Loading...
HomeMy WebLinkAbout2008-088-09/16/2008-AUTHORIZING THE CITY MANAGER TO EXECUTE A LONG-TERM AIRPORT ACCESS AGREEMENT WITH ROCKY MOUNTAIN AIR RESOLUTION 2008-088 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE CITY MANAGER TO EXECUTE A LONG-TERM AIRPORT ACCESS AGREEMENT WITH ROCKY MOUNTAIN AIRPORT INVESTMENTS, LLC AND RELATED INTERGOVERNMENTAL AGREEMENTS WITH METROPOLITAN DISTRICTS AT THE FORT COLLINS-LOVELAND MUNICIPAL AIRPORT WHEREAS, the cities of Fort Collins and Loveland (jointly, the "Cities")jointly own and operate the Fort Collins-Loveland Municipal Airport(the "Airport"); and WHEREAS, the Cities have previously entered into that certain "Intergovernmental Agreement for the Joint Operation of the Fort Collins-Loveland Municipal Airport"dated May 16, 2000; and WHEREAS,Rocky Mountain Airport Investments,LLC,(the"Developer")is the owner and developer of certain parcels of real property which are immediately adjacent to the Airport (the "Adjacent Property"); and WHEREAS,the Developer desires to develop the Adjacent Property as an airpark,with the platted lots within the Adjacent Property having aircraft access to the Airport; and WHEREAS,upon development of the Adjacent Property,the Developer intends to establish one or more Metropolitan Districts ("Metro Districts")within the Adjacent Property to manage the common areas and enforce covenants, conditions, and restrictions against the real property; and WHEREAS, the Cities believe that allowing the Developer and its successors and assigns access to the Airport pursuant to certain terms and conditions, including the payment to the Cities of a fair and reasonable access fee, will increase public access to the Airport, increase revenues to the Airport,aid in making the Airport more financially self-sufficient, and contribute to improving the economic health of northern Colorado; and WHEREAS,the staff of the Cities and the Developer have negotiated a proposed long-term airport access agreement ("the Access Agreement'), which includes the form of an intergovernmental agreement("the IGA")to be executed with the Metro Districts to be formed by the Developer upon development of the Adjacent Property; and WHEREAS, the proposed Access Agreement and IGA set forth the terms and conditions under which the Developer and its successors and assigns will be allowed access to the Airport and ensure that those terms and conditions are enforced; and WHEREAS, the Access Agreement and IGA contain the following major provisions: a. The Cities will grant the Developer and its assignee Metro Districts an initial 50 year access easement to the Airport from the specified Adjacent Property; b. The term will be increased to a total of 80 years if the Developer enters into an on- Airport fixed base operator("FBO")lease with the Cities and substantially satisfies all of its obligations under that lease to build on the Airport new FBO buildings, facilities, equipment and related infrastructure at a cost to the Developer, currently estimated to be approximately$7 million; C. The Developer and the Metro Districts will be responsible for the construction and maintenance costs of all improvements necessary to make the access connection, including fencing and gates; d. The Developer and the Metro Districts will not be permitted to have commercial aeronautical activities on the Adjacent Property, except for hangars/buildings used for the storage, servicing or maintenance of aircraft used for private corporate or personal use; aircraft research and development; aircraft manufacturing and assembly;flight testing associated with assembled aircraft;painting of manufactured aircraft and parts; and air freight services; e. The Developer and the Metro Districts will pay the Cities a yearly access fee("Fee") equal to 5 mills on the assessed value of the real property within the Adjacent Property,which mill rate may be adjusted yearly at the request of either party in such a way so as to ensure that the Fee amount provides the Airport with a source of revenue which is not less than the revenue that would otherwise be provided if the Adjacent Property would have been developed on the Airport; f. A Federal Aviation Administration ("FAA") concern with grant assurance compliance would be cause for such an adjustment of the Fee; g. In the event of default by either party as determined by a court, the non-defaulting party will be entitled to attorney fees from the defaulting party; and h. The Cities may terminate the Access Agreement and IGA if- (1) specified development and establishment ofthe Metro District does not occur on the Adjacent Property within three years from the date of the Agreement; (2) the Fee is not paid after 60 days notice; or (3) the FAA formally notifies the Cities of a grant assurance violation. -2- WHEREAS,the City Council believes that adoption of the Access Agreement and IGA are in the best interests of the City. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the Access Agreement, attached hereto as Exhibit "A", and the IGA, attached to the Access Agreement as Exhibit"C"to that Agreement,both incorporated herein by this reference, are hereby approved. Section 2. That the City Manager is hereby authorized to execute the Access Agreement and IGA in substantially the forms which are attached hereto,subject to such modifications in form or substance as the City Manager, in consultation with the City Attorney, may deem necessary to effectuate the purposes of this Resolution or to protect the interests of the City. Passed and adopted at a regular meeting of the Co 1 o the City of Fort Collins t is 16th day of September A.D. 2008. i Mayor ATTEST: City Clerk -3- EXHIBIT "A" CITIES OF LOVELAND AND FORT COLLINS AIRPORT ACCESS AGREEMENT THIS FORT COLLINS/LOVELAND AIRPORT ACCESS AGREEMENT (the "Agreement") is made and entered into this day of 2007,between and among Rocky Mountain Airport Investments, LLC, a limited liability company ("Developer") and the Cities of Fort Collins and Loveland, Colorado home rule municipalities, hereinafter jointly the "Cities." RECITALS A. Cities operate a municipal airport within their jurisdiction in Latimer County, Colorado, known as the Fort Collins/Loveland Municipal Airport (the "Airport"), which is legally described in EXHIBIT "A"attached hereto and incorporated herein by reference, and further described in the Intergovernmental Agreement between the Cities of Fort Collins and Loveland, Colorado, dated May 16, 2000. B. Developer is the owner and developer of certain parcels of real property which are immediately adjacent to the Airport (the "Adjacent Property"). Developer desires to develop portions of the Adjacent Property as an airpark which will be comprised of all the platted lots within the Adjacent Property that border and that have, or are capable of having, aircraft access to the Airport from said individual lots ("the Airpark"). The Adjacent Property is more particularly identified in the legal description and map depiction attached hereto and incorporated herein by this reference as EXHIBIT "B." NOTE THAT EXHIBIT B WILL SEPARATELY IDENTIFY THE NORTH PARCEL AND THE SOUTHEAST PARCEL. C. Developer intends to establish and record certain covenants, conditions and restrictions (the "Airpark CC&R's") against the real property that makes up the Airpark. Developer intends to establish one or more Metro Districts, hereinafter referred to collectively as "Districts", which shall, in part, manage the common areas of the Airpark and enforce the Airpark CC&R's. D. Developer desires to have the Cities allow Developer and his successors and assigns, the individual lot owners within the Airpark ("the Lot Owners"), and the Lot Owners' tenants, subtenants, guests and invitees within the Airpark to access the Airport from the Airpark and to access the Airpark from the Airport, subject to the Airpark CC&R's. E. In consideration for the access to the Airport from the Airpark, the Developer desires for the Cities to enter into intergovernmental agreements with the Districts under which the Districts shall, subject to annual adjustment, pay annually to the Cities an amount equal to 5.0 mills based on the assessed value of all taxable real property and improvements (excluding personal property) within the Adjacent Property. The parties hereto acknowledge that this five mill fee (the "Fee") with annual adjustments, is intended to provide the Airport with a 1 source of revenue which is equal to, or greater than, the revenue that would otherwise be provided if the Airpark were developed upon Airport property. In addition, the Fee is intended to ensure that the Lot Owner pays fees and charges to the Cities that are at parity with those paid to the Cities by their on-Airport tenants. F. Cities are willing to enter into such intergovernmental agreements provided that all of the terms and conditions set forth in this Agreement are fully satisfied. NOW, THEREFORE, in consideration of the foregoing Recitals and the mutual promises and agreement set forth herein, the parties agree as follows: AGREEMENT 1. Cities' Grant of Access Easement. Developer presently owns two parcels of land that may be developed at different times and that may comprise the Airpark. Cities and the Developer agree that the Developer and his successors and assigns, the Lot Owners, and the Lot Owners' tenants, subtenants, guests and invitees within the Airpark, shall have an aircraft access casement to the Airport through the designated Point of Ingress/Egress (defined in Paragraph 3.1 below) for the term hereinafter set forth in Paragraph 11. below. Subject to the provisions of this Agreement and to the Airpark CC&R's against the property that makes up the Airpark, the access easement to the Airport granted herein includes permission to use the airside and public area of the Airport for the purposes stated in Paragraph 3.1 below, and includes both permission to enter upon the Airport from the Airpark and to exit from the Airport to the Airpark. The access easement granted herein is contingent upon the prior execution of intergovernmental agreement(s) with the Districts for aircraft access and use of the Airport from the Airpark under the terms and conditions stated in this Agreement, which said intergovernmental agreements shall be substantially in the form attached hereto as EXHIBIT "C"(the "IGA"), provided that all of the following conditions have been fully satisfied prior to execution of the IGA: 1.1. The Airpark is under actual construction. 1.2. The construction and improvement of taxilanes connecting both the Airpark and the Airport to that certain point along the perimeter of the Airport, which Cities and Developer have mutually determined to be the appropriate location for access between the Airport and the Airpark (the "Point of Ingress/Egress"), is completed and deemed acceptable by the Cities. However, the Cities and the Developer acknowledge and agree that the exact location of the Point of Ingress/Egress must first be approved by the FAA. The taxilanes must meet such additional requirements as may be stated under Paragraph 2. of this Agreement. Acceptance by Cities as used herein means approval by the City Managers of the Cities or designees, and is in addition to any development approvals otherwise required by the Cities' Codes. All construction and improvement of the taxilanes must comply with any applicable local, state or federal laws or regulations. 1.3. The District(s) are established in good standing and capable of imposing the 5.0 mill levy on the Adjacent Property together with any required adjustments thereto, and further capable of paying the Fee to the Cities and to pay to the Cities any 2 additional amount required to be paid by the District to the Cities pursuant to Paragraph 3.3 of the IGA. The District(s) shall also be required to have full voter authorization under Article X, Section 20 of the Colorado Constitution("TABOR")to increase the mill levy on the Adjacent Property, without the requirement of any future election, in order to provide any increases in revenue to the Cities as necessary to maintain compliance with the Cities' grant assurances to the Federal Aviation Administration ("FAA") and to enter into the IGA as a fully enforceable multi-fiscal year financial obligation under TABOR. (This provision shall apply separately to the southeast parcel and to the north parcel of the Adjacent Property.) 1.4. Developer hereby grants to Cities an access easement on the Airpark taxilane for the purposes described in Paragraph 3 of this Agreement for the term set forth in Paragraph 11. below. 1.5. The Airpark Declaration of Covenants, Conditions and Restrictions of Record ("CC&R's"), containing provisions which include those listed in Paragraph 10 of this Agreement, are recorded and in effect against the Airpark. 1.6 The construction of the Airport Taxiway is completed and deemed acceptable by the Cities as described in Subparagraph 2.2 of this Agreement. 2. Construction of Taxilanes. 2.1. Airpark Taxilane Construction. Developer shall construct and improve, at Developer's sole expense, the Airpark taxilane. Construction and improvement of the Airpark taxilane shall connect the taxilane, on one end, to the Airport boundary at the Point of Ingress/Egress, and on the other end,to the individual lots of the Airpark. The construction and improvement of the Airpark taxilane shall also include the permanent installation of vehicle barrier fencing and access control gates establishing a perimeter between the public roadway fronting the Adjacent Property and the Aircraft Operating Area("AOA') on the Airpark and Airport property. The barrier and gates may attach to a building or structure on an individual lot in the Airpark where such building or structure provides the barrier to such access to the AOA. Developer shall construct a fence, to the design designated by the Cities, along the common boundary between the Airport and the Airpark (excluding the Point of Ingress/Egress). This fence and gate shall become the Cities' property and shall be maintained by the Cities. However, the District shall reimburse the Cities for their costs to maintain the fence and gate as provided in paragraph 3.6 of the IGA. All security related improvements shall be constructed in conformance with the Security Plan as described in Paragraph 17. below. 2.2. Airport Taxiway Construction. The taxiway Alpha A-I Extension located at the southeast corner of the current ramp has been constructed by the Cities. This construction falls approximately 160 feet short of the Airpark property line. The Developer shall complete construction of this portion of the taxiway, to the design standards designated by the Cities, to the Airpark property line at its sole expense and without reimbursement from the Cities. In addition, any needed upgrades to 3 any portion of this taxiway necessary to accommodate larger aircraft to be located within the Airpark shall be completed by the Developer at its sole expense and without reimbursement from the Cities. This portion of the taxiway constructed by the Developer shall be dedicated to the Cities after construction is completed and the Developer shall provide to the Cities a two (2) year warranty bond or letter of credit for this improvement. In addition, as provided in Paragraph 3.6 of the IGA, the Districts shall be responsible and liable to the Cities for any and all maintenance costs incurred by the Cities for that portion of the taxiway improvements to be built by the Developer under this Paragraph 2.2. Maintenance costs shall mean all costs incurred by the Cities for snow removal, sweeping, repair, lighting, electricity, resurfacing, and all other expenses necessary to maintain that portion of the taxiway improvements built by the Developer under this Paragraph 2.2. 3. Limitations on Access. 3.1. Access between the Airport and the Airpark granted pursuant to this Agreement, shall be solely for aircraft access, airport service vehicles, emergency vehicles, FBO service vehicles, and vehicles performing maintenance/safety inspections of the taxilane/taxilane clearance areas, through the Points of Ingress/Egress designated by Cities for such purpose, the approximate locations of which are depicted in EXHIBIT "D ', which location must first be approved by the FAA as acknowledged and agreed to in Paragraph 1.2 above, and which shall consist of a minimum one hundred twenty foot(120) wide portion of the boundary of the Airport. This Agreement does not grant entry onto the Airport from any other point of access, or by any method or means of travel other than as set forth in this Paragraph 3.1. 3.2. This Agreement shall not be deemed to grant or authorize the storage of aircraft or any personal property, aviation or non-aviation related, upon the Airport. 3.3. Any person accessing or using the Airport pursuant to this Agreement shall comply, at all times, with all applicable requirements of all statutes, acts, ordinances, regulations, codes, and standards of legally constituted authorities with jurisdiction, including, without limitation and, as applicable, the Loveland City Code, the Airport Rules and Regulations, the Airport Minimum Standards, the Cities' Federal grant assurances, and any other document that applies to the Cities' on-Airport tenants. 3.4. Access through the Point of Ingress/Egress shall be subject to those controls and restrictions that, from time to time, may be established by the Cities' Airport Manager or designee when it is determined to be in the best interest of the Cities to do so, or when such controls and restrictions have been requested by the FAA or Transportation Security Administration ("TSA") or any other federal, state, or local agency. Restrictions may include, the denial, from time to time, of ingress or egress by any person or persons where the Airport Manager determines, in good faith, that conditions at the Airport or Airpark are such that ingress or egress poses an immediate threat to the safe and efficient operation of the Airport, creates an aviation safety hazard on either the Airport or the Airpark, or otherwise makes aircraft operations on either the Airport or the Airpark unsafe. Except in the event of an emergency where a cure period is not practical, the Developer shall be allowed a reasonable amount of time to remedy the cause of such conditions or restrictions. 4 3.5. The Cities shall have the ability to close access through the Point of Ingress/Egress from time to time in order to conduct Airport maintenance activities, and for other airport related activities such as air shows. The Cities shall endeavor to provide at least 48 hours notice of such closure. Notwithstanding the foregoing, the Cities shall reasonably accommodate the needs of the Lot Owners, their tenants, subtenants, guests and invitees within the Airpark in the use of the Airport during any such closure. 3.6. The Cities shall have the ability to close access through the Point of Ingress/Egress in the event of nonpayment of all of the Fee by the District, as adjusted, or of any additional amount required to be paid pursuant to Sections 3.3 and 3.5 of the IGA after Cities give sixty (60) days written notice to the District(s) of the nonpayment, if within such sixty-day period the nonpayment has not been cured. 4. Relocation. The Cities and the Developer may mutually agree in writing to relocate the Point of Ingress/Egress or establish any additional Point of Ingress/Egress. The party requesting the relocation will be responsible for expenses associated with the relocation and reasonable damages that may be incurred due to that relocation. In addition, the Cities reserve the right to designate additional points of ingress/egress at locations outside of the Airpark and not available to the Developer or otherwise permitted for use under this Agreement, provided that such additional designations shall not prevent access between the Airport and the Airpark through the Point of Ingress/Egress. The designation of additional points of access at locations outside of the Airpark may occur for any reason, including without limitation, the need to accommodate third parties or others to whom Cities may grant permission to ingress or egress from land adjacent to or contiguous to the Airport other than the Airpark. 5. Commercial Aeronautical Services Within the Adjacent Property and Airpark. 5.1 The Parties agree that the following commercial aeronautical activities that FBOs are authorized to conduct and provide to the general public on the Airport, as provided in Section 2.2 of the Airport Minimum Standards attached hereto as EXHIBIT "F", shall not be permitted within the Adjacent Property and the Airpark except as otherwise expressly authorized in Paragraph 5.2 below: all of the Aircraft Line Services described in Section 2.2.1. of the Minimum Standards; aircraft, airframe and engine repair and maintenance; flight training; aircraft rental; and related other services such as the sale of sectional or world aeronautical charts covering the territory within 300 miles of the Airport, flashlight and batteries, and plotters and computers generally used by pilots for flight planning. Notwithstanding the foregoing, fuel and other FBO goods and services may be delivered, provided and sold by any approved on-Airport FBO to customers located within the Airpark. 5.2 Notwithstanding the provisions of Paragraph 5.1 above, the following activities and uses shall be allowed to be conducted within the Adjacent Property and the Airpark: the construction, installation, maintenance and operation of a hangar or building or buildings to be used for the parking, storage, servicing, repair, maintenance, modification and construction of aircraft that are used for private corporate or personal use; aircraft research and development; aircraft manufacturing of parts and components; assembly of aircraft parts and components; final assembly of aircraft parts and components into completed aircraft; flight testing associated with assembled aircraft; painting of manufactured aircraft and parts; and air freight services such as those provided by United Parcel Service and Federal Express. 5 5.3. The Developer may not enter into a contract with users of the Airpark that prohibits any on-Airport FBO from selling fuel to such users. 5.4 Notwithstanding the provisions of 5.3, all on-Airport FBOs authorized by the Cities or like enterprise entering the Airpark shall provide to Developer or Developer's designee: 5.4.1. A written and executed bold harmless and indemnification agreement reasonably acceptable to Developer or Developer's designee. Such agreement shall provide, but not be limited to, the FBO or like enterprise agreeing to save and hold the Developer and its designees, their officers, employees, agents and representatives free and harmless of and from any loss, liability, expense, attorney fees, costs, suit or claim for damages in connection with any act or omission by the FBO or like enterprise, their officers, employees, agents and representatives. 5.4.2. A written and executed agreement reasonably acceptable to Developer or Developer's designee providing that the FBO or like enterprise shall: (a) not bring or keep anything which will in any way increase the existing rate of or affect any fire or other insurance upon the Airpark or cause cancellation of any insurance policy covering the Airpark or any part thereof; (b) not do or permit anything to be done in or about the Airpark which will in any way obstruct or interfere with the rights of other users of the Airpark or injure or annoy them or use or allow the Airpark to be used for any improper, unlawful or objectionable purposes; (c) not cause, maintain or permit any nuisance in, on, or about the Airpark; (d) not permit employees, customers, or visitors to smoke inside the Airpark; (e) not commit or suffer to be committed any waste in or upon the Airpark; (f) not use the Airpark or permit anything to be done in or about the Airpark which will in any way conflict with any law, statute, ordinance or governmental rule or regulation now in force or which may hereafter be enacted or promulgated; and (g) at its sole cost and expense, promptly comply with all laws, statutes, ordinances and governmental rules, regulations or requirements now in force or which may hereafter be in force, and with the requirements of any 6 board of fire insurance underwriters or other similar bodies now or hereafter constituted, relating to or affecting the condition, use or occupancy of the Airpark. 5.4.3. Agree to provide insurance and the insurance required hereunder shall be in companies rated A+ Superior or better in "Best's Insurance Guide." 