expiration of the Term of the Lease in accordance with the provisions of Section 3 herein, the Tenant shall, within one hundred and twenty (120) days, or anther date as agreed upon due to circumstances such as weather, after the expiration of the term of this Lease, remove any building and /or improvements erected upon the Leased Lot (including any plumbing, heating, ventilating plant or other building service) solely at the cost of the Tenant. Alternately, the Tenant may negotiate with the Landlord for the Landlord to purchase the hangar however if a sale to the Landlord cannot be achieved within thirty (30) days, the hangar will be publicly sold by the Landlord with all debts from said hangar being paid by the sale proceeds, including any costs incurred by the Landlord associated with the public sale, and any balance remaining will be forwarded to the former owner. 8. MAINTENANCE AND REPAIR (a) The Tenant agrees 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 make all needed repairs and replacements as shall be reasonably necessary including, without 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 Tenant shall include repairs required by reasonable wear and tear. (b) The Tenant shall not allow any refuse, garbage or any other loose or objectionable materials to accumulate on or about the Leased Lot, and will at all times keep the Premises in a clean and wholesome condition and shall be responsible for the removal of all garbage or loose or objectionable material on the said Premises. (c) The Tenant shall permit the Landlord or a person authorized by the Landlord to enter onto the Leased Lot and any buildings thereon, with twenty -four (24) hours notice, to examine the condition thereof and view the state of repair at reasonable times: (i) if upon such examination repairs are found to be necessary, written notice of the repairs required shall be given to the Tenant by or on behalf of the Landlord and the Tenant shall make the necessary repairs within the time specified in the notice, but not less than thirty -six (36) hours; Airport Lease 6IPge (ii) if the Tenant refuses or neglects to keep the Premises in good repair the Landlord may, but shall not be obliged to, make any necessary repairs, and shall be permitted to enter the Premises, by himself or his servants or agents, for the purpose of effecting the repairs without being liable to the Tenant for any Toss, damage or inconvenience to the Tenant in connection with the Landlord's entry and repairs; (iii) if the Landlord makes repairs the Tenant shall pay the cost of the repairs to the Landlord within fifteen (15) days of receipt of proof of the cost of the repairs; and (iv) if the Tenant refuses to pay the costs of repair, the Landlord shall be entitled to take any steps necessary, as against the Tenant, to recover the costs of repair, including interest and legal costs. (d) In the event of loss, damage or partial Toss or damage to the Hangar, the Tenant shall replace or repair the Hangar with due diligence and dispatch. In the event that the Tenant fails 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 Hangar and any costs incurred by the Landlord in relation thereto shall be payable by the Tenant as Additional rent; provided that, notwithstanding any other provision to the contrary, in the event of substantial damage or total Toss which the Tenant neglects or refuses to repair or rebuild with due dispatch and diligence, the Landlord shall have the unilateral right to terminate this Lease and shall take any steps deemed necessary to restore the premises to a reasonable state, which includes the right to demolish the Hangar, and the Landlord shall be entitled to take any steps necessary, as against the Tenant, to recover its costs, including interest and legal costs. 9. INSURANCE (a) The Tenant shall put in effect and maintain in its name, and at its own expense, all the necessary and applicable insurance that would be considered appropriate for a prudent Tenant undertaking this type of operation for the period during which this Lease is in effect with insurers acceptable to the Landlord, said insurance shall include, (i) 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. (ii) The Corporation of the Municipality of Kincardine shall be named as an additional insured; (iii) Cross liability insurance; (i) Contractual liability insurance; (ii) Tenant's Legal Liability insurance; and (iii) A thirty (30) day written notice of cancellation. (b) The Tenant shall provide the Landlord with a valid Certificate of Insurance as evidence of the above -noted coverage upon signing of this Lease. The Tenant shall provide the Landlord with any renewal Airport Lease 7IPae replacement certificates as may be necessary during the term of the Lease. (c) Within seventy -two (72) hours of a request by the Landlord, the Tenant shall produce evidence of valid insurance coverage in accordance with the terms noted herein, failing which this Lease shall become null and void and the Tenant shall immediately vacate the Leased Lot and the Landlord shall become the owner of the Hanger and any property which has not been removed by the Tenant. 