HomeMy WebLinkAbout01728 - KURANZ HALLEN KILLOREN 1.9 ACRES AIRPORT LEASE SCHNECK SUBLEASE RECORDING REQUESTED BY:
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DEC 13 1996
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ors.; TERMINATION OF LEASE ^ s
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THIS TERMINATION OF LEASE ("Termination") is entered into this °' 0 day of w �3 =
�pr-pn , , > 1996, by and between the CITY OF PALM SPRINGS, a municipal o N
corporation ("Landlord"), and CAROLE SCHUTZ ("Tenant"). a -h
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RECITALS 0' m
A. Landlord and John L. Kuranz, John A. Hallen and Thomas A. Killoren, A
California Partnership ("Original Tenant"), entered into that certain Lease Agreement No. 1 728
("Original Lease") pursuant to which Landlord leased to Original Tenant that certain real -
property more particularly described therein. ("Demised Premises"), RECORDED 1/3/93 #143.
B. Original Tenant assigned the original Lease to Tenant pursuant to that certain
Assignment of Lease executed by original Tenant and Tenant.
C. Landlord and Tenant subsequently amended the original Lease pursuant to that
certain Amendment No. 1 to Lease Agreement #1728 dated November 7, 1990 ("First
Amendment"), that certain Second Amendment to Lease Agreement dated October 16, 1991
("Second Amendment) and that certain Third Amendment to Lease Agreement dated February
1 , 1995 (Third Amendment). The Original Lease as amended by the First Amendment,
Second Amendment and Third Amendment shall hereinafter be referred to as the "Lease."
D. The parties desire to terminate the Lease pursuant to the terms and conditions
set forth herein.
TERMS AND CONDITIONS
NOW, THEREFORE, the parties hereto agree as follows:
1 . Termination of Lease. On the date the conditions_precedent set forth in Section
2 are satisfied ("Termination Date"), the Lease shall be fully and finally terminated. Tenant
shall surrender possession of the Demised premises to Landlord as of said Termination Date.
2. Conditions Precedent to Effectiveness. The effectiveness of this Termination
shall he expressly contingent upon the satisfaction of the following conditions precedent for
the benefit of Landlord:
2.1 Landlord has executed a New Lease (Parcel 95-3) for the Demised
Premises ("New Lease") with AMR Combs, Inc., which New Lease shall be in a form and
content satisfactory to Landlord, in Landlord's sole and absolute discretion.
2.2 Tenant has provided evidence satisfactory to Landlord that the Deed of
Trust executed by Tenant in favor of First American Title Insurance Co. for the benefit of
Liberty National Bank ("Beneficiary") dated July 15, 1988 and recorded August 3, 1988 as
instrument No. 218375 in the Official Records of the Riverside County Recorder ("Deed of
Trust") has been reconveyed by Beneficiary.
2.3 Tenant has closed escrow with AMR Combs, Inc. and paid past due rent
in an amount stipulated by City of Palm Springs Resolution No. 18933.
DECEMBER 14,
Should all of the foregoing conditions precedent not be satisfied on or before-Nj2�tetrtbP4=*—,
1996, this Termination shall be of no force or effect.
3. Condition of Demised Premises. Upon the Termination Date, Tenant shall
surrender the Demised Premises to Landlord in the condition required by Article XV, Section
C of the Lease.
47 00
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4. Representations of the Parties. Landlord and Tenant represent and warrant to
the other that said party has not made any assignment, sublease, transfer, conveyance or
other disposition of the Lease or any interest in the Lease or any claim, demand, obligation,
liability, action or cause of action arising from the Lease to any third, party.
5. Miscellaneous.
5.1 Voluntary Agreement. The parties have read this Termination and the
mutual release contained herein and, on advise of counsel, have freely and voluntarily entered
into it.
5.2 Attorneys' Fees. If either Landlord or Tenant commences an action
against the other arising out of or in connection with this Termination or the Lease, the
prevailing party shall be entitled to recover from the losing party reasonable attorneys' fees
and costs, including fees and costs incurred on appeal.
5.3 Successors and Assigns. This Termination shall be binding on and inure
to the benefit of the parties hereto and their respective heirs, successors and assigns.
IN WITNESS WHEREOF, this Termination of Lease was entered into as of the date first
written above.
ATTEST: CITY OF PALM SPRINGS
a muni i cor oration
pity Clerk ity Manag r
APPROVED AS TO FORM "Landlord"
City Attor y
i
CAROLE SCHUTZ
"Tenant"
APPROVED BY THE 01°Y COUNOL
i7 '
STATE OF SALIF.OAN4A )
SS.
C� k COUNTY�O�pF �I)E�D /W�y4U )
On ��� i 6l� before me,
a Notary Public in and for said County and State, personally appeared
i,'TPi
psrge,%4-known to me (or proved to me on the basis of satisfactory evidence) to be the person wh se
nameN is/ere•subscribed to the within instrument and acknowledged to me that iro/she/therexecuted the
same in iris/her/their authorized capacity�es), and that by His-/her/tkieir signaturekon the instrument the
person, or the entity upon behalf of which the person(, acted, executed the instrument.
WITNESS my hand and official seal. V.,',
er1
J ,
STATE OF CALIFORNIA )
r ) SS.
COUNTY OF _ ) 1
On — — (f before me, �� %i ✓� G• l�Jf AE/�i^�A
0-71- L C✓
a Notary Public in and for aid Cqunty and State, personally appeared
personally known to me (or-Preued to me a +h f ^ ' t * �^ -) to be the person whose
namegiy ar ubscribed to the within instrument and acknowledged_W me that he she e executed the
same in his/her eir uthorized capacity(ien) and that by his/her eir ignatur sn the instrument the
persons or the entity upon behalf of which the person& acted, executed the instrument.
WITNESS my hand and official seal. ' .,e,
ELAINE L.WEDEKIND
COMM.#1048857
� . NotaryPublic—California
RIERSIDE COUNTY
My Comm.Expires FEB 3,14r'9
NOTARV2--11/17/94 AA
HECEIVEC
JAN 1997
CITY CLERK
- - i
DATE: ;A M'(rru'�,rFE
August 8, 1996 �°"'
Judy Sumich, City Clerk
FROM:
Al Smoot, Director, Department of Transportation
SUBJECT:
INCOMPLETE AGREEMENTS
Agreement # 1291: Still awaiting new documents from FAA - they are in no hurry!
i��-
CAgreement #1728: None of the leases approved by City Council, including the most
recent with Impulse, will be signed as the deals are off.
Agreement #2860: With City Attorney for additions.
Agreement 3103: Sending follow-up letter.
Agreement 3661: Customs has signed and are in the mail back.
Agreement 3673: When Craig Toms returns, will have this followed-up on.
Agreement 3681: Agreements sent to CVAG for signature.
Agreement 3682: Returned modified Agreements to City Clerk.
Thanks.
Al_ N F. SMOOT, A.A.E.
Director, Department of Transportation
AFS:ps
Carole Schutz
SThird Amend to Lease Agr
AGREEMENT #1728
M05503, 2-1-95
THIRD AMENDMENT TO LEASE AGREEMENT
NO. 1728
THIS THIRD AMEN MEN TO LEASE AGREEMENT NO. 1728 ("Amendment") is entered into
this d C
of � �1 /Z 1995, by and between the CITY OF PALM SPRINGS,
a municipal corpora ion ("Landlord"),�a d CAROLE SCHUTZ ("Tenant").
RECITALS
A. Landlord and John L. Kuranz, John A. Hallen and Thomas A. Killoran, a general
partnership ("Original Tenant"), entered into that certain Lease Agreement No. 1728 ("Original
Lease") pursuant to which Landlord leased to original Tenant that certain real property more
particularly described therein ("Demised Premises").
B. Original Tenant assigned the original Lease to Tenant pursuant to that certain
Assignment of Lease executed by original Tenant and Tenant.
C. Landlord and Tenant subsequently amended the original Lease pursuant to that
certain Amendment No. 1 to Lease Agreement No. 1728 dated November 7, 1990 ("First
Amendment") and that certain Second Amendment to Lease Agreement dated October 16,
1991 ("Second Amendment). The Original Lease as amended by the First Amendment and
Second Amendment and this Third Amendment shall hereinafter be referred to as the "Lease."
D. Lessee has defaulted on its obligations under the Lease by failing to pay rent
when due for the month of June 1994, through January 1995. The parties hereto desire to
enter into this Third Amendment for the purpose of settling said default on the terms and
conditions more particularly set forth herein, and to add allowable uses.
NOW THEREFORE, the parties hereto agree as follow:
1 . Article II - Improvements/Description of Concession, is hereby amended by
adding Paragraph "C", to hereafter read as follows:
"C. Tenant or Subtenant shall have the right to perform automotive refurbishing
or store recreational vehicles on the site; however, either or both uses must be
in conjunction with an aviation maintenance use. The Airport shall reserve the
right to require additional screening should vehicular storage become unsightly."
2. Rent. The following is added as Section W. E and F" of the Lease:
"E. Tenant acknowledges that Tenant owes the Landlord the amount of
$11,622.88 which represents rent and late charges for the months of June
1994 through January of 1995 at the rate of $1,388.88 per month.
Commencing January 1, 1995, Past Due rent shall accrue interest at a rate of
8% per annum, until fully repaid. The balance of the Past Due rent shall be paid
to Landlord commencing on March 1, 1995 and continuing through August
1996 at a rate of $687.38 per month. Payments of Past Due rent shall be
credited first to the month of June 1994, and to each subsequent month
thereafter."
3. Article IX - Termination by Lessor, is hereby deleted in its entirety and replaced
with the following:
A. Default by Tenant. In addition to the defaults described in Article VIII
hereinabove, the occurrence of any one or more of the following events shall
constitute a default and breach of this Lease by Tenant: (a) the failure to pay
any rental or other payment required hereunder to or on behalf of Landlord more
than three (3) days after written notice from landlord to Tenant that Tenant has
failed to pay rent when due; (b) the failure to perform any of Tenant's
agreements or obligation as hereunder (exclusive of a default in the payment of
money) where such default shall continue for a period of thirty (30) days after
written notice thereof from Landlord to Tenant which notice shall be deemed to
be the statutory notice so long as such notice complies with statutory
requirements; (c) the vacation or abandonment of the Demised Premises by
Tenant; (d) the making by Tenant of a general assignment for the benefit of
creditors; (e) the filing by Tenant of a voluntary petition in bankruptcy or the
adjudication of Tenant as a bankrupt; (f) the appointment of a receiver to take
possession of all or substantially all the assets of Tenant located at the Demised
Premises or of Tenant's leasehold interest in the Demised Premises; (g) the filing
by any creditor of Tenant of an involuntary petition in bankruptcy which is not
dismissed within sixty (60) days after filing; or (h) the attachment, execution or
other judicial seizure of all or substantially all of the assets of Tenant or
Tenant's leasehold where such an attachment, execution or seizure is not
discharged within sixty (60) days. Any repetitive failure by Tenant to perform
its agreements and obligations hereunder, though intermittently cured, shall be
deemed an incurable default. Two (2) breaches of the same covenant within a
sixty (60) day period, a notice having been given pursuant to (a) or (b) above for
the first breach, or three (3) of the same or different breaches at any time during
the term of this Lease for which notices pursuant to (a) or (b) above were given
for the first two (2) breaches shall conclusively be deemed to be an incurable
repetitive failure by Tenant to perform its obligations hereunder.
In the event of any such default or breach by Tenant, Landlord may at any time
thereafter, without further notice or demand, rectify or cure such default, and
any sums expended by Landlord for such purposes shall be paid by Tenant to
Landlord upon demand and as additional rental hereunder. In the event of any
such default or breach by Tenant, Landlord shall have the right (i) to continue
the lease i full force and effect and enforce all of its rights and remedies under
this Lease, including the right to recover the rental as it becomes due under this
Lease, or (ii) Landlord shall have the right at any time thereafter to elect to
terminate the Lease and Tenant's right to possession thereunder. Upon such
termination, Landlord shall have the right to recover from Tenant:
(1) The worth at the time of award of the unpaid rental which had
been earned at the time of termination;
(2) The worth at the time of award of the amount by which the
unpaid rental which would have been earned after termination until the
time of award exceeds the amount of such rental loss that the Tenant
proves could have been reasonably avoided;
(3) The worth at the time of award of the amount by which the
unpaid rental for the balance of the term after the time of award exceeds
the amount of such rental loss that the Tenant proves could be
reasonably avoided; and
(4) Any other amount necessary to compensate the Landlord for all
the detriment proximately caused by Tenant's failure to perform its
obligations under the lease or which in the ordinary course of things
would be likely to result therefrom.
The "worth at the time of award" of the amounts referred to in subparagraphs
(i) and (ii) above shall be computed by allowing interest at three percent (3%) over the prime
rate then being charged by Bank of America, N.A. but in no event greater than the maximum
rate permitted by law. The worth at the time of award of the amount referred to in
subparagraph (iii) above shall be computed by discounting such amount at the discount rate
of the Federal Reserve Bank of San Francisco at the time of award plus one percent 0 %), but
in no event greater than ten percent (10%).
As used herein "rental" shall include the Monthly Rental, percentage rental equal
to the average percentage rental paid or payable by Tenant for the last twelve (12) months or
such lesser period as Tenant has been open for business, other sums payable hereunder which
are designated "rental" or "additional rental" and any other sums payable hereunder on a
regular basis such as reimbursement for real estate taxes.
Such efforts as Landlord may make to mitigate the damages caused by Tenant's
breach of this Lease shall not constitute a waiver of Landlord's right to recover damages
against Tenant hereunder, nor shall anything herein contained affect Landlord's right to
indemnification against Tenant for any liability arising prior to the termination of this Lease for
personal injuries or property damage, and Tenant hereby agrees to indemnify and hold Landlord
harmless from any such injuries and damages, including all attorney's fees and costs incurred
by Landlord in defending any action brought against Landlord for any recovery thereof, and in
enforcing the terms and provisions of this indemnification against Tenant.
Notwithstanding any of the foregoing, the breach of this Lease by Tenant, or an
abandonment of the Demised Premises by Tenant, shall not constitute a termination of this
lease, or of Tenant's right of possession hereunder, unless and until Landlord elects to do so,
and until such time Landlord shall have the right to enforce all of its rights and remedies under
this Lease, including the right to recover rent, and all other payments to be made by Tenant
hereunder, as they become due. Failure of Landlord to terminate this Lease shall not prevent
Landlord from later terminating this Lease or constitute a waiver of Landlord's right to do so.
4. Default by Tenant. If Tenant defaults under the terms of Section 2 of this Third
Amendment, Landlord shall have all rights and remedies it would have had, had this Third
Amendment not been executed including, but not limited to declaring a default under the Lease
as to that amount of the Past Due rent then unpaid.
5. Full Force and Effect. Except as modified herein the terms of the original Lease
and the First and Second amendments shall remain in full force and effect.
IN WITNESS WHEREOF, this third Amendment to Lease Agreement was entered into
as of the date first written above.
ATTEST: CITY O PALM SPRINGS, ORNIA
_ r
City Clerk 7 City Manager
REVIEWED & APPROVED AS TO FORM -
1
Carole Schutz
APPROVED v��,
ITO
1171- �'
Carole Schutz
Second Amendment to Lease Agr
AGREEMENT #1728
M04880, 10-16-91
SECOND 1sA5ENDQUT `(TD ➢ uMSE A REEMENT
THIS SECOND AMEMDKEMT TO LEASE AGREEMENT ( "Second Amendment" )
is entered into this %- day of 1991, by and
between the CITY OF PALM SPRINGS,✓ a municipal corporation,
( "Lessor" or "City" ) and. CAROLE SCHUTZ ( "Lessee" ) .
R E C I T A L S
A. Lessor. and John L. Kuranz, John A. Hallen and Thomas A.
Killoran, a California partnership; ( "Original Tenant" ) entered
into that certain Lease Agreement f#1728 on August G, 1981
( "Original Lease" ) .
3. Original Lessee subsequently assigned its interest in the
Original Lease to Lessee pursuant to that certain Assignment of
Lease executed by Original Lessee and Lessee.
C. Lessor and Lessee entered into that certain Amendment Mo.
I to Lease Agreement 11728 on November 7, 1990 ( "First Amendment" ) .
The Original Lease, as amended by the First Amendment and. this,
Second Amendment, shall hereinafter be referred to as the "Lease".
D. Lessee has defaulted on its obligations under the Lease by
( i) failing to pay rent when due for the months of August, 1990
through September, 1991, and ( ii ) failing to obtain Lessor's
consent to a hypothecation of the Lease. The parties hereto desire
to enter into this Second 'amendment for the purpose of settling
said defaults on the terms and conditions more particularly set
forth herein.
MOW, THEREFORE, the parties hereto agree as follows:
1. H, po.thecat-ion. Before or concurrent with the execution of
this Second Amendment, Lessee shall. provide Lessor with a copy of
the note and deed of trust encumbering Lessee' s leasehold estate in
the property.