5.4.4. Obtain insurance at its cost and expense and keep in force a policy of commercial general liability insurance insuring Developer or its designee(s) against any liability arising out of the use of the Airpark and all areas appurtenant thereto, in amounts determined from time to time by the Developer or its designee(s) for injury or death and property damage including contractual liability coverage. The limit of said insurance shall not, however, limit the liability of the FBO or like enterprise. Such policies shall contain a provision that the Developer or its designee(s), although named as an insured, shall nevertheless be entitled to recover under said policies for any loss occasion to it, its servants, agents, or employees by reason of negligence of the FBO. Such insurance is to be obtained and other requirements may change from time to time in the sole discretion of the Developer or its designee(s) and by way of illustration may include, but shall not be limited to: (a) general liability - $5,000,000.00/ aircraft - $10,000,000.00 per occurrence; (b)mobile equipment coverage (coverage to operate on private property); (c) hangar keepers liability insurance; (d) product liability insurance (i.e., bad fuel pumped into airplanes, etc.); (e) insurance protection for all risk coverage on the Airpark premises to the extent of 100% of the actual placement cost thereof. 5.4.5. Prior to entry to the Airpark and from time to time at the request to the Developer or its designee(s)provide copies of policies of liability insurance required herein or certificates evidencing the existence and amounts of such insurance with loss payable clauses satisfactory to Developer or Developer's designee. No policy shall be cancelable or subject to reduction of coverage except after ten (10) days prior written notice to Developer or Developer's designee. All such policies shall be written as primary policies not contributing with and not in excess of coverage which Developer or Developer's designee may carry. 5.4.6. Provide evidence of Workers' Compensation insurance coverage. 5.4.7. Provide evidence satisfactory to Developer or Developer's designee that anyone entering the Airpark has been properly trained, in Developer or Developer's designee's sole discretion, to properly enter and perform services in the Airpark. 5.4.8. Establish a reasonable process by which the FBO or alike enterprise will periodically check in with the Developer or the Developer's designee to coordinate with and provide reasonable notice to the Developer or the Developer's designee of the FBO's or like enterprise's planned entries into the Airpark to provide services to customers within the Airpark. 5.4.9. Reimburse Developer or Developer's designee(s) for any charges made 7 to the Developer or Developer's designee(s)by the Cities due to any FBO or like enterprise entering the Airpark or providing any services or delivering any fuel, materials or supplies to the Airpark or occupants therein. 5.4.10. In the event of non-compliance with the provisions of this Paragraph 5.4, agree that the FBO or like enterprise, their officers, employees, agents and representatives, may be denied access to the Airpark by the Developer or the Developer's designee. 5.5 The Developer or the Developer's designee shall enforce and apply the requirements of Paragraph 5.4 with respect to all on-Airport FBOs and like enterprises in a reasonable, fair, equal and non-discriminatory manner. However, the Developer or the Developer's designee shall have the authority to waive any of the requirements in Paragraph 5.4 above either on a temporary or permanent basis so long as such waiver does not relate to a requirement of the provisions of the Minimum Standards and provided that any such waived requirement during any such time period is also waived as to all other FBOs and like enterprises serving the Airport and the Airpark. 6. Airpark Conditions. 6.1. No motor vehicle of any kind, except aircraft, airport service vehicles, emergency vehicles, Airport approved FBO service vehicles, airplane tugs, vehicles for towing aircraft, and vehicles performing maintenance/safety inspections of the taxilane/taxilane clearance areas, shall be used on the Airpark taxilane, except in areas specifically designated for motor vehicle use. 6.2. No motor vehicle of any kind or for any reason shall be parked upon, or impede aircraft movement on, the Airpark taxilane or any taxilane safety area except in the course of maintenance/safety inspections or maintenance of the taxilane/taxilane clearance area. 6.3. No person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or otherwise subjected to discrimination in the use of the Airpark taxilane; and the Lot Owners, their tenants, subtenants, guests and invitees, shall use the taxilane subject to the Airpark CC&R's and 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, Park 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 may be amended. 7. Non-liability. 7.1. Cities shall not be liable to the Developer or to any off-airport user for any acts or omissions of any person, whether or not a person authorized under this Agreement, who enters the Airpark through the Point of Ingress/Egress; or for any conditions occurring on the Airpark or the Adjacent Property resulting from the operations or activities of any such person; or for any loss or damage to any personal property or equipment of the Developer, or any property owner or any tenant, subtenant, guest, invitee or other person with legal possession of any lot within the Airpark or 8 the Adjacent Property, caused by or resulting from operations or activities of any person entering the Airpark through the Point of Ingress/Egress. 7.2. The Developer and its successors and assigns shall be liable to the Cities for their respective acts and omissions arising under this Agreement as a result of entering on to the Airport through the Point of Ingress/Egress; or for any conditions occurring on the Airport resulting from their respective operations or activities; or for any loss or damage to any personal property or equipment of the Cities caused by or resulting from their respective operations or activities related to entering the Airport through the Point of Ingress/Egress. 7.3. Nothing within this Agreement shall in any way or manner waive any defenses or limitations on damages provided for, under or pursuant to the Colorado Governmental Immunity Act (Sec. 24-10-101, et seq. C.R.S.), the Constitution, or the Charter, or under the common law or the laws of the State of Colorado, or of the United States, including but not limited to Section 42 U.S.C.1983. 8. Withdrawal of permission for any Person to Access or Use Airport. Pursuant to the Airport Rules and Regulations, the Airport Manager may summarily deny access and use of the Airport to any person that is otherwise authorized to access and use the Airport pursuant to this Agreement. 9. Grant of Easement to Cities. Developer shall grant to Cities for the term of this Agreement a non-exclusive easement to enter upon the Airpark taxilane for the purpose of: (i) assuring compliance by Developer and/or District(s) with the terms of this Agreement and compliance by District(s) with the terms and conditions of the IGA; and (ii) allowing access by emergency and city service vehicles. This grant of easement shall be by separate instrument, in form reasonably approved by the Cities' Attorney(s), and shall be consented to and subrogated by the holder of any lien encumbering the underlying fee, and shall be deemed effective when recorded. 10. CC&R Provisions. In order to assure Cities that the Airpark taxilane will be properly operated and maintained so as to meet all local, state and federal standards applicable to Airport and/or aircraft operations, Developer and/or District(s) shall adopt and record Airpark CC&R's, or amend current Airpark CC&R's, to provide in language and form including the following: 10.1. A prohibition against any motor vehicle, except aircraft, airport service vehicles, emergency vehicles, vehicles designated by any Airport approved fixed base operator as mobile fueling vehicles, and vehicles performing maintenance/safety inspections of the taxilane and taxilane clearance areas, being used on or accessing thru the Airpark taxilane, except in areas specifically designated for motor vehicle use, and against any motor vehicle, for any reason, being parked on or impeding aircraft movement on the Airpark taxilane or any taxilane safety area. 10.2 The creation in accordance with State law of an Owners' Association or other common interest ownership entity that would permit the imposition of fees within all of the Adjacent Property, 10.3. The CC&R's shall be subject to prior review and reasonable approval by the Cities. An approved copy of the CC&R's shall be attached as an exhibit to any IGA 9 between the Cities and the District(s). 10.4. The CC&R's shall provide that any on-Airport approved FBO shall have access to conduct business with all users within the Airpark, provided that such on-Airport FBO agrees to comply with the provisions of paragraph 5.4 of this Agreement. ]]. Term of Agreement. 11.1 This Agreement and the access easement granted herein, shall terminate fifty (50) years after the effective date of the IGA. Provided, however, in the event that the Developer enters into an on-the-Airport fixed base operator("FBO") lease with the Cities and the Developer timely and substantially satisfies all of its obligations under that lease to build on the Airport new FBO buildings, facilities, equipment and related infrastructure at a cost to the Developer currently estimated to be approximately seven million dollars, this Agreement and the access easement granted herein shall instead terminate eighty (80) years after the effective date of the IGA. 11.2 In addition, this Agreement shall be deemed to have terminated and shall no longer be of any force or effect if: 11.2.1 With regard to the southeast parcel of the Adjacent Property, all of the conditions stated in Paragraph 1. have not been fully satisfied and an IGA for this parcel has not been entered into within 36 months of the date of this Agreement; or 11.2.2 With regard to the remainder of the Adjacent Property (hereinafter, "the north parcel"), all of the conditions stated in Paragraph 1 have not been fully satisfied and the IGA for this parcel has not been entered into within 120 months of the date of this Agreement; or 11.2.3 Developer provides written notice of termination to the Cities; or 11.2.4 Subject to the cure provisions of Paragraph 12 of this Agreement, if the Cities do not receive the payments required to be paid to it under the terms of this Agreement and under any IGA, in which event the Cities shall have the right to terminate this Agreement and end all access to the Airport under the terms and conditions of this Agreement. 11.3 In addition, Developer agrees and acknowledges that no final plat shall be approved by the City of Loveland for any portion of land within the southeast parcel or within the north parcel of the Adjacent Property until such time as an IGA has first been entered into by the Cities with the District(s) for either the entire southeast parcel or for the entire north parcel respectively. This restriction on the final plat approval shall not survive beyond the expiration of this Agreement. 11.4 Nothing herein shall prevent the parties from negotiating and agreeing in writing to an extension of the above deadlines, which extension may be approved by the City Managers of the Cities upon their finding that such extension is in the best interests of the Cities, provided that the City Managers shall only be authorized to approve one 10 extension for a period of time not to exceed five (5) years. 12. Remedies. 12.1. In the event of default by Developer, Cities may: (i) cancel this Agreement sixty (60) days after Cities give written notice to Developer of the default, if within such period the default has not been cured; or(ii) where the default has caused a monetary loss to Cities or may expose Cities to liability for money damages, Cities may, if the default has not been cured within the sixty(60) day period, proceed with whatever steps Cities may deem necessary in order to enforce the rights and remedies available to Cities under this Agreement, at law or in equity, including, without limitation, the right of specific performance of this Agreement or to recover its damages from Developer. 12.2 In the event of default by Cities, Developer may: (i) cancel this Agreement sixty (60) days after Developer gives written notice to Cities of the default, if within such period the default has not been cured; or(ii) where the default has caused a monetary loss to Developer or may expose Developer to liability for money damages, Developer may, if the default has not been cured within the sixty (60) day period, proceed with whatever steps Developer may deem necessary in order to enforce the rights and remedies available to Developer under this Agreement, at law or in equity, including, without limitation, the right of specific performance of this Agreement or to recover its damages from Cities. 13. Notices. All notices required or permitted to be given hereunder to any party to this Agreement shall be in writing and may be given in person or by United States mail or by delivery service. Any notice directed to a party shall become effective upon the earliest of the following: (i) actual receipt by that party; (ii) delivery to the designated address of that party, addressed to that party; (iii) delivery by overnight courier; or(iv)if given by certified United States mail, return receipt requested, forty-eight (48) hours after deposit with the United States Postal Service, postage prepaid, addressed to that party at its designated address. The designated address of a party shall be the address of that party shown below or such other address as that party, from time to time, may specify by written notice to the other party: Cities: Fort Collins City Clerk City Hall West 300 LaPorte Avenue Fort Collins, CO 80521 and Loveland City Clerk 500 E. 3`d St., Ste. 230 Loveland, CO 8053 With copies to: Fort Collins/Loveland Municipal Airport Manager 4900 Earhart Road Loveland, CO 80538 11 Developer: Rocky Mountain Airport Investments, LLC Att'n: Martin Lind 1625 Pelican Lakes Point, Suite 201 Windsor, Colorado 80550 With copies to: Ted T. Svitaysky Rocky Mountain Airport Investments, LLC 1625 Pelican Lakes Point, Suite 201 Windsor, Colorado 80550 14. Further Assurances. Promptly upon the request of another party to this Agreement, a party shall do such further acts and shall execute, have acknowledged and deliver to the other party, as appropriate, any and all further documents or instruments reasonably requested in order to carry out the intent and purpose of this Agreement. 15. General Provisions. 15.1. Modification and Waiver. Except as expressly provided herein to the contrary, no supplement, modification or amendment of any term of this Agreement shall be deemed binding or effective unless in writing and signed by the parties hereto. No waiver of any of the provisions of this Agreement shall constitute or be deemed a waiver of any other provision, nor shall any waiver be a continuing waiver. Except as otherwise expressly provided herein, no waiver shall be binding unless executed in writing by the party making the waiver. 15.2. Exhibits. The Exhibits referred to herein and attached hereto (the "Exhibits") are incorporated herein by reference. 15.3. Time is of the Essence. Whenever this Agreement sets forth any time for any act to be performed by any of the parties, such time shall be deemed to be of the essence under this Agreement. 15.4. Severability. Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be valid under applicable law, but if any provision of this Agreement shall be deemed invalid or prohibited thereunder, such provision shall be deemed severed from this Agreement, and this Agreement shall otherwise remain in full force and effect. 15.5. Entire Agreement. This Agreement, including the Exhibits attached hereto, constitutes the entire agreement among the parties. All terms and conditions contained in any other writings previously executed by the parties and all prior and contemporaneous arrangements and understandings between the parties are superseded hereby. No agreements, statements or promises about the subject matter hereof shall be binding or valid unless they are contained herein. 15.6. Counterparts. This Agreement may be executed by the signing in counterparts. 12 The execution of this instrument by each of the parties signing a counterpart hereof shall constitute a valid execution, and this instrument and all of its counterparts so executed shall be deemed for all purposes to be a single instrument. 15.7. Applicable Law. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Colorado and venue for any judicial proceedings to enforce this Agreement shall be in Latimer County District Court, except that venue for any federal cause of action shall be in the United States District Court for the District of Colorado, Denver Colorado. 15.8. Headings and Construction. The descriptive headings of the paragraphs of this Agreement are inserted only for convenience and shall not define, limit, extend, control or affect the meaning or construction of any provision herein. Where the context requires herein, the singular shall be construed as the plural and neuter pronouns shall be construed as masculine and feminine pronouns, and vice versa. This Agreement shall be construed according to its fair meaning and any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement. 15.9. Non-Discrimination. As part of the consideration hereof, Developer does hereby covenant and agree, as a covenant running with the land, that (i) no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or otherwise subjected to discrimination in the use of the Airpark taxilane; (ii) that in the construction of any improvements on, over or under the Airpark taxilane 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 subjected to discrimination; and (iii) that the Airpark taxilane shall be used, operated and maintained 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, 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 may be amended. 15.10. Cities' Right to Develop the Airport. Cities reserve their right to further alter, develop, expand or improve the Airport or, in their sole discretion, to close the Airport. In the event that the Cities permanently close the Airport, this Agreement and any access to the Airport granted pursuant to this Agreement shall immediately terminate, and the Cities shall have no further responsibility or liability to the Developer under this Agreement. 15.11. No Agency. The parties hereto understand and agree that: (i) the requirements imposed on Developer by the terms of this Agreement shall not be construed to make Developer, or any of its officers, employees or agents, an officer, employee or agent of the Cities; and (ii) the requirements imposed on Cities by the terms of this Agreement shall not be construed to make Cities, or any of their officers, employees or agents, an officer, employee or agent of Developer. 13 15.12. No Partnership; Third Parties. It is not intended by this Agreement to, and nothing contained in this Agreement shall, create any partnership,joint venture or other arrangement between Developer and Cities. No term or provision of this Agreement is intended to, or shall, be for the benefit of any person, firm, organization or corporation not a party hereto, and no such other person, firm, organization or corporation shall have any right or cause of action hereunder. 15.13. Declaration of Termination; No Warranty of Non-interference by Entities Outside Cities' Control. The parties hereto understand and recognize that the actions of local governmental units, parties holding land or living adjacent to the Airport, and governmental entities not subject to Cities influence and control, may have, in the future, adverse impacts upon the number and character of flight and other operations at the Airport. In such event, Developer has the option of declaring this Agreement terminated on ninety (90) days written notice to Cities and agrees not to seek recovery of any damages from Cities. 15.14. Warranty of Authority. The persons executing this Agreement for City and for Developer warrant that they are authorized by the respective party whom they represent to execute this Agreement. 15.15. Effective Date. The effective date of this Agreement shall be the date first above written. 15.16. Assignment. Except as intended in paragraph 15.17 below, this Agreement shall not be assigned by Developer without the prior written consent of the Cities, which consent shall not be unreasonably withheld. However, any such assignment shall not relieve the Developer from liability for compliance with this Agreement. 15.17. Binding Effect. It is the intent of the parties that the respective rights and obligations set forth in this Agreement shall constitute covenants and equitable servitudes that run with the land and shall benefit and burden any successors and assigns of the parties. 15.18. Survival of Terms. To the extent necessary to carry out all of the financial and performance obligations that may have accrued as of the date of any termination under Paragraphs I I and 12 of this Agreement, such financial and performance obligations shall continue to be enforceable under this Agreement beyond the termination date of this Agreement. 15.19. Third Party Beneficiaries. No rights created in favor of any party to this Agreement shall be construed as benefiting any other person or entity that is not a party to this Agreement. 15.20. Recording. This Agreement shall be recorded by the Cities with the Larimer County Clerk and Recorder at the Developers expense. 14 15.21. Litigation Expenses and Attorneys' Fees. In the event of the default of any of the provisions hereof by either party, as determined by a court of competent jurisdiction,the defaulting party shall be liable to the non-defaulting party for the non-defaulting party's reasonable costs of litigation incurred by reason of the default, including reasonable attorneys' fees. 16. Avigation Easement. The Developer shall grant the Cities an Avigation Easement as further described on EXHIBIT "E". This easement shall be granted at the time of execution of this Agreement and shall burden all of the Adjacent Property. 17. Airport Security Plan Compliance. Developer agrees that any access granted to the Airport from any portion of the Adjacent Property shall be contingent upon full compliance with the TSA and the FAA rules, regulations or dictates on Airport security, and upon compliance with the Airport Security Plan, as they currently exist, or as they may be amended in the future. Accordingly, notwithstanding any conflicting provision herein, Airport access from the Adjacent Property shall be terminated by the Cities in the event of such noncompliance with TSA and FAA rules, regulations or dictates, or in the event of noncompliance with the Airport Security Plan or Airport Rules and Regulations. Prior to execution of any IGA with a District the Developer shall submit and obtain approval by the Cities, TSA and FAA a detailed Airpark Security Plan describing procedures, equipment and methodology to ensure operational compliance with the Airport's Security Plan and TSA regulations. The Airpark Security Plan shall provide that it will be modified as necessary in the future to maintain full compliance with any new or amended TSA regulations. The cost of compliance with this Paragraph 17, including any required construction, maintenance, repairs and modifications, shall be the joint and severable obligation of the Developer and of the District, as provided in Paragraph 10. of the IGA. Unless specifically required by law and notwithstanding the foregoing, such compliance shall not be more restrictive than required elsewhere in the Airport under similar conditions and circumstances. 