11. QUIET ENJOYMENT (a) The Landlord covenants that so long as the Tenant is not in default under the terms of this Lease, the Tenant shall have quiet enjoyment of the Leased Lot. 12. INDEMNIFICATION (a) The Tenant agrees to indemnify and save and hold harmless the Landlord 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 may be brought against the Landlord or to which the Landlord may incur, as a result of, or arising out of, or in relation to, any duties and obligations that the Tenant has under this Agreement and /or any breach of the terms of this Agreement by the Tenant. 13. USE OF LEASED LAND OUTSIDE OF BUILDING (a) The uncovered portion of the Leased Lot shall not be used except for aircraft taxiways. (b) The exterior of the Leased Lot 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 from the Tenant within fifteen (15) days of receipt of proof of the cost. 14. SERVICE ROAD AND TAXIWAY (a) Construction of any required service roadway /taxiway between the Tenant's lot line and the airport-paved finger taxiway is at the Tenant's expense. 15. LANDLORD'S MAINTENANCE (a) The Landlord shall be responsible for all outside maintenance to the Airport Lands, excluding the Leased Lot, which shall be the responsibility of the Tenant to maintain. 16. RIGHT TO ASSIGN (a) The Tenant may assign this lease to a third party, provided that, the Landlord has provided prior written consent and so long as all terms of the Lease Agreement have been complied with and the Sub- tenant signs an acknowledgment that they shall be bound by this Lease Agreement. Airport Lease 8IP qe (b) The Tenant's Right to assign does not imply or grant to the Tenant any right to rent or sub -lease space in a private hangar. 17. RIGHT TO INSPECT (a) The Landlord will, in writing to the Tenant, designate a Municipal Representative for actions covered by this clause. (b) Upon twenty -four (24) hours written notice to the Tenant, the Tenant shall permit the Landlord's Municipal Representative access to the hangar for inspection. (c) The Tenant shall provide the Municipal Representative with a key to be secured in the Airport office, such key providing hangar access via the man door referenced in Section 7(b)(vii). 18. GASOLINE AND OIL STORAGE (a) The Tenant shall not store or use any hazardous or flammable substances on the Lease Lands, including but not limited to, gasoline, or any other flammable material, with the exception of engine oil or fuel normally kept on -board an aircraft/vehicle. (b) The Tenant covenants not to keep any oil on the premises other than for the Tenant's own use. 19. INTEREST ON AMOUNTS OWING (a) All Rent, Additional Rent and any other sums paid by the Landlord for expenses incurred which should have been paid by the Tenant and all of which are in arrears, shall bear compounded interest from the date payment was due at a rate of 1.25 percent per month. 20. PERMITTED USE OF LEASED LOT (a) The Tenant acknowledges that, in accordance with the present Site Plan Agreement with the Municipality of Kincardine, the permitted use of the Leased Land is Aircraft Storage. (b) 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. (c) The Tenant shall not do or permit to be done at the Leased Lot anything which may: i. cause damage to the Airport Lands, including the Leased Lot; ii. cause injury or annoyance to occupants of neighbouring premises; iii. make void or voidable any insurance upon the Leased Lot; and Airport Lease 91 Page iv. constitute a breach of any by -law, statute, order or regulation of any municipal, provincial or other competent authority relating to the Leased Lot. 21. RULES AND REGULATIONS (a) The Tenant agrees to observe and abide by any and all applicable rules, regulations and laws, including but not limited to those regulations provided by Transport Canada in TP -312E Aerodrome Standards and recommended practices. 