2. Bent. The following is added as Section V. 0 of the Lease;
"C. Lessee acknowledges that Lessee owes Lessor rent in
the amount of SEVENTEEN THOUSAND NINETY-SEVEN and
13/1000 DOLLARS ($17, 097, 13) , which represents rent
for the months of August of 1990 through July of
1991 at the rate of ONE THOUSAND MIH.ETY-TWO and
GG/100 DOLLARS (11, 092, 66) per month, and August of
1991 through October of 1991 a4. the :rate of ONE
THOUSAND THREE HUNDRED EIGHTY-EIGHT and 881100
DOLLARS (01, 3%. 88) per month plus late charges
( "Past-Due Rent" ) . On or before October 1, 1991,
Lessee shall pay Lessor MINE THOUSAND DOLLARS
($9, 000. 00) of the Past.-Due Rent. The remai.nde , o-r_
the Past-Due Pent shall accrue interesL at the rate
of eight percent (3% ) per annum commencing October
1, 1991, until fully repaid. The balance of the
Past-Due Pent shall be paid to Lessor on or before
April 1, 1992. Payments of Past. Due Bent shall be
credited first to the month of August, 1990, and to
each subsequent month thereafter.
"D. Lessee shall pay all future rent as it becomes due
as provided in Section V. A of the Leasedi0
3. Default by Lessee. If Lessee defaults under any term of
this Second Amendment of the Lease, this Second Amendment shall be
of no further force or effect, and Lessor shall have all rights and
remedies it would have had had this Second Amendment not been
executed including, but not limited to declaring a default under
the Lease as to that amount of the Past-Due Pent then unpaid.
4. Full Farce and Effect. Except as modified herein, the
terms of the Original Lease and the First Amendment. shall .remain in
:Mull force and effect.
IN WITNESS WHEREOF, this Second Amendment to Lease Agreement
was entered into as of the date first w E—en abol _.
ATTEST. CITY OF -T SP11fA CALIFORMM
DI �4C� — _✓� �.__ __ _
City Clerk City danager
l
Carole Schutz
REVIEWED AND APPROVED.
RUTAN &. TUCKER
David tI Aleshire, Esq.
City Attorney �to
SCHUTZ#2. AOR
- 2 -
Aid II
Palm Springs
Regional Airport
AMERICA5 RESORTPORT
September 11, 1990
Yes—i af:
Don Stetson
Palm Springs Aircraft Services
424 North Civic Drive
Palm Springs, CA 92262
RE: INSURANCE CERTIFICATES - SECOND REQUEST
Dear Mr. Stetson:
There has been no response from your office to our letter of July 13, 1990 regarding the
submission of corrected insurance certificates pertaining to Lease Agreement .No.1726yvith
Carole Schutz. Please make the necessary corrections to all insurance certificates, showing
Carole Schutz, an individual, as the sole proprietor and submit them to my office at your earliest
convenience.
Thank you for your cooperation.
Sincerely
Lawrence D. Wedekind
Acting Airport Property Specialist
LDW/ts
cc: Jeri Riddle, Assistant Director of Aviation
,/City Clerk, City of Palm Springs
3400 E.Tahquitz-McCallum Way•P O.Box 1786•Palm Springs,CA 92263-1786•(619)323-8161
REC ENED
July 17, 1990 JUL 18 1990
Judy,
Sorry that I didn't reply to your E-Mail messages. My PC has not been connected to the
HP main frame.
AIR BC is a Canadian Charter which doesn't need to have an Airline Use Agreement with
the City.
Enclosed is a copy of my letter to Pal- Springs Aircraft Maintenance requesting them to
change insured party.
ip, g Z
Palm Springs
Regional Airport
AiNERICAS RESORTPORi
July 13, 1990
Don Stetson
Palm Springs Aircraft Services
424 North Civic Drive
Palm Springs, CA 92262
RE: INSURANCE CERTIFICATES
Dear Mr. Stetson:
Insurance certificates we have on file list Alister, Inc. dba Palm Springs Aircraft Services as the
insured party. As Lease Agreement No. 1728 with the City of Palm Springs was assumed by
Carole Schutz, an individual, the insurance certificates must show Ms. Schutz as the insured.
Please make corrections accordingly on all insurance certificates and submit them to my office
by August 15, 1990.
Thank you for your cooperation.
Sincerely,
LhinD. tricker
Airport Property Specialist
LDS/ts
Enclosures: Copies of Insurance Certificates
cc: City Clerk, City of Palm Springs
3400 E.Tahgwtz-McCallum Way•P O.Box 1786•Palm Springs,CA 92263-1786•(619)323-8161
DATE: June 28, 1990
r
TO: Airport
FROM: City Clerk
o a
SUBJECT: Agr 1728 (Kuranz) Carole Schutz , assignee
0i
I have the attached materials. My question relates to the certificate
of insurance which was sent in February. It was issued in the name of
Alister, Inc. , dba Palm Springs Aircraft Services. The assignment was
made to Carole Schutz , an individual . The insurance should correspond.
If it is now Alister, Inc. , then the assignee needs to be changed.
JUDITH SUMICH
City Clerk
Attached
A
� U
7
Frank B. Hall&Co. of California-Aviation
Director of Aviation 3200 Wilshire Boulevard
City of Palm Springs Los Angeles, CA 90010
Regional Airport May 31, 1990
Palm Springs, CA 92262
Re: Palm Springs
Aircraft Maintenance Services
Policy No. AP538-7721
Gentlemen, a
V)
We are pleased to enclose:
❑ Confirmation of insurance.
❑ Your policy as requested. DEPARTIVEN"i OF
AVIATION
❑ Your renewal policy continuing similar insurance.
❑ Your renewal certificate for attachment to the above policy.
❑ Your copy of the policy. The original has been forwarded to the mortgagee.
❑ Invoice in the amount of $
❑ Loss payable endorsement.
❑ Form for your completion, signature and return to our office.
® Certificate of insurance.
❑ Endorsement for attachment to your policy.
1-1
Should you have any questions concerning the enclosed, please call us.
Sincerely,
cc: Mr. Sam Joyner
Palm Springs Aircraft
Maintenance Services Arm-- Torley �)
Account Manager
Telephone(213)386-3700
Telex 194-144 HALL"A LSA
- 7 • ATLANTA
� �O�I • CHIDAL AS
I�A 1 � 1 _ • DALLA
1 • EDISON, NJ
• LOS ANGELES
• NEW YORK, NY
CERTIFICATE OF INSURANCE
THIS IS TO CERTIFY TO: City of Palm Springs - Attn: Director. of Aviation
Palm Springs Regional Airport, Palm Springs, CA_ 922.62
THAT THE FOLLOWING POLICY/IES OF INSURANCE HAVE BEEN ISSUED TO
Palm Springs Aircraft Maintenance Services
424 N. Civic Drive, Palm Spring;, CA 92262
AIRCRAFT POLICY NO. POLICY PERIOD FROM TO
INSURANCE COMPANY
LIABILITY COVERAGES LIMITS OF LIABILITY
EACH PERSON EACH OCCURRENCE
❑ Bodily Injury Excluding Passengers $ $
❑ Property Damage $ XXXX $
❑ Passenger Bodily Injury $ $
❑ Single Limit_cluding Passengers, $ XXXX $
❑ With Passenger Liability Limited To $ $ XXXX
PHYSICAL DAMAGE COVERAGE: ALL RISKS, GROUND & IN-FLIGHT IN-MOTION
REGISTRATION AGREED DEDUCTIBLES: INGESTION LIEN
NUMBER YEAR MAKE&MODEL VALUE NOT IN-MOTION MOORED AMOUNT
$ $ $ $
$ $ $ $
THIS CERTIFICATE HOLDER IS:
❑ INCLUDED AS A LOSS PAYEE FOR AIRCRAFT PHYSICAL DAMAGE COVERAGE
❑ PROVIDED BREACH OF WARRANTY COVERAGE ON AIRCRAFT PHYSICAL DAMAGE COVERAGE
❑ IS INCLUDED AS AN ADDITIONAL INSURED ON AIRCRAFT LIABILITY COVERAGE, BUT ONLY WITH RESPECT
TO OPERATIONS OF THE POLICYHOLDER.
AIRPORT LIABILITY POLICY NO AP538-7721 POLICY PERIOD: FROM May 11 1990 TO May 11 1991
INSURANCE COMPANY National Union Rire Insurance Company Qf Pittsburgh, PA
COVERAGES Premi.sos, Products R Completed Operations and Aangarkeeners T.iability
LIMITS OF LIABILITY
❑ Bodily Injury $ each person $ each occurrence *
❑ Property Damage $ each occurrence *
R9 Single Limit Bodily Injury & $1,000,000. each occurrence *
Property Damage
® Hangarkeepers Liability $ 100,000. each aircraft $ 150,000. each loss
DEDUCTIBLES: Hangarkeepers Liability $ 1,000. each loss
Premises Liability $ Nil each claim with respect to Property Damage
'REFER TO THE POLICY AN ANNUAL AGGREGATE LIMIT APPLIES TO SOME COVERAGES
WORKERS COMP. POLICY NO. POLICY PERIOD FROM TO
INSURANCE COMPANY
LIMITS OF LIABILITY. PART I: $ Statutory PART II: $
OTHER COVERAGES/CONDITIONS/REMARKS
The above Certificate Holder is included as an Additional Insured, but solely with
respect to the operations of the Named Ensured.
THE AVIATION MANAGERS HAVE MADE PROVISION TO GIVE THE CERTIFICATE HOLDER PROMPT NOTICE OF CANCELLATION OF ANY POLICY ABOVE,BUT,THE AVIATION MANAGERS ASSUME
NO RESPONSIBILITY FOR FAILURE TO PROVIDE SUCH NOTICE THIS CERTIFICATE DOES NOT CHANGE IN ANY WAY THE ACTUAL COVERAGES PROVI DED BY THE PO LI CYI I ES SPECIFIED ABOV E
❑ AIG Aviation, Inc. ❑ AIG Aviation (Canada), Inc.
KI AIG Aviation surance Services ❑ AIG Aviation (Illinois) Corporation
❑ ❑ AIG Aviation (Texas), Inc.
May 22, 1990 AT:at
By ' �— CERTIFICATE NO.ITdaiy's Dalel
IAvialwH Manage�S
AV-37A 131SM
DATE: �L
7O: � A4
FROM: >'
SUBJECT. l
�/ �r�d �/l•-r,Gtl,C�7� � 1�i� �(�J /-'-'Ll�'�-c-�=�.�2 �iCa-ate �-�-cQ
,fie
R E C E 6 V E D AVEMCO INSURANCE COMPANY
SEP 181989 411 Aviation Way
Frederick, MD 21701
DEPARTMENT OF
AVIATION
CERTIFICATE OF INSURANCE
Date 9-05-89
THIS CERTIFICATE IS ISSUED TO: City of Palm Springs
Attn: Airport Administration
�� �
3400 E. Tahquitz ID1cCallm
Palm Springs, CA 92262 0CT 2 5 19�9
--DESCRIPTIVE SCHEDULE--
NAMED INSURED: Alister, Inc.
DBA Palm Springs Aircraft Services
4 North Civic Drive R E C E I�s
ADDRESS: Palm
m Springs, CA 92262 a i�
POLICY NUMBER: Ad 364517 SEP 111989
POLICY PERIOD: From 7-27-89 To_ 7-27-90 DEPARTMENT QF
AVIATION
PREMISES COVERED: Area known as Palm Springs
Aircraft Services LIABILITY LIMITS
COVERAGE PART COVERAGE BODILY INJURY PROPERTY - EACH AGGREGATE
EACH PERSON DAMAGE OCCURRENCE
I AIRPORT LIABILITY $ 1,000,000 1,000,000 1,000,!E!0,000
2 CONTRACTUAL LIABILITY $
3 COMPLETED OPERATIONS $ 1�000,000$ 1,000,000s 1,000,000 1,000,000.and PRODUCTS LIABILITY —
EACH PERSON EACH
_ OCCURRENCE
4 PREMISES MEDICAL PAYMENTS $ $
EACH AIRCRAFT EACH AGGREGATE DEDUCTIBLE
_ OCCURRENCE EACH AIRCRAFT
5 HANGAR KEEPERS' LIABILITY $ 100,000 100,000 100,000 1,000
This Certificate of Insurance neither affirmatively nor negatively amends, extends or alters the coverage af—
forded by the Policy. It is issued as a matter of information only and confers no rights upon the certificate
holder.
�(STRIBUTION:
1-Additional Insured
1-Insured
1-File
1-Field Office AVEEMMC�O INSURANCE COMPANY
AIC 9-05-89 NE B
y
AGL-F 1 (4-89) Auth,briz�)ep sentative
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*Amendment No. 1 Lease Agr
Carole Schutz
AGREEMENT #1728
MO 4674, 11-7-90
AMENDMENT NO. 1
to -
LEASE AGREEMENT1728
WHEREAS the City of Palm Springs, California, hereinafter called "CITY" or "LESSOR', and
CAROLE SCHUTZ, hereinafter called'LESSEE', entered into Lease Agreement No. 1728, effective August
5, 1981; and
WHEREAS, LESSOR and LESSEE mutually agree to amend said Lease Agreement No. 1728 to
include sublease provisions for the rental of space to aviation related general maintenance tenants.
NOW, THEREFORE, the parties hereto mutually agree, as follows:
ARTICLE II - IMPROVEMENTS/DESCRIPTION OF CONCESSION, Paragraph 'A', is hereby
amended to read as follows:
A. Lessor hereby grants Lessee the right, privilege, and license to construct and
thereafter operate a hangar and related facilities and improvements, either directly or through
agents or sub-tenants, provided however, such agents or sub-tenants shall be subject to prior
approval of the Lessor,which approval shall not be unreasonably withheld, for a general aviation
service business, including, but not limited to, repair of piston engine and engine accessories
(such as starters, generators, propellers) and related engine services and sales, together with the
right to provide any other services incidental to such operations, it being specifically understood
and agreed that no right is granted to Lessee to engage in aviation retail fuel and oil sales.
ARTICLE II - IMPROVEMENTS/DESCRIPTION OF CONCESSION is hereby amended to have an
additional paragraph, Paragraph 'B", to hereafter read as follows:
B. Lesee shall have the right to sublease commercial work space to aviation-related
general maintenance service businesses and tenants subject to the provisions of the Airport Rules
and Regulations and the City's Business License Code. Prior approval of the Airport Commission
is required before any such tenant may engage in any commercial aviation activity at the Airport.
ARTICLE IV - OBLIGATION OF LESSEE is hereby amended to have an additional paragraph,
Paragraph "P, to hereafter read as follows:
I. Obligations with Respect to Sublessees. Lessee may only sublease parts of the
Premises by written instruments executed by Lessee and each subleassee, and only with the prior
written approval of the Lessor. Every limitation, duty, and obligation imposed on Lessee and its
sublessees herein (other that the obligation to pay land rental to City) and every disclaimer of
Lessor herein contained shall be expressly acknowledged and accepted or assumed by such
sublessees in such sublease to the extent that such accrue during the subtenancy of such
40 4-0
sublease. A fully executed copy of each sublease shall be furnished to City promptly as the same
is entered into.
ARTICLE V - RENTAL is hereby amended to have an additional paragraph, Paragraph "C", to
hereafter read as follows:
C. Other Charges: In the event the Lessor authorizes one or more businesses to be
conducted on the Premises by Lessee, or any of the Lessee's sublessees, or any public service
to be furnished therefrom or thereon by Lessee, or any Lessee's sublessees, the Lessee or
Lessee's sublessees shall pay to the City appropriate percentages of gross or net revenues as
may be required by the City's Comprehensive Fee Schedule, commercial leases, operating
agreements or ordinances.
Lessee agrees to pay to the City any and all other non-discriminatory rentals, charges and
fees that the City may establish in connection with its use of the Airport and its facilities.
ARTICLE XVII -NON-DISCRIMINATION & FAA REQUIRED CLAUSES, Paragraphs "A"through "J"
are hereby amended and replaced by Paragraphs "A" through "P" as follows:
A. The Lessee for himself, his heirs, personal representatives, successors in interest, and
assigns, as a part of the consideration hereof, does hereby covenant and agree, as a covenant
running with the land, that in the event facilities are constructed, maintained, or otherwise
operated on the said property described in this Agreement for a purpose for which a DOT
program or activity is extended or for another purpose involving the provision of similar services
or benefits, the Lessee shall maintain and operate such facilities and services in compliance with
all other requirements imposed pursuant to Title 49, Code of Federal Regulations, DOT, Subtitle
A, Office of the Secretary, Part 21, Nondiscrimination in Federally-Assisted Programs of the
Department of Transportation-Effectuation of Title VI of the Civil Rights Act of 1964, and as said
Regulations my be amended.