18. Compliance with the Airport Minimum Standards. All commercial aeronautical uses within the Adjacent Property shall maintain full compliance with the Airport Minimum Standards as they currently exist, or as they may be amended in the future by public action of the City Councils of each City. Accordingly, Developer agrees that any access granted to the Airport from any portion of the Adjacent Property shall be contingent upon full compliance with the Airport Minimum Standards for the Airport dated , a copy of which is attached hereto and incorporated herein by this reference as EXHIBIT "F," and as they may be amended in the future by public action of the City Councils of each City or as set forth in the Airport Intergovernmental Agreement between the Cities. However, based on the Fee to be paid to the Cities as referenced in paragraph E. above, the Cities agree that under this Agreement that the Developer satisfies the financial surety requirements of Section 1.7.4 of the Minimum Standards. In addition, the Parties agree that if any provision of the Minimum Standards is in conflict with a provision of this Agreement, the provisions of the Minimum Standards shall control over the conflicting provision in this Agreement as applied to commercial aeronautical uses on the Adjacent Property unless this Agreement expressly provides that the provision of this Agreement shall control over the conflicting provision of the Minimum Standards. 19. Compliance with Grant Assurances. In the event that the FAA notifies the Cities verbally or in writing of an alleged violation of its grant assurances to the FAA as a result of this Agreement, or as a result of the action or inaction of any off-airport uses, the Developer shall fully cooperate with the Cities to immediately rectify such violation. In the event that the FAA notifies the Cities formally 15 of such a violation, such as but not limited to notification by a Director's Determination, the Cities may, in their sole discretion, and without being required to appeal any such FAA detennination, terminate this Agreement and any access to the Airport granted pursuant to this Agreement. However, if the FAA grants to the Cities a period of time to cure the violation, the Cities agree, prior to such termination, to allow the Developer that period of time to cure to the satisfaction of the Cities the circumstances causing the grant assurance violation. 20. Preservation of public health, safety and welfare. Nothing herein shall be construed as a waiver of the Cities' police power to protect the public health, safety and welfare. Accordingly, notwithstanding any conflicting provision herein, the Cities may terminate this Agreement and any access to the Airport granted pursuant to this Agreement as needed to protect the public health, safety and welfare or as required by a federal, state or local agency, providing in the case of termination, the Developer is given the rights to cure set forth in Paragraph 19 of this Agreement. Temporary termination of access may occur without an opportunity to cure in emergency situations as determined by the Airport Manager. If the Airport Manager temporarily terminates access due to an emergency situation, the Airport Manager shall provide the Developer with a written explanation of the reasons for the closure and an estimated opening date. IN WITNESS WHEREOF the parties hereto have affixed their signatures the date first above written. DEVELOPER: ROCKY MOUNTAIN AIRPORT INVESTMENTS, LLC By: Martin Lind, Manager CITY OF FORT COLLINS, a Colorado home rule municipality By: Darin Atteberry, Fort Collins City Manager ATTEST: Fort Collins City Clerk APPROVED AS TO FORM: Don F. Williams, Loveland City Manager CITY OF LOVELAND, a Colorado home rule municipality By: Loveland Mayor 16 ATTEST: Loveland City Clerk APPROVED AS TO FORM: Loveland City Attorney 17 EXHIBIT "A" (The "Airport") 18 Exhibit "A" to the Access Agreement Airport Legal Description All of the Barnstorm Second Addition to the City of Loveland, Colorado legally described as follows: All that portion of Section 28 and Section 33, Township 6 North, Range 68 West, and that portion of Section 4, Township 5 North, Range 68 West of the 6th P.M., Larimer County, Colorado, more particularly described as follows: Commencing at the Southwest corner of said Section 28, with all bearings relative to the West line of the Southwest Quarter of said Section 28 considered as bearing North 00°30'00" East, thence South 87°28'49" East, 50.00 to the TRUE POINT OF BEGINNING; thence North 00°30'00" East, 2678.39 feet; thence North 00°29'50" East, 2639.76 feet; thence South 86°40'52" East, 795.07 feet; thence South 25°27'52" East, 107.65 feet; thence South 38°35'52" East, 152.85 feet; thence South 03°10'08" West, 157.83 feet; thence South 86040'52" East, 231.41 feet; thence South 16'10'52" East, 131.00 feet; thence South 11'10'52" East, 150.00 feet; thence 150.48 feet along a tangent curve concave to the East, delta angle 39°44'00", radius 217.00 feet and chord South 31°02'52" East, 147.49 feet; thence along the centerline of the Louden Ditch for the following eighteen courses and distances: South 50°54'52" East, 115.00 feet; thence 68.45 feet along a tangent curve concave to the North, delta angle 43°06'00", radius 91.00 feet and chord South 72°27'52" East, 66.85 feet; thence North 85°59'08" East, 42.00 feet; thence 85.50 feet along a tangent curve concave to the South, delta angle 53°50'00", radius 91.00 feet and chord South 67'05'52" East, 82.39 feet; thence South 40°10'52" East, 167.00 feet; thence South 47'10'52" East, 170.00 feet; thence South 42'10'52" East, 118.00 feet; thence 109.88 feet along a tangent curve concave to the West, delta angle 16°42'00", radius 377.00 and chord South 33°49'52" East, 109.50 feet; thence 80.52 feet along a tangent reverse curve concave to the East, delta angle 29°12'00", radius 158.00 feet and chord South 40°04'52" East, 79.65 feet; thence 81.95 feet along a tangent reverse curve concave to the West, delta angle 36°24'00", radius 129.00 feet and chord South 36°2852" East, 80.58 feet; thence South 18°16'52" East, 91.00 feet; thence 68.99 feet along a tangent curve concave to the East, delta angle 18°08'00", radius 218.00 feet and chord South 27°20'52" East, 68.71 feet; thence South 36°24'52" East, 113.00 feet; thence 65.69 feet along a tangent curve concave to the East, delta angle 17°16'00", radius 218.00 feet and chord South 45°02'52" East, 65.45 feet; thence South 53°40'52" East, 256.00 feet; thence 135.14 feet along a tangent curve concave to the West, delta angle 26°42'00", radius 290.00 feet and chord South 40°19'52" East, 133.92 feet; thence 265.00 feet along a compound tangent curve concave to the West, delta angle 17°46'00", radius 82.17 feet and chord South 18'05'52" East, 81.84 feet; thence 90.36 feet along a tangent reverse curve concave to the East, delta angle 43°08'44", radius 120.00 feet and chord South 30'47'14" East, 88.24 feet to the North-South Quarter line of Section 28; thence South 00°39'13" West, 577.38 feet along the North-South Quarter line of Section 28; thence South 87°08'50" East, 2635.80 feet along the East-West Quarter line to the East One-Quarter comer of Section 28; thence South 00°32'09" West, 2647.71 feet to the Southeast corner of Section 28; thence South 00°00'10" West, 2599.29 feet to the East One-Quarter corner of Section 33; thence South 00°00'41" East, 2568.62 feet along the East line of Section 33 to a point whence the Southeast corner of said Section 33 (and the Southwest corner of Section 34) bears South 00°00'41" East, 30.00 feet; thence North 89°59'19" East, 30.00 feet; thence South 00°00'41" East, 30.48 feet to the South line of Section 34 (and the North line of Section 3); thence along the East right-of-way line of County Road No. 7 South 01°45'45" West, 2456.00 feet to the Northeasterly right-of-way line of Union Pacific Railroad; thence along said right-of-way as follows: North 48°56'19" West, 3413.73 feet; thence 373.88 feet along a nontangent curve concave to the North, delta angle 5°43'13", radius 3744.83 feet and chord North 46°04'43" West, 373.73 feet; thence South 89°06'05" East, 177.04 feet along the South line of Section 33 to a point whence the South One Quarter corner of said Section 33 bears South 89°06'05" East, 76.88 feet; thence 794.66 feet along a nontangent curve concave to the North, delta angle 12°34'41", radius 3619.83 feet and chord North 38°52'49" West 793.07 feet; thence North 32°35'28" West, 3737.67 feet to the East right-of-way of County Road No. 9; thence North 00°08'21" West, 1619.75 feet along said East right-of-way to the TRUE POINT OF BEGINNING. EXHIBIT "B" (Adjacent Property, including the southeast parcel and the north parcel, and the Airpark) 19 EXHIBIT "B" North Parcel: Tract B, Airpark North Addition, City of Loveland, County of Larimer, State of Colorado Southeast Parcel: Lot 2, Block 1, East Loveland Industrial Seventeenth Subdivision, City of Loveland, County of Larimer, State of Colorado Lot 1, Block 1, East Loveland Industrial Seventeenth Subdivision, City of Loveland, County of Larimer, State of Colorado Lot 3, Block 1, East Loveland Industrial Seventeenth Subdivision, City of Loveland, County of Larimer, State of Colorado Lot 1, Block 2, East Loveland Industrial Seventeenth Subdivision,City of Loveland, County of Larimer, State of Colorado A tract of land located in the West%z of Section 34,Township 6 North, Range 68 West of the 6th P.M., in the City of Loveland, County of Larimer,State of Colorado, and being more particularly described as follows: Considering the West line of the Northwest of said Section 34, as bearing North 00922'13" West and with all bearings contained herein relative thereto: Beginning at the West% corner of said Section 34; thence along the West line of the Northwest'[/.of said Section 34, North 00922'13" West, a distance of 768.30 feet to the South line of that parcel described in Book 1768 at Page 133;thence along said South line and subsequently the South line of that parcel described in Book 2116 at Page 819, North 89226'17" East, a distance of 2,436.42 feet to the Westerly right-of-way line of Interstate Highway 25;thence along said Westerly right-of-way line, South 00936'41"West, a distance of 1,380.79 feet to the North line of that parcel described at Reception No. 2003013458; thence along said North line,South 89222'13" West, a distance of 889.16 feet to the Northwest corner of said parcel; thence along the West line of said parcel, South 00937'47" East, a distance of 929.75 feet to the North line of that parcel described in Book 2082 at Page 541; thence along said North line, North 89255'19" West, a distance of 1,527.70 feet to the West line of the Southwest''/< of said Section 34;thence along said West line of the Southwest''/,of said Section 34;thence along said West line, North 00222'35"West, a distance of 1,525.95 feet to the Point of Beginning. Excepting therefrom that portion dedicated to the City of Loveland, a Colorado Municipal Corporation by Deed of Dedication for Right-of-Way recorded August 1, 2003, at Reception no. 20030098330. County of Larimer,State of Colorado EXHIBIT "C" (Intergovernmental Agreement) 20 EXHIBIT "C" AIRPORT ACCESS INTERGOVERNMENTAL AGREEMENT THIS AGREEMENT is entered into this day of , 2007, by and between , a Colorado Metropolitan District, hereinafter called "District", and the Cities of Fort Collins and Loveland, Colorado, home rule municipalities,jointly hereinafter called "Cities". RECITALS: WHEREAS, Cities operate a municipal airport within their jurisdiction in Larimer County, Colorado, known as the Fort Collins/Loveland Municipal Airport (the "Airport"), which is legally described in EXHIBIT "A" attached hereto and incorporated herein by reference, and further described in the Intergovernmental Agreement between the Cities of Fort Collins and Loveland, Colorado dated May 16, 2000. WHEREAS, certain real property which is immediately adjacent to the Airport (the "Adjacent Property") is being developed into an airpark which will be comprised of all the platted lots within the Adjacent Property that border and have, or are capable of having, aircraft access to the Airport from said individual lots ("the Airpark"). The Adjacent Property is more particularly identified in the legal description and map depiction attached hereto and incorporated herein by this reference as EXHIBIT "B". NOTE THAT EXHIBIT B WILL SEPARATELY IDENTIFY THE NORTH PARCEL AND THE SOUTHEAST PARCEL. WHEREAS, Cities and Rocky Mountain Airport Investments, LLC, a limited liability company("Developer") entered into a certain "Cities of Loveland and Fort Collins Airport Access Agreement" dated ("Access Agreement"), under which the Cities agreed to enter into this Intergovernmental Agreement with one or more Metro Districts, to be established by Developer, allowing the Developer and his successors and assigns, the owners of individual lots in the Airpark ("Lot Owners"), and the Lot Owners' tenants, subtenants, guests and invitees within the Airpark, to access the Airport from the Airpark and to access the Airpark from the Airport, subject to the provisions of the Access Agreement and the Airpark Declaration of Covenants, Conditions and Restrictions of Record ("CC&R's°), if all of the following conditions are met: 1. The Airpark is under actual construction. 2. The construction and improvement of taxilanes connecting both the Airpark and the Airport to that certain point along the perimeter of the Airport, which Cities and Developer have determined to be the appropriate location for access between the Airport and the Airpark (the "Point of Ingress/Egress"), is completed and deemed acceptable by the Cities. The taxilanes must meet such additional requirements as may be stated under Paragraph 2 of the Access Agreement. Acceptance by Cities as used herein means approval by the City Managers of the Cities or designees, and is in addition to any development approvals otherwise required by 1 the Cities' Codes. All construction and improvement of the taxilanes must comply with any applicable local, state or federal laws or regulations. 3. The District(s) are established in good standing and capable of imposing a 5.0 mill levy on the Adjacent Property as well as any required adjustments to the mill levy, and providing the same to the City as consideration for the above-referenced right of access between the Airport and Airpark. The District(s) shall also be required to have full voter authorization under Article X, Section 20 of the Colorado Constitution ("TABOR") to increase the mill levy on the adjacent property, without the requirement of any future election, in order to provide any increases in revenue to the Cities as necessary to maintain compliance with the Cities' grant assurances to the Federal Aviation Administration ("FAA") and to enter into this Intergovernmental Agreement as a fully enforceable multi-fiscal year financial obligation under TABOR. 4. Developer grants to Cities a valid easement on the Airpark taxilane for the purposes described in Paragraph 3 of the Access Agreement. 5. The Airpark CC&Rs, containing provisions which include those listed in Paragraph 4 of the Access Agreement, are recorded and in effect against the Airpark. 6. The construction of the Airport Taxiway is completed and deemed acceptable by the Cities as described in Subparagraph 2.2 of the Access Agreement. WHEREAS, in consideration for the access to the Airport from the Airpark, the District shall, subject to annual adjustment, pay a fee annually to the Cities in an amount equal to 5.0 mills based on the assessed value of all real property and improvements within the Adjacent Property(the"Fee"). The parties hereto acknowledge that the Fee is intended to provide the Airport with a source of revenue which is equal to, or greater than, the revenue that would otherwise be provided if the Airpark were developed upon Airport property and to ensure that the Lot Owners pay fees and charges to the Cities that are at parity with those paid to the Cities by their on-Airport tenants. WHEREAS, District is a Metropolitan District organized and in good standing under the laws of the state of Colorado and has authority to enforce the Airpark CC&R's, which are recorded with the Larimer County Recorder at WHEREAS, Cities and District acknowledge that all other conditions stated above have been met. WHEREAS, to further the development of the Adjacent Property, and the Airpark located therein, as a business park, it is in the best interest of Cities to enter into this Intergovernmental Agreement under the terms and conditions set forth herein. AGREEMENT 2 NOW, THEREFORE, in consideration of the foregoing recitals and the mutual promises contained herein, the parties agree as follows: 1. Definitions. 1.1. Except as provided in Subparagraph 1.2 below or as expressly defined elsewhere in this Intergovernmental Agreement, the terms, phrases, words and their derivatives used in this Intergovernmental Agreement shall have the meanings given in the Fort Collins/Loveland Municipal Airport Rules and Regulations as adopted by the Fort Collins and Loveland City Councils and any subsequent amendments thereto (the "Airport Rules and Regulations"). 1.2. The terms "based" and "based location" have the same meaning as indicated in the definitions section of the Airport Rules and Regulations, except that any reference to "airport" or "the Airport" contained in such definitions will also mean the Airpark and aircraft that, by definition, is based at the Airpark shall be deemed to be based at the Fort Collins/Loveland Municipal Airport while this Intergovernmental Agreement is in effect. The terms "Airport Manager", "City Manager" and "City Clerk", as used herein, denote those certain officials of the Cities and any designee of each such official. 1.3. Notwithstanding the foregoing, in the event of a conflict between this Intergovernmental Agreement and the Airport Rules and Regulations, and other documents that apply to on-airport tenants, then, for grant assurance purposes, the Airport Rules and Regulations, and other documents that apply to on-airport tenants shall control and govern. 2. Grant of Access. 2.1. Cities and the District agree that the District, the Developer and his successors and assigns, the Lot Owners, and the Lot Owners' tenants, subtenants, guests and invitees within the Airpark, shall have aircraft access to the Airport from the Airpark through the designated Point of Ingress/Egress (defined in Paragraph 3.1 of the Access Agreement) as provided in and in accordance with the terms and conditions of the Access Agreement, and the Airpark CC&R's against the property that makes up the Airpark. 3. Compensation. 3.1. The Cities shall be compensated jointly by the District's payment of the Fee to the City of Loveland or to such other entity as may be designated by the Cities. Such funds shall be deposited into the Airport Fund and shall be used solely for Airport purposes. The mill levy shall be collected through the Larimer County Treasurer's office, which office shall forward payment to the District. The District shall then make payment of the Fee to the City of Loveland within 10 business days of receipt of any such payment from the Larimer County Treasurer's office. 3.2. The amount of the Fee may be adjusted at the written request of either the Cities or the District after each calendar year of the term of this Intergovernmental Agreement 3 providing the party requesting the adjustment makes the request in writing within 120 days after the end of such calendar year. The Fee amount may also be adjusted at any time by the Cities upon written notice from the FAA stating that such adjustment is necessary to ensure continued grant assurances compliance. The adjusted Fee shall be based upon an evaluation of the amount of developed square footage of land within the Adjacent Property. Specifically, the square footage of land within the Adjacent Property shall be assigned a revenue amount that is equal to the ground lease rate the development would pay to the Cities if the development had been located on Airport property. The Cities' then existing rental rate, including any adjustments for inflation, for unimproved land shall be used for this calculation. If this revenue amount is lower than the revenue that would otherwise be provided to the Cities if located on Airport property, the Fee amount shall be increased accordingly. In this event, the District shall be responsible for providing the additional Fee revenue source to the Cities without regard to approval of an increase in the mill levy assessed on the Adjacent Property. If the revenue amount is higher than the revenue that would otherwise be provided to the Cities if located on Airport property, the Fee amount shall be decreased accordingly. The adjustment is intended to ensure that the Fee amount provides the Airport with a source of revenue which is not less than the revenue that would otherwise be provided if the Airpark were developed upon Airport property and to ensure that the Lot Owners pay fees and charges to the Cities that are at parity with the fees and charges paid to the Cities by their on-Airport tenants. In calculating this comparison revenue, the Cities' "unimproved land" shall be deemed to be those lease properties for which the Cities did not build and provide site infrastructure to serve the leased land, such as utilities, taxiways and streets, but rather such infrastructure was constructed by the Cities' lessee. 3.3. Notwithstanding the provisions of Paragraph 3.2 above, if for any reason in any one year the amount of the Fee to be paid under Paragraph 3.1 above is less than the fees and charges required to be paid to the Cities by the Cities' on-Airport tenants having similar uses to the Lot Owners, the District shall pay to the Cities an amount representing the difference between the amount of the Fee actually paid under Section 3.1 and the greater amount paid by the Cities' said on-Airport tenants. Such amount shall be paid by the District to the Cities within sixty (60) days after the District receives an invoice from the Cities for such additional amount. 3.4. In the event the Cities terminate access in accordance with the Access Agreement for more than two consecutive months the District shall not be liable for the Fee, as adjusted, for the period of closure extending beyond such two month period until the access is reopened, so long as such termination of access is not the fault of the Developer, the District or the Lot Owners. 3.5. The District shall be responsible and liable to the City for any and all maintenance costs incurred by the Cities for the portion of the taxiway improvement to be built by the Developer under Paragraph 2.2 of the Access Agreement including the barrier fence and control gates. Maintenance costs shall mean all costs incurred by the Cities for snow removal, sweeping, repair, lighting, electricity, resurfacing, replacement and all other expenses necessary to maintain that portion of the taxiway improvements and the fence and gates built by the Developers under Paragraph 2.2 of the Access Agreement. The District shall so reimburse the Cities within thirty(30) days of receiving an invoice from the Cities for the costs to be reimbursed. The reimbursement of these costs shall be in addition to the Fee and other amounts to be paid to the Cities pursuant to paragraph 3. of this Agreement. 4 3.6. In the event of the District's nonpayment of any of the amounts due to the Cities under this paragraph 3.,the Cities may cancel the Access Agreement sixty(60)days after the Cities give written notice to the District of such nonpayment, if within such sixty (60) day period the nonpayment has not been cured by the District. 4. Duration of Intergovernmental Agreement. The duration of the rights, privileges and authorizations granted in this Intergovernmental Agreement shall be for the fifty (50) year or the eighty (80) year term of the Access Agreement as provided in paragraph I L I of the Access Agreement, but subject to earlier termination by either party pursuant to the provisions of this Intergovernmental Agreement and the Access Agreement. 5. Non-Exclusive Rights. This Intergovernmental Agreement is non-exclusive and nothing herein shall prevent the Cities from accessing or using the Airport or shall prohibit the Cities from permitting other persons to access or use the Airport. Nothing herein shall be construed to bar the Cities from further alteration, development, expansion or improvement of the Airport, and the Cities expressly reserve the right to do so. 6. No Assignment. The District shall not sell, assign or otherwise transfer, by operation of law or otherwise, or make any attempt to sell, assign or otherwise transfer, by operation of law or otherwise, this Intergovernmental Agreement, or any rights, privileges or authorizations granted under this Intergovernmental Agreement. Any purported sale, assignment or other transfer of this Intergovernmental Agreement, or any rights, privileges or authorizations granted under this Intergovernmental Agreement, shall be deemed void. 7. Airl2ark Taxilane Signag_e. District shall place or post signs on the Airpark property to prohibit use of the Airpark taxilane or access to the Airport from the Airpark by unauthorized persons. Signs shall be placed so as not to interfere with or be an obstruction to taxiing aircraft. Cities may require the District to add, remove or replace signage, where the Airport Manager or designee determines existing signage to be inadequate, improper or a safety hazard. The District shall be responsible for the maintenance of such signs. 