22. ACTS OF DEFAULT AND LANDLORD'S REMEDIES (a) An Act of Default has occurred when: (i) the Tenant has failed to pay Rent for a period of fifteen (15) consecutive days, regardless of whether demand for payment has been made or not; (ii) the Tenant has breached its covenants or failed to perform any of its obligations under this Lease; and the Landlord has given notice specifying the nature of the default and the steps required to correct it; and the Tenant has failed to correct the default as required by the notice; (iii) the Tenant has; a. become bankrupt or insolvent or made an assignment for the benefit of Creditors; b. had its property seized or attached in satisfaction of a judgment; c. had a receiver appointed; d. committed any act or neglected to do anything with the result that a Construction Lien or other encumbrance is registered against the Landlord's property; or e. without the consent of the Landlord, made or entered into an agreement to make a sale of its corporation, with a view to winding up, dissolution or liquidation; or f. made a sale in bulk of all or a substantial portion of its assets, other than in conjunction with an assignment or sublease approved by the Landlord. (iv) any insurance policy is canceled or not renewed by reason of the use or occupation of the Premises, or by reason of non- payment of premiums; or (v) the Leased Lot; a. becomes vacant or remains unoccupied for a period of forty -five (45) consecutive days and the Tenant has failed to pay Rent; or b. are used by any other person or persons or for any other purpose than as provided for in this Lease without the written consent of the Landlord. (b) When an Act of Default on the part of the Tenant has occurred: Airport Lease 10 1P ge (i) the current month's rent together with the next three (3) months' rent shall become due and payable immediately; and, (ii) the Landlord shall have the right to terminate this Lease and to re -enter the Premises and deal with them as it may choose. (c) If, because an Act of Default has occurred, the Landlord exercises its right to terminate this Lease and re -enter the Premises prior to the end of the Term, the Tenant shall nevertheless be liable to the Landlord for payment of Rent owed along with all other amounts payable by the Tenant in accordance with the provisions of this Lease until the Landlord has re -let the Premises or otherwise dealt with the Premises in such manner that the cessation of payments by the Tenant will not result in loss to the Landlord: (i) and the Tenant agrees to be liable to the Landlord, until the end of the Term of this Lease for payment of any difference between the amount of Rent hereby agreed to be paid for the Term hereby granted and the Rent any new tenant pays to the Landlord. (d) The Tenant covenants that notwithstanding any present or future Act of the Legislature of the Province of Ontario, the personal property of the Tenant during the term of this Lease shall not be exempt from levy by distress for Rent in arrears: (i) and the Tenant acknowledges that it is upon the express understanding that there should be no such exemption that this Lease is entered into, and by executing this Lease: (ii) the Tenant waives the benefit of any such legislative provisions which might otherwise be available to the Tenant in the absence of this agreement; and (iii) the Tenant agrees that the Landlord may plead this covenant as an estoppel against the Tenant if an action is brought to test the Landlord's right to levy distress against the Tenant's property. (e) If, when an Act of Default has occurred, the Landlord chooses not to terminate the Lease and re -enter and repossess the Leased Lot, the Landlord shall have the right to take any and all necessary steps to rectify any or all Acts of Default of the Tenant and to charge the costs of such rectification to the Tenant and to recover the costs as Rent and Additional Rent. (f) If, when an Act of Default has occurred, the Landlord chooses to waive its right to exercise the remedies available to it under this Lease or at law the waiver shall not constitute condonation of the Act of Default, nor shall the waiver be pleaded as an estoppel against the Landlord to prevent it from exercising its remedies with respect to a subsequent Act of Default. (g) No covenant, term, or condition of this Lease shall be deemed to have been waived by the Landlord unless the waiver is in writing and signed by the Landlord. 23. BINDING EFFECT (a) This lease is binding on, extends to and ensures to the benefit of the parties hereto and their successors and assigns. Airport Lease 11 IPage 24. AMENDMENTS TO THE AGREEMENT (a) The Chief Administrative Office is authorized by the Municipality of Kincardine to execute this agreement and to make any minor changes deemed necessary to this agreement. (b) Any major changes to this agreement are conditional on the approval of Council for the Municipality of Kincardine and shall be adopted by the passing of a By -Law. (c) Any changes to the Agreement must be approved in writing by both parties. 