B. The Lessee for himself, his heirs, personal representatives, successors in interest, and
assigns, as a part of the consideration hereof, does hereby covenant and agree, as a covenant
running with the land, that: (1) no person on the grounds of race, color, or national origin shall
be excluded from participation in, denied the benefits of, or be otherwise subjected to
discrimination in the use of said facilities, (2) that in the construction of any improvements on,
over, or under such land and the furnishing of services thereon, no person on the grounds of
race, color, or national origin shall be excluded from participation in, denied the benefits of, or
otherwise be subject discrimination, (3)that the Lessee shall use the premises in compliance with
all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations,
Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Non discrimination in
Federally-Assisted Programs of the department of Transportation-Effectuation of Title VI of the Civil
Rights Act of 1964, and as said Regulations may be amended.
C. That in the event of breach of any of above nondiscrimination covenants, City shall
have the right to terminate the Agreement and to reenter and repossess said land and the
facilities thereon, and hold the same as if said Lessee had never been made or issued. This
provision does not become effective until the procedures of 49 CFR Part 21 are followed and
completed including expiration of appeal rights.
D. Lessee shall furnish its accommodation and/or services on a fair, equal and not
unjustly discriminatory basis to all users thereof and it shall charge fair, reasonable and not
unjustly discriminatory prices for each unit or service; PROVIDED, THAT the Lessee may be
allowed to make reasonable and nondiscriminatory discounts, rebates or other similar type of
price reductions to volume purchasers.
E. Non-compliance with Paragraph D above shall constitute a material breach thereof and
in the event of such non-compliance the City shall have the right to terminate this Agreement and
the estate hereby created without liability therefore or at the election of the City or the United
States either or both said Governments shall have the right to judicially enforce Provisions.
F. Lessee agrees that it shall insert the above five provisions in any sublease by which
said Lessee grants a right or privilege to any person, firm or corporation to render
accommodations and/or services to the public on the premises herein leased.
G. The Lessee assures that it will undertake an affirmative action program as required
by 14 CFR Part 152, Subpart E, to insure that no person shall on the grounds of race, creed,
color, national origin, or sex be excluded from participating in any employment activities covered
in 14 CFR Part 152, Subpart E. The Lessee assures that no person shall be excluded on these
grounds from participating in or receiving the services or benefits of any program or activity
covered by this subpart. The Lessee assures that it will require that its covered suborganizations
provide assurances to the Lessee that they similarly will undertake affirmative action programs and
that they will require assurances from their suborganizations, as required by 14 CFR 152,Subpart
E, to the same effort.
H. The City reserves the right to further develop or improve the landing area of the airport
as it sees fit, regardless of the desired or view of the Lessee and without interference or
hindrance.
I. The City reserves the right, but shall not be obligated to the Lessee to maintain and
! 0
keep in repair the landing area of the airport and all publicly-owned facilities of the airport,
together with the right to direct and control all activities of the Lessee in this regard.
J. This Agreement shall be subordinate to the provisions and requirements of any
existing or future agreement between the City and the United States, relative to the development,
operation or maintenance of the airport.
K. There is hereby reserved to the City, its successors and assigns, for the use and
benefit of the public, a right of flight for the passage of aircraft din the airspace above the surface
of the premises herein leased. This public right of flight shall include the right to cause in said
airspace any noise inherent in the operation of any aircraft used for navigation or flight through
the said airspace or landing at,taking off from or operation on the Palm Springs Regional Airport.
L. Lessee agrees to comply with the notification and review requirements covered in Part
77 of the Federal Aviation Regulations in the event future construction of a building is planned for
the leased premises, or in the event of any planned modification or alteration of any present of
future building or structure situated on the leased premises.
M. The lessee by accepting this Agreement expressly agrees for itself, its successors and
assigns that it will not erect nor permit the erection of any structure or object, nor permit the
growth of any tree on the land leased hereunder above the mean sea level elevation of five
hundred (500) feet. In the event the aforesaid covenants are breached, the owner reserves the
right to enter upon the land leased hereunder and to remove the offending structure or object and
cut the offending tree, all of which shall be at the expense of the lessee.
N. The Lessee by accepting this Agreement expressly agrees for itself, its successors
and assigns that it will not make use of the leased premises in any manner which might interfere
with the landing and taking off of aircraft from Palm Springs Regional Airport or otherwise
constitute a hazard. In the event the aforesaid covenant is breached,the owner reserves the right
to enter upon the premises hereby leased and cause the abatement of such interference at the
expense of the Lessee.
O. It is understood and agreed that nothing herein contained shall be construed to grant
or authorize the granting of an exclusive right within the meaning of Section away of the Federal
Aviation Act of 1958 (49 U.S.C. 1349a).
P. This Agreement and all the provisions hereof shall be subject to whatever right the
United States Government now has or in the future may have or acquire, affecting the control,
operation, regulation and taking over of said airport or the exclusive or non-exclusive use of the
airport by the United States during the time of war or national emergency.
0 •
Except as expressly herein modified,the terms, covenants and conditions of Agreement No. 1728
are hereby ratified, and shall continue in full force and effect.
IN WITNESS WHEREOF, the parties have caused these presents to be executed on the
o ✓� O��
day of , 1990.
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City-Clerk k City Manager
REVIEWED & APPROVED
LESSEE
J/ .
Carole Schutz
AP'PP0v7F, n �"o P BF F �OP,NCR
1' ur L 1
^'�oancEo `
Transportation and Energy Department
619-323-8163
CONSENT OF CITY TO ASSIGNMENT OF LEASE
The City of Palm Springs, County of Riverside, California , hereby
consents to the Assignment of Lease Agreement No. 1728 from John L. Kuranz and
Thomas A. Killoren, a General Partnership, to Carole Shutz, an individual .
CITY OF PALM SPRINGS, CALIFORNIA
P/
r'\t'G�IZOIIED AS TO) F R By: �✓
City ManagerATTEST:
it ity Attorney
Ut
Lam' C i ty C-1 e rk
Post Office Box 1786, palm Spriogs, California 92263-1786
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�T ' ov a 1T �n1 �)�C°�I ��`1J ig� ,s
eY
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Transportation and Energy Department
619-323-8163
CONSENT OF CITY TO CANCELLATION OF SUBLEASE
The City of Palm Springs , County of Riverside, California, hereby
consents to the cancellation of the sublease between John L. Kuranz and Thomas
A. Killoren, a General Partnership, and Schneck Aviation, Inc.
CITY OF PALM SPRINGS, CALIFORNIA
By:
APPROVED AS TO F ReiVl City Manager
ATTEST:
31 1 - /f.Ity At'Lornsy — _ /
Date By:
City Clerk
Post Office Box 1786, Palm Springs, California 92263-1786
ASSIGNMENT OF LEASE
IN CONSIDERATION of the assumption of the Lease by CAROLE
SCHUTZ , as stated below, and for other good and valuable
consideration received, and which is hereby acknowledged, JOHN L.
KURANZ and THOMAS A. KILLOREN, a general partnership, ( "Assignor" )
hereby assigns to CAROLE SCHUTZ , an individual, with an address of
c/o Alistar, 7777 Center Drive, Suite 402 , Huntington Beach,
California 92647 ( "Assignee" ) , all of its right, title and
interest as lessee under that certain Lease Agreement No. 1728 ,
dated August 6 , 1981 , by and between the CITY OF PALM SPRINGS
( "Lessor" ) and JOHN L. KURANZ , JOHN A. HALLEN and THOMAS A.
KILLOREN, a California partnership, as lessee. The Lease pertains
to the premises located at Palm Springs Municipal Airport, City of
Palm Springs , Riverside County, California.
Effective Date : The date City of Palm Springs , California,
grants its consent to this Assignment.
LESSEE:
pY
s
J H L. KURANZ, General Pa er
resenting A Two-Thirds Interest
ASSUMPTION OF LEASE
CAROLE SCHUTZ, hereby accepts the foregoing assignment,
assumes said Lease and agrees to perform each and all of the
terms, conditions and covenants required of the Lessee therein.
Notices under the Lease should be sent to the undersigned at
the address below the undersigned ' s signature.
Effective Date : The date City of Palm Springs , California,
grants its consent to this Assignment.
CAROLE SCHUTZ
Address :
c/o Alistar
7777 Center Drive, Suite 402
Hungtington Beach, CA 92647
,
j43/11 ;� �'¢
CONSENT TO CANCELLATION OF SUBLEASE
THIS CONSENT TO CANCELLATION OF SUBLEASE is made this 13th
day of May, 1988 , by and between JOHN L. KURANZ and THOMAS A.
KILLOREN, a California partnership ( "Lessor" ) and SCHNECK
AVIATION, INC. , a California corporation ( "Lessee" ) .
RECITALS
A. Lessor leased the property described in Exhibit "A" (the
"Premises" ) , located in the City of Palm Springs , County of
Riverside, State of California, from the City of Palm Springs ,
California, a Municipal corporation (the "City" ) , through a lease
agreement made and entered into on August 6 , 1981 .
B. Lessor and Lessee entered into a Sublease Agreement for
the Premises , as described in Exhibit "A" on August 6, 1981 (the
"Sublease" ) .
C. Lessee is currently in default in the payment of rental
due to Lessor under the Sublease.
D. Lessor and Lessee have agreed to cancel the Sublease and
return possession of the Premises to Lessor, provided, however,
all obligations under the Sublease incurred prior to the effective
date, as set forth in paragraph 3 below, shall not be effected by
the cancellation of the Sublease.
NOW, THEREFORE, in consideration of the mutual covenants and
agreements contained herein, the parties agree as follows :
1 . Cancellation of Lease . Lessor and Lessee hereby agree
to cancel the Sublease between Lessor and Lessee, dated August 6 ,
1981, effective on the Effective Date, as defined in paragraph 3
below.
2 . Lease Obligations . Lessor and Lessee hereby agree that
any and all obligations incurred under said Sublease prior to the
Effective Date shall not be cancelled or otherwise affected by the
terms of this Cancellation Agreement.
3 . Effective Date. This cancellation of Sublease shall be
deemed effective on the date upon which the City grants its
consent to the Assignment of Lease as proposed between Lessor and
Carole Schutz (the "Effective Date" ) .
IN WITNESS WHEREOF, the parties have entered into this
Agreement on the date first set forth above in Palm Springs,
California.
LESSOR:
JOHN L. KRANZ and THOMAS A.
KILLO N,^ A General Partnership
By: iZ��� i
JOgN L. KURANZ
G neral Partner
11
LESSEE:
SCHN K AVIATION INC.
By: L/,-�/
JO N L. KURANZ
j43/19 esident
2
EXHIBIT A
SUBLEASE AGREEMENT BY AND BETWEEN JOHN L. KURANZ, JOHN A.
HALLEN AND THOMAS A. KILLOREN AND SCHNECK AVIATION, INC. , A
CALIFORNIA CORPORATION
Legal description of property located in the City of Palm
Springs, County of Riversides, State of California:
That portion of Lots 2 and 3 in Section 13, Township 4 South, Range 4
East, San Bernardino Base and Meridian, as shown on Map of Palm Valley
Colony Lands, according to map thereof recorded in Book 14 , Page
652 of Maps , Records of San Diego County, California , being in
the City of Palm Springs, County. of Riverside. State of California,
described as follows :
Commencing at the Northwest corner of said Lot 2 in Section 13, said
point being a point on the Northerly line of said Section; thence South,
along the Westerly line of said Lot 2, a distance of 40. 00 feet to a
point on a line that is parallel with and 40.00 feet Southerly of the
Northerly line of said Section 13; thence South 89°48'00" West, along
said parallel line, a distance of 148.80 feet; thence South 0°10' 10"
West, a distance of 612.82 feet; thence South 89045'00" East, a distance
of 25.00 feet to a point on a line that is parallel with and 25.00 feet
Easterly of the centerline of North Civic Drive, said point being the
True Point of Beginning, said point also being a point on the Westerly
extension of the Northerly line of Taxiway No. 8 of the Palm Springs
Municipal Airport; thence North 0°1'0' 10" East along said parallel line ,
a distance of 200.00 feet; thence South 89°49'50" East, a distance of
225.00 feet; thence South 0°10' 10" West, a distance of 367.00 feet;
thence North 89°49'50" West, a distance of 225.00 feet to said parallel
line; thence North 0°10' 10" East, along said parallel line, a distance
of 167.00 feet to the True Point of Beginning, containing 1 .90 acres,
more or less.
17,
LAW OFFICES OF
PEDDERSON, MENZIMER,CONDE,
STONER & KILLOREN
DALE F.CONDE,P.C. 400 UNITED CENTER TELEPHONE
CLIFFORD E.STONER•P C IBI51 ......00
THOMAS A.KI LLOREN,P.C. 120 W.STATE STREET
THOMASA BUESCHEL ROCKFORD, ILLINOIS 61101
ROBERT A.CALGARO
M I C HA EL J.5 C H APR E PT November 30 , 1982 WRITER'S OTRECT DIAL NUMBER
JAMES M.HE55
STEVEN P.ZIMMERMAN
OF COUNSEL 987-4040
CLIFFORD A.PEDDERSON
LISLE W.MENZIMER
The City of Palm Springs
Palm Springs , California 922620
RE : Kuranz , Hallen & Killoren %
424 N. Civic Drivek9do
Lease Dated August 6 , 1981e �p�� /
Performance Bond ��������
Dear Sir:
Request is respectfully made that the Performance
Bond required under Article VII , Paragraph A, of the above
lease be waived.
This Waiver is requested because substantial
leasehold improvement has been made to the leased property,
all payments have been made for said construction and,
accordingly, no lien will attach to the property in connection
with the construction of the hangar facility.
Your favorable response to this request is appreciated
deeply by the undersigned, as well as by Dr. John L. Kuranz
and Mr. John A. Hallen.
Sincerely yours,
TI40MAS A. KILLOREN
A Performance Bond as required under Article VII ,
Paragraph A of the lease between the City of Palm Springs ,
California, and Kuranz , Hallen & Killoren, a California
Partnership dated August 6 , 1981, is hereby waived.
CITY OF PALM SPRINGS, CALIFORNIA
BY: r ' /; _ ' Ab
TAK/dlk JU
cc: Dr. John L. Kuranz CITY N,1ANAGEP,
M-6 Mr. John A. Hallen APPROVED BY THE CITY('0i NjCj4 .
ATTACHMENT #2 BYPL-S. N ?.,3_�� °� `-I--J'
A THE .4ETNA CASUALTY AND SURETY COMPANY
Hartford, Conn.cticut 06115
• BOND No. 17 S 1o470 BOA
LIFE&CASUALTY
LEASE PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENTS, Schneck Aviation, Inc. of Rockford, Illinois, a
Corporation authorized to do business in California, hereinafter referred to as
Principal, and THE MINA CASUALTY AND SURETY COMPANY of Hartford, Connecticut, a
Corporation authorized to do business in the State of California, hereinafter re-
ferred to as Surety, are held and jointly and severally bound unto the City of Palm
Springs, County of Riverside, State of California, hereinafter referred to as Obligee,
in the sum of TWENTY THOUSAND AND NO/100 (S20p000.00) DOLLARS, lawful money of the
United States of America; for the payment of which sum, well and truly to be made,
we bind ourselves, our heirs, executors, administrators, successors and assigns,
jointly and slverally, firmly by these presents.
SEALED with our hands and seals this 1st day of December , 19 81
THE CONDITION OF T11ZS OBLIGATION IS SUCH, that WHEREAS, the Principal has executed
a Sublease Agreement with John L. Kuran2, John A. Hallen -and Thomas A. Killoren,
a California Partnership effective the 1st day of August, 19819 and John L. Kuranz,
John A. Hallen and Thomas A. Killoren have executed a Lease Agreement with the Obligee
effective the let day of August, 1981„ both Lease and Sublease being for the following
property:
That portion of Lots 2 and 3 in Section 13, Township 4 South, Range 4 East,
San Bernardino Base and Meridian, as shown on Map of Palm valley Colony Lands,
according to map thereof recorded in Book 14, Page 652 of Maps, Records of
San Diego County, California, being in the City of Palm Springs, County of
Riverside, State of California, described as follows:
Commencing at the Northwest corner of said Lot 2 in Section 13, said point
being a point on the Northerly line of said Section; thence South, along the
Westerly line of said Lot 2, a distance of 40.00 feet to a point on a line that
is parallel with and 40.00 feet Southerly of the Northerly line of said
Section 13; thence South 89048'00" West, along said parallel line, a distance
of 148.80 feet; thence South 0010' 10" West, a distance of 612.82 feet; thence
South 89045'00" East, a distance of 25.00 feet to a point on a line that is
parallel with and 25.00 feet Easterly of the centerline of North Civic Drive,
said point being theTrue Point of Beginning, said point also being a point on the
Westerly extension of the Northerly line of Taxiway No. 8 of the Palm Springs
Municipal Airport; thence North 0010110" East along said parallel line, a
distance of 200.00 feet; thence South 89149150" East, a distance of 225.00 feet;
thence South 0010' 10" West, a distance of 367.00 feet; thence North 89 49'50"
West, a distance of 225.00 feet to said parallel line; thence North 0010110/,
East, along said parallel line, a distance of 167.00 feet to the True Point- of
Beginning, containing 1.90 acres, more or less.