8. Airpark Conditions. 8.1. No motor vehicle of any kind, except aircraft, airport service vehicles, emergency vehicles, Airport approved FBO service vehicles, airplane tugs, vehicles for towing aircraft, and vehicles performing maintenance/safety inspections of the taxilane/taxilane clearance areas, shall be used on the Airpark taxilane, except in areas specifically designated for motor vehicle use. 8.2. No motor vehicle of any kind or for any reason shall be parked upon, or impede aircraft movement on, the Airpark taxilane or any taxilane safety area except in the course of maintenance/safety inspections or maintenance of the taxilane/taxilane clearance area. 8.3. No person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or otherwise subjected to discrimination in the use of the Airpark taxilane; and the Lot Owners, their tenants, subtenants, guests and invitees, shall 5 use the taxilane subject to the Airpark CC&R's and 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, Park 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 may be amended. 9. Commercial Aeronautical Services Within the Adjacent Property and Airl2ark. 9.1 The Parties agree that the following commercial aeronautical activities that FBOs are authorized to conduct and provide to the general public on the Airport, as provided in Section 2.2 of the Airport Minimum Standards attached hereto as EXHIBIT "C", shall not be permitted within the Adjacent Property and the Airpark except as otherwise expressly authorized in Paragraph 9.2 below: all of the Aircraft Line Services described in Section 2.2.1. of the Minimum Standards; aircraft, airframe and engine repair and maintenance; flight training; aircraft rental; and related other services such as the sale of sectional or world aeronautical charts covering the territory within 300 miles of the Airport, flashlight and batteries, and plotters and computers generally used by pilots for flight planning. Notwithstanding the foregoing, fuel and other FBO goods and services may be delivered, provided and sold by any approved on-Airport FBO to customers located within the Airpark. 9.2 Notwithstanding the provisions of Paragraph 9.1 above, the following activities and uses shall be allowed to be conducted within the Adjacent Property and the Airpark: the construction, installation, maintenance and operation of a hangar or building or buildings to be used for the parking, storage, servicing, repair, maintenance, modification and construction of aircraft that are used for private corporate or personal use; aircraft research and development; aircraft manufacturing of parts and components; assembly of aircraft parts and components; final assembly of aircraft parts and components into completed aircraft; flight testing associated with assembled aircraft; painting of manufactured aircraft and parts; and air freight services such as those provided by United Parcel Service and Federal Express. 10. Airport Security Plan Compliance. District agrees that any access granted to the Airport from any portion of the Adjacent Property shall be contingent upon full compliance with any Transportation Security Administration ("TSA") and FAA rules, regulations or dictates on Airport security, and upon compliance with the Airport Security Plan, as they currently exist, or as they may be amended in the future. Accordingly, notwithstanding any conflicting provision herein, Airport access from the Adjacent Property shall be terminated by the Cities in the event of such noncompliance with TSA and FAA rules, regulations or dictates, or in the event of noncompliance with the Airport Security Plan or Airport Rules and Regulations. Prior to execution of this Intergovernmental Agreement the District shall submit and obtain approval by the Cities, TSA and FAA a detailed Airpark Security Plan describing procedures, equipment and methodology to ensure operational compliance with the Airport's Security Plan and TSA regulations. The Airpark Security Plan shall provide that it will be modified as necessary in the future to maintain full compliance with any new or amended TSA regulations. The cost of compliance with this Paragraph 10., including any required construction, maintenance, repairs and modifications, shall be the joint and severable obligation of the Developer, as provided in Paragraph 17. of the Access Agreement, and of the District. Unless specifically required by law 6 and notwithstanding the foregoing, such compliance shall not be more restrictive than required elsewhere in the Airport under similar conditions and circumstances. 11. Non-liability. 11.1. Cities shall not be liable to the District or to any off-airport user for any acts or omissions of any person, whether or not a person authorized under this Intergovernmental Agreement, who enters the Airpark through the Point of Ingress/Egress; or for any conditions occurring on the Airpark or the Adjacent Property resulting from the operations or activities of any such person; or for any loss or damage to any personal property or equipment of the District, or any property owner or any tenant, subtenant, guest, invitee or other person with legal possession of any lot within the Airpark or the Adjacent Property, caused by or resulting from operations or activities of any person entering the Airpark through the Point of Ingress/Egress. 11.2. To the extent allowed bylaw the District, its successors and assigns, shall be liable to Cities for their respective acts or omissions arising under this Intergovernmental Agreement as a result of entering on to the Airport through the Point of Ingress/Egress; or for any conditions occurring on the Airport resulting from their respective operations or activities; or for any loss or damage to any personal property or equipment of the Cities caused by or resulting from their operations or activities related to entering the Airport through the Point of Ingress/Egress. 11.3. Nothing within this Intergovernmental Agreement shall in any way or manner waive any defenses or limitations on damages provided for, under or pursuant to the Colorado Governmental Immunity Act (Sec. 24-10-101, et seq. C.R.S.), the Constitution, or the Charter, or under the common law or the laws of the State of Colorado, or of the United States, including but not limited to Section 42 U.S.C.1983. 12. Withdrawal of permission for any Person to Access or Use Airport. Pursuant to the Airport Rules and Regulations, the Airport Manager may summarily deny access and use of the Airport to any person that is otherwise authorized to access and use the Airport pursuant to this Intergovernmental Agreement. In addition, in the event the Airport Manager denies access to any individual or entity, the District agrees to cooperate with the Airport Manager and to take action to prevent such access by that individual or entity. 13. Notices. Unless otherwise expressly stated, all notices required or permitted to be given by either Cities or District shall be in writing and may be given in person or by United States mail or by delivery service. Any notice directed by Cities to District or by District to Cities shall become effective upon the earliest of the following: (i) actual receipt by the Cities or the District; (ii) personal delivery to the designated address of the Cities of the District; (iii) delivery by overnight courier; or(iv) if given by certified United States mail, return receipt requested, forty-eight (48)hours after deposit with the United States Postal Service, postage prepaid, addressed to that Cities or District at their respective designated address. The designated address of Cities or District shall be the address indicated below or such other address as Cities or District, from time to time, may specify by written notice to the other: 7 Cities: Fort Collins City Clerk City Hall West 300 LaPorte Avenue Fort Collins, CO 80521 and Loveland City Clerk 500 E. 3rd St., Ste. 230 Loveland, CO 8053 With copies to: Fort Collins/Loveland Municipal Airport Manager 4900 Earhart Road Loveland, CO 80538 District: With copies to: Martin Lind Rocky Mountain Airport Investments, LLC 1625 Pelican Lakes Point, Suite 201 Windsor, Colorado 80550 Ted T. Svitaysky Rocky Mountain Airport Investments, LLC 1625 Pelican Lakes Point, Suite 201 Windsor, Colorado 80550 14. Miscellaneous Provisions. 14.1. Modification and Waiver. Except as expressly provided herein to the contrary, no supplement, modification or amendment of any term of this Intergovernmental Agreement shall be deemed binding or effective unless in writing and signed by Cities and accepted by District. 14.2. Exhibits. The Exhibits referred to herein and attached hereto (the "Exhibits") are incorporated herein by reference. 8 14.3. Time is of the Essence. Whenever this Agreement sets forth any time for any act to be performed by any of the parties, such time shall be deemed to be of the essence under this Intergovernmental Agreement. 14.4. Severability. Whenever possible, each provision of this Intergovernmental Agreement shall be interpreted in such a manner as to be valid under applicable law, but if any provision of this Agreement shall be deemed invalid or prohibited thereunder, such provision shall be deemed severed from this Intergovernmental Agreement, and this Intergovernmental Agreement shall otherwise remain in full force and effect. 14.5. Entire Terms. All terms and conditions contained in any other writings previously executed by the parties and all prior and contemporaneous arrangements and understandings between the parties are superseded hereby. No agreements, statements or promises about the subject matter hereof shall be binding or valid unless they are contained herein. 14.6. No Waiver. District shall not be excused from complying with any of the terms and conditions of this Intergovernmental Agreement by any failure of Cities upon any one or more occasions to insist upon or to seek compliance with any such terms and conditions. 14.7. Applicable Law. This Intergovernmental Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Colorado and venue for any judicial proceedings to enforce this Agreement shall be in Larimer County District Court, except that venue for any federal cause of action shall be in the United States District Court for the District of Colorado, Denver Colorado. 14.8. Headings and Construction. The descriptive headings of the paragraphs of this Intergovernmental Agreement are inserted only for convenience and shall not define, limit, extend, control or affect the meaning of construction of any provision herein. Where the context requires herein, the singular shall be construed as the plural, and neuter pronouns shall be construed as masculine and feminine pronouns, and vice versa. This Intergovernmental Agreement shall be construed according to its fair meaning and any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Intergovernmental Agreement. 14.9. Force Majeure. With respect to any provision of this Intergovernmental Agreement, the violation or noncompliance with which could result in the imposition of revocation or other sanction upon District, such violation or noncompliance shall be excused where such violation or noncompliance is the result of acts of God, war, civil disturbance, strike or other labor unrest, or similar events, the occurrence of which was not reasonably foreseeable by District and is beyond its reasonable control. 14.10. Subordination to Federal and State Agreements. The provisions of this Intergovernmental Agreement shall be subordinate to any existing or future agreement between Cities and the United States Government or the State of Colorado relative to the operation or maintenance of the Ft. Collins/Loveland Municipal Airport, the execution of which has been or 9 may be required as a condition precedent to the receipt of Federal or State funds for the development of the Airport. Failure of the District to comply with and/or to ensure that the Lot Owners comply with any of the requirements of any existing or future agreement between the Cities and the United States Government or the State of Colorado shall be cause for immediate termination of this Intergovernmental Agreement by the Cities. During a time of war or national emergency, Cities shall have the right to lease the landing area or any part thereof to the United States Government for military or other Federal or State Government purposes, and, if such lease is executed, the provisions of this Intergovernmental Agreement, insofar as they are inconsistent with the provisions of the lease to the government, shall be suspended and reinstated at such time as the lease with the Federal or State Government is terminated. Suspended time shall be considered as part of the term of this Intergovernmental Agreement and will not extend the expiration date of this Intergovernmental Agreement. Any fees pertaining to the non-exclusive grant of easement contained within this document will be waived during the suspended time defined within this paragraph. 14.11. No Agency. The provisions of this Intergovernmental Agreement shall not be deemed to make District, or any of its officers, employees or agents, an officer, employee or agent of the Cities; or to make Cities, or any of their officers, employees or agents an officer, employee or agent of District. 14.12. No Partnership; Third Parties. It is not intended by this Intergovernmental Agreement to, and nothing contained in this Intergovernmental Agreement shall, create any partnership,joint venture or other arrangement between District and Cities. No term or provision of this Intergovernmental Agreement is intended to, or shall, be for the benefit of any person, firm, organization or corporation not a party hereto, and no such other person, firm, organization or corporation shall have any right or cause of action hereunder. 14.13. Effective Date. This Intergovernmental Agreement shall become effective upon its execution by both the Mayor of the Cities of Fort Collins and Loveland and by the authorized agent or officer of the District, and upon the document as fully executed being filed with the Fort Collins/Loveland City Clerk. 14.14. Cities' Right to Develop the Airport. Cities reserve their right to further alter, develop, expand or improve the Airport or, in their sole discretion, to close the Airport. In the event that the Cities close the Airport, this Intergovernmental Agreement and any access to the Airport granted pursuant to this Intergovernmental Agreement shall immediately terminate. 14.15. Survival of Terms. To the extent necessary to carry out all of the financial and performance obligations that may have accrued under this Agreement as of the date of the termination of this Agreement, such financial and performance obligations shall continue to be enforceable under this Agreement beyond that termination date. 14.16. Third Party Beneficiaries. No rights created in favor of any party to this Agreement shall be construed as benefiting any other person or entity that is not a party to this Agreement. 14.17. Litigation Expenses and Attorneys' Fees. In the event of the default of any 10 of the provisions hereof by either party, as determined by a court of competent jurisdiction, the defaulting party shall be liable to the non-defaulting party for the non-defaulting party's reasonable costs of litigation incurred by reason of the default, including reasonable attorneys' fees. 15. Remedies. 15.1. In the event of default by District, Cities may: (i) cancel this Agreement sixty(60) days after Cities give written notice to District of the default, if within such period the default has not been cured; or(ii) where the default has caused a monetary loss to Cities or may expose Cities to liability for money damages, Cities may, if the default has not been cured within the sixty(60) day period, proceed with whatever steps Cities may deem necessary in order to enforce the rights and remedies available to Cities under this Agreement, at law or in equity, including, without limitation, the right of specific performance of this Agreement or to recover its damages from District. 15.2 In the event of default by Cities, District may: (i) cancel this Agreement sixty (60) days after District gives written notice to Cities of the default, if within such period the default has not been cured; or(ii) where the default has caused a monetary loss to District or may expose District to liability for money damages, District may, if the default has not been cured within the sixty (60) day period, proceed with whatever steps District may deem necessary in order to enforce the rights and remedies available to District under this Agreement, at law or in equity, including, without limitation, the right of specific performance of this Agreement or to recover its damages from Cities. 16. Compliance with the Airport Minimum Standards. All commercial aeronautical uses within the Adjacent Property shall maintain full compliance with the Airport Minimum Standards as they currently exist, or as they may be amended in the future by public action of the City Councils of each City. Accordingly, District agrees that any access granted to the Airport from any portion of the Adjacent Property shall be contingent upon full compliance with the Airport Minimum Standards for the Airport dated , a copy of which is attached hereto and incorporated herein by this reference as EXHIBIT "C", and as they may be amended in the future by public action of the City Councils of each City or as set forth in the Airport Intergovernmental Agreement between the Cities. However, based on the mill levy-based fee set forth in this Agreement, the Cities agree that under this Agreement that the District satisfies the financial surety requirements of Section 1.7.4 of the Minimum Standards. In addition, the Parties agree that if any provision of the Minimum Standards is in conflict with a provision of this Agreement, the provisions of the Minimum Standards shall control over the conflicting provision in this Agreement as applied to commercial aeronautical uses on the Adjacent Property unless this Agreement expressly provides that the provision of this Agreement shall control over the conflicting provision of the Minimum Standards. 17. Compliance with Grant Assurances. In the event that the FAA notifies the Cities verbally or in writing of an alleged violation of its grant assurances to the FAA as a result of this 11 Agreement, or as a result of the action or inaction of any off-airport uses, the District shall fully cooperate with the Cities to immediately rectify such violation. In the event that the FAA notifies the Cities formally of such a violation, such as but not limited to notification by a Director's Determination, the Cities may, in their sole discretion and without being required to appeal any such FAA determination, terminate this Agreement and any access to the Airport granted pursuant to this Agreement. However, if the FAA grants to the Cities a period of time to cure the violation, the Cities agree, prior to such termination, to allow the District that period of time to cure the circumstances causing the grant assurance violation. 18. Preservation of public health, safety and welfare. Nothing herein shall be construed as a waiver of the Cities' police power to protect the public health, safety and welfare. Accordingly, notwithstanding any conflicting provision herein, the Cities may terminate this Agreement and any access to the Airport granted pursuant to this Agreement as needed to protect the public health, safety and welfare or as required by a federal, state or local agency, providing in the case of termination, the District is given the rights to cure set forth in Paragraph 17 of this Intergovernmental Agreement. Temporary termination of access may occur without an opportunity to cure in emergency situations as determined by the Airport Manager. If the Airport Manager temporarily terminates access due to an emergency situation, the Airport Manager shall provide the District(s) with a written explanation of the reasons for the closure and an estimated opening date. 19. Successor to Developer. For the purpose of ensuring the satisfaction of the Developer's financial obligations under the Access Agreement to the Cities, the District shall be considered a successor in interest to the Developer and the District shall be jointly and severally liable to the Cities for such obligations if for any reason the Developer cannot meet or satisfy its financial obligations to the Cities under the Access Agreement. CITY OF FORT COLLINS, a Colorado home rule municipality By: Darin Atteber y, Fort Collins City Manager ATTEST: Fort Collins City Clerk APPROVED AS TO FORM: Fort Collins City Attorney 12 CITY OF LOVELAND, a Colorado home rule municipality By: Don F. Williams, Loveland City Manager ATTEST: Loveland City Clerk APPROVED AS TO FORM: , Loveland City Attorney METRO DISTRICT: a Colorado Metro District By: Its: 13 EXHIBIT "A" (The "Airport") SAME AS EXHIBIT A TO THE ACCESS AGREEMENT 14 EXHIBIT `B" (Adjacent Property, including the southeast parcel and the north parcel, and the Airpark) SAME AS EXHIBIT B TO THE ACCESS AGREEMENT 15 EXHIBIT"C" (AIRPORT MINIMUM STANDARDS) SEE EXHIBIT "F"OF THE AIRPORT ACCESS AGREEMENT 16 EXHIBIT "D" (Description and depiction of Point of Ingress/Egress) 21 a _ f _t't_ _ r ` r .� c Poo rfr - fr "—fa NVA r � r o ' r AIRPARK t t r NORTH r ® ® to r t n ® ® t t E f ffir t r f � ►'f!'rf � frr ' � r I a r r^ t yrK� f • t t • r - El \ \ \i / � / - L 000000 AIRPARK OF THE ROCKIES NORTH a WATER AIRPARK OF THE ROOKIES Y VALLEY FT . COLLINS / LOV ELAN D • CO LOVELAND , CO • • www . a ! rparkoftherockies . com LLC AIRPARK OF THE FLOC KI E r r ttas.l+ ,yQmki 3.3 y �rl-L rt 011b L ri ' ' l • S S 5 I r 5 OIL: — T i Im y + 91 • u i 0 i ma 1 5 � k• %\ �• Im 5 1 k I ' 5_ .Im y _ y kr - I I '.'