25. INTERPRETATION (a) The words importing the singular number only shall include the plural, and vice versa, and words importing the masculine gender shall include the feminine gender, and words importing persons shall include firms and corporations and vice versa. (b) Unless the context otherwise requires, the word "Landlord" and the word "Tenant" wherever used herein shall be construed to include the executors, administrators, successors and assigns of the Landlord and Tenant, respectively. (c) when there are two or more Tenants bound by the same covenants herein contained, their obligations shall be joint and several. 26. NOTICE (a) Any notice required or permitted to be given by one party to the other pursuant to the terms of this Lease may be given in writing via mail or facsimile to: The Landlord at: Municipality of Kincardine 1475 Concession 5 R.R. #5 Kincardine, ON N2Z 2X6 Facsimile: 519- 396 -8288 The Te not at the Premises or at: �� 26r) 5 Hwy. 21 Tiverton, ON NOG 2T0 (b) The above addresses and or facsimile numbers may be changed at any time by giving ten (10) days written notice. (c) Any notice given by one party to the other in accordance with the provisions of this Lease shall be deemed conclusively to have been received on the date delivered if the notice is served personally or by facsimile or seventy -two (72) hours after mailing if the notice is mailed. Airport Lease 12I age 27. TERMINATION CLAUSE (a) Notwithstanding the Term of this Lease, it is agreed by the parties that either party shall have the right to terminate this Lease at any time prior to its expiry date upon providing a minimum of twelve (12) months written notice to the other party. (b) If the Tenant remains in possession of the Premises after termination of this Lease as aforesaid and if the Landlord then accepts Rent for the Premises from the Tenant, it is agreed that such over holding by the Tenant and acceptance of Rent by the Landlord shall create a monthly tenancy only but the tenancy shall remain subject to all the terms and conditions of this Lease except those regarding the Term. 28. COUNTERPART (a) This lease may be executed in counterpart. In Witness of the foregoing covenants the Landlord and the Tenant have executed this Lease. DATED AT ,THIS –DAY OF ,2014 — , TENANT * Per Witness K►rq. 1. w, aoJ an Brown DATED AT KINCARDINE, THIS – DAY OF , 2014 THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE, LANDLt Per sol■ , 1 arty - mer or Per Murray Clarke, CAO We have authority to bind the Corporation Airport Lease 13 Page — - Schedule A I __ _ _ PROPOSED GRADING SITE PLAN _ _ . 7 1/• 4ux 0.0. - - _ - - - - -- 2 L BkNNV °KREMS,' PRNTW.3...NINNT.... . „ - - 1 • INADP.AWINO 0 NO71 I.N.PIENNIEINICNX0 foam. conafewnoe _ MELO, AND ANNN.L.P. CORA I .:1 FINXNANSAND WIWI:. 1.1¢11.9 WINN P \I \ e, ... • - - ..., rump, emAnafte cassmfnfy _ : ,........, ,.,,...„. n:f ■corLIeffagrIs FT ,4 1 plancela,Peef•sfe."... CONSINYCNON ' 0 ,, : ,, LB „ :74=07•110PIT, r , 1 pew& SV.z.i...ftee Nat.. _ '.:....- r ' = " . _ . wofffs wmormestforeuons. furs 1 . _a , I! -- : . ': ,•i '/' ' ,' '''''' r ■ 1 c„,....N . 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'%Fir \ ' 1 1 . . 1 • ' ' 15....Y ,.... .1.■;:1,10 ; , li etrierr. S Comev ntral Information I 1 1 , 0 WSP - ,,,,-' ...p...,,N.N NSW ON VINNADVICSW . gPOi MOWED P.SaINalif Of 171.1WAY [Mite '1 11.1=74.11A7.14E 22.1 812n I j •-•-k,..„. WEN ANICEPIVENN,RepliNVININ _ — -- , 7,,,,,,,,,,,,,,,,,,N,•• UNITANYSERVICEINV..PROVNIT•LNE 1 r OSIDEIINO.ELEVATIC•tr Legend 1 •41.-.. OSEC110NOPEURNINEMATENNUN ! 1 .L.-----1' I .N • 1 -... nchm Beark Information. • reeZree e =raw ' 1 ' 1 nes 01,1WAY 0.11.1E (F1711/RE150DEB) TAIOWAVCXARLIE (CO. il NI1611.41•5NOMBPNNWON P.I.N(.1711011:5 INKINf•NON.S.CNUTIANWCSNINNINO SIMI GENSTMCINONLINLUISA01,40 PROPERTY: KINCARDINE 14.10.1. MP°. Egel reeree=roirgeieg 61..105•997NINNNNONNEREON. .........•••••• .„ DEVELOPMENT:BROWN MIJCAll THIS IS NOT A PLAN OF SURVEY MUNICIPALITY OF KINCARDINE I , __ if . _ . _ ------ ....i ,ENSI0,1 / 1.5,I/E Seals j ----------- a - -....---. - , /"'-'..---■-..___..,..__,,..._,-.."-----.....___ __. --- ir= CA C, ----- 4. ti 1 a Jr_zw...,_.! ------ J 14.11A. ; 7.•1 P)61 4F11 IN — WSP 0 OLS I-IEIGHT COMPLIANCE MR. IAN BROWN CROSS SECTION . / riis KINCARDINE MUNICIPAL AIRPORT PROPOSED BROWN HANGAR I 4, a / L,.. .0 . RUNWAY 13-31 (CODE 2, INST., N.P.) GENERAL LAYOUT AND SITE PLAN ,ANIIIN f, ,F 1 It . .-------