AND, WHEREAS, the Obligee is desirous of reimbursement for any loss that it sustains
in the event of default or failure of Principal under the terms of Principal's
Sublease Agreement with John L. Kuranz, John A. Hallen and Thomas A. Killoren;
AND, WHEREAS, the Obligee has agreed to accept a bond which has a one-year term
and must be renewed annually at the sole option of Surety which agreement is notwith-
standing the terms of Article VII of either the aforementioned Lease or Sublease;
-1-
AND, WHEREAS, Obligee has agreed that it has no rights of recovery under this bond
for any loss sustained after the expiration date;
AND, WHEREAS, Obligee agrees that the failure of Principal to procure a replacement
bond for one which has expired shall not be cause for loss under the terms of the
bond that has expired;
NOW, THEREFORE, if the Principal shall well and truly pay for any loss sustained
by Obligee under the terms of Principal's Sublease Agreement with John L. Kuranz,
John A. Hallen, and Thomas A. Killoren, then this obligation shallbe void;
otherwise it is to ruin in fall force and effect from the 1st day of December
1981 , until the 30thday of November , 1982 , at which time this obliga-
tion shall expire.
9CHNNF3C%" ATI,N, IN
/9g_l
Bye Flo
Attest:_
THE 1ETNA CASUALTY AND SURETY COMPANY
i
Attorney—in—Fact
Approved:
J/�v✓ I`S 19 v
CITY OF PALM RINGS, CALIFORNIA
By L ,
STATE OF ILLINOIS
COUNTY OF KANE ss' Theodora J. Hope
z,
a Notary Public in and for said County and State, do hereby certify that
Resident Vice President, and
Kathleen J.Small Resident Assistant Secretary,
Attorney-in-Fact,
of THE FETNA CASUALTY AND SURETY COMPANY,who iS personally
known to me to be the same Person whose name 1S
ubscribed to the
foregoing instrument, appeared before me this day in Person, and acknowledged
- that __he_ signed, sealed and delivered said instrument, for and on
behalf of THE ATNA CASUALTY AND SURETY COMPANY, for the uses
and purposes therein set forth.
Give under my hand and noot1rial seal, this let day of December
19 �1 "�I,Lc1�e9�cC1�' T�o1-h�a
NotaryPubPublic
.15-1139-DI 1000 _ _
CAT. 229102
„ ' ;�,PRINTED IN 11.5,A,
Hartford, Connecticut 06115
LIFE&CASUALTY
POWER OF ATT012NEY AND CFG'3WIGATF OF AU7HOE ITV OF AVTOR6+ EV(664N-FACT
KNOW ALL MEN BY THESE PRESENTS,THAT THE fETNACASUALTY AND SURETY COMPANY,a corporation duly organized under the laws of the
State of Connecticut,and having its principal office in the City of Hartford,County of Hartford,State of Connecticut,hash made,constituted and
appointed, and does by these presents make, constitute and appoint Kathleen Se Small - -
of Aurora, Illinois ,itstrue and lawful AttorneV(s)-in-Fact,with full powerand authority hereby conferred
to sign, execute and acknowledge, at any place within the United States, or, if the following line be filled in, within the area there desig-
nated , the following instrument(s):
by his/her sole signature and act,any and all bonds,recognizances,contracts of indemnity,and otherwritings obligatory in the nature of a bond,
recognizance, or conditional undertaking,and any and all consents incidents thereto not exceeding the sum of ONE MILLION
($1,000,000,00) DOLLARS -
and to bind THE FETNA CASUALTY AND SURETY COMPANY,thereby as fully and to the same extent as if the same were signed by the duly
authorized officers of THE/ETNA CASUALTY AND SURETY COMPANY,and all the acts of said Attorneys)-in-Fact,pursuantto the authority herein
given,are hereby ratified and confirmed.
This appointment is made under and by authority ofthe following Standing Resolutions of said Compam/which Resolutions are now in full force
and effect.
VOTED.That each ief the following officers:Chairman,Vice Chairman,President,Any Executive Vice President,Any Senior Vice President,Any Vice
President,Any Assistant Vice President,Any Secretary,Any Assistant Secretary,may from time to time appoint Resident Vice Presidents,Resident
Assistant Secretaries,Attorneys-in-Fact,and Agents to act for and on behalf of the Company and may give any such appointee such authority as his
certificate of authority may prescribe to sign with the Company's name and seal with the Company's seal bonds, recognizances,contracts of
indemnity,and other writings obligatory in the natureof a bond,recognizance,or conditional undertaking,and any of said officers orthe Board of
Directors may at any time remove any such appointee and revoke the power and authority given him.
VOTED:That any bond,recognizance,contract of indemnity,or writing obligatory in the nature of a bond,recognizance,or conditional undertaking
shall be valid and binding upon the Company when(a)signed by the Chairman,the Vice Chairman,the President,an Executive Vice President,a
Senior Vice President, a Vice President, an Asalstant Vice President or by a Resident Vice President, pursuant to the power prescribed in the
cortlflcateof authority of such Resident Vice President,and duly attested and soaled with the Cornpany'c seal by a Secretary or Assistant Secretary
or by a Resident Assistant Secretary,pursuant to the power prescribed in the certificate of authority of such Resident Assistant Secretary;or(b)duly
executed(under seal, if required)by one or more Attorneys-in-Fact pursuantto the power prescribed in his or their certificate or certificates of
authority.
This Power of Attorney and Certificate of Authority is signed and sealed by facsimile under and by authority of the following Standing Resolution
voted by the Board of Directors of THE iETNA CASUALTY AND SURETY COMPANY which Resolution is now in full force and effect:
VOTED: That the signature of each of the following officers:Chairman,Vice Chairman,President,Any Executive Vice President,Any Senior Vice
President,Any Vice President,Any Assistant Vice Presi dent,Any Secretary,Any Assistant Secretary,and the sea I of the Company may be affixed by
facsimile to any power of attorney or to any certificate relating thereto appointing Resident Vice Presidents,Resident Assistant Secretaries or
---- - --- ------_-�••.,a=-=�••��_...+a10 fin,,hnndc nd,mdert.kinus and other writings obligatory in the nature thereof,and any
R
ENDORSEMENT
ADDITIONAL PREMIUM$
RETURN PREMIUM$
Attached to and forming part of Policy/Certificate No. M? 12662/7170
in the name of SCE AV7ATICN INM
Effective date of this endorsement is TANEMgY 1, 1982 Endorsement No. 10
IN CT_MICERn= of the pnaaiun at which this liol is written, IT IS
EMZMY TIME OMOD AND AM0D that: the pmvisibns:!of`the Sub-Lease Agree-
dated August of 1981, are included herein,iwhirh provides:
1.) C MY C1F PALM SPR DM, A,MH�IlCLE'AL'(73FPORATTCN AND JC M L. KMMZ,
JC EU A ID LLEENt 792DW�A. KCGT10IiFN, A CAiMMRM PAS ARE
ATE AS ' AND ARE HUD E8UMESS..
2.) SIMXTY (60) CF QR1=ZtA71W.
EXIMM CUSS X@MXGMXEAMFUL MISQXMWT OF LESSOFL
AV 3.17/86082 / PVA 17986 R
ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED, c Wakt 8mkM&America, h1c.
DATED: By
APRIL 8, 1982 MES:ppw VICE PMSIEENT
BK-17
125 South Wacker Drive Chicago, Illinois 60606 Phone (312) 2377333
VERIHCA 8 N OF INSURANCE
IN ACCORDANCE WITH AUTHORIZATION GRANTED TO ateWa-rt8aal4MidAmericaJgC.
BY UNDERWRITERS AT LLOYD'S OF LONDON AND VARIOUS INSURANCE COMPANIES IN LONDON, ENGLAND.
HEREINAFTER CALLED "UNDERWRITERS"
THIS IS r PALM SPRINGS MUNICIPAL AIRPORT (AND ATTACHED) (ADDITIONAL INSUREDS)
TO PALM SPRINGS, CALIFORNIA 92262
VERIFY ATFN. : MR. EDWARD COLBY
TO L AVIATION DIRECTOR.
J
THAT THE UNDERWRITERS HAVE ISSUED TO SCHNECK AVIATION, INCORPORATED
Greater Rockford Airport
60 Airport Drive
Rockford, Illinois 61109.
POLICY OF INSURANCE NO. MO 12662/7170 FOR THE PERIOD BEGINNING AT 12:01 am.
ON THE FIRST DAY OF JANUARY 19 82 AND ENDING AT 12:01 a.m.
ON THE FIRST DAY OF JANUp,RY 19 83 STANDARD TIME AT THE PLACE OF ISSUE.
INSURING SAID ASSURED FOR
AVIATION COMPREHENSIVE LEGAL LIABILITY INSURANCE
WHICH INCLUDES PREMISES, PRODUCTS, HANGARKEEPERS AND IN—FLIGHT HANGAMIEEPERS, AND NON—OWNED
AIRCRAFT (UP TO TEN (10) PASSENGER SEATS) INCLUDING PASSENGER BAGGAGE COVERAGE.
THE LIMITS OF LIABILITY CONTAINED IN SAID POLICY ARE AS FOLLOWS: 1.) IN RESPECT OF PREMISES, PRO—
DUCTS AND NON—OWNED AIRCRAFT LIABILITIES: Combined Single Limit Bodily Injury/Property Damage
$25,000,000.00 Any One Occurrence (And In The Aggregate Annually In Respect Of PRODUCTS LIA—
BILITY) INcluding PASSENGER LEGAL LIABILITY In Respect Of NON—OWNED AIRCRAFT LIABILITY EXcluding
GROUNDING LIABILITY. 2.) IN RESPECT OF HANGARKEEPERS LIABILITY (INCLUDING IN—FLIGHT HANGAR—
KEEPERS LIABILITY) : $500,000.00 Any One Aircraft/$1,000,000.00 Any One Occurrence. (Deducti—
bles: $1,500.00 Ground Each And Every Claim/$5,000.00 In—Flight Each And Every Claim) .
This document is furnished to you as a matter of information only. The issuance of this document does not make the
person or organization to whom it is issued an additional assured, nor does it modify in any manner the contract of insur-
ance between the Assured and the Underwriters. Any amendment, change or extension of such contract can only be effec-
ted by specific endorsement attached thereto.
Should the above mentioned contract of insurance be cancelled, assigned or changed during the above named policy
period in such manner as to affect this document, we the undersigned, will endeavor to give ten (10) days written notice
to the holder of this document, but failure to give such notice shall impose no obligation of any kind upon the undersigned
or upon the Underwriters.
SIGNED AT CHICAGO, ILLINOIS, THIS TWENTY—SOH DAY OF APRIL 19 82.
MES:ppw &Walrte5areidt fidArraerica,I110.
By
VICE,/PRESIDENT l
Kuranz, Ha11en & Killoren -
lease 1.9 acres, Airport for
gen. aviation serv. business
LEASE AGREEMENT AGREEMENT #1728 (Orig 8-6-81)
Res 13927, 8-5-81
_incl sublease w/Sch_n_ec_k __
THIS AGREEMENT, made and entered into this JL day
of August, 1981, by and between the CITY OF PALM SPRINGS,
CALIFORNIA, a Municipal corporation, hereinafter sometimes
called "City" or "Lessor" , and JOHN L. KURANZ, JOHN A.
HALLEN, and THOMAS A. KILLOREN, a California partnership,
hereinafter sometimes called "Lessee" .
RECITALS
A. The City owns the property described in detail in
EXHIBIT "A" , attached hereto and made a part hereof, located
in the City of Palm Springs, County of Riverside, State of
California; and
B. The City wishes to enter into the lease of said pro-
perty in the interest of furthering and carrying out its
public purpose; and
C. Lessee proposes to make certain improvements on the
land leased and/or demised hereunder, which improvements
contemplate that the Lessee shall construct upon the leased
premises a hangar and other related improvements and facili-
ties adequate and necessary to operate a general aviation
service business, including, but not limited to, piston
engine and engine accessories, assembly, overhaul, installa-
tion, and related services, and to thereafter operate the
same.
NOW, THEREFORE, in consideration of the rents,
covenants , and agreements contained herein and other
valuable considerations, the City hereby rents, leases , and
demises to Lessee and Lessee hires , leases and takes from
Lessor on the terms and conditions hereinafter set forth, a
tract of land in the City of Palm Springs, County of
Riverside, State of California, consisting of 1.9 acres ,
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1
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more or less , more particularly described in description
attached hereto as EXHIBIT "A" and made a part hereof for
all purposes .
ARTICLE I - TERM
The term of this agreement shall be for forty (40)
years beginning on August 1 , 1981, and ending on July 31 ,
2021 .
ARTICLE II - IMPROVEMENTS/DESCRIPTION OF CONCESSION
Lessor hereby grants Lessee the right, privilege,
and license to construct and thereafter operate a hangar and
related facilities and improvements for a general aviation
service business, including, but not limited to, repair of
piston engine and engine accessories (such as starters,
generators , propellers) and related engine services and
sales, together with the right to provide any other services
incidental to such operations , it being specifically
understood and agreed that no right is granted to Lessee to
engage in aviation retail fuel and oil sales .
ARTICLE III - CONSTRUCTION OF IMPROVEMENTS BY LESSEE
A. General Specifications : Lessee shall without cost
to Lessor and within the time periods subscribed herein com-
mence and complete construction of a general aviation ser-
vice business . The complex shall be of an attractive modern
type design compatible with the surrounding Palm Springs
Airport facilities. Lessee shall provide adequate automobile
parking spaces as required by the standards of the City.
Submission of Plans and Specification: Lessee has sub-
mitted to the Palm Springs Airport Commission a site use
2
plan depicting the proposed hangar and related office faci-
lity. In addition, Lessee' s architect has provided the
Airport Commission architectural renderings sufficient to
allow the Airport Commission to determine the character of
the improvements to be constructed on the demised premises .
The Airport Commission has approved -t-he proposed general
aviation service business as described in said plans .
Within 180 days after the execution of -this
Agreement, Lessee shall submit to City for approval final
plans and specifications for the structures and improvements
Lessee proposes to construct on the demised premises ,
including support facilities , parking facilities,
landscaping plans, together with preliminary estimates of
the construction costs of said facility, as well. as the
schedule for its construction hereinafter provided.
Lessee ' s plans and specifications for the building shall be
subject to approval by the City. Such approval shall not be
unreasonably withheld.
B . Encumbrance :
1 . This lease, or any right to or interest in, or
any of the improvements on the leased premises , may be
encumbered with the written approval of the City. No such
encumbrances or any addition thereto or extension thereof
shall be valid without said approval, provided, however, the
City shall consent in writing to any encumbrances that does
not exceed eighty-five percent (85% ) of the value of the
leasehold interest and improvements placed thereon.
2 . An encumbrance must be confined to the lease-
hold interest of Lessee or the subleasehold interest of a
sublease and shall not jeopardize in any way the Lessor ' s
interest in the land. Lessee agrees to furnish as requested
any financial statements or analysis pertinent- to the
19 a 7
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encumbrance that City may deem necessary to justify the
amount, purpose and terms of said encumbrance.
3 . In the event of default by the Lessee of the
terms of an approved encumbrance, the encumbrancer may exer-
cise any rights provided in such approved encumbrance, pro-
vided that before any sale of the leasehold, whether by
power of sale or foreclosure, the encumbrancer shall give to
City notice of the same character and duration as is
required to be given to Lessee by such encumbrancer and/or
the laws of the State of California. Any notice of default
shall comply with the provisions of Section 2924(c) of the
Civil Code of the State of California.
4. If any sale under the approved encumbrance
occurs, whether by power of sale or foreclosure, the
purchaser at such sale shall succeed to all of the rights,
title and interest of the Lessee in the leasehold estate
covered by said approved encumbrance. It is further agreed
that, if the purchaser at such sale is the encumbrancer, the
encumbrancer may sell and assign the leasehold interest
without any further consent provided that the assignee shall
agree in writing to be bound by all the terms and conditions
of this lease. If the encumbrancer is the purchaser, it
shall be required to perform this lease only so long as it
retains title thereto. If a sale under the approved
encumbrance occurs, and the purchaser is a party other than
the encumbrancer, said purchaser, as successor in interest
to the Lessee, shall be bound by all the terms and con-
ditions of this Lease.
S . If notice of such sale shall be given and the
defaults or any of them upon which such notice of sale is
based shall then continue, Lessor shall have the right to
correct such defaults at any time prior to the date of sale
4
or foreclosure, and to terminate such leasehold upon paying
to the encumbrancer the balance of the encumbrance, as
hereinafter defined.