•{ i I I �5�.g��- '' J 1• I I 1 1 .r . t 11 • 71 .x ` '' II yk I : 1 M + I _ r. . — �r• Yla�+il+ll� r # I �rlu.w_Luaa.s k. • . t f - = �i -. me Ym di m k L _ _— : C��ri'Olt�� ' ter,• t \ f # —�_—___—_ly •---- 1 + k �` I � : �• nil•JL ,_ + 1 1• m i pkBYA. �Im 11 WMTHIm :I EXHIBIT "E" (Avigation Easement) 22 AVIGATION EASEMENT NVIIEREAS, _ (hereinafter called the "Grantor"). is the owner in fee of that certain parcel of land situated in the Count} of Lat inter. State of Colorado, more particularly described and depicted o» Exhibit "A" attached hereto.herein called ("Grantor's Property"); WHEREAS, the CI Y OF FOR.F COLLINS, COLORADO. a municipal corporation, and the CITY OF LOVELAND. COLORADO, a municipal corporation, hereinafter jointly called the "Grantees", are owners of the PORT COLLINS- LOVELAND MUNICIPAL .AIRPORT, the legal description of which is set forth on Exhibit "II" attached hereto and incorporated herein by reference (the "Airport"). NOW THEREFORE. in consideration of the sum of Ten Dollars ($10.00) and other good and valuable consideration- the receipt and sufficiency of which are hereby acknowledged. the Grantor. for itself. its heirs, administrators, executors, successors and assigns, does hereby grant. bargain. sell, and convey unto the Grantees, their successors and assigns for the use and benefit of the public, as easement and right-of-way, appurtenant to the Airport for the unobstructed use and passage of all Aircraft (as hereinafter defined) in and through the airspace above Grantor's Property beginning at a height consistent with the Airspace Plan described in the Port Collins-Loveland Municipal Airport Master Plan Update adopted in 2006 (the "Airport Master Plan"). and as father defined by FAA Regulation, Part 77 and as depicted on Exhibit "C" attached hereto and incorporated herein by reference. Said easement and right-of-way shall be appurtenant to the Airport and for the benefit of the Grantees and their successors and assigns, guests, and invitees, including any and all persons. Iirms or corporations operating Aircraft to or from the Airport. Said easement and burden shall include all things which may be alleged to be incident to or resulting from the use and enjoyment of said easement, including, but not limited to the right to cause in all air space above or in the vicinity of the surface of Grantor's Propert} such noise. vibrations, fume, deposits of dust or other particulate matter, fuel particles (which are incidental to the normal operation of said .Aircraft), fear, interference with sleep and communication and any and all other effects that may be alleged to be incident to or caused by the operation of Aircraft over or in the vicinity of Grantor's Property or in landing at or taking off from, or operation at or on the Airport; and Grantor does hereby fullv waive. ren»se, and release any right or cause of action tivhich it may now have or which it may have in the future against Grantees, their successor and assigns. due to such noise vibrations, fines, dust, fuel particles and all other effects that may be caused or may have been caused by the usual and customary operation of Aircraft landing at. or taking off from, or operating at or on the Airport, or by Aircraft landing at. taking off from or operating on the Airport as part of an airshow conducted as a special event authorized by Grantees provided that, in connection with any such airshow. the Grantees have developed and implemented a traffic control plan so as to avoid a I material disruption to uses in place on the Grantors Property, and provided further that no acrobatic flights involved in such an airshow shall operate within the airspace over the Grantor's Property unless the owner thereof or said owner's agent, consents to such acrobatic flights, which consent may be withheld in said owner's sole discretion. For purposes of this Avigation Easement, "acrobatic flight" means an intentional maneuver imohing an abrupt change in an aircraft's attitude, an abnormal attitude, of- abnormal acceleration. not necessary for normal flight. The casement and right-of-way hereby granted includes the continuing right in the Grantees to prevent the erection or growth upon Grantor's Property of any building, structure. tree. or other object within the air space easement granted hereby, and to remove from said air space, or at the sole option of the Grantees, as an alternative, to mark and light as obstructions to air navigation, any such building, structure, tree or other objects on upon, or which in the future may be upon Grantor's Property, together with the right of ingress to, egress from, and passage over Grantors Property for the above purpose. The provisions of said easement shall apply to the following: (1) The current Airport facilities and the present operation of the Airport therein: and (2) Any expansion of, or change to, the Airport facilities or operation of the Airport therein which is consistent and in accordance with the City of Loveland 2005 Comprehensive Plan.. as amended as of the date of this Avigation Easement (the `Comprehensive Plan") and the Airport Master Plan. "Comprehensive Plan' and `:airport Master Plan' as used herein shall specifically not include any amendments thereto adopted by the City after the date of this Avigation Easement. As used herein. and to the extent consistent with the Airport Master Plan, the tern "Aircraft" shall mean any and all types of aircraft, whether now in existence or hereafter manufactured and developed, to include, but not be limited to,jet aircraft, propeller driven aircraft, civil aircraft, military aircraft, commercial aircraft, helicopters and all types of aircraft or vehicles now in existence or hereinafter developed, regardless of existing of- future noise levels, for the purpose of transporting persons or property through the air, by whomsoever owned or operated. TO HAVE AND TO HOLD said easement and right-of-way, and all rights appertaining thereto unto the Grantees, their successors and assigns, until said Airport shall be abandoned or shall cease to be used for public airport purposes, at which time the easement and right-of-way hereby granted shall autornatically rcvert to Grantor, its successors and assigns. AND for the consideration heremabove set forth, the Grantor, for itself, its heirs, administrators, executors, successors, and assigns, does hereby further agree that that the 2 following cox enans shall run with the Grantor's Property for and during the life of said easement and right-of-xvay: (a) All uses shall comply with Table 1, Fort Collins-Loveland Municipal Airport Land Use Schedule set forth in Section 4.6 of the Comprehensive Plan. a copy of which Table is attached hereto as Exhibit "D" and incorporated herein by reference. (b) No building, structure, tree or other object shall extend into restricted air space as defined by FAA Regulation, Part 77, and the Grantee shall comply with all applicable notice requirements of such FAA Regulation. (c) No exterior lighting, reflective material, smoke emissions or electronic emissions shall be permitted within the property which would materially lower pilots' visibility or cause material interference with the Airport's navigation and communication systems. For purposes of this condition. "reflective material' is defined as glazing with a reflectivity of 65% or greater. (d) Grantor shall not hereafter use or authorize the use of Grantor's Property in such a manner as to make it difficult for flyers to distinguish between Airport lights and others. (e) Except to the extent otherwise required by applicable Federal law. all new bodies of water within the property and within a radius of 10,000 feet fiam the end of any runway of the Airport, shall be prohibited provided that: (1) they are larger than one-quarter acre in size; (2) they are designed to hold or retain water permanently or over extended periods of time. and (3) the}, are bird attractants. to the extent permitted by Federal law, this prohibition shall not apply to a relocation or expansion of any existing water body or to detention ponds that have outlet structures designed to prevent the permanent containment olwater. (t) Grantor agrees, that with development of Grantor's Property, or any portion thereof, that all of the Grantor's covenants herein shall. as condition of approval of any subdivision plats by the City of Loveland, be included in development agreenlent(s) with the City of Loveland for such property as conditions of development and further agrees that all subdivision plats shall contain the following language: "All or a portion of the property being subdivided may be located within the Airport Influence Area of the Fort Collins- Lovcland Municipal Airport. Such property may experience noise from low-flying aircraft as a result of 24 hour per day aircraft operations.- 3 (g) Grantor shall include the following disclosure statement in till of its contracts for the sale of any of Grantor's Property and, further, shall include a prov°ision in such sales contracts that the purchaser thereof shall include the following disclosure statement in all of its subsequent contracts I'm sale of such property: "The property subject to this contact may he located within the Airport Influence Area of the Fort Collins-Loveland Municipal Airport. Such property may experience noise from love-flying aircraft as a result of 24 hour per day aireraii operations.- Each such contract subject to this condition shall expressly provide that the disclosure provision survives closing and is enforceable at law or in equity by the City as a third partk benefician° of such contract. Grantor furthernnorc waives any and all damages and claims for damages caused or allegcd to be caused by or incidental to the prohibition of the activities described in subparagraphs(a) through (g)above. It being understood and agreed that all of the aforesaid covenants and agreements shall rum with the Grantor's Property and shall be forever binding upon the heirs, administrators. executors, successors and assigns of the Grantor. IN WITNESS WHEREOF. the Grantor has hereunto set its hand and seal this day of 2008. GRANTOR: By: SPATE: OF COLORADO ) )ss COUNTY OF LARINILR ) The foregoing Avigation Easement was acknowledged before me this day of 2008 by WITNESS my hand and official seal. Commission Expiration Notary Public 4 Exhibit "A" Grantor's Property Legal Description EXHIBIT A TO AVIGATION EASEMENT North Parcel: Tract B,Airpark North Addition,City of Loveland,County of Larimer,State of Colorado Southeast Parcel: Lot 2, Block 1, East Loveland Industrial Seventeenth Subdivision,City of Loveland, County of Larimer, State of Colorado Lot 1, Block 1, East Loveland Industrial Seventeenth Subdivision,City of Loveland, County of Larimer, State of Colorado Lot 3, Block 1, East Loveland Industrial Seventeenth Subdivision, City of Loveland, County of Larimer, State of Colorado Lot 1, Block 2, East Loveland Industrial Seventeenth Subdivision, City of Loveland, County of Larimer, State of Colorado A tract of land located in the West Y2 of Section 34,Township 6 North, Range 68 West of the 6th P.M., in the City of Loveland,County of Larimer,State of Colorado,and being more particularly described as follows: Considering the West line of the Northwest''/+of said Section 34, as bearing North 00922'13"West and with all bearings contained herein relative thereto: Beginning at the West corner of said Section 34;thence along the West line of the Northwest''/,of said Section 34, North 00922'13" West,a distance of 768.30 feet to the South line of that parcel described in Book 1768 at Page 133;thence along said South line and subsequently the South line of that parcel described in Book 2116 at Page 819, North 89926'17" East, a distance of 2,436.42 feet to the Westerly right-of-way line of Interstate Highway 25;thence along said Westerly right-of-way line,South 00936'41"West, a distance of 1,380.79 feet to the North line of that parcel described at Reception No. 2003013458;thence along said North line,South 89922'13"West, a distance of 889.16 feet to the Northwest corner of said parcel;thence along the West line of said parcel,South 00937'47" East,a distance of 929.75 feet to the North line of that parcel described in Book 2082 at Page 541;thence along said North line, North 89955'19" West, a distance of 1,527.70 feet to the West line of the Southwest''/+ of said Section 34;thence along said West line of the Southwest Y<of said Section 34;thence along said West line, North 00922'35" West,a distance of 1,525.95 feet to the Point of Beginning. Excepting therefrom that portion dedicated to the City of Loveland, a Colorado Municipal Corporation by Deed of Dedication for Right-of-Way recorded August 1,2003, at Reception no. 20030098330. County of Larimer,State of Colorado Exhibit 1113" Airport Legal Description A1] of the Barnstorm Second Addition to the Citv of Loveland, Colorado legally described as follows: All that portion of Section 28 and Section 33, Township 6 North. Range 68 West, and that portion of Section 4, Township 5 North, Range 68 West of the 6th P.M.. Larimer Count}', Colorado. more particularly described as follows: Commencing at the Southwest corner of said Section 28, with all bearings relative to the West line of the Southwest Quarter of said Section 28 considered as hearing North 00"30'00" East, thence South 87°28'49" East, 50.00 to the TRUE POINT OF BEGINNING: thence North 00°30'00" East, 2678.39 feet; thence North 00029'50" East. 2639.76 feet: thence South 86'40'52" East, 795.07 feet; thence South 25°27'52" East, 107.65 feet: thence South 38'35`52" East, 152.85 feet; thence South 03'10'08" West, 157.83 feet; thence South 86'40'52" East, 231.41 feet; thence South 16'10'52" East. 131.00 feet: thence South 11'10'52" East, 150.00 feet; thence 150.48 feet along a tangent curve concave to the East, delta angle 39'44'00", radius 217.00 feet and chord South 31°02'S2" East. 147.49 feet; thence along the centerline of the Louden Ditch for the following eighteen courses and distances: South 50'54'52" East, 115.00 feet: thence 68.45 feet along a tangent curve concave to the North; delta angle 43°06'00", radius 91.00 feet and chord South 72'27'52" East, 66.85 feet; thence North 85'59'08" East, 42.00 feet; thence 85.50 feet along a tangent curve concave to the South, delta angle 53'50'00". radius 91.00 feet and chord South 67005'52" East, 82.39 feet; thence South 40°10'52" East. 167.00 feet; thence South 47'10'52" East, 170.00 feet; thence South 42'10'52" East. 118.00 feet: thence 109,88 feet along a tangent curve concave to the Wcst, delta angle 16`42`00 radius 377.00 and chord South 33'49'52" East, 109.50 lest; thence 80.52 feet along a tangent reverse curve concave to the East, delta angle 29'12'00", radius 158.00 feet and chord South 40'04'52" East, 79.65 feet: thence 81.95 feet along a tangent reverse curve concave to the West. delta angle 36'24'00", radius 129.00 feet and chord South 36 28'52" East. 80.58 feet: thence South 18'16'52" East, 91.00 feet; thence 68.99 feet along a tangent curve concave to the East, delta angle 18'08'00", radius 218.00 feet and chord South 2720'52" East. 68.71 feet; thence South 36'24'52" East. 113.00 feet; thence 65.69 feet along a tangent curve concave to the East. delta angle 17'16'00", radius 218.00 feet and chord South 45'02'52" East, 65.45 feet, thence South 53'40'52"East,256.00 feet; thence 135.14 feet along a tangent curve concave to the West, delta angle 26°42100", radius 290.00 feet an(] chord South 40'19'52" East, 13392 feet; thence 265.00 feet along a compound tangent curve concave to the West, delta angle 174C00", radius 82.17 feet and chord South 18"05'52" East, 81.84 feet; thence 90.36 feet along a tangent reverse curve concave to the East. delta angle 43"08'44", radius 120.00 feet and chord South 30'47'14" East, 88 24 feet to the North-South Quarter line of Section 28: thence South 00'3913)" West. 577.38 feet along the North-South Quarter line of Section 28; thence South 87'08'50" East, 2635M feet along the East-West Quarter line to the East One-Quarter 6 corner of Section 28: thence South 00°32'09" West. 2647.71 feet to the Southeast corner of Section 28: thence South 00°00'10" West, 2599.29 feet to the East One-Quarter corner of Section 33; thence South 00°00'41" East, 2568.62 feet along the East line of Section 33 to a point whence the Southeast corner of said Section 33 (and the Southwest corner of Section 34) bears South 00°00'41" East. 30.00 feet_ thence North 89°59'19" East, 30.00 leer; thence South 00`00'41" East. 30.48 feet to the South line of Section 34 (and the North line of Section 3); thence alone the East right-of-may line of County Road No. 7 South 01°45'45" West, 2456.00 feet to the Northeasterly right-of-ticav line of Union Pacific Railroad; thence along said right-of-hvay as folloms: North 48°56'19" West, 3413.73 ]eel: thence 373.88 feet along a nontangcnt curve concave to the North, delta angle 5°43'13". radius 3744.83 feet and chord North 46°04'43" West. 373.73 feet; thence South 89°06'O5" Bast, 17T04 feet along the South line of Section 33 to a point whence the South One Quarter corner of said Section 33 bears South ST06'07' East, 76.88 feet; thence 794.66 feet along a nontangent curve concave to the North, delta angle 12°34'41"1 radius 3619.83 feet and chord North 38°52'49" West 793.07 feet: thence North 32°35'28" West, 3737.67 feet to the East right-of-way of County Road No. 9; thence North 00'09'21" West, 1619.75 feet along said East right-Of=wav to the TRUE POINT OF BEGINNING. 7 Exbibit "C" Depiction of Airspace Plan s f Alit [�11 �(, j3 t3F rrrFzt&1 0o 0 Alt 4— its e't tie' t r i sF it �sFF C Q 2 6 €sFFF� Uu al 1�fisI61F'rti3Di;_` i 34 �.t _ rLL c� s,e R e fF 6 it E� t �h... �i 1•J r (( (`,II y �` 'rt j [ (i f k (j� �. .� R ,r�-. 1 _ I �._ I iFx I : f -,5 :¢ ^ kx i N y L Exhibit "D" Table I —Airport Land Use Scbedule 9 l_urr&tnd. CokTcrdo 100.5 ('Imli rehcensire Plop Si '«m J-/ October IS. 1994 Airport and Surrounding Arena Table I FORT COLLINS-LOVELAND vIUNICIPAL AIRPORT Land Use Schedule Land I Se Noise - Noise Noise Critical Flight Airport Contour Contour Contour Zone Pattern Influence 55-65 db 65-75 db 75+(lb Areas Area Single Famtiv Dwellings in(]Mobile S I 1 I S Homes 'lulliple Fxmtly Dwellings S 1 1 I S Hotels, 'Motels S E S - 1 1 C Schools Churches, Hospitals Libraries S -- I - Auditoriums.Outdoor-l-heaters,Concert S I 1 ! I I 5 Halls A.-.__.--_. r.,. -____ -- Sports Arerl S I I I S - -- - - playgrounds, Parks,Open Space C C I S C I------ - Golf Courses,Cemeteries,Riding C -+ C S j S C Stables Office Buildings. Personal, Business C C [ S C and Professional Services Commercial Establishments. Retail C C I S C Commercial Establishments, C C 1 S C Wholesale'Manufacturing, I Transportation. Convnunications and Utilities Noise Sensntve'lanutacwrin_ and S S 1 _ S S Connnu nicar ions , Fanning(Lriestock) -_- C - C j I C C 9ericulture_ 'lining. Fishing C C - C C C - Poultry Producuo❑ C C 1 1 C C=Comr libleCue I - Incompatible Use S=Require;consideration of special criteria by the permit authority Uevelopmem in this area shall be reviened for compatibility n%fill airport by airport manager for such dings as natural or mmI-made phisical features. relationship to airport access, effects of secondary impacts. or other special cucwnstinces Rtund by the eoverninc buds. Notes: To illustrate a potential e-orst case scenario,noise contours I%ere des eloped using,single event rather than composite data. Anv land use net co%ered by this schedule shall be deemed excluded wail a determination is to comparbiliry is nm(te ri the specific use is permitted by the designated authority_ A riv land upon soh ic;;derelopmem is proposed that is in more than one zoneshall be limited to the more restrictive use. No desi_nation of eompitible use contained in this schedule shill be construed to abroime or contravene the provisions of anv bcnl,state or federal re_tdntion_ 4 6-4 - EXHIBIT "F" (AIRPORT MINIMUM STANDARDS) 23 �;- 7- a te EXHIBIT "F" FORT COLLINS-LOVELAND MUNICIPAL AIRPORT MINIMUM STANDARDS Minimum Standards for the Provision of Commercial Aeronautical Activities at the Fort Collins-Loveland Municipal Airport 2008 Effective Date: Table of Contents ARTICLE ONE: POLICY AND GENERAL STANDARDS..................................................__..I 1.1 Purpose............................................................................. . -................_...._.._.......... I 1.2 Introduction - ................................. -..............._.._.......... . ....__..................__........1 1.3 Statement of Policy............................................................................... ............._.._....2 1.4 Prequalification Requirements...................................................................._..............__2 1.5 Financial and Managerial Responsibility and Capability._......................._...................3 1.6 Experience of Operator and Key Employees..................................................................3 1.7 Requirements Applicable to all FBOs, RSFOs and SASOs_............_................_...._...4 1.8 Combined Operations and Subleases.........................................._...................._............7 1.9 General Definitions.............. .................... ._................................................._._............7 1.10 Miscellaneous Aeronautical Activities.................................. .................................._....7 1.11 Violations........................................................................................................................7 1.12 Appeals................................................._..............._................._....................................8 ARTICLE,TWO: FIXED BASE OPERATOR(FBO)...................... ............................................8 2.1 Statement of Concept......................................................................................................8 2.2 Services Provided ... .............._......_.............................................................................8 2.3 Operation Minimums................................-....................................................................9 2.4 Facility Requirements...................................................................................................12 ARTICLE THREE: RETAIL SELF SERVICE FUELING OPERATOR(RSFO).................-....12 3.1 Statement of Concept.............................__.................................................._......._......12 3.2 Services Provided.........................................................................................................13 3.3 Operational Minimums.................................................................................................13 3.4 Facility Requirements................................................ ............ .............................15 ARTICLE FOUR: SPECIALIZED AVIATION SERVICES OPERATOR(SASO)...................15 4.1 Aviation Repair Services SASO.......---------___............................................................15 4.2 Specialized Commercial Flying Services SASO........................................................-16 4.3 Flight Training SASO....... .........................._................................._............._....._......17 4.4 Aircraft Sales SASO (New and/or Used) ..._...................................................._..........IS 4.5 Aircraft Airframe and Engine Repair and Maintenance SASO....................................18 4.6 Aircraft Rental SASO........... .....................................................................................19 4.7 Aircraft Charter, Air Taxi Service, Sightseeing and Aircraft Maintenance SASO ......19 4.8 Flying Club SASO...................... ..............._.............................._..............................20 4.9 Commercial Hangar Operator SASO...........................................................................21 4.10 Temporary Specialized Aviation Service Operator SASO...........................................22 ARTICLE FIVE: OFF-AIRPORT ACCESS................................................................................22 5.1 Statement of Concept...................... .............................................................................22 5.2 Definitions................................... ............................................................................23 5.3 Access Right................................................................................._..............................24 5.4 Off-Airport Parcel Uses; Access Taxiways: Permitted and Prohibited Uses..............24 5.5 Access Agreement........................................................................................................25 5.6 Access Agreement Fee; Time For Payment; Amount of Fee.......................................26 ATTACHMENT I: Required General Lease Clauses.............................................. ...................27 ATTACHMENT 2: Minimum Insurance Requirements ..............................................................33 ATTACHMENT 3: Application For Business License................................................................37 ATTACHMENT 4: Rates and Charges -----...................................................................................39 Fort Collins-Loveland Municipal Airport Minimum Standards for Commercial Aeronautical Activities ii ARTICLE ONE: POLICY AND GENERAL STANDARDS 1.1 Purpose. The purposes of these minimum standards are to: 1.1.1 Encourage the provision of high quality products, services, and facilities to Airport users; 1.1.2 Encourage the development of quality improvements at the Airport; 1.1.3 Promote health, safety, and welfare; 1.1.4 Promote the economic health of Airport businesses; 1.1.5 Promote the orderly development of Airport property, and 1.1.6 Promote the economic self-sufficiency of the Airport. These minimum standards specify the standards and requirements that must be met by any entity desiring to engage in one or more commercial aeronautical services or activities at the Airport. 1.2 Introduction. The Cities of Fort Collins,Colorado and Loveland,Colorado, acting through their respective City Councils(the"Cities")own and operate the Fort Collins-Loveland Municipal Airport (the"Airport'). To encourage growth and development of the Airport by ensuring adequate aeronautical services and facilities for Airport users, the Cities have established these standards and requirements(the"Minimum Standards") for provision of certain commercial aeronautical services at the Airport. The following articles set forth Minimum Standards for an "Operator," which is defined as any person or persons,partnership, company, trust corporation, or other entity based on the Airport and providing one or more commercial aeronautical services at the Airport. The Minimum Standards shall be applied to adjacent properties that access the Airport through a valid Access Agreement, such requirements would be defined in the Access Agreement. The Minimum Standards do not apply to the Cities themselves. These Minimum Standards are not intended to be all-inclusive, as the Operator of a commercial venture based on the Airport will also be subject to applicable federal, state and local laws, codes, ordinances and/or regulations, including Airport Rules and Regulations pertaining to all such services,and to the tenns of its Lease,or License to do business at the Airport, as discussed below. Permission from the Cities is a prerequisite to providing any commercial aeronautical service on the Airport Permission shall be in the form of a Commercial Use License("License") and if Operator is also a tenant of the Cities, shall be required in addition to any written Lease establishing a tenancy on the Airport. The provisions of the License must be compatible with the Minimum Standards in effect at the time of issuance or as later amended and will not change or modify the Minimum Standards themselves. These Minimum Standards are deemed to be included as part of all Licenses. If the specific commercial service provided is not contemplated or covered by these Minimum Standards, the person should approach the Cities to negotiate the terms of the required License. The Cities obligation to make the Airport available for the use and benefit of the public does not extend to providing access from adjacent property. However, if the Cities determine that such Fort Collins-Loveland Municipal Airport Minimum Standards for Commercial Aeronautical Activities I off-airport access to the Airport is of benefit to the general public and can be done in a manner that is consistent with Federal, State, local laws, and FAA requirements then an Access Agreement may be permitted as provided for herein in Article Five-Off-Airport Access. Licenses and Leases containing authority to conduct commercial aeronautical activities which are in effect on the date of adoption of these Minimum Standards, will remain in effect for their prescribed terms, but shall not be grandfathered in and, therefore, shall be subject to these Minimum Standards. However, holders of existing licenses and the lessees of existing leases shall be given one year from the date these Minimum Standards go into effect in which to come into full compliance with these Minimum Standards. Nevertheless, no existing licensee, lessee or Operator shall engage in new or expanded activities after the adoption of these Minimum Standards, without meeting all the requirements appropriate for the activities contemplated. These Minimum Standards may be amended by the Cities at their discretion from time to time as determined to be necessary by the Cities. Before these Minimum Standards are amended a public process, including review and approval by the City Councils or as set forth in the Airport Intergovemmental Agreement between the Cities will be completed; the airport will make a reasonable attempt to give at[ licensed Operators at the Airport written notice of the proposed amendments. 1.3 Statement of Policy. The Cities' goal in establishing these Minimum Standards is to assure an adequate minimum level of service to aviation users, to foster competition at the Airport, put all FBOs and SASOs on an equal footing in qualifying and competing for available Airport facilities and the furnishing of selected commercial aeronautical activities, and avoid unjust or prohibited discrimination between FBOs and SASOs. Where the words `standards"or"requirements"appear, it shall be understood that they are modified by the word"minimum." All Operators will be encouraged to exceed the "minimum." No Operator will be allowed to operate under conditions that do not meet the "minimum." Contingent upon its qualification, its meeting these Minimum Standards, the execution of a License by the Cities, and the payment of rentals, fees and privilege for providing the service(s) selected on the Airport as specified in the License, the Operator may engage in approved commercial aeronautical activity. The granting of such right and privilege, however, shall not be construed in any manner as affording the Operator any exclusive right of perform such activities or services on the Airport. The Cities reserve and retain the right to adopt and enforce any and all resolutions, ordinances, rules, codes, minimum standards and other regulatory measures pertaining to any Commercial Aeronautic Activity at the Airport. The Cities further reserve the right to designate the specific Airport areas, in accordance with the existing Airport Layout Plan ("ALP"), in which specific aeronautical services may be conducted. Such designation shall give consideration to the nature and extent of the operation and the land and improvements available for such purpose, consistent with the orderly and safe operation of the Airport. 1.4 Prequalification Requirements. At the time of its application, the prospective Operator shall provide the Airport Manager, in writing, the following information, and thereafter, shall provide such additional information as may be requested by the Cities. 1.4.1 License Application. The prospective Operator must submit a completed Commercial Aeronautical Use License Application (Attachment 3) that provides summary information regarding the applicant and the scope of the proposed operation. Fort Collins-Loveland Muniapal Airport Minimum Standards for Commercial Aeronautical Activities 2 1.4.2 Intended Scope of Services. The prospective Operator must submit a detailed description of the scope of the intended operation, and the means and methods to be employed to accomplish the contemplated operation, in order to provide high-quality service. All services contemplated must meet the requirements of these Minimum Standards. That information must include, at a minimum, all of the following: 1.4.2.1 The name, address and telephone number of the applicant. If the applicant is a corporation, provide the name, address, and telephone number of the corporation's officers and directors, and owners of more than 15% of its corporate stock with the number of total shares and the number of shares owned. If the applicant is a partnership,provide the name, address, and telephone number of all partners. 1.4.2.2 The requested or proposed date for commencement of the service and the term of conducting the same. 1.4.2.3 The services to be offered. 1.4.2.4 The amount, size and location of any land to be leased, which must be in compliance with the Airports current FAA-approved ALP. 1.4.2.5 The number and type(s) of aircraft to be provided/maintained (as applicable). 1.4.2.6 The number of persons to be employed(including the names and qualifications of each manager or supervisor or other key personnel). 1.4.2.7 The hours of proposed operation. 1.4.2.8 The types and amounts of insurance coverage to be maintained, which must meet or exceed the types and amounts as established by Attachment 2 to these Minimum Standards, as it now exists or as it may be amended hereafter. 1.5 Financial and Managerial Responsibility and Capability. The prospective Operator must provide a statement, satisfactory to the Cities, in evidence of its financial responsibility, from a bank or trust company or from such other source that may be acceptable to the Cities and readily verified through normal banking channels. The prospective Operator must also demonstrate financial capability to initiate operations, to construct proposed improvements, if any, and to provide working capital to carry on the contemplated operations. The demonstration of financial and managerial capability shall include a cash flow and a profit and loss projection for the first five years of the proposed operation. In order to avoid the potential anti-competitive effects of financial control of potential competitors, prospective Operators shall also disclose their sources and terms of financing. Any information furnished under this section which is prominently marked on each page as "confidential" by the applicant, shall be considered proprietary and shall be kept confidential by the Cities to the extent permitted under the provisions of C.R.S_ §24-72-201, et seq., the Colorado Public Records Act. 1.6 Experience of Operator and Key Employees. The prospective Operator shall furnish the Cities with a statement of past experience of the Operator and its managers, supervisors and Fort Collins-Loveland Municipal Airport Minimum Standards for Commercial Aeronautical Activities 3 other key employees in providing the proposed aviation services, together with a statement that the Operator or its principals have the managerial ability to perform the selected services. 1.7 Requirements Applicable to all FBOs, RSFOs and SASOs. The following standards apply to all FBOs, RSFOs and SASOs. Additional standards specific to each type of operation can be found in Articles Two, Three and Four of these Minimum Standards. For purposes of these Minimum Standards, "leased premises"may include, as appropriate, any area leased, subleased or otherwise controlled by an FBO, RSFO or SASO and must be on the Airport. 1.7.1 Requirement of a Lease or License. 1.7.1.1 Before beginning operations,the prospective Operator must enter into a License or Lease with the Cities reciting the terms and conditions under which it will do business on the Airport, including but not limited to, the term of agreement the rentals, fees and charges; the rights,privileges and obligations of the respective parties, and other relevant covenants. Such provisions of the Lease or License, however, will neither change nor modify the Minimum Standards, nor be construed in a way to make the License less demanding than these Standards. 1.7.1.2 Such a License shall contain all provisions required by the Federal Aviation Administration("FAA") as a condition of any Federal Grant to the Cities for the Airport. The basic terms and conditions of such License are included in Required General License Clauses attached to this document as Attachment 1. 1.7.1.3 While the language reflects the currently applicable federal requirements, Licenses shall include all provisions required by then-current federal law and regulations. The provisions contained in Attachment 1 are not all inclusive and may be amended from time to time by the Cities without amending these Minimum Standards. 1.7.2 Site Development Standards -Physical Facilities. 1.7.2.1 The minimum space requirements as provided in Articles Two, Three and Four of these Minimum Standards shall be satisfied, as applicable. 1.7.2.2 All paving and building shall comply with the then-current City of Loveland development and construction standards for the Airport and all applicable local building codes and requirements. The location of facilities on the Airport must comply with the current FAA-approved ALP for the Airport. 1.7.2.3 If construction on leased premises, or alteration of existing or future structures on leased premises is planned, Operator shall comply with the notification and review requirements of Federal Aviation Regulation Part 77 and other government entities as may be required. Operator must submit FAA Forms 7460-1 and 7480-1 (if applicable) to FAA no less than 30 days prior to the cormnencement of such construction. 1.7.3 Personnel- During all operating hours, and except for after-hours fueling by RSFO's, the Operator shall employ and have on duty trained personnel in such numbers and with such certificates and ratings as are required to provide services established by the Minimum Standards, in an efficient manner for each aeronautical service being performed, and shall provide a responsible person authorized to act on its behalf to supervise its operations. A list of contacts Fort Collins-Loveland Municipal Airport Minimum Standards for Commercial Aeronautical Activities 4 shall be supplied to the Airport Manager including after hour's phone numbers. This list shall be updated when any change occurs. 1.7.4 Financial Surety. The Operator shall post a letter of credit in a form acceptable to the Cities in the amount equal to at least 10%of the annual rental established and agreed upon. This letter of credit may be waived by the Cities if Operator can demonstrate adequate financial means. 1.7.5 Insurance. Insurance shall be provided and paid for by the Operator in the amounts specified in Minimum Insurance Requirements(Attachment 2), as it may be amended by the Cities from time to time. Should there be any doubt about the currency of such minimum insurance requirements, the most current insurance requirements is on file with the Airport Manager. A certificate of insurance or a copy of the insurance policies involved shall be furnished to the Airport Manager by the Operator. Ten days advance written notice of any change to any policy shall be given to the Airport Manager. Coverage may be provided through primary or excess policies. The insurance company, or companies, writing the requested policy, or policies, shall be licensed to do business in the State of Colorado. Where more than one aeronautical service is proposed, the minimum limits will vary(depending upon the nature of individual services in such combination) but will not necessarily be cumulative in all instances. For example, if three(3)types of services are to be provided, it will not be necessary for the Operator to carry insurance policies providing the aggregate or combined total of the minimum limits for each type of operation. However, if one of the selected services requires passenger liability coverage or hangar keeper's liability not required in either of the other two (2)categories, the Operator would be required to provide insurance on the applicable exposures. As a further example, the minimum limit for property damage on a combination of services would be the highest minimum limit stated in the grouping chosen. Because of these variables, the applicable minimum insurance coverage on combinations of services will be discussed with the prospective Operator at the time of its License application. All insurance that the Operator is required by the Cities to carry and keep in force shall include the Cities and all Cities personnel, officers and agents as additional insured. The Operator shall furnish evidence of its compliance with this requirement to the Airport Manager with proper certification that such insurance is in force and shall furnish additional certification as evidence of changes in insurance not less than ten(10)days prior to any such change, if the change results in a reduction or increase. In the event of cancellation of coverages, the Operator and underwriter shall give the Cities ten(10)days prior notice of cancellation and all operations of Operator on the Airport shall cease. The applicable insurance coverage shall be in force during the period of any construction of the Operators facilities, if any, and/or prior to its entry upon the Airport for the conduct of its business. The Operator shall also furnish evidence of its compliance with Colorado Statutes with respect to Worker's Compensation and Unemployment Insurance(where applicable). Lapses in insurance coverage may result in denial of access to the Airport and termination of the License. 1.7.6 Airport Access and Security. Airport access and security shall be maintained by Operator at all times in accordance with standards established and required by the Airport Manager, FAA, Transportation Security Administration (TSA)or other governmental entity. The Operator is also responsible for its employees', invitees', licensees', vendors', and agents Fort Collins-Loveland Municipal Airport Minimum Standards for Commercial Aeronautical Activities 5 compliance with the Airport Security Program, as it may be established and amended from time to time. 1.7.7 Environmental Compliance. In its operations at the Airport, Operators shall strictly comply with all applicable environmental laws, the Airport environmental polices and procedures (including, without limitation, the Storm Water Pollution Prevention Plan ["SWPPP"] and Spill Response Plan), and generally accepted industry environmental best management practices and standards. Without limiting the generality of the foregoing provision, Operator shall not use or store Hazardous Materials on or at the Airport except as reasonably necessary in the ordinary course of Operator's permitted activities at the Airport, and then only if such Hazardous Materials are properly labeled and contained. Operator shall not discharge, release, or dispose of any Hazardous Materials on the Airport or surrounding air, land, or water. Operator shall promptly notify the Cities of any Hazardous Material spills, releases, or other discharges by Operator at the Airport and promptly abate, remediate, and remove same. Operator shall provide the Cities with copies of all reports, complaints, claims, citations, demands, inquiries, or notices relating to the environmental condition of the Airport, or any alleged material noncompliance with Environmental Laws by Operator at the Airport within ten (10) days after such documents are generated by or received by Operator. If Operator uses, handles, treats or stores Hazardous Materials at the Airport, Operator shall have a contract in place with an approved waste transport or disposal company, and shall identify and retain spill response contractors to assist with spill response and facilitate waste characterization, transport and disposal. Complete records of all disposal manifests, receipts and other documentation shall be retained by the Operator and made available to Cities for review upon request. The Cities shall have the right at any time to enter the Premises to inspect, take samples for testing, and otherwise investigate the Premises for the presence of Hazardous Materials. Such inspections shall be coordinated with the Operator and scheduled during regular business hours if reasonably practical. Operator's Hazardous Materials shall be the responsibility of Operator. Operator shall be liable for and responsible to pay all Environmental Claims that arise out of, or are caused in whole or in part, from Operator's use, handling, treatment, storage, disposal, discharge, or transportation of Hazardous Materials on or at the Airport, the violation of any Environmental Law by Operator, or the failure of Operator to comply with the terms, conditions and covenants of this section. If the Cities incur any costs or expenses (including attorney, consultant and expert witness fees) arising from Operator's use, handling, treatment, storage, discharge, disposal, or transportation of Hazardous Materials on the Airport, Operator shall promptly reimburse the Cities for such costs upon demand. All reporting requirements under Environmental Laws with respect to spills, releases, or discharges of Hazardous Materials by Operator at the Airport are the responsibility of Operator. 1.7.8 Motor Vehicles on Airport. The Operator shall control the on-Airport transportation of pilots and passengers of transient general aviation aircraft using the Operator's facilities and services. The Operator performing this service with motor vehicles driven on the Airport shall do so only in strict accordance with Airport Rules and Regulations, applicable federal, state and municipal laws, ordinances, codes or other similar regulatory measures now in existence or as may be hereafter modified or amended. The Operator takes responsibility and assumes all liability for the actions of any party, supplier, member, agent or individual that the Fort Collins-Loveland Municipal Airport Minimum Standards for Commercial Aeronautical Activities 6 Operator allows upon the Airport's aircraft movement areas. The Cities reserve the right to deny access to any party or business if the party fails to act responsibly while in control of machinery or motor vehicles operating on the Airport. 1.7.9 Other FAA Requirements In addition to these Minimum Standards, where applicable Federal certification standards exist for a given commercial aeronautical activity, each FBO, RSFO and SASO offering such activity shall provide sufficient equipment, supplies and availability of parts as required for certification by the Federal Aviation Administration- 1.8 Combined Operations and Subleases. 1.8.1 The Cities will consider reduction in minimum square footage for combined operations. 1.8.2 If an FBO, RSFO or SASO, whether located on or off the Airport, desires to sublease space to another person to provide one or more Commercial Aeronautical Activities, the following conditions will apply. 1.8.2.1 The subleasing party must obtain a license from the Cities to operate at the Airport. 1.8.2.2 The FBO, RSFO or SASO must obtain written approval from the Cities to sublease the space and function. 1.8.2.3 FBO, RSFO or SASO must carry public liability insurance in accordance with Section 1.7.5 above, and the Minimum Insurance Requirements (Attachment 2) for its lessee, or provide a certificate of insurance that shows the lessee and the Cities as additional insured, the amounts commensurate with the services provided by the sub-lessee. 1.9 General Definitions. The general definitions contained in Article 1 of the Rules and Regulations of the Ft. Collins/Loveland Airport, as they now exist or as they may hereafter be amended, are hereby incorporated by reference in these Minimum Standards. 1.10 Miscellaneous Aeronautical Activities. Miscellaneous Commercial Aeronautical Activities not herein provided for may be permitted on the Airport on a case-by-case basis,by making formal application to the Cities for approval of such activity, and upon a showing that such activities may be safely conducted at the Airport without undue interference with other permitted aeronautical activities. Reasonable terms and conditions for the privilege of engaging in these other services will be commensurate in nature and scope with the activities proposed_ The Cities reserve the right to deny or restrict aeronautical activities at the Airport which may interfere with or create a safety hazard for other Aircraft operating at or near the Airport. 1.11 Violations. Any Operator that violates any of the provisions in these Minimum Standards will be notified of the violation and given 60 days in which to correct said violation. Should such violation not be corrected within 60 days, the Cities shall have the right to terminate the License. Nothing in this paragraph shall prevent the Cities from immediately suspending a License,or taking any other immediate action when a safety related or hazardous situation exists. Fort Collins-Loveland Municipal Airport Minimum Standards for Commercial Aeronautical Activities 7 1.12 Appeals. Any person who is adversely affected by a determination of the Cities, or the Cities acting through the Airport Manager,to deny, terminate, suspend or revoke a License may appeal the determination pursuant to Section 12.48.120 of the City of Loveland Code, and applicable provisions of the Airport Rules and Regulations.. ARTICLE TWO: FIXED BASE OPERATOR(FBO) 2.1 Statement of Concept. A Fixed Base Operator engages in providing essential and specialized aircraft services to the general public. The minimum levels of essential services are purposely set to ensure that all of the basic needs for aircraft owners, pilots and passengers arc provided for at the Airport. 2.2 Services Provided. A Fixed Base Operator(FBO) shall provide or enter into an agreement to provide all of the following essential services to the public at the Airport at reasonable rates and charges and without unjust discrimination: 2.2.1 Aircraft Line Services: 2.2.1.1 Fueling, lubricating and miscellaneous services; 2.2.1.2 Ramp parking and tie-down; 2.2.1.3 Separate crew lounge and passenger lobby facilities; 2.2.1.4 Public restrooms and telephone, Loading, unloading and towing, 2.2.1.5 Hangar storage; De-icing service; Engine preheating; 2.2.1.6 Oxygen; 2.2.1.7 Aircraft starting; 2.2.1.8 Strut and Tire inflation (with both air and nitrogen); 2.2.1.9 Attendants to direct aircraft to loading and parking areas, to tie down aircraft, to fuel aircraft,to clean windshields, to remove snow from parked aircraft, and generally to provide prompt and courteous service, and 2.2.1.10 Lavatory cart service. 2.2.2 Aircraft Airframe and Engine Repair and Maintenance. 2.2.3 Flight Training. 2.2.4 Aircraft Rental. 2.2.5 Related Other Services such as the sale of sectional or World Aeronautical Charts (WAC)covering the territory within three hundred miles of the Airport, flashlight and batteries, and plotters and computers generally used by pilots for flight planning, current aeronautical Fort Collins-Loveland Municipal Airport Minimum Standards for Commercial Aeronautical Activities 8 weather information, and the sale of food and beverages to General Aviation(vending machines and access to catering service). 