HomeMy WebLinkAbout022 - 05/04/1972 - APPROVING AN AGREEMENT CONCERNING A FIXED BASE OPERATOR, A MANAGER AND A LEASE OF A PART OF THE PREM r
ORDINANCE NO 2 2 1972
BEING AN ORDINANCE APPROVING AN AGREEMENT CONCERNING A FIXED BASE
OPERATOR A MANAGER AND A LEASE OF A PART OF THE PREMISES AT THE
FORT COLLINS-LOVELAND AIRPORT TO BE ENTERED INTO WITH THE CITY OF
LOVELAND AND GOODRICH AVIATION COMPANY OF COLORADO INC
WHEREAS heretofore The City of Fort Collins and The City of Loveland
entered into an agreement with Western Aviation Inc which provided among other
things for a twenty (20) year lease between The City of Fort Collins The City of
Loveland and Western Aviation Inc and
WHEREAS Goodrich Aviation Company of Colorado Inc has purchased most of
the assets of Western Aviation Inc and has assumed the rights and obligations
of Western Aviation Inc under said agreement and
WHEREAS Goodrich Aviation Company of Colorado Inc has requested certain
changes and amendments to said agreement and negotiations have previously been con
ducted concerning this request and the agreement which has been negotiated as a
result has been prepared and has been approved by the Fort Collins Loveland Airport
Board The City of Loveland and was previously approved by the City of Fort Collins
by Resolution adopted on March 9 1972 and
WHEREAS the City Council is of the opinion that it is advisable to approve
such agreement and lease by ordinance
NOW THEREFORE BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS
Section 1 That The City of Fort Collins does hereby approve the agreement
between it The City of Loveland and Goodrich Aviation Company of Colorado Inc
which was heretofore authorized and approved by Resolution of the City Council
adopted on March 9 1972 and hereby the City of Fort Collins does hereby lease
unto Goodrich Aviation Company of Colorado Inc a portion of said airport
described in said agreement pursuant to the terms and conditions of said agreement
for a term of twenty (20) years from March 11 1972 until twelve o'clock noon
on March 10 1992 and further grants unto the said Goodrich Aviation Company of
Colorado Inc an option to extend said lease for additional twenty (20) years
upon the expiration of the primary term
The considerations to be paid to The City of Fort Collins and The City of
Loveland as lessors under said lease is an annual rental based upon $ 01 per square
foot for unimproved land and $ 02 per square foot for improved lands which in said
lease is agreed to presently equal the sum of $2 408 66 per year which rental is
payable in monthly installments commencing on the 1st day of April 1972 and on the
first day of each succeeding month thereafter during the term of said lease As
additional consideration for said agreement Goodrich Aviation Company of Colorado
Inc has agreed to pay commencing from and after the fifth year of the term of
said lease an amount equal to one per cent (I-) of the adjusted gross income from
its operation at the Fort Collins Loveland Airport Said adjusted gross income
is defined in said lease to be all of the income from its said operation except
income from the sales of gasoline oil and aircraft and further after deduction
of the taxes bad debts and inner company billings As further consideration for
said lease the said lessee has agreed to pay the Cities an additional rental of
$ 02 per gallon for each gallon of aviation fuel purchased by it for use or sale at
the Fort Collins-Loveland Airport
Said lease agreement also provides that the Cities of Fort Collins and Love-
land engage Goodrich Aviation Company of Colorado Inc to manage the Fort Collins-
Loveland Airport for a period coexistent with the lease term at a fee of Three
Thousand Six Hundred Dollars ($3 600 00) per year payable in equal monthly
installments of Three Hundred Dollars ($300 00) commencing April 1 1972 and
on the first day of each succeeding month thereafter through the term of said
lease The amount of said compensation is renegotiable every ten (10) years
As a part of said lease agreement the Cities of Loveland and Fort Collins
release Western Aviation Inc from the terms of the agreement with that corpora
tion made September 15 1965 as amended February 22 1967 and June 6 1968 and
the said Western Aviation Inc and said Cities further release all existing claims
which one may have against the other
Said lease further provides that Goodrich Aviation Company of Colorado Inc
shall have the first right to provide additional services at the airport such as
hotel motel restaurant convention parking or other commercial uses
Said lease further provides that at the end of the term of said lease or
any extension thereof the Cities of Loveland and Fort Collins agree to purchase
the buildings and other facilities constructed or acquired by Goodrich Aviation
Company of Colorado Inc at a price to be mutually agreed upon or if no agreement
can be obtained then on the basis of an appraisal provided however that said
purchase price shall in no event exceed Ninety Five Thousand Seven Hundred Dollars
($95 700 00) if termination of the lease occurs prior to March 11 1981 or the
sum of One Hundred Five Thousand Dollars ($105 000 00) if termination occurs at
any time thereafter provided further however that to said maximum price shall
be added the amount expended by said lessee in acquiring or erecting additional
approved improvements after the date of the agreement
Section 2 An exact copy of said agreement is on file with the City Clerk
of The City of Fort Collins for examination by interested parties the terms of
said agreement being not inconsistent with the provisions set forth in Section 1
above
Section 3 The execution of said agreement by the Mayor and City Clerk on
behalf of the City of Fort Collins is hereby ratified and approved
Introduced considered favorably on first reading and ordered published this
13th day of April A D 1972 and to be presented for final passage on the 4th day
of May A D 1972
yor
ATTEST
City Clerk
Passed and adopted on final reading this 4th day of May A D 1972
M - r - �t�a
ayor
ATTEST
City Clerk
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