6 . "Balance of encumbrance" shall mean the amount
of principal remaining unpaid on a note secured by a trust
deed or mortgage of an interest in this lease; provided that-
to such principal shall be added accrued interest thereon
past due and expenses incurred by the lender in connection
with foreclosure on such trust deed or mortgage and note
together with all necessary expenditures made by the lender
to maintain said leasehold interest valid and in good
standing during the process of foreclosure, including but
not limited to fire insurance premiums , title insurance
expenses, recording fees , appraisal fees , attorney' s fees ,
credit reports and any tax reporting services and additional
expenditures paid by the lender on additions, betterments
and rehabilitation of improvements on the property encum-
bered pursuant to plans approved by the City, which consent
may not be unreasonably withheld, and other expenses
necessary to place the improvements in marketable condition,
such adjusted principal to be paid in cash or at the option
of City amortized over the term and in accordance with the
schedule set forth in said note, the interest rate on the
unpaid balance thereto to be as set forth in said note .
7 . Lessor agrees that it will not terminate this
lease because of any default or breach hereunder on the part
of Lessee if the encumbrancer under the trust deed, within
ninety (90) days after service of written notice on the
encumbrancer by Lessor of its intention to terminate this
lease for such default or breach, shall:
7 .1 Cure such default or breach if the same can be
cured by the payment or expenditure of money provided to
S
19 a 9
19 a 10
be paid under the terms of this lease; provided,
however, that for the purpose of the foregoing, the
encumbrancer shall not be required to pay money to cure
the bankruptcy or insolvency of Lessee; or
7 . 2 If such default or breach is not so curable,
cause the trustee under the trust deed to commence and
thereafter diligently to pursue to completion steps and
proceedings for judicial foreclosure, the exercise of
the power of sale under_ and pursuant to the trust deed
in the manner provided by law, or accept from Lessee an
assignment in lieu of foreclosure, and keep and perform
all of the covenants and conditions of this lease
requiring the payment or expenditure of money by Lessee
until such time as said leasehold shall be sold upon
foreclosure pursuant to the trust deed, be released or
reconveyed thereunder, be sold upon judicial foreclosure
or be transferred by deed in lieu of foreclosure.
C. Construction Schedule/Default:
1 . Within ninety ( 90) days following final City
approval of the plans and specifications for the improve-
ments, Lessee shall commence construction of the general
aviation service business and related improvements con-
templated herein. The facility shall be completed within
fifteen (15) months from the date of commencement of
construction.
2 . If Lessee fails to complete improvements, deve-
lopment, and construction within the time periods as spe-
cified hereinabove, the Lessor may at its sole option as to
each such period:
(a) Require that the guaranteed minimum annual
rentals payable under this lease increase in an amount
equal to 50 of the previous month ' s rent, beginning the
6
month following that month in which construction was to
be completed. This increase shall remain in full force
and effect from the date of its effect.
(b) For each lease year that Lessee fails to
complete full improvement, as required hereinabove,
annual rentals payable under this lease shall be
increased in an amount equal to 20 of the then current
rent, beginning the month following that month during
which full development was to be completed. This
increase shall remain in full force and effect from the
date of its effect and until the contemplated improve-
ments are completed.
(c) Lessee agrees to hold Lessor harmless from and
against any and all claims by mechanics, materialmen, or
suppliers , which may result from the completion of the
construction, finishing, decorating, equipment and fix-
turization. Lessee further agrees to furnish Lessor
upon completion of construction certificates of comple-
tion satisfactory to Lessor. Such certificates shall
show that all costs of construction have been paid and
that no liens shall attach to the realty.
(d) Prior to the commencement of construction of
each improvement on the leased property, or any repair
or alteration thereto, the Lessee shall give City ten
(10) days advance notice in writing of intention to
begin said activity in order that non-responsibility
notices may be posted and recorded as provided by State
and local laws.
Nothing contained herein, however, shall prevent Lessee
from constructing said improvements prior to the time
frames established hereunder.
D. Title to Improvements : Title to all fixed
19a11
7
19 a 12
improvements made to and placed upon the premises shall
remain the property of the Lessee and shall vest in City
at such time as this lease agreement is terminated as
provided herein. Furniture, furnishings, and equipment,
not including heat and air conditioning equipment, will
remain the personal property of the Lessee and may be
removed by Lessee upon termination of this agreement.
It is specifically understood and agreed that upon such
removal the Lessee shall restore the space to good
useable condition, ordinary wear and tear excepted.
ARTICLE IV - OBLIGATIONS OF LESSEE
A. Lessee agrees that he will operate and maintain the
general aviation service business and facilities and impro-
vements connected therewith in a first class manner com-
parable to other first class general aviation service businesses .
At all times during the letting hereunder, the
Lessee shall maintain full, adequate and experienced manage-
ment, all of whom, as well as Lessee' s other employees ,
shall be reputable and of good character.
B. Lessee, his employees, agents or servants shall at
all times comply with the laws and regulations of the United
State of America, the State of California and all applicable
ordinances , codes, and regulations of the City of Palm
Springs, and regulations governing the operation of the Palm
Springs Municipal Airport as they now exist or as they may
hereafter be lawfully amended. Violations thereof by
Lessee, his agents, servants or employees , or revocation of
permits or licenses required in the performance of this
agreement, shall be cause for termination of this lease
agreement at t-he option of the Lessor if not corrected
after ninety (90) days written notice as hereafter provided.
8
C. Lessee shall procure and maintain at his own expense
all licenses or permits necessary to legally conduct the
general aviation service business and associated businesses
in City.
D. Lessee covenants and agrees that it will pay, when
due, all taxes which may be levied against Lessee ' s property
or operations under this lease, including all property,
sales, use, business activities or other tax. Lessee speci-
fically acknowledges that the leasehold interest granted
herein may be subject to possessory interest taxes .
D. Lessee shall provide a complete and proper area for
the adequate sanitary handling and disposal, away from the
airport of all trash, garbage and other refuse caused as a
result of the operation of its business . Lessee shall pro-
vide and use suitable covered metal receptacles for all gar-
bage, trash and other refuse. It is agreed that the piling
of boxes, cartons, barrels, or other similar items in an
unsightly or unsafe manner on or about the premises is pro-
hibited.
F. Lessee shall bear all costs of operating the general
aviation service business and shall pay in addition to ren-
tal all other costs connected with the use of the premises ,
facilities, rights and privileges granted herein. Lessee
agrees, at its own expense, to cause the premises and
improvements, including automobile parking facilities and
landscaping to be maintained in a first class , presentable
condition consistent with good business practices and to
assure that the building and grounds present an attractive
appearance.
G. Lessee will not suffer or permit to be maintained
upon the outside of any improvements located on the premises
any billboards or advertising signs except those which have
19 a, 13
9
• i
19a14
the specific prior approval of City. It is agreed, however,
that Lessee may maintain on the premises, or on the outside
of the general aviation service business erected on the pre-
mises, his name or a trade name in neatly painted, electri-
cal or other illuminated sign or signs which conform to the
Palm Springs Sign Ordinance. The size and type of any sign
or signs must have the prior written approval of City which
approval shall not be unreasonably withheld.
H. Lessee will use his best efforts to restrict the use
of his automobile parking facilities on the premises to the
automobiles of Lessee ' s guests , visitors, employees and
suppliers .
ARTICLE V - RENTAL
A. Lessee agrees to pay to Lessor as rental for the
land, as shown and described on attached Exhibit "A" and
containing approximately 1..9 acres, for the first five ( 5)
years of this lease, FIFTY-THREE THOUSAND TWO HUNDRED
DOLLARS payable monthly in advance in equal installments in
the amount of EIGHT HUNDRED SIXTY-SIX DOLLARS 9 SIXTY-SEVEN CENTS
per month. For the remainder of this lease, in equal
monthly installments in advance, an amount of money to be
determined by revising the first five years ' rents set forth
in this paragraph as the base rent, as follows :
The rental shall be revised, effective the
beginning of the SIXTH (6th) , ELEVENTH ( llth) , SIXTEENTH
( 16th) , AND EVERY FIVE YEARS, thereafter, based on the
change in the cost of living index. The cost of living
10
index to be used is that reflected by the Consumer Price
Index, all items, Los Angeles-Long Beach-Anaheim, ( 1967
equal 100) , published by the Bureau of Labor Statistics of
the U. S. Department of Labor. If, for any reason what-
soever, there is any change in the method of calculation or
formulation of said price index, or if that index shall be
no longer published, then another index generally recognized
as authoritative, shall be substituted by agreement. In any
event, the base used by the new index shall be reconciled to
the 1967 index.
The rentals set out hereinabove shall be payable on
the first day of each and every month throughout the term of
this agreement.
B. During the construction period contemplated herein,
the rental set forth hereinabove shall be reduced fifty per-
cent (50%) . It is specifically understood that the fifty
percent ( 50%) reduction se£ forth herein shall terminate on
the date that beneficial use of the properties occurs, but,
in any event, not later than August 31, 1982 .
ARTICLE VI - INSURANCE
A. Liability Insurance : During the entire term of this
agreement, Lessee agrees to procure and maintain public
liability insurance at its sole expense to protect against
loss from liability imposed by law for damages on account of
bodily injury, including death therefrom, suffered or
alleged to be suffered by any person or persons whomsoever,
resulting directly or indirectly from any act or activities
of the Lessor or Lessee, or any person acting for City, or
Lessee or under its control or direction, and also to pro-
tect against loss from liability imposed by law for damages
19 a 15
11
19 a 16
to any property of any person caused directly or indirectly
by or from acts or activities of City, of Lessee, or any
person acting for City or Lessee, or under its control or
direction. Such public liability and property damage
insurance shall also provide for and protect City against
incurring any legal cost in defending claims for alleged
loss . Such public liability and property damage insurance
shall be maintained in full force and effect throughout the
term of the Agreement and any extension thereof in the
following minimum limits :
Bodily Injury $250, 000 each person
$500, 000 each occurrence
$500, 000 aggregate products
& completed operations
Property Damage $100, 000 each occurrence
$250, 000 aggregate
A combined single limit policy with aggregate
limits in the amount of One Million Dollars ( $1, 000, 000 )
will be considered equivalent to the required minimum
limits. All of such insurance shall be primary insurance
and shall name City as an additional insured.
If the operation under this Agreement results in an
increased or decreased risk in the opinion of the City
Manager, then Lessee agrees that the minimum limits hereina-
bove designated shall be changed accordingly upon request by
the City Manager; provided, however, that the Lessee may
appeal to the City Council within ten (10) days after any
increase is requested and such requirement for increased
coverage shall be subject to determination by the City
Council,
Lessee agrees that provisions of this paragraph as
to maintenance of insurance shall not be construed as
12
limiting in any way the extent to which the Lessee may be
held responsible for the payment of damages to persons or
property resulting from Lessee' s activities, or the activi-
ties of any person or persons for which Lessee is otherwise
responsible.
B. Worker ' s Compensation Insurance: The Lessee shall
procure and maintain, at its sole expense, Worker' s
Compensation Insurance in such amounts as will fully comply
with the laws of the State of Caifornia and which shall
indemnify, insure and provide legal defense for both the
Lessee and the City against any loss , claim, or damage
arising from any injuries or occupational diseases happening
to any worker employed by the Lessee in the course of
carrying out the within agreement.
C. Fire & Extended Coverage Insurance : Lessee also
agrees to procure and maintain, at its sole expense, during
the term of this Agreement, and any extension thereof, a
policy of fire, extended coverage and vandalism insurance on
all permanent property of Lessee ' s of an insurable nature
located upon the leased premises . Said policy shall be in
an amount sufficient to cover at least eighty percent (80%)
of the replacement costs of said property. Lessee agrees to
pay the premium for such insurance and shall require that
any insurance proceeds resulting from a loss under said
policy are payable jointly to City and Lessee and said pro-
ceeds shall constitute a trust fund to be reinvested in
rebuilding or repairing the damaged property or said pro-
ceeds may be disposed of as specified in paragraph D.
following, entitled "Waste, Damage or Destruction" , hereof,-
provided, however, that within the period during which there
is in existence a mortgage upon the leasehold, then and for
that period all policies of fire insurance, extended
19 a 17
13
19 a 18
coverage and vandalism shall be made payable jointly to the
mortgagee or beneficiary, the named insured, City, and shall
be disposed of jointly by the parties for the following
purposes :
1 . As a trust fund to be retained by said mortga-
gee or beneficiary and applied in reduction of the debt
secured by such mortgage with the excess remaining after
full payment- of said debt to be paid over to Lessee and City
to pay for reconstruction, repair, or replacement of the
damaged or destroyed improvements in progress payments as
the work is performed. The balance of said proceeds shall
be paid to Lessee.
Provided further, however, nothing herein shall
prevent Lessee, at its option and with the approval of said
mortgagee or beneficiary, from filing a faithful performance
bond in favor of said mortgagee or beneficiary and City in an
amount equivalent to said insurance proceeds in lieu of
surrendering said insurance proceeds to said mortgagee or
beneficiary and City.
2. In the event that this lease is terminated by
mutual agreement and said improvements are not
reconstructed, repaired, or replaced, the insurance proceeds
shall be jointly retained by City and said mortgagee or
beneficiary to the extent necessary to first discharge the
debt secured by said mortgage or deed of trust and then to
restore the premises in a neat and clean condition. Said
mortgagee or beneficiary shall hold the balance of said pro-
ceeds for City and Lessee as their interests may appear.
Lessee agrees to increase the limits of liability
when in the opinion of the City Manager, the value of the
improvements covered is increased, subject to the availabi-
lity of such insurance at the increased limits ; provided,
14
however, that the Lessee may appeal to the City Council
within ten (10) days after any increase is requested and
such requirement for increased coverage shall be subject to
determination by the City Council.
D. Waste, Damage, or Destruction: Lessee agrees to
give notice to the City of any fire or other damage that may
occur on the leased premises within ten (10) days of such
fire or damage. Lessee agrees not to commit or suffer to be
committed any waste or injury or any public or private
nuisance, to keep the premises clean and clear of refuse and
obstructions, and to dispose of all garbage, trash and rub-
bish in a manner satisfactory to the City. If the leased
premises shall be damaged by any cause which puts the premi-
ses into a condition which is not decent, safe, healthy, and
sanitary, Lessee agrees to make or cause to be made full
repair of said damage and to restore the premises to the
conditions which existed prior to said damage, or Leessee
agrees to clear and remove from the leased premises all
debris resulting from said damage and rebuild the premises
in accordance with plans and specifications previously sub-
mitted to the City and approved in writing in order to
replace in kind and scope the operation which existed prior
to such damage.
Lessee agrees that preliminary steps toward per-
forming repairs, restoration, or replacement of the premises
shall be commenced by Lessee within thirty ( 30) days and the
required repairs, restoration or replacement shall be
completed within a reasonable time thereafter. City may
determine an equitable deduction in the minimum annual rent
requirement for such period that said premises are untenable
by reason of such damage.
E. Automotive Insurance: The Lessee shall procure and
19 a 19
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19 a 20
maintain, at its sole expense, throughout the term of this
agreement and any extension thereof public liability and
property damage insurance coverage for automotive equipment,
if any, with coverage limits of not less than One Million
Dollars ( $1, 000, 000) combined single limit. All such
insurance shall be primary insurance and shall name the City
of Palm Springs as an additional insured. Lessee ' s cer-
tification that it has no automobile equipment shall satisfy
this clause.
F. Evidence of Insurance: A certificate of insurance,
or an appropriate insurance binder, evidencing the above
insurance coverage with a company acceptable to the City' s
Risk Management Officer shall be submitted to the City prior
to execution of this Agreement on behalf of the City.
G. Notice to City, Insurance Coverage Change : The
terms of the insurance policy or policies issued to provide
the above insurance coverage shall provide that said
insurance may not be amended or cancelled by the carrier,
for non-payment of premiums or otherwise, without sixty ( 60)
days prior written notice of amendment or cancellation to
City. In the event the said insurance is cancelled, the
Lessee shall, prior to the cancellation date, submit- to the
City Clerk new evidence of insurance in the amount hereto-
fore established.
ARTICLE VII - BONDS
A. Prior to the execution of this contract, the Lessee
shall provide City, and maintain through the life of this
agreement, a performance bond in the amount of $20,000,
payment of such performance bond shall be due and payable to
reimburse City for any loss sustained in the event of
default or failure of the Lessee to perform as herein set
16
forth. Alternatively, the Lessee may at his option post a
Certificate of Deposit, payable to City in the amount of
$20,000 in a bank or savings and loan association approved
by City. In the event Lessee elects to exercise this
option, any interest accruing to the Certificate of Deposit
shall remain the property of Lessee.
B . The Lessee shall, prior to the commencement of
construction as hereinbefore specified, provide the City
with a Construction Payments Bond in an amount equal to the
estimated cost of construction as approved by Lessor which
shall be posted prior to the commencement of the construc-
tion. Payment of such Construction Payments shall be due
and payable to reimburse City for any loss sustained in the
event of default or failure of the Lessee to perform as
hereinabove set forth. Alternatively, the Lessee may at his
option post a Certificate of Deposit payable to City in the
amount equal to the estimated cost of construction in a bank
or savings and loan association approved by City. In the
event the Lessee elects to exercise this option, any interst
accruing to the Certificate of Deposit shall remain the
property of Lessee.
C. As alternative to furnishing the bonds in accor-
dance with Paragraphs A and B above, Lessee may enter into a
building loan agreement with an institutional lender, which
building loan agreement shall be subject to the approval of
City. Prior to such approval, Lessee shall deposit with the
lending institution the difference between the amount- of the
loan and the projected cost of the improvement.
ARTICLE VIII - TERMINATION BY LESSEE
In addition to all other remedies available to the
Lessee, this agreement shall be subject to cancellation by
19 a 21
17
19a22
the Lessee should any one or more of the following events
occur:
A. The issuance by any court of competent juris-
diction of a permanent injunction in any way preventing
the use of the leased premises for the purpose herein-
before enumerated.
B. The breach by the Lessor of any of the terms,
covenants or conditions of this agreement to be kept,
performed and observed by the Lessor, and the failure of
the Lessor to remedy, or to commence action to remedy
such breach for a period of thirty ( 30) days after writ-
ten notice from the Lessee of the existence of such
breach.
C. The assumption by the United States
Government, or any authorized agency of same, of the
operation, control or use of the airport and its facili-
ties in such a manner as to substantially restrict the
Lessee from conducting its operation if such restric-
tions be continued for a period of six (6) months or
more.
ARTICLE IX - TERMINATION BY LESSOR
A. In addition to all other remedies available to the
Lessor, this agreement shall be subject to cancellation by
Lessor should any one or more of the following exist:
1 . If Lessee shall file voluntary petition of
bankruptcy, or if proceedings in bankruptcy shall be
instituted against it and it is thereafter adjudicated a
bankrupt pursuant to such proceedings; or if a court
shall take jurisdiction of Lessee and its assets pur-
suant to proceedings brought under the provisions of any
Federal reorganization act; or if a receiver for
18
Lessee ' s assets is appointed by a Court of competent-
jurisdiction; or if Lessee shall be divested of its
rights, powers and privileges under this contract by
other operation of law.
2 . If Lessee shall abandon and discontinue the
conduct and operation of said general aviation service
business facility for a period of six (6) months or
more.
3 . If Lessee shall default in or fail to make any
payments at the times .and in the amounts as required of
it under this contract,
4. If Lessee shall fail to perform, keep and
observe all of the covenants and conditions contained in
this contract to be performed, kept and observed by it.
5 . If Lessee shall fail to abide by all appli-
cable laws, ordinances and rules and regulation of. the
United States, State of California or the City of
Palm Springs .
B. Upon the happening of any of the contingencies
recited in subparagraph A. in Article IX above, Lessor shall
give written notice to Lessee to correct or cure such
default, failure to perform, or breach and if, within ninety
(90) days from date of such notice, the default, failure to
perform, or breach complained of shall not have been
corrected in a manner satisfatory to the Lessor, then and in
such event Lessor shall have the right, at once and without
further notice to Lessee, to declare this contract ter-
minated and to enter upon and take full possession of the
leased premises and, provided further, that upon the hap-
pening of any one of the contingencies enumerated in subsec-
tion "A" hereof, this contract shall be deemed to be
breached by Lessee and thereupon without entry or. other
19a23
19
19 a 24
action by Lessor the contract shall terminate subject to
being reinstated only if such involuntary bankruptcy or
insolvency proceedings petitions for reorganization,
trusteeship, receivership, or other legal act divesting
Lessee of its rights under this contract shall be denied,
set aside, vacated or terminated in Lessee ' s favor within
forty-five (45) days from the happening of the contingency.
Upon the happening of said latter events, this contract
shall be reinstated as if there had been no breach occa-
sioned by the happening of said contingencies, provided that
Lessee shall within ten (10) days after the final denial,
vacating or setting aside of such petition of the vacating,
terminating or setting aside of such appointment, pay or
discharge any and all sums of money which may have been due
under this contract in the interim and shall then remain
unpaid and shall likewise fully perform and discharge all
other obligations which may have accrued and become payable
in the interim.
C. Lessor shall give written notice of such ter-
mination to said Lessee if defaults have not been cured
within said ninety ( 90) days and the lease shall terminate
within ten (10) days from the date of said notice. The
acceptance of rentals and fees by Lessor for any period
after a default of any of the terms, covenants, and con-
ditions herein contained to be performed, kept and observed
by Lessee shall not be deemed a waiver of any rights on the
part of the Lessor to cancel this lease for failure by
Lessee to so perform, keep or observe any of the terms of
this agreement to be kept, performed and observed by the
Lessee shall by construed to be or act as a waiver by the
Lessor of any subsequent default on the part of the Lessee.
20
ARTICLE X - SUBLEASING
The privileges contained herein are personal . The
Lessee agrees that it will not sublease the same or any por-
tion thereof or any improvements thereon including, but not
limited to, building or facilities constructed on the premi-
ses without the express consent of the Lessor in writing.
Any purported sublease or violation hereof shall be void.
Lessor will not be unnecessarily arbitrary in granting said
permission, but the Lessor shall be the sole judge as to the
reliability, capability, character and desirability of the
parties involved until construction of all improvements is
completed. Thereafter, Lessor agrees that it will not
unreasonably withhold its consent.
However, the parties hereto understand that the
partnership of Hallen, Kuranz, Hallen, and Killoren intend
to sublease the facilities contemplated herein under an
arrangement with Schneck Aviation, Inc. , a corporation being
formed as a wholly owned subsidiary of Schneck Aviation,
Inc. , an Illinois corporation. Lessor hereby agrees and
consents to such sublease by Kuranz, Hallen and Killoren,
without in any way limiting any other right of Lessor
granted herein. The new Schneck Aviation, Inc. as Subleasee
shall agree to be bound by the terms and conditions of this
Lease, but this will in no way release or modify Lessee ' s
obligations under this Lease.
ARTICLE XI - NON EXCLUSIVENESS
Nothing contained in this agreement shall be
construed, grant or authorize the granting of any exclusive
right within the meaning of Section 308 of Federal Aviation
Act of 1958, as amended.
ARTICLE XII - RIGHT OF INSPECTION
19 a 25
21
19 a 26
The Airport Manager and/or his duly authorized
representatives shall have at any and all times , the full
and unrestricted right to enter the premises for the purpose
of inspecting such premises and of doing any and all things
with reference thereto which the Lessor is obligated or
authorized to do as set forth herein or which may be deemed
necessary for the proper general conduct and operation of
the Palm Springs Municipal Airport, or in the exercise of
the Lessor' s police power.
ARTICLE XIII - HOLDING OVER
In the event Lessee shall hold over and remain in
possession of the premises herein leased after expiration of
this agreement without any written renewal -thereof, such
holding over shall not be deemed to operate as a renewal or
extension of this agreement, but shall only create a tenancy
from month-to-month which may be terminated at any time by
Lessor.
ARTICLE XIV - RULES AND REGULATIONS
The Lessor shall have the right to and shall adopt
and enforce reasonable rules and regulations with respect to
the use of the Airport and facilities thereon which Lessee
agrees to observe and obey..
ARTICLE XV - MAINTENANCE - ALTERATIONS AND REPAIRS
A. Lessee shall at all times ]reep the premises and all
fixtures , equipment and personal property in a clean and
orderly condition and appearance.
B, Lessee shall repair, replace, rebuild and paint all
or any part of the premises which may be damaged or
destroyed by the acts or omissions of Lessee, sublessees or
22
by those of its officers , employees , guests , invitees or of
other persons on or at the premises with consent of Lessee.
C . Lessee shall take such care of the premises and all
parts thereof that at all times during the term of this
agreement and at the expiration or termination hereof, the
premises shall be in as good condition as at the time of
completed construction or installation, except for reaso-
nable wear which does not adversely affect the structural
integrity or condition of the structures or adversely affect
the appearance and efficient and proper utilization of any
part of the premises. The premises and all parts thereof
shall include, but not be limited to, such of the following
as are or may be located or installed in or on the premises
during the term of this agreement- Fencing the exterior and
interior of the building walls, the exterior and interior
and operating mechanism of and attachments to windows and
skylights, screens, roofs, foundations, steel work, columns ;
the exterior and interior and operating mechanism of and
attachments to doors, partitions, floors , ceilings; inside
and outside paving and unpaved areas, landscaping, glass of
every kind, and the utility, mechanical, electrical and
other systems .
D. Lessee shall ma;:e frequent periodic inspections and
as the necessity arises, regardless of the causes therefore,
shall perform all necessary preventive maintenance,
including, but not limited to, painting; make all necessary
repairs and replacements ; and do all necessary rebuilding
with respect to the premises and all parts thereof
( including any total destruction) . All such maintenance,
repairs, and replacement shall be of quality equal to the
original in materials and workmanship. All exterior paint
colors shall be subject to the prior approval of Lessor.
19a27
23
19a28
ARTICLE XVI - GENERAL PROVISIONS
A. Notice to Lessor provided for in this agreement
shall be sufficient if sent by registered mail, postage pre-
paid, addressed:
City Clerk
City of Palm Springs
Palm Springs, California 92262
and notices to the Lessee if sent by registered mail,
postage prepaid, addressed:
President, Schneck Aviation, Inc.
Palm Springs Airport
Palm Springs, California 92262
or other such respective addresses as the parties may
designate to each other from time to time in writing.
B. The Lessee represents that it has carefully
reviewed the terms and conditions of this agreement, and is
familiar with such terms and conditions and agrees faith-
fully to comply with the same to the extent to which said
terms and conditions apply to its activities as authorized
and required by this instrument.
C. The term Lessor a; used in this agreement means the
City of Palm Springs and where agreement speaks of approval
and consent by the Lessor, such approval is understood to be
manifested by an official act of the City of Palm Springs,
unless otherwise expressly stated in this agreement.
D. Whenever under this instrument a time is stated
within which or by which original construction, repairs or
reconstruction of said improvements shall be completed, and
if during such period a general or sympathetic strike or
lockout, war or rebellion or some other event occurs beyond
Lessee ' s power to control, the period of delay so caused
shall be added to the period allowed herein for the comple-
tion of such work.
24
• •
ARTICLE XVII - NON-DISCRIMINATION & FAA REQUIRED CLAUSES
A. The Lessee, in the operations to be conducted pur-
suant to the provisions of this Agreement and otherwise in
the use of the Airport, shall not discriminate against any
person or class of persons by reason of race, color, creed
or national origin as in any manner prohibited by Part 15 of
the Federal Aviation Regulations or any amendments thereto.
B . The Lessee shall furnish its accommodations and/or
services on a fair, equal and not unjustly discriminatory
basis to all users thereof. It shall charge fair, reason-
able and not unjustly discriminatory prices for each unit
or service; provided, however, that the Lessee may be
allowed to make reasonable and non-discriminatory discounts ,
rebates or other similar type of price reductions to volume
purchaser, and in accordance with the other provisions of-
this license with regard to discounts and rebates .
C. Non--compliance with these provisions shall consti-
tute a material breach of this Agreement. In the event of
such non-compliance, the City shall have the right to ter-
minate without liability; or at the election of the City or
the United States, both shall have the right to judicially
enforce the above provisions .
D. The Lessee agrees to insert the anti-discrimination
provisions hereinabove enumerated in any agreement by which
said Lessee grants a right or privilege to any person, firm
or corporation to render accommodations and/or services to
the public on the subject premises .
E. The City also reserves the right, but shall not be
obligated to the Lessee, to maintain and keep in repair the
landing area of the Airport as well as publicly-owned faci-
lities of the airport together with the right to direct and
control the activities of the Lessee in this regard.
19 a 29
25
19 a 30
F. The Lessee hereby agrees to comply with the notifi-
cation and review requirements covered in Part 77 of the
Federal Aviation Regulations in the event any future struc-
ture or building is planned or in the event of any planned
modification or alteration of any present or future building
or structure situated on the leased premises .
G. The City hereby reserves a right of flight for the
passage of aircraft in the airspace above the surface of the
subject premises together with the right to create in said
airspace such noise as is or shall become inherent in the
operation of aircraft operating on the Airport.
H. The Lessee, by accepting this lease expressly
agrees for itself, its successors and assigns that it shall
not erect, nor permit the erection of any structure or
object nor permit the growth of any tree on the land leased
hereunder above the mean sea level elevation of five hundred
( 500) feet . In such an event, the City reserves -the right
to enter upon the land leased hereunder and require Lessee
to remove the offending structure or object at the expense
of Lessee.
I . The Lessee, by accepting this Agreement, expressly
agrees for itself, its successors and assigns that it shall
not use the leased premises in any manner which might inter-
fere with the landing and taking off of aircraft from or on
the Palm Springs Municipal Airport or otherwise create a
hazard. In such an event, the City reserves the right to
enter upon subject premises and cause the abatement of the
interference or hazard at the expense of the Lessee.
J. This agreement, and all the provisions hereof,
shall be subject to whatever right the United States
Government now has or in the future may have or acquire,
affecting the control, operation, regulation or comman-
26
deering of the Airport or the exclusive or non-exclusive use
of the Airport by the United States during the time of war
or national emergency.
ARTICLE XVIII - INVALID PROVISIONS
In the event any covenant, condition, or provision
herein contained is held to be invalid by any court of com-
petent jurisdiction, the invalidity of any such covenant,
condition or provision, herein contained is hereby declared
to be severable and the remainder of this agreement shall
remain in full force and effect provided that the validity
of any such covenant, condition or provision does not
materially prejudice, either the Lessor or Lessee, in its
respective rights and abrogations contained in the valid
covenants, conditions or provisions of this lease.
IN WITNESS WHEREOF, the parties have caused this
agreement to be executed by their duly authorized officers
and their respective seals to be hereto affixed the day and
year first above written.
LESSOR
ATTEST: CITY OF PALM SPRINGS,
CALIFORNIA
D pu y City Clerk City Manager
REVIEWED AND APPROVED LESSEE
oiv n L <u'ranz
John' /Ilen J �,
- -- Th mar A. Killoren
BY RES,
19 a 31
27
19a32
EXHIBIT A
LEASE AGREEMENT BY AND BETWEEN THE CITY OF PALM SPRINGS,
CALIFORNIA, AND JOHN L. KURANZ, JOHN A. HALLEN AND THOMAS
A. KILLOREN
Legal description of property located in the City of Palm
Springs, County of Riverside, State of California:
That portion of Lots 2 and 3 in Section 13, Township 4 South, Range 4
East, San Bernardino Base and Meridian, as shown on Map of Palm Valley
Colony Lands, according to map thereof recorded in Book 14 , Page
652 of Maps , Records of San Diego County, California , being in
the City of Palm Springs, County of Riverside, State of California ,
described' as follows :
Commencing at. the Northwest corner of said Lot 2 in Section 13, said
point being a point on the Northerly line of said Section; thence South,
along the Westerly line of said Lot 2, a distance of 40. 00 feet to a
point on a line that is parallel with and 40.00 feet Southerly of the
Northerly line of said Section 13; thence South 89°48'00" West, along
said parallel line, a distance of 148.80 feet; thence South 0°10' 10"
West, a distance of 572.82 feet; thence South 89°45' 00" East, a distance
of 25.00 feet to a point on a line that is parallel with and 25.00 feet
Easterly of the centerline of North Civic Drive, said point being the
True Point of Beginning, said point also being a point on the Westerly
extension of the Northerly line of Taxiway No. 8 of the Palm Springs
Municipal Airport; thence North 0°10' 10" East along said parallel line,
a distance of 200.00 feet; thence South 89°49' 50" East, a distance of
225.00 feet; thence South 0°10' 10" West, a distance of 367.00 feet;
thence North '89°49'50" West, a distance of 225.00 feet to said parallel
line; thence North 0°10' 10" East, along said parallel line, a distance
of 167.00 feet to the True Point of Beginning, containing 1 .90 acres ,
more or less.
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19a33
EXHIBIT "A"
Page 2 of 2
RESOLUTION NO. 13927
OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS,
CALIFORNIA, APPROVING A LEASE AGREEMENT FOR 1 .90
ACRES OF LAND AT THE PALM SPRINGS MUNICIPAL AIR-
PORT WITH THE CALIFORNIA PARTNERSHIP OF JOHN
KURANZ, JOHN HALLEN AND THOMAS KILLOREN.
WHEREAS the Airport Commission and Staff have recommended that a
lease be granted for 1 .90 acres of land at the Palm Springs Munici-
pal Airport to the California partnership of Kuranz, Hallen and
Killoren for the purpose of constructing a hangar building and
associated offices and shops to permit engaging in an aircraft
engine, engine accessory, and propeller installation, overhaul
and remanufacturing enterprise; and
WHEREAS the Airport Commission and Staff have recommended that such
activity is in the public interest in that such activity will pro-
vide a needed and essential service to aircraft,
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm
Springs that the lease for 1 .90 acres of Airport land to the California
partnership of John Kuranz, John Hallen and Thomas Killoren be and it
is hereby approved.
ADOPTED this 5th day of August 1981 . —
AYES: Councilmembers Field, Ortner, Rose and Mayor Doyle
NOES: None
ABSENT: Councilmember Beirich
ATTEST: CITY OF PALMSPRINGS, CALIFORNIA
BY
Deputy City CI r City Man er
REVIEWED & APPROVED
19 c
00
MINUTE ORDER NO. 3204
APPROVING WAIVER OF PERFORMANCE BOND REQUIRE-
MENTS OF LEASE AGREEMENT NO. 1728 BETWEEN THE
CITY OF PALM SPRINGS AND JOHN L. KURANZ, JOHN
A. HALLEN, AND THOMAS A. KILLOREN.
I HEREBY CERTIFY that this Minute Order approving waiver of performance
bond requirements of Lease Agreement No. 1728 between the City of Palm
Springs and John L. Kuranz, John A. Hallen, and Thomas A. Killoren, a
California corporation subleasing to Schneck Aviation, Inc. , was adopted
by the City Council of the City of Palm Springs , California, in a meeting
thereof held on the 2nd day of March , 1983.
JUDITH SUMICH
City Clerk
SUBLEASE AGREEMENT
THIS AGREEMENT, made and entered into this day
of August, 1981, by and between JOHN L. KURANZ, JOHN A.
HALLEN, and THOMAS A. KILLOREN, a California partnership,
hereinafter sometimes called "Lessor" , and SCHNECK AVIATION,
INC. , a California corporation, hereinafter sometimes called
"Lessee" .
RECITALS
A. The Lessor has leased the property described in
detail in EXHIBIT "A" , attached hereto and made a part
hereof, located in the City of Palm Springs, County of
Riverside, State of California; from the City of Palm
Springs, California, a Municipal corporation, hereinafter
sometimes called "City" through a Lease Agreement made and
entered into the day of August, 1981, a copy of which is
attached hereto andnmade a part hereof as Exhibit " B" ; and
B . Lessor will make certain improvements on the land
leased and/or demised hereunder, which improvements con-
template that the Lessor shall construct upon the leased
premises a hangar and other related improvements and facili-
ties adequate and necessary to operate a general aviation
service business, including, but not limited to, piston
engine and engine accessories , assembly, overhaul, installa-
tion, and related services , and to thereafter operate the
same.
C. Lessee wishes to enter into a lease of said
improved property to operate the general aviation business .
NOW, THEREFORE, in consideration of the rents,
covenants, and agreements contained herein and other
valuable considerations, the Lessee hereby rents, leases ,
and demises to Lessee and Lessee hires, leases and takes
1
from Lessor on the terms and conditions hereinafter set
forth, a tract of land in the City of Palm Springs, County
of Riverside, State of California, consisting of 1. 9 acres ,
more or less , more particularly described in description
attached hereto as EXHIBIT "A" and made a part hereof for
all purposes .
ARTICLE I - TERM
The term of this agreement shall be for fifteen
( 15) years beginning on August' 1, 1981, and ending on
July 31, 1996.
ARTICLE II - IMPROVEMENTS/DESCRIPTION OF CONCESSION
Lessor hereby grants Lessee the right, privilege,
and license to operate a hangar and related facilities and
improvements for a general aviation service business ,
including, but not limited to, repair of piston engine and
engine accessories (such as starters, generators,
propellers ) and related engine services and sales, together
with the right to provide any other services incidental to
such operations, it being specifically understood and agreed
that no right is granted to Lessee to engage in aviation
retail fuel and oil sales .
ARTICLE III - CONSTRUCTION OF IMPROVEMENTS BY LESSEE
A. General Specifications : Lessor shall without cost
to Lessee and within the time periods subscribed herein com-
mence and complete construction of a general aviation ser-
vice business . The complex shall be of an attractive modern
type design compatible with the surrounding Palm Springs
Airport facilities . Lessor shall provide adequate automobile
2
• •
parking spaces as required by the standards of the City.
Submission of Plans and Specification: Lessor has sub-
mitted to the Palm Springs Airport Commission a site use
plan depicting the proposed hangar and related office faci-
lity. In addition, Lessor' s architect has provided the
Airport Commission architectural renderings sufficient to
allow the Airport Commission to determine the character of
the improvements to be constructed on the demised premises .
The Airport Commission has approved the proposed general
aviation service business as described in said plans .
Within 180 days after the execution of this
Agreement, Lessee shall submit to City for approval final
plans and specifications for the structures and improvements
Lessor proposes to construct on the demised premises,
including support facilities, parking facilities,
landscaping plans, together with preliminary estimates of
the construction costs of said facility, as well as the
schedule for its construction hereinafter provided.
Lessor' s plans and specifications for the building shall be
subject to approval by the City. Such approval shall not be
unreasonably withheld.
B . Encumbrance :
This lease, or any right to or interest in, or
any of the improvements on the leased premises , may not be
encumbered with the written approval of Lessor.
ARTICLE IV - OBLIGATIONS OF LESSEE
A. Lessee agrees that it will operate and maintain the
general aviation service business and facilities and impro-
vements connected therewith in a first class manner com-
parable to other first class general aviation service businesses .
At all times during the letting hereunder, the
3
Lessee shall maintain full, adequate and experienced manage-
ment, all of whom, as well as Lessee ' s other employees,
shall be reputable and of good character.
B . Lessee, his employees, agents or servants shall at
all times comply with the laws and regulations of the United
State of America, the State of California and all applicable
ordinances, codes, and regulations of the City of Palm
Springs, and regulations governing the operation of the Palm
Springs Municipal Airport. as they now exist or as they may
hereafter be lawfully amended. Violations thereof by
Lessee, his agents, servants or employees, or revocation of
permits or licenses required in the performance of this
agreement, shall be cause for termination of this lease
agreement at the option of the Lessor if not corrected
after ninety (90) days written notice as hereafter provided.
C. Lessee shall procure and maintain at his own expense
all licenses or permits necessary to legally conduct the
general aviation service business and associated businesses
in City.
D. Lessee covenants and agrees that it will pay, when
due, all taxes which may be levied against Lessee ' s property
or operations under this lease, including all property,
sales, use, business activities or other tax. Lessee speci-
fically acknowledges that the leasehold interest granted
herein may be subject to possessory interest taxes .
E . Lessee shall provide a complete and proper area for
the adequate sanitary handling and disposal, away from the
airport of all trash, garbage and other refuse caused as a
result of the operation of its business . Lessee shall pro-
vide and use suitable covered metal receptacles for all gar-
bage, trash and other refuse. It is agreed that the piling
of boxes, cartons, barrels, or other similar items in an
4
unsightly or unsafe manner on or about the premises is pro-
hibited.
F. Lessee shall bear all costs of operating the general
aviation service business and shall pay in addition to ren-
tal all other costs connected with the use of the premises ,
facilities, rights and privileges granted herein. Lessee
agrees, at its own expense, to cause the premises and
improvements, including automobile parking facilities and
landscaping to be maintained in a first class, presentable
condition consistent with good business practices and to
assure that the building and grounds present an attractive
appearance.
G. Lessee will not suffer or permit to be maintained
upon the outside of any improvements located on the premises
any billboards or advertising signs except those which have
the specific prior approval of City. It is agreed, however,
that Lessee may maintain on the premises , or on the outside
of the general aviation service business erected on the pre-
mises, his name or a trade name in neatly painted, electri-
cal or other illuminated sign or signs which conform to the
Palm Springs Sign Ordinance. The size and type of any sign
or signs must have the prior written approval of City which
approval shall not be unreasonably withheld.
H. Lessee will use his best efforts to restrict the use
of his automobile parking facilities on the premises to the
automobiles of Lessee' s guests, visitors, employees and
suppliers .
ARTICLE V - RENTAL
A. Lessee agrees to pay to Lessor as rental for the
land, as shown and described on attached Exhibit "A" and
containing approximately 1.9 acres, for the first five (5)
5
years of this lease, FIFTY-THREE THOUSAND TWO HUNDRED
DOLLARS payable monthly in advance in equal installments in
the amount of EIGHT HUNDRED SIXTY-SIX DOLLARS 9 SIXTY-SEVEN CENTS
per month.* For the remainder of this lease, in equal
monthly installments in advance, an amount of money to be
determined by revising the first five years ' rents set forth
in this paragraph as the base rent, as follows :
The rental shall be revised, effective the
beginning of the SIXTH (6th) , ELEVENTH ( 11th) , SIXTEENTH
( 16th) , AND EVERY FIVE YEARS, thereafter, based on the
change in the cost of living index,
For the purpose of this computation, it
is agreed that the Consumer Price Index for the month of
May, 1981 ( 267 . 3) is the base or 100% . The cost of living
index to be used is that reflected by the Consumer Price
Index, all items, Los Angeles-Long Beach-Anaheim, ( 1967
equal 100) , published by the Bureau of Labor Statistics of
the U. S. Department of Labor. If, for any reason what-
soever, there is any change in the method of calculation or
formulation of said price index, or if that index shall be
no longer published, then another index generally recognized
as authoritative, shall be substituted by agreement. In any
event, the base used by the new index shall be reconciled to
the 1967 index.
The rentals set out hereinabove shall be payable on
the first day of each and every month throughout the term of
this agreement.
B. During the construction period contemplated herein,
the rental set forth hereinabove shall be reduced by mutual
agreement of Lessor and Lessee from time to time (i) to
reflect the reduced rental amount payable to City by Lessor
6
* To be revised upon occupancy.
and (ii) the availability of the improvements for occupancy
and use in Lessee' s business .
ARTICLE VI - INSURANCE
A. Liability Insurance : During the entire term of this
agreement, Lessee agrees to procure and maintain public
liability insurance at its sole expense to protect against
loss from liability imposed by law for damages on account of
bodily injury, including death therefrom, suffered or
alleged to be suffered by any person or persons whomsoever,
resulting directly or indirectly from any act or activities
of the Lessor or Lessee, or any person acting for City, or
Lessee or under its control or direction, and also to pro-
tect against loss from liability imposed by law for damages
to any property of any person caused directly or indirectly
by or from acts or activities of City, of Lessor, of Lessee,
or any person acting for City, Lessor or Lessee, or under
its control or direction. Such public liability and pro-
perty damage insurance shall also provide for and protect
City and Lessor against incurring any legal cost in
defending claims for alleged loss . Such public liability
and property damage insurance shall be maintained in full
force and effect throughout the term of the Agreement and
any extension thereof in the following minimum limits :
Bodily Injury $250,000 each person
$500,000 each occurrence
$500,000 aggregate products
& completed operations
Property Damage $100,000 each occurrence
$250, 000 aggregate
A combined single limit policy with aggregate
limits in the amount of one Million Dollars ( $1, 000, 000)
7
will be considered equivalent to the required minimum
limits . All of such insurance shall be primary insurance
and shall name City and Lessor as an additional insured.
If the operation under this Agreement results in an
increased or decreased risk in the opinion of the City
Manager, then Lessee agrees that the minimum limits hereina-
bove designated shall be changed accordingly upon request by
the City Manager; provided, however, that the Lessee may
appeal to the City Council within ten (10) days after any
increase is requested and such requirement for increased
coverage shall be subject to determination by the City
Council.
Lessee agrees that provisions of this paragraph as
to maintenance of insurance shall not be construed as
limiting in any way the extent to which the Lessee may be
held responsible for the payment of damages to persons or
property resulting from Lessee' s activities , or the activi-
ties of any person or persons for which Lessee is otherwise
responsible.
B. Worker' s Compensation Insurance : The Lessee shall
procure and maintain, at its sole expense, Worker' s
Compensation Insurance in such amounts as will fully comply
with the laws of the State of Caifornia and which shall
indemnify, insure and provide legal defense for Lessee, the
City, and Lessor against any loss , claim, or damage arising
from any injuries or occupational diseases happening to any
worker employed by the Lessee in the course of
carrying out the within agreement.
C. Fire & Extended Coverage Insurance: Lessee also
agrees to procure and maintain, at its sole expense, during
the term of this Agreement, and any extension thereof, a
policy of fire, extended coverage and vandalism insurance on
8
all permanent property of Lessee and Lessor of an insurable
nature located upon the ]Leased premises . Said policy shall
be in an amount sufficient to cover at least eighty percent
( 80%) of the replacement costs of said property. Lessee
agrees to pay the premium for such insurance and shall
require that any insurance proceeds resulting from a loss
under said policy are payable jointly to City and Lessee and
said proceeds shall constitute a trust fund to be reinvested
in rebuilding or repairing the damaged property or said pro-
ceeds may be disposed of as specified in paragraph D.
following, entitled "Waste, Damage or Destruction" , hereof;
provided, however, that within the period during which there
is in existence a mortgage upon the leasehold, then and for
that period all policies of fire insurance, extended
coverage and vandalism shall be made payable jointly to the
mortgagee or beneficiary, the named insured, City, and
Lessor and shall be disposed of jointly by the parties for
the following purposes :
1 . As a trust fund to be retained by said mortga-
gee or beneficiary and applied in reduction of the debt
secured by such mortgage with the excess remaining after
full payment of said debt to be paid over to Lessee, City
and Lessor to pay for reconstruction, repair, or replacement
of the damaged or destroyed improvements in progress
payments as the work is performed. The balance of said pro-
ceeds shall be paid to Lessee.
Provided further, however, nothing herein shall
prevent Lessee, at its option and with the approval of said
mortgagee or beneficiary, from filing a faithful performance
bond in favor of said mortgagee or beneficiary and City in an
amount equivalent to said insurance proceeds in lieu of
surrendering said insurance proceeds to said mortgagee or
9
beneficiary and City.
2 . In the event that this lease is terminated by
mutual agreement and said improvements are not
reconstructed, repaired, or replaced, the insurance proceeds
shall be jointly retained by City and said mortgagee or
beneficiary to the extent necessary to first discharge the
debt secured by said mortgage or deed of trust and then to
restore the premises in a neat and clean condition. Said
mortgagee or beneficiary shall hold the balance of said pro-
ceeds for City, Lessor and Lessee as their interests may
appear.
Lessee agrees to increase the limits of liability
when in the opinion of the City Manager, the value of the
improvements covered is increased, subject to the availabi-
lity of such insurance at the increased limits; provided,
however, that the Lessee may appeal to the City Council
within ten (10) days after any increase is requested and
such requirement for increased coverage shall be subject to
determination by the City Council.
D . Waste, Damage, or Destruction: Lessee agrees to
give notice to the City of any fire or other damage that may
occur on the leased premises within ten (10) days of such
fire or damage. Lessee agrees not to commit or suffer to be
committed any waste or injury or any public or private
nuisance, to keep the premises clean and clear of refuse and
obstructions , and to dispose of all garbage, trash and rub-
bish in a manner satisfactory to the City. If the leased
premises shall be damaged by any cause which puts the premi-
ses into a condition which is not decent, safe, healthy, and
sanitary, Lessee agrees to make or cause to be made full
repair of said damage and to restore the premises to the
conditions which existed prior to said damage, or Leessee
10
0 0
agrees to clear and remove from the leased premises all
debris resulting from said damage and rebuild the premises
in accordance with plans and specifications previously sub-
mitted to the City and approved in writing in order to
replace in kind and scope the operation which existed prior
to such damage.
Lessee agrees that preliminary steps toward per-
forming repairs, restoration, or replacement of the premises
shall be commenced by Lessee within thirty ( 30) days and the
required repairs, restoration or replacement shall be
completed within a reasonable time thereafter. Lessor may
determine an equitable deduction in the minimum annual rent
requirement for such period that said premises are untenable
by reason of such damage.
E. Automotive Insurance : The Lessee shall procure and
maintain, at its sole expense, throughout the term of this
agreement and any extension thereof public liability and
property damage insurance coverage for automotive equipment,
if any, with coverage limits of not less than One Million
Dollars ( $1, 000, 000) combined single limit. All such
insurance shall be primary insurance and shall name City and
Lessor additional insureds . Lessee' s certification that it
has no automobile equipment shall satisfy this clause.
F. Evidence of Insurance : A certificate of insurance,
or an appropriate insurance binder, evidencing the above
insurance coverage with a company acceptable to the City' s
Risk Management Officer shall be submitted to the City prior
to execution of this Agreement on behalf of the City.
G. Notice to City, Insurance Coverage Change : The
terms of the insurance policy or policies issued to provide
the above insurance coverage shall provide that said
insurance may not be amended or cancelled by the carrier,
11
for non-payment of premiums or otherwise, without sixty ( 60)
days prior written notice of amendment or cancellation to
City. In the event the said insurance is cancelled, the
Lessee shall, prior to the cancellation date, submit to the
City Clerk new evidence of insurance in the amount hereto-
fore established.
ARTICLE VII - BONDS
Upon written request by Lessor at any time, the
Lessee shall provide City, and maintain through the life of
this agreement, a performance bond in the amount of $20,000,
payment of such performance bond shall be due and payable to
reimburse City for any loss sustained in the event of
default or failure of the Lessee to perform as herein set
forth. Alternatively, the Lessee may at his option post a
Certificate of Deposit, payable to City in the amount of
$20, 000 in a bank or savings and loan association approved
by City. In the event Lessee elects to exercise this
option, any interest accruing to the Certificate of Deposit
shall remain the property of Lessee.
ARTICLE VIII - TERMINATION BY LESSEE
In addition to all other remedies available to the
Lessee, this agreement shall be subject to cancellation by
the Lessee should any one or more of the following events
occur:
A. The issuance by any court of competent juris-
diction of a permanent injunction in any way preventing
the use of the leased premises for the purpose herein-
before enumerated.
B. The breach by the Lessor of any of the terms,
covenants or conditions of this agreement to be kept,
12
performed and observed by the Lessor, and the failure of
the Lessor to remedy', or to commence action to remedy
such breach for a period of thirty ( 30) days after writ-
ten notice from the Lessee of the existence of such
breach.
C. The assumption by the United States
Government, or any authorized agency of same, of the
operation, control or use of the airport and its facili-
ties in such a manner as to substantially restrict the
Lessee from conducting its operation if such restric-
tions be continued for a period of six (6) months or
more .
ARTICLE IX - TERMINATION BY LESSOR
A. In addition to all other remedies available to the
Lessor, this agreement shall be subject to cancellation by
Lessor should any one or more of the following exist:
1 . If Lessee shall file voluntary petition of
bankruptcy, or if proceedings in bankruptcy shall be
instituted against it and it is thereafter adjudicated a
bankrupt pursuant to such proceedings; or if a court
shall take jurisdiction of Lessee and its assets pur-
suant to proceedings brought under the provisions of any
Federal reorganization act; or if a receiver for
Lessee ' s assets is appointed by a Court of competent
jurisdiction; or if 'Lessee shall be divested of its
rights, powers and privileges under this contract by
other operation of law.
2 . If Lessee ;shall abandon and discontinue the
conduct and operation of said general aviation service
business facility for a period of six (6) months or
more .
13
3 . If Lessee shall default in or fail to make any
payments at the times and in the amounts as required of
it under this contract.
4. If Lessee shall fail to perform, keep and
observe all of the covenants and conditions contained in
this contract to be performed, kept and observed by it.
5 . I£ Lessee shall fail to abide by all appli-
cable laws, ordinances and rules and regulation of the
United States, State of California or the City of
Palm Springs .
B. Upon the happening of any of the contingencies
recited in subparagraph A. in Article IX above, Lessor shall
give written notice to Lessee to correct or cure such
default, failure to perform, or breach and if, within ninety
( 90) days from date of such notice, the default, failure to
perform, or breach complained of shall not have been
corrected in a manner sati.sfatory to the Lessor, then and in
such event Lessor shall have the right, at once and without
further notice to Lessee, to declare this contract ter-
minated and to enter upon and take full possession of the
leased premises and, provided further, that upon the hap-
pening of any one of the contingencies enumerated in subsec-
tion "A" hereof, this contract shall be deemed to be
breached by Lessee and thereupon without entry or other
action by Lessor the contract shall terminate subject to
being reinstated only if such involuntary bankruptcy or
insolvency proceedings petitions for reorganization,
trusteeship, receivership, or other legal act divesting
Lessee of its rights under this contract shall be denied,
set aside, vacated or terminated in Lessee' s favor within
forty-five (45) days from the happening of the contingency.
Upon the happening of said latter events , this contract
14
shall be reinstated as if there had been no breach occa-
sioned by the happening of said contingencies, provided that
Lessee shall within ten (10) days after the final denial,
vacating or setting aside of such petition of the vacating,
terminating or setting aside of such appointment, pay or
discharge any and all sums of money which may have been due
under this contract in the interim and shall then remain
unpaid and shall likewise fully perform and discharge all
other obligations which may have accrued and become payable
in the interim.
C. Lessor shall give written notice of such ter-
mination to said Lessee if defaults have not been cured
within said ninety ( 90) days and the lease shall terminate
within ten (10) days from the date of said notice. The
acceptance of rentals and fees by Lessor for any period
after a default of any of the terms, covenants, and con-
ditions herein contained to be performed, kept and observed
by Lessee shall not be deemed a waiver of any rights on the
part of the Lessor to cancel this lease for failure by
Lessee to so perform, keep or observe any of the terms of
this agreement to be kept, performed and observed by the
Lessee shall by construed to be or act as a waiver by the
Lessor of any subsequent default on the part of the Lessee.
ARTICLE X - ASSIGNMENT
The privileges contained herein are personal. The
Lessee agrees that it will not assign the same or any por-
tion thereof without the express consent of the Lessor and
City in writing. Any purported assignment or violation
hereof shall be void. Lessor and City will not be unne-
cessarily arbitrary in granting said permission, but the
City shall be the sole judge as to the reliability, capabi-
15
lity, character and desirability of the parties involved
until construction of all improvements is completed.
Thereafter, City agrees that it will not unreasonably with-
hold consent.
ARTICLE XI - NON EXCLUSIVENESS
Nothing contained in this agreement shall be
construed, grant or authorize the granting of any exclusive
right within the meaning of Section 308 of Federal Aviation
Act of 1958, as amended.
ARTICLE XII - RIGHT OF INSPECTION
The Airport Manager and/or his duly authorized
representatives shall have at any and all times, the full
and unrestricted right to enter the premises for the purpose
of inspecting such premises and of doing any and all things
with reference thereto which the City is obligated or
authorized to do as set forth herein or which may be deemed
necessary for the proper general conduct and operation of
the Palm Springs Municipal Airport, or in the exercise of
City' s police power.
ARTICLE XIII - HOLDING OVER
In the event Lessee shall hold over and remain in
possession of the premises herein leased after expiration of
this agreement without any written renewal thereof, such
holding over shall not be deemed to operate as a renewal or
extension of this agreement, but shall only create a tenancy
from month-to-month which may be terminated at any time by
Lessor.
ARTICLE XIV - RULES AND REGULATIONS
16
The City shall have the right to and shall adopt
and enforce reasonable rules and regulations with respect to
the use of the Airport and facilities thereon which Lessee
agrees to observe and obey.
ARTICLE XV - MAINTENANCE - ALTERATIONS AND REPAIRS
A. Lessee shall at all times keep the premises and all
fixtures, equipment and personal property in a clean and
orderly condition and appearance.
B. Lessee shall repair, replace, rebuild and paint all
or any part of the premises which may be damaged or
destroyed by the acts or omissions of Lessee, sublessees or
by those of its officers, employees , guests , invitees or of
other persons on or at the premises with consent of Lessee.
C. Lessee shall take such care of the premises and all
parts thereof that at all. times during the term of this
agreement and at the expiration or termination hereof, the
premises shall be in as good condition as at the time of
completed construction or installation, except for reaso-
nable wear which does not adversely affect the structural
integrity or condition of the structures or adversely affect
the appearance and efficient and proper utilization of any
part of the premises . The premises and all parts thereof
shall include, but not be! limited to, such of the following
as are or may be .located or installed in or on the premises
during the term of this agreement: Fencing the exterior and
interior of the building walls , the exterior and interior
and operating mechanism of and attachments to windows and
skylights , screens, roofs, foundations , steel work, columns;
the exterior and interior and operating mechanism of and
attachments to doors, partitions , floors, ceilings; inside
and outside paving and unpaved areas, landscaping, glass of
17
every kind, and the utility, mechanical, electrical and
other systems .
D. Lessee shall make frequent periodic inspections and
as the necessity arises, regardless of the causes therefore,
shall perform all necessary preventive maintenance,
including, but not limited to, painting; make all necessary
repairs and replacements; and do all necessary rebuilding
with respect to the premises and all parts thereof
(including any total destruction) . All such maintenance,
repairs, and replacement shall be of quality equal to the
original in materials and workmanship. All exterior paint
colors shall be subject to the prior approval of Lessor and
City.
ARTICLE XVI - GENERAL PROVISIONS
A. Notice to City provided for in this agreement
shall be sufficient if sent by registered mail, postage pre-
paid, addressed:
City Clerk
City of Palm Springs
Palm Springs, California 92262
and notices to each of Lessor and the Lessee if sent by
registered mail, postage prepaid, addressed:
% President, Schneck Aviation, Inc.
Palm Springs Airport
Palm Springs , California 92262
or other such respective addresses as the parties may
designate to each other from time to time in writing.
B . The Lessee represents that it has carefully
reviewed the terms and conditions of this agreement, and is
familiar with such terms and conditions and agrees faith-
fully to comply with the same to the extent to which said
terms and conditions apply to its activities as authorized
and required by this instrument.
18
C. The term City as used in this agreement means the
City of Palm Springs and where agreement speaks of approval
and consent by the City, such approval is understook to be
manifested by an official act of the City of Palm Springs,
unless otherwise expressly stated in this agreement.
D. Whenever under this instrument a time is stated
within which or by which original construction, repairs or
reconstruction of said improvements shall be completed, and
if during such period a general or sympathetic strike or
lockout, war or rebellion or some other event occurs beyond
Lessee ' s power to control, the period of delay so caused
shall be added to the period allowed herein for the comple-
tion of such work.
ARTICLE XVII - NON-DISCRIMINATION & FAA REQUIRED CLAUSES
A. The Lessee, in the operations to be conducted pur-
suant to the provisions of this Agreement and otherwise in
the use of the Airport, shall not discriminate against any
person or class of persons by reason of race, color, creed
or national origin as in any manner prohibited by Part 15 of
the Federal Aviation Regulations or any amendments thereto.
B . The Lessee shall furnish its accommodations and/or
services on a fair, equal and not unjustly discriminatory
basis to all users thereof. It shall charge fair, reason-
able and not unjustly discriminatory prices for each unit
or service; provided, however, that the Lessee may be
allowed to make reasonable and non-discriminatory discounts,
rebates or other similar type of price reductions to volume
purchaser, and in accordance with the other provisions of
this license with regard to discounts and rebates .
C. Non-compliance with these provisions shall consti-
tute a material breach of this Agreement. In the event of
19
such non-compliance, the City shall have the right to ter-
minate without liability; or at the election of the City or
the United States, both shall have the right to judicially
enforce the above provisions .
D. The Lessee agrees to insert the anti-discrimination
provisions hereinabove enumerated in any agreement by which
said Lessee grants a right or privilege to any person, firm
or corporation to render accommodations and/or services to
the public on the subject premises .
E. The City also reserves the right, but shall not be
obligated to the Lessee, to maintain and keep in repair the
landing area of the Airport as well as publicly-owned faci-
lities of the airport together with the right to direct and
control the activities of the Lessee in this regard.
F . The Lessee hereby agrees to comply with the notifi-
cation and review requirements covered in Part 77 of the
Federal Aviation Regulations in the event any future struc-
ture or building is planned or in the event of any planned
modification or alteration of any present or future building
or structure situated on the leased premises .
G. The City hereby reserves a right of flight for the
passage of aircraft in the airspace above the surface of the
subject premises together with the right to create in said
airspace such noise as is or shall become inherent in the
operation of aircraft operating on the Airport.
H. The Lessee, by accepting this lease expressly
agrees for itself, its successors and assigns that it shall
not erect, nor permit the erection of any structure or
object nor permit the growth of any tree on the land leased
hereunder above the mean sea level elevation of five hundred
( 500) feet. In such an event, the City reserves the right
to enter upon the land leased hereunder and require Lessee
20
to remove the offending structure or object at the expense
of Lessee.
I . The Lessee, by accepting this Agreement, expressly
agrees for itself, its successors and assigns that it shall
not use the leased premises in any manner which might inter-
fere with the landing and taking off of aircraft from or on
the Palm Springs Municipal_ Airport or otherwise create a
hazard. In such an event, the City reserves the right to
enter upon subject premises and cause the abatement of the
interference or hazard at the expense of the Lessee .
J. This agreement, and all the provisions hereof,
shall be subject to whatever right the United States
Government now has or in the future may have or acquire,
affecting the control, operation, regulation or comman-
deering of the Airport or the exclusive or non-exclusive use
of the Airport by the United States during the time of war
or national emergency.
ARTICLE XVIII - INVALID PROVISIONS
In the event any covenant, condition, or provision
herein contained is held to be invalid by any court of com-
petent jurisdiction, the invalidity of any such covenant,
condition or provision, herein contained is hereby declared
to be severable and the remainder of this agreement shall
remain in full force and effect provided that the validity
of any such covenant, condition or provision does not
materially prejudice, either the Lessor or Lessee, in its
respective rights and abrogations contained in the valid
covenants , conditions or provisions of this lease.
ARTICLE XIX - MISCELLANEOUS
A. Master Lease: In addition to all the terms con-
21
• i
tained herein in this Sublease, it is understood and agreed
that at all times that this Agreement shall be subject and
subordinated to the terms of the Lease Agreement between the
City of Palm Springs and Lessor, attached hereto as Exhibit
"B" , and any subsequent Amendments to it.
B. Mechanic ' s Lien: Lessee shall neither permit or
suffer any mechanic ' s liens or other liens to be filed
against the subleased premises . If such liens should be
filed and not discharged or bonded against within ten (10)
days of filing of the said lien, Lessor may deem said filing
as grounds for immediate termination of this Sublease.
C. Certificates, Permits, and Licenses : Lessee and
its employee pilots shall possess and maintain in good
standing of all permits and licenses required by the City of
Palm Springs, County of Riverside and State of California,
as well as all certificates required by the Federal Aviation
Administration for the uses to be performed by Lessee at the
Subleased premises and elsewhere on the Palm Springs
Municipal Airport.
IN WITNESS WHEREOF, the parties have caused this
agreement to be executed the day and year first above writ-
ten.
LESSOR
� r
/q�eT6HN L- j URANZ / t�
JOHN A. HALLEN`
THOMAS A. KILL REN
LESSEE:
SCHNECK AV PMTON, INC. ,
A Calif a ;corporation
Pres,u/dent
22
EXHIBIT A
SUBLEASE AGREEMENT BY AND BETWEEN JOHN L. KURANZ , JOHN A.
HALLEN AND THOMAS A. KILLOREN AND SCHNECK AVIATION, INC. , A
CALIFORNIA CORPORATION
Legal description of property located in the City of Palm
Springs, County of Riverside, State of California:
That portion of Lots 2 and 3 in Section 13, Township 4 South, Range 4
East, San Bernardino Base and Meridian , as shown on Map of Palm Valley
Colony Lands, according to map thereof recorded in Book 14 , Page
652 of Maps , Records of San Diego County , California , being in
the City of Palm Springs, County of Riverside, State of California ,
described as follows :
Commencing at the Northwest corner of said Lot 2 in Section 13, said
point being a point on the Northerly line of said Section ; thence South,
along the Westerly line of said Lot 2, a distance of 40.00 feet to a
point on a line that is parallel with and 40.00 feet Southerly of the
Northerly line of said Section 13; thence South 89°48'00" West, along
said parallel line,, a d % nce of 148.80 feet; thence South 0°10' 10"
West, a distance of �2. feet; thence South 89°45' 00" East, a distance
of 25.00 feet to a point on a line that is parallel with and 25.00 feet
Easterly of the centerline of North Civic Drive, said point being the
True Point of Beginning, said point-also being a point on the Westerly
extension of the Northerly line of Taxiway No. 8 of the Palm Springs
Municipal Airport; thence North 0°10' 10" East along said parallel line,
a distance of 200. 00 feet; thence South 89°49'50" East, a distance of
225.00 feet; thence South 0°10' 10" West, a distance of 367.00 feet;
thence North 89°'49`50" West, a distance of 225.00 feet to said parallel
line; thence North 0°10' 10" East, along said parallel line, a distance
of 167.00 feet to the True Poirot of Beginning, containing 1 .90 acres,
more or less.
I
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N 89 ° 48 E
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• � ( EAST ) 636'
148.80' 100 44
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WEST, 25.70'
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187.17 459.75'�, 666.42'
N 89°45' W S 89°45' W
8904445W -.. 7/XiWi97' 1�119 8
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N o
J —
z
i i 2R
50
LOT 2
i
VA LEY COLONY
V -
_ N 89° 52' 00' E
279.39 277.11• 280.56
m GRAND RENT A CAR J� CONSOLIDATED LEASING ro HERTZ CORF
125' CORP. Flo CORP. Ro0
1 O
I �?
26013 27711' 260.65'
EXHIBIT "A"
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