2.2.6 The FBO shall provide no other commercial aeronautical services or activities except as provided in its License. A Fixed Base Operator may either provide the required Aircraft Airframe& Engine Repair and Maintenance, Flight Training and Aircraft Rental, Oxygen Service, Strut Inflation and Tire Inflation with Air and Nitrogen, Food Service/Restaurant, and Catering Service directly, or by provision of an agreement with a Cities' approved SASO on the Airport, to provide such services. It will remain the ultimate responsibility of the FBO to ensure such services will be available. Article Four of these Minimum Standards includes a detailed description of the minimum aircraft airframe and engine repair and maintenance, flight training, and aircraft rental services that an FBO, or any SASO engaging in such activities, must provide. FBOs may also engage in other Commercial Aeronautical Activities as identified in its License. 2.3 Operational Minimums. An FBO shall meet the following Minimum Standards specifically applicable to management, fueling operations, line service, and aircraft maintenance, as well as general standards applicable to all FBOs and SASOs (set out in Article 1) and additional standards(set out in Article 4) for any additional SASO activities provided: 2.3.1 In connection with aircraft fueling and line services: 2.3.1.1 Contracts For Delivery of Fuel. FBO shall demonstrate, to the Cities' satisfaction, that a reputable aviation fuel and lubricant distributor will provide the FBO with an enforceable agreement to purchase fuel and oil in quantities necessary to meet the requirements set forth herein. FBO shall maintain an adequate inventory of at least one brand and two generally accepted grades, Aviation Gasoline(AVGAS, 100 Low Lead)and Jet Fuel (Jet-A)of aviation fuel, engine oil and lubricants. FBO shall also negotiate in good faith with air carriers serving the Airport,to permit storage of air carrier fuel in FBO tanks, subject to reasonable terns and conditions, including the charging of an into-aircraft service charge. In judging the reasonableness of such terms, similar agreements existing at other Airports in Colorado may be used, but need not be exclusively used, as the standard of reasonableness. 2.3.1.2 Calculation of Fuel Flowage. Aviation fuels and oils delivered to the Operator by a vendor will be considered by the Cities to be fuels and oils dispensed for the purpose of calculating rates or charges under its License. 2.3.1.3 Hours of Operation For Fuel Sales. Sales of fuel and lubricants, and into-plane delivery of aviation fuels, lubricants and other related petroleum products, shall be available at a minimum 14 hours per day beginning no later than 6:OOA.M. seven (7)days a week. FBO shall be available during other than its regular business hours on an "on-call" basis with a maximum response time of two hours. If contracted to do so, FBO will meet all scheduled Air Carrier Aircraft requiring such fuels and lubricating oils, to enable such Aircraft to meet all turnaround times and schedules. 2.3.1.4 Minimum Equipment. FBO shall provide mobile fuel dispensing equipment, which display approved FAA marking and signage, , capable of servicing, in an efficient and safe manner all types of commercial and general aviation aircraft which Fort Collins-Loveland Municipal Airport Minimum Standards for Commercial Aeronautical Activities 9 use the Airport. FBO shall have two (2) metered, filter equipped,ref icler trucks for dispensing jet fuel with a capacity of at least 1,500 gallons each and one(1)metered, filter equipped, refueler truck for dispensing AVGAS with a capacity of at least 750 gallons. FBO shall have storage tanks having a minimum capacity of 10,000 gallons of AVGAS and 20,000 gallons ofjet fuel. A separate dispensing pump for each grade of fuel is required. 2.3.1.5 Individual in Charge. The individual managing the operations of the FBO shall have at least five(5)years experience in the period of eight (8) years immediately preceding such application, having been engaged in the business of a Fixed Base Operator on an Airport at least equal in size, facilities, and activity as the Fort Collins-Loveland Municipal Airport. 2.3.1.6 Safety of Fueling Operation. In conducting fuel operations, FBO shall install and use adequate electrical grounding facilities at fueling locations to eliminate the hazards of static electricity and shall provide approved types of fire extinguishers or other equipment commensurate with the hazard involved with fueling, defueling, and servicing aircraft. All such safety and operational requirements for the storage, handling and dispensing of aviation-grade fuels shall be governed by the applicable National Fire Protection Association (NFPA), including NFPA Manua) 407, "Aircraft Fuel Servicing,"and any additional fire code adopted by the City of Loveland. Fire suppression systems for fuel storage defined as discretionary by NFPA and L1FC regulations shall consist of Fire Rated tanks. All FBO fueling services and systems shall be subject to inspection for fire and other hazards by the Airport Manager or other representative of the Cities, by the State Oil Inspector and by the appropriate State and local fire agency. FBO shall be responsible to perform all fuel system equipment maintenance(both periodic and on-demand)and inspection in a manner that meets NFPA, National Air Transport Association(NATA), FAA and all applicable State and local standards. Further, FBO shall be in full compliance with fire codes and federal, state and local laws, ordinances, rules and regulations pertaining to fire safety. The FBO shall have spill kits immediately available and shall maintain a spill prevention and control plan in accordance with applicable federal, state and local laws, rules and regulations. 2.3.1.7 Fuel Quality. The FBO shall take all precautions necessary to ensure that only non-contaminated fuel is delivered into the aircraft serviced. Fuel delivered shall be clean, bright, pure and free of microscopic organisms, water or other contaminants. Quality control of the fuel is the responsibility of the FBO. The FBO shall maintain current fuel reports on file and shall make available,upon written notice, to the Airport Manager those records during normal business hours. . Fueling service by the FBO shall be in full compliance with federal, state and local laws and regulations including American Petroleum Institute quality control standards, and Air Transport Association, Specification 103 ("ATA 103"), including proper fire protection and electrical grounding of aircraft during fueling operations, and operate in compliance with safety requirements as set forth and as amended from time to time in the Airport Rules and Regulations. 2.3.1.8 Additional line services. Servicing of aircraft shall include generally expected services, such as cleaning of the interior and exterior of aircraft and catering. FBO shall provide proper equipment for repairing and inflating aircraft tires, Fort Collins-Loveland Municipal Airport Minimum Standards for Commercial Aeronautical Activities 10 servicing struts, servicing oxygen systems, washing aircraft and aircraft windows, and recharging or energizing discharged aircraft batteries and starters. 2.3.1.9 Waste disposal. FBO shall provide for adequate and sanitary handling and disposal, away from the Airport, of all trash, waste, and other materials, including but not limited to used oil, solvents, lavatory cart contents and other waste. The piling or storage of crates, boxes, barrels and other containers or other items is not permitted outside of buildings located on the leased Premises. 2.3.1.10 Disabled Accident Removal. FBO shall be prepared to remove disabled aircraft from the movement areas of the AOA. It shall have personnel trained and have access to equipment or be able to arrange for the equipment and/or services required to remove damaged aircraft from the AOA movement areas. The FBO shall have personnel on call and able to respond to a damaged aircraft within one(1) hour of notification. 2.3.1.11 Ramp Parking,Tie-Down, Aircraft Storage and FBO Ramp Assistance within the FBO's leased premises. The FBO Operator shall have at least one(1) tug capable of towing up to 50,000 pound aircraft,or the largest aircraft that regularly uses FBO services on a monthly basis,whichever is greater. Operator shall have at least one ground power unit, one(1)de-icing unit, one(1) lavatory cart, one(1)water cart, and adequate ground transportation vehicles capable of transporting passengers between the FBO and the aircraft ramp. The FBO Operator shalt have tow bars suitable for towing the General Aviation Aircraft normally frequenting the Airport. All equipment shall be maintained and operated in accordance with OSHA and local and State industrial codes. 2.3.1.12 Rates and Charges. The FBO's rates or charges to General Aviation users for aircraft parking, tie-down and storage shall be determined by the FBO. Such rates or charges shall be fair and reasonable, and shall be equally and fairly applied to all users of the services, without discrimination. All rates and charges for such services and products shall be filed, upon request, with the Airport Manager. 2.3.1.13 Aircraft Tie-downs. FBO shall provide adequate tie-down facilities and equipment, including ropes, chains and other types of restraining devices and wheel chocks for the typical number and type of aircraft simultaneously using the FBO during a peak period. 2.3.1.14 Employee Training. FBO shall provide properly trained personnel to perform all activities which the FBO is required to perform under these Minimum Standards and its License. Personnel while on duty shall be clean, neat in appearance, courteous, and at all times, properly uniformed. Personnel uniforms shall identify the name of the FBO and shall be clean, professional,and properly maintained at all times. Management and administrative personnel shall not be required to wear uniforms. 2.3.1.15 Hangar Storage. FBO shall provide suitable hangar storage facilities constructed in accordance with the City of Loveland building and construction standards. Fort Collins-Loveland Municipal Airport Minimum Standards for Commercial Aeronautical Activities 11 2.3.2 In connection with aircraft airframe and engine repair and maintenance, the FBO shall comply with all requirements for provision of aircraft airframe and engine repair and maintenance services as set out in Article Four of these Minimum Standards. 2.3.3 In connection with flight training and aircraft rental, the FBO shall comply with all requirements for provision of flight instruction and aircraft rental services as set out in Article Four of these Minimum Standards. 2.4 Facility Requirements. Minimum land and improvements required for FBO's shall be as follows: 2.4.1 The minimum land to be leased for an FBO shall be capable of including no less than 140,000 square feet of paved ramp space, capable of regularly supporting the largest general aviation aircraft generally using the Airport, but not less than 12,500 pounds. 2.4.2 Building improvements shall be permanent in nature, shall contain at least 20,000 square feet for total FBO operations(including office, lounge and hangar space)and may be contained in one or more buildings. At a minimum, 4,000 square feet of building area shall contain crew and passenger lounge facilities,clean, sanitary, heated and free public restrooms. At least one working telephone shall be provided for public use. Each FBO shall occupy at least one heated clear span hangar containing 15,000 square feet. This hangar shall be required to have a door opening of at least one hundred ten (110 ) feet in width and thirty(30) feet in height and the hangar must be at least one hundred(100) feet deep. If an existing hangar meeting these standards is not available, the FBO shall finance and build its own facility. 2.4.3 Asphalt or concrete paved surface, on-site automobile parking space shall be provided in compliance with parking standards and requirements of the City of Loveland Land Use Regulations as amended from time to time. Proper signage shall also be installed. 2.4.4 All paving and buildings shall comply with the then current City of Loveland building, development and construction standards and shall be approved in writing by the Cities before construction begins. 2.4.5 Upon completion of construction, FBO shall provide to Airport management three sets of as-built drawings with at least one of them electronically in AutoCAD or other acceptable format. ARTICLE THREE: RETAIL SELF SERVICE FUELING OPERATOR(RSFO) 3.1 Statement of Concept. A Retail Self Service Fueling Operator engages in providing essential and specialized aircraft services to aircraft owners, pilots and passengers. The minimum levels of essential services are purposely set at a lower level than the minimum requirements for a Fixed Base Operator. The purpose of the RSFO is to service the needs of a smaller segment of the aviation market by providing Aviation Gasoline(AVGAS) with a fixed hydrant delivery system designed to allow the individual aircraft Operator to self-fuel their own aircraft. The RSFO is not permitted to sell Jet Fuel. If the RSFO desires to sell both grades of aviation fuel then the RSFO must meet the requirements set forth in Article Two: Fixed Base Operator(FBO). Fort Collins-Loveland Municipal Airport Minimum Standards for Commercial Aeronautical Activities 12 3.2 Services Provided. A Retail Self Service Fueling Operator(RSFO) shall provide or enter into an agreement to provide all of the following essential services to the public at fair and reasonable rates and charges and without unjust discrimination: 3.2.1 Provide Aviation Gasoline(AVGAS) with a fixed hydrant delivery system designed to allow the individual aircraft Operator to self fuel their own aircraft. 3.2.2 Aircraft Line Services: 3.2.2.1 Ramp parking and tie-down; 3.2.2.2 Public restrooms and telephone; 3.2.2.3 Sale of food and beverages to General Aviation through vending machines; 3.2.2.4 Provision of current aeronautical weather information, and 3.2.2.5 Any two (2) Specialized Aviation Service Operator(SASO) services. 3.2.3 A Retail Self Service Fueling Operator may either provide the two(2) required SASO services directly, or by provision of an agreement with a Cities' approved SASO on the Airport, to provide such services. It will remain the ultimate responsibility of the RSFO to ensure such services will be available. 3.2.4 Article Four of these Minimum Standards includes a detailed description of the minimum requirements for the two (2) selected SASO services that all RSFOs are obligated to provide. RSFOs may also engage in other Commercial Aeronautical Activities as identified in its License. 3.3 Operational Minimums. A Retail Self Service Fueling Operator(RSFO) shall meet the following Minimum Standards specifically applicable to management, fueling operations, and line service, as well as general standards(set out in Article One) and any further standards(set out in Article Four) for the required additional SASO services provided: 3.3.1 In connection with aircraft fueling and line services: 3.3.1.1 Contracts For Delivery Of Fuel. RSFO shall demonstrate, to the Cities' satisfaction that a reputable aviation gasoline distributor will provide the RSFO with an enforceable agreement to purchase fuel in quantities necessary to meet the requirements set forth herein. RSFO shall maintain an adequate inventory of Aviation Gasoline(Avgas, 100 Low Lead)to meet the public demand. 3.3.1.2 Calculation of Fuel Flowage. Aviation fuels delivered to the Operator by a vendor will be considered by the Cities to be fuels dispensed for the purpose of calculating rates or charges under its Lease. 3.3.1.3 Hours of Operation For Fuel Sales. Sales of fuel, and into plane delivery of aviation fuel, shall be available at a minimum 14 hours per day beginning no later than 6:OOAM, seven(7) days a week_ Retail Self Service Fueler shall be available Fort Collins-Loveland Municipal Airport Minimum Standards for Commercial Aeronautical Activities 13 during other than its regular business hours on an"on-call" with a maximum response time of two(2) hours. The 24-hour response telephone number shall be clearly posted. 3.3.1.4 Minimum Equipment. RSFO shall provide a fixed hydrant fuel dispensing equipment, properly marked and lit that is capable of servicing,two general aviation aircraft simultaneously in an efficient and safe manner. Dispensing units are to be individually metered and filter equipped. RSFO shall have on-site fuel storage tanks having a minimum capacity of 10,000 gallons of AVGAS. 3.3.1.5 Customer and System User Instructions. RSFO shall post adequate operating and safety instruction for all customers and system users consistent with all applicable guidelines from the National Fire Protection Association(NFPA)and the FAA regarding the handling and dispensing of AVGAS. 3.3.1.6 Safety of Fueling Operation. In conducting fuel operations, RSFO shall install and use adequate electrical grounding facilities at fueling locations to eliminate the hazards of static electricity. It shall provide and have readily available, approved types of fire extinguishers or other equipment commensurate with the hazard involved with fueling of aircraft. All such safety and operational requirements for the storage, handling and dispensing of aviation-grade fuel shall be governed by the applicable National Fire Protection Association(NFPA)and Uniform Fire Code(UFC) regulations and national and local fire codes. Fire suppression systems for fuel storage defined as discretionary by NFPA and UFC regulations shall consist of Fire Rated tanks. All RSFO fueling services and systems shall be subject to inspection for fire and other hazards by the Airport Manager or other representative of the Cities,by the State Oil Inspector and by the appropriate State and local fire agency. RSFO shall be responsible to perform all fuel system equipment maintenance(both periodic and on-demand) and inspection in a manner that meets NFPA,National Air Transport Association(NATA), FAA and all applicable State and local standards. Further, RSFO shall be in full compliance with fire codes and federal, state and local laws, ordinances, rules and regulations pertaining to fire safety. The RSFO shall have spill kits immediately available and shall maintain a spill prevention and control plan in accordance with applicable federal, state and local laws, rules and regulations. 3.3.1.7 Fuel Quality. The RSFO shall take all precautions necessary to ensure that only non-contaminated fuel is delivered into the aircraft serviced. Fuel delivered shall be clean, bright, pure and free of microscopic organisms, water or other contaminants. Quality control of the fuel is the responsibility of the RSFO. The RSFO shall maintain current fuel reports on file and available for auditing at anytime by the Airport Manager. Fueling service by the RSFO shall be in full compliance with federal, state and local laws and regulations including Air Transport Association, Specification 13 (ATA 103). 3.3.1.8 Waste disposal. RSFO shall provide for adequate and sanitary handling and disposal, away from the Airport,of all trash, waste, and other materials. The piling or storage of crates,boxes, barrels and other containers or other items is not permitted outside buildings located on leased premises. 3.3.1.9 Ramp Parking,Tie-Down, Aircraft Storage. The RSFO shall provide ramp parking and adequate tie-down facilities and equipment, including ropes, Fort Collins-Loveland Municipal Airport Minimum Standards for Commercial Aeronautical Activities 14 chains and other types of restraining devices and wheel chocks for at least two(2) transient aircraft. 3.3.1.10 Rates and Charges. The RSFO's rates or charges to General Aviation users shalt be determined by the RSFO. Such rates or charges shall be fair and reasonable, and equally and fairly applied to all users of the services without discrimination. All rates and changes for such services and products shall be filed with the Airport Manager. 3.3.1.11 Employee Training. RSFO shall provide properly trained personnel. Both initial and recurrent training shall be provided to each on duty employee. Personnel shall be clean, neat in appearance,courteous, and at all times, properly uniformed. Personnel uniforms shall identify the name of the RSFO and shall be clean, professional, and properly maintained at all times. Management and administrative personnel, if applicable, shall not be required to wear uniforms. 3.3.2 In connection with the required additional Specialized Aviation Service Operator (SASO) services, the RSFO shall comply with all requirements for provision of the two(2) required additional SASO service as set forth in Article Four of these Minimum Standards. 3.4 Facility Requirements. Minimum land and improvements required shall be as follows: 3.4.1 The minimum land to be leased for a Retail Self Service Fueling Operation shall be one acre(43,560 square feet), including not less than 22,500 square feet of ramp space. 3.4.2 Building improvements shall be permanent in nature, shall contain at least 12,500 square feet for total RSFO operations(including office, lounge and hangar space)and may be contained in one or more buildings. At a minimum, 2,500 square feet of building area shall contain crew and passenger lounge facilities, clean, sanitary, heated and free public restrooms. At least one working telephone shall be provided for public use. Other facility and building requirements shall be dictated by the minimum space requirements determined for each of the two (2) additional SASO services to be provided by the RSFO. If an existing facility suitable for the required additional SASO services is not available, the RSFO shall finance and build its own facility. 3.4.3 All paving and building shall comply with the then current City of Loveland building, development and construction standards and shall be approved in writing by the Cities before construction begins. 3.4.4 Upon completion of construction, RSFO shall provide to the Airport Manager three sets of as-built drawings with at least one of them electronically in AutoCAD or other acceptable format. ARTICLE FOUR: SPECIALIZED AVIATION SERVICES OPERATOR(SASO) 4.1 Aviation Repair Services SASO(Avionics, Painting, Upholstery, Propellers, Instruments, Accessories, etc.) 4.1.1 Statement of Concept. This category of SASO provides specialized commercial aircraft repair services capable of providing an FAA certified shop, or a combination of shops for Fort Collins-Loveland Municipal Airport Minimum Standards for Commercial Aeronautical Activities is the repair and installation of aircraft radios,propellers,instruments,and accessories for general aviation aircraft. This SASO may furnish one, or if desired,any combination of these services. This category includes sale of new and/or used aircraft radios, propellers, instruments and accessories. 4.1.2 Minimum Standards. This SASO shall lease or sublease an area, existing or adequate to erect a building providing, a minimum of 2,500 square feet of floor space to hangar at least one (1) aircraft, to house all equipment and additional floor space for an office, shop, restrooms, customer lounge and telephone facilities for customer use. If painting operations are contemplated, the SASO shall provide a separate paint shop that meets all applicable safety requirements. Paved automobile parking or other acceptable all weather surface to be approved in writing by the Airport Manager prior to installation,and a paved aircraft apron, all within the leased area, and sufficient to accommodate the SASO's services, shall be provided. This SASO shall maintain, as necessary, the repair station certificates as required by the FAA, which are applicable to the operation or operations contemplated. The avionics portion of the services offered must maintain current qualifications of Class I and Class II FAA designated repair station. This SASO shall have its services available(defined as on the Airport or available via telephone or cellular phone)eight(8)hours per day, five(5)days per week. Hours of operation shall be posted. This SASO shall have in its employ,and on duty during the required operating hours, trained personnel currently certified in the services to be performed (such as FAA radio, instrument or propeller repairmen), in such numbers as are required to provide services in an efficient manner. 4.2 Specialized Commercial Flying Services SASO. 4.2.1 Statement of Concept. This category of SASO engages in specialized commercial flying services for hire, for the purpose of providing the use of aircraft for any of the services listed below: Crop dusting, seeding, or spraying; Aerial photography or survey; Power line, underground cable or pipeline patrol; Fire righting, or Any operations, other than sightseeing, specifically excluded from Part 135 of the Federal Aviation Regulations. 4.2.2 Minimum Standards. Fort Collins Loveland Municipal Airport Minimum Standards for Commercial Aeronautical Activities 16 In case of crop dusting,aerial application or other commercial use of chemicals, this SASO shall provide a centrally drained, paved area adequate for all aircraft loading, unloading, washing and servicing. This area must be built and operated in full compliance with all applicable federal, state and local laws and regulations, specifically including but not limited to the USEPA, Colorado Department of Public Health and Environment and the City of Loveland regulations governing such activities. SASO shall also provide for the safe storage and containment of all chemical materials. Such facilities will be in a location designated by the Cities on the Airport, which will provide the greatest safeguard to the public. Material Safety Data Sheets(MSDS) are required to be onsite and two copies shall be provided to the Airport Manager. This SASO shall provide tank trucks for the handling of liquid spray and mixing liquids and aircraft suitably equipped for agricultural operations, and shall take all safeguards against spillage on runways or taxiways or dispersal by wind to any area of the Airport. This SASO shall provide and have based on its leasehold, either owned or under written lease to the SASO, not less than one(1) airworthy aircraft suitably equipped for,and meeting all the requirements of the FAA with respect to the type of operation to be performed. This SASO must provide,by means of an on or off-Airport office or a telephone, a point of contact for the public desiring to utilize SASO's services. This SASO shall have in its employ trained personnel in such numbers as may be required to meet the minimum standards herein set forth in an efficient manner. 4.3 Flight Training SASO. 4.3.1 Statement of Concept. This category of SASO engages in commercial flight training, instructing pilots in dual and solo flight operations, in fixed and/or rotary wing aircraft, in land or sea aircraft, and in providing such related ground school instruction as is necessary to prepare persons for taking a written examination and flight check for the category or categories of pilots' licenses and rating involved. 4.3.2 Minimum Standards. The SASO must lease at least one aircraft tie-down or own or lease hangar space. The SASO may sub-lease these facilities from an approved Airport tenant. In addition, they must provide at least 150-square feet. of properly lighted and heated floor space for a classroom/briefing room, office space and restrooms. This space may be subleased and or shared with other Airport-approved SASOs. If this SASO prefers to build a hangar for aircraft storage, the SASO shall lease or sublease an area adequate to erect a building or buildings containing a minimum of 2,500 square feet to provide for aircraft storage, and space for office, classroom, briefing room, pilot lounge, restrooms and telephone facilities for customer use. Paved automobile parking or other acceptable all weather surface, to be approved in writing by the Airport Manager prior to installation, and a paved aircraft apron, all within the leased area and sufficient to accommodate the SASO's services and operations, shall also be provided. Fort Collins-Loveland Municipal Airport Minimum Standards for Commercial Aeronautical Activities 17 This SASO shall have available for use in flight training, either owned or under written lease to the SASO, a sufficient number of aircraft properly certificated to handle the proposed scope of its student operation, but not less than one(1) properly certificated aircraft. The SASO shall have its services available(defined as on the Airport or available via telephone or cellular phone)eight (8) hours per day, seven(7)days per week. This SASO shall have available, on a full-time basis, at least one(1) ground and flight instructor who has been currently certificated by the FAA to provide the type of ground training offered. 4.4 Aircraft Sales SASO (New and/or Used). 4.4.1 Statement of Concept. This category of SASO engages in commercial aircraft sales of new and/or used aircraft through franchises, or licensed dealership or distributorship (either on a retail or wholesale basis)of an aircraft manufacturer or otherwise; and providing such repair, services and parts as necessary to meet any guarantee or warranty on new and/or used aircraft sold. 4.4.2 Minimum Standards. This SASO shall provide at least 150-square feet. of properly lighted and heated floor space for office space and restrooms. This space may be subleased and or shared with other Airport-approved Operators. Paved automobile parking or other acceptable all weather surface to be approved in writing by the Airport prior to installation and a paved aircraft apron, all within the leased area and sufficient to accommodate this SASO's services and operations, shall also be provided. This SASO shall provide necessary and satisfactory arrangements for the repair and servicing of aircraft, but only for the duration of any sales guarantee or warranty period. Servicing facilities may be provided through written agreement with a repair shop operation at the Airport. This SASO shall provide an adequate inventory, or availability within 24 hours or less, of spare parts for the type of new aircraft for which sales privileges are granted. This SASO shall have its services available on a basis consistent with its franchise agreement. 4.5 Aircraft Airframe and Engine Repair and Maintenance SASO. 4.5.1 Statement of Concept. This category of SASO engages in commercial aircraft airframe and engine repair and maintenance, providing one(or a combination of)airframe and power plant repair services, with at least one(1) person currently certified by the FAA with ratings appropriate to the work being performed. This category of aeronautical services shall also include the sale of aircraft parts and accessories_ 4.5.2 Minimum Standards. Fort Collins-Loveland Municipal Airport Minimum Standards for Commercial Aeronautical Activities 18 This SASO shall lease or sublease an area existing or adequate to erect a building providing at least 2,500 square feet of floor space for airframe and power plant repair services and adequate floor space for office, restrooms, customer lounge and telephone facilities for customer use. Paved automobile parking or other acceptable all weather surface to be approved in writing by the Airport Manager prior to installation and a paved aircraft apron, all within the leased area sufficient to accommodate the SASO's services and operations, shall be provided. This SASO shall provide sufficient equipment, supplies and availability of parts equivalent to that required for certification as a FAA approved repair station. This SASO shall have its services available eight (8) hours per day five(5)days per week. This SASO shall have in its employ(and on duty during the required operating hours)trained personnel in such numbers as are required to meet the minimum standards set forth in an efficient manner, but never less than one(I)person currently certified by the FAA with rating appropriate to the work being performed and who holds an airframe, power plant, or an aircraft inspector rating. 4.6 Aircraft Rental SASO. 4.6.1 Statement of Concept. This category of SASO engages in the commercial rental of aircraft to the public. 4.6.2 Minimum Standards. This SASO must lease at least one(1)aircraft tie-down, or own or lease hangar space. The SASO may sub-lease these facilities from an approved Airport tenant. to addition, this SASO shall provide at least 150-square feet. of properly lighted and heated floor space for office space and restrooms. This space may be subleased and or shared with other Airport-approved SASO's. Paved automobile parking or other acceptable all weather surface, to be approved in writing by the Airport Manager prior to installation, and a paved aircraft apron, all within the leased area and sufficient to accommodate this SASO's services and operations, shall also be provided. This SASO shall have available for rental, either owned or under written lease to Operator,a sufficient number of aircraft properly certified to handle the proposed scope of its operation. This SASO shall have its service available eight (8)hours per day seven (7)days per week. This SASO shall have available trained personnel in such numbers as are required to meet the minimum standards set forth in an efficient manner. 4.7 Aircraft Charter, Air Taxi Service, Sightseeing and Aircraft Management SASO. Fort Collins-Loveland Municipal Airport Minimum Standards for Commercial Aeronautical Activities 19 4.7.1 Statement of Concept. This category of SASO engages in either(a) aircraft charter and air taxi operations by providing air transportation (persons or property) to the public for hire, either on a charter basis or as an Air Taxi Operator, as defined in the Federal Aviation Act of 1958, or as said Act may be amended from time to time, (b) nonstop sightseeing flights that begin and end at the Airport, or(c) management of aircraft for aircraft owners. 4.7.2 Minimum Standards. This SASO shall lease or sublease an area existing or adequate to provide for aircraft storage, including an area to erect a hangar containing not less than 2,500 square feet of floor space for aircraft storage, office, restrooms, customer lounge, and telephone facilities for customer use. Paved automobile parking or other acceptable all weather surface to be approved in writing by the Airport Manager prior to installation, and a paved aircraft apron the leased area and sufficient to accommodate this SASUs services and operations shall also be provided. This SASO shall have available for hire, either owned or under written lease to SASO, at least one(1) four-place aircraft equipped for and capable of use in instrument conditions, or a sufficient number of aircraft properly certificated to handle the proposed scope of its operation. This SASO shall have its services available eight(8)hours per day, seven(7)days per week-, and shall provide on-call service during hours other than the aforementioned. This SASO shall have in its employ and on duty during the required operating hours,trained personnel in such numbers as are required to meet the minimum standards set forth in this category in an efficient manner and otherwise appropriately rated to permit the flight services offered by this SASO. This SASO shall have available sufficient qualified operating crews and satisfactory number of personnel for checking in and ticketing passengers, handling of luggage, and for furnishing or arranging for suitable ground transportation. This SASO shall provide reasonable assurance of continued availability of qualified operating crews and approved aircraft within a reasonable or maximum notice period. Non-scheduled Air Taxi and aircraft management companies providing service to and from the Airport, but not based on the Airport, are exempt from these Minimum Standards. 4.8 Flying Club SASO. 4.8.1 Statement of Concept. This category of SASO is for the purpose of fostering and promoting flying for pleasure, developing skills in aeronautics, including pilotage, navigation and an awareness and appreciation of aviation requirements and techniques. All flying clubs desiring to base their aircraft and operate at the Airport must comply with these requirements. 4.8.2 Minimum Standards. This SASO shall be a registered not for profit or non-profit corporation, association or other entity organized for the primary purpose of providing its members with aircraft for their personal use and enjoyment only. The property rights of Fort Collins-Loveland Municipal Airport Minimum Standards for Commercial Aeronautical Activities 20 the members of the club shall be equal and no part of the net earnings of the club will inure to the benefit of any member in any form(salaries, bonuses, etc.). Flying Club SASOs may not derive greater revenue from the use of its aircraft than the amount necessary for the operations, maintenance and replacement of its aircraft. This SASO may not offer or conduct charter, air taxi, aircraft rentals, or any other form of commercial aeronautical activity. They may not conduct aircraft flight instruction except for regular members, and only members of the flying club may act as pilot in command of the aircraft except when receiving dual instruction. Members may compensate other members for flying services; however, no service can be performed for the benefit of a non-member, except for occasional operations conducted pursuant to FAR Part 91 when the costs are shared with the member. Any qualified mechanic and/or flight instructor, who is a registered member and part owner of the aircraft owned and operated by the flying club SASO, shall not be restricted from doing maintenance and/or giving instruction in aircraft owned by the club. Mechanics and instructors may be compensated by credit against payment for dues or flight time or by direct payment for services, provided however that the mechanic or instructor is not a full time employee of the club. All Flying Club SASOs and their members are prohibited from leasing or selling any goods or services whatsoever to any person or firm other than a member of such club at the Airport,except that said flying club may sell or exchange its capital equipment. Nothing in this paragraph is intended to prohibit occasional events or activities intended to raise funds for the operation of the club, which if conducted on the Airport, have the prior approval of the Airport Manager. A Flying Club SASO shall abide by and comply with all applicable federal, state and local laws, ordinances, regulations, the Rules and Regulations of the Airport, and these Minimum Standards. This SASO, with its request for a License, shall furnish the Cities with a copy of its by-laws, articles of incorporation/association, or other documentation supporting its existence. Flying Club SASOs, upon request by the Cities, shall provide satisfactory evidence of all club income and expenses and evidence of ownership of aircraft. Such request shall be made by the Cities upon reasonable cause. 4.9 Commercial Hangar Operator(SASO). 4.9.1 Statement of Concent. This category of SASO is for an entity which owns or leases a hangar structure(s) for the purpose of leasing or subleasing hangar and associated office or shop space to entities engaging in commercial or non-commercial Aeronautical Activities. 4.9.2 Minimum Standards. This SASO may use its premises for the purpose of(1)the SASO's own use, primarily for its Aircraft and/or equipment, and (2)the teasing or subleasing of Fort Collins-Loveland Municipal Airport Minimum Standards for Commercial Aeronautical Activities 21 hangar and associated office and shop space, which can be used for approved commercial or non-commercial Aeronautical Activities. A SASO engaging in this activity shall have adequate land, apron, vehicle parking, and facilities to accommodate all activities of the Operator and all approved tenants. All required improvements including, but not limited to, apron/paved tie-down, vehicle parking, roadway access, landscaping, and all facilities shall be located on contiguous land or in the general vicinity of the leased area and as approved by the Airport Manager which shall be described in the Lease or License. Apron/paved tie- down shall be adequate, as determined by the Airport Manager, to accommodate the movement of aircraft into and out of the hangar, staging and parking of aircraft 4.10 Temporary Specialized Aviation Service Operator(SASO). 4.10.1 Statement of Concept. Aircraft operators using the Airport may require specialized assistance with the maintenance of their Aircraft and/or flight training of their pilots. When assistance is not available on the Airport through an existing approved Operator due to either the specialized nature of the maintenance and/or flight training requirements, the Airport Manager may allow an Aircraft operator to solicit and utilize the services of a qualified entity to provide said services_ 4.10.2 Minimum Standards. This SASO shall conduct Activity on and from the premises of the Aircraft operator in a first-class manner consistent with the degree of care and skill exercised by experienced Operators providing comparable products and services and engaging in similar activities. The Aircraft operator must submit a request to the Airport Manager on behalf of this SASO, which shall then obtain a 30-day temporary License from the Airport Manager prior to engaging in activity on the Airport. This SASO must meet those requirements of these Minimum Standards which the Airport Manager deems reasonable under the circumstances, including insurance requirements applicable to the type of service being provided. Aircraft operators requiring after-hour or weekend service by a Temporary SASO must notice the Airport Manager prior to the Temporary SASO engaging in activities on the Airport. Aircraft operators are responsible for assuring compliance with all Airport Rules and Regulations by the Temporary SASO while on the Airport. The Temporary SASO shall have and provide to the Airport Manager evidence of all federal, state and local licenses and certificates that are required for the services to be provided on the Airport. ARTICLE FIVE: OFF-AIRPORT ACCESS 5.1 Statement of Concept. This Article shall be known and may be cited as the Fort Collins-Loveland Municipal Airport Access Policy, or the "Access Policy." This Access Policy shall apply to any person or entity desiring aeronautical access to the runways and taxiways of the Airport, from property adjacent to the Airport, but not a part of or owned by the Airport. Access Fort Collins-Loveland Municipal Airport Minimum Standards for Commercial Aeronautical Activities 22 approval is conditioned upon the possession of an executed Access Agreement that stipulates terms and conditions, including permitted activities and proscribed uses. The Cities are not required to allow aeronautical access to a party desiring to enter the AOA of the Airport from an off-Airport location. The Cities are obligated under FAA Grant Assurances to ensure that the following conditions are included, at a minimum, in any such Access Agreement: 5.1.1 Any Access Agreement shall require compliance with any existing and/or future Grant Agreement between the FAA and Cities, and include the ability to cancel such Agreement for non-conformance with these Grant Assurances. 5.1.2 The Airport shall seek recovery of a fair share of initial and continuing costs of providing a public use landing area. The establishment of rates, fees, charges, and the like should be set at levels no lower than those for comparable on-Airport property, which do not give an unfair competitive advantage to the off-Airport party, and be in conformance with FAA Grant Assurances. 5.1.3 Cities shall not be precluded in their rights and powers nor be placed in a position that might result in violation of exclusive rights prohibitions of FAA Grant Assurances. 5.1.4 There shall not be any actual or proposed development or use of land and facilities contrary to the approved ALP. 5.2 Definitions. The following terms as used in this Article Five shall have the following meanings: 5.2.1 "Access Area,"shall mean the entire portion of an Off-Airport Parcel, described in an Access Agreement, that is used by the Off-Airport User for aeronautical purposes, including buildings, hangars, driveways, parking areas, aircraft aprons, taxiways/taxilanes, landscaping or other uses. 5.2.2 "Access Agreement," shall mean in this Article 5 and as used throughout this Agreement, any document approved by the Cities, granting aeronautical access to the Airport by an Off-Airport User, subject to the provisions of this Article. Such Agreement will specify the particular terms, conditions and limits of Airport access, and shall describe the Access Area. 5.2.3 "Access Taxiway," shall mean an aircraft taxiway or taxilane located on or off the Airport, that connects into a taxiway or taxilane on the Airport and that is constructed for the purpose of allowing aircraft to taxi between the Airport and Off- Airport Parcel(s). 5.2.4 "Off-Airport Parcel," shall mean any tract of land or portion thereof not located on the Airport that abuts or will abut an Access Taxiway or Taxilane as such may exist from time to time. 5.2.5 "Off-Airport User," shall mean an owner or user or an Off-Airport Parcel who desires to operate aircraft directly between its Off-Airport Parcel and the Airport. Fort Collins-Loveland Municipal Airport Minimum Standards for Commercial Aeronautical Activities 23 5.3 Access Right. Airport access to Off-Airport Users is not an obligation of the Cities. Access to the Airport may be granted to Off-Airport Users, subject to the terms and conditions of this Article Five and of the Access Agreement granted to each Off Airport User. The access granted shall be for the purpose(s) as defined in the Access Agreement. , so that it will have access to the Airport taxiways leading to runways, for the purpose of maneuvering, taking off, and landing of Aircraft. The access right may be revoked by the Cities for failure to comply with the provisions of these Articles, the Airport Rules and Regulations, Storm Water Management Plan, terms of its Access Agreement, or other policies and provisions of the Airport, or as required by any federal or state oversight action including, but not limited too, FAA, HLS, TSA, and CDOA. 5.4 Off-Airport Parcel Uses; Access Taxiways: Permitted and Prohibited Uses. 5.4.1 Access Area. The Cities,FAA, State of Colorado Division of Aeronautics, or any other regulatory authority shall have the right to enter the Access Area to inspect or perform other regulatory requirements. All safety and operational rules and regulations applicable to the operation of the Airport shall be applicable to the Access Area. 5.4.2 Access Taxiway Construction. An Off-Airport user shall construct Access Taxiways to connect its parcel with Airport taxiways. The number, exact location and configuration of the Access Taxiways will be determined from time to time by the Off-Airport User. Plans and specifications for Access Taxiways shall be approved by the Cities and FAA prior to construction. Access Taxiways shall be built to FAA design standards, and shall be designed and constructed to meet the same standards for taxiway construction as those for Airport taxiways. 5.4.3 Transfer& Maintenance of Improvements. After completion of construction, inspection and approval by the Cities, that portion of the Access Taxiway on Airport property shall be dedicated to the Cities, and maintained by the Cities. Upon demand, Off-Airport Users shall reimburse the Cities for cost of said pavement area maintenance. Those portions of Access Taxiways off the Airport property shall be maintained by the Off-Airport User in accordance with commercial aviation standards for maintenance of public taxiways. 5.4.4 Permitted Uses. An Off-Airport User shall only be permitted to conduct aviation activities from an Off-Airport Parcel which are defined in the Access Agreement. Activities on Off-Airport Parcels are subject to all City of Loveland and/or Larimer County zoning ordinances and land use regulations as applicable. 5.4.5 Self Fueling. Self fueling operations are not permitted on an Off-Airport Parcel. 5.4.6 Development Plan Compliance. Development and improvements on Off-Airport Parcels that access the Airport must be in compliance with the City of Loveland 1994 Comprehensive Master Plan("CDP"),as amended. Off-Airport Users shalt also submit Form 7460-1 to FAA prior to placing or constructing any building or other structure on the Off-Airport Parcel. Fort Collins-Loveland Municipal Airport ` Minimum Standards for Commercial Aeronautical Activities 24 5.4.7 Residential Access. Access to the Airport from Off-Airport Parcels used for residential purposes shall not be permitted. 5.5 Access Agreement. 5.5.1 Application; Granting of Access. Any Off-Airport User who desires access to the Airport from an Off-Airport Parcel shall apply to the Cities for an Access Agreement. The Off-Airport User shall deliver to the Airport Manager a survey plat of the Access Area, including a computation of the size of the Access Area in square footage on the Off-Airport Parcel. Additional information will be provided as detailed in the application, and the Off-Airport User shall clearly show how he/she intends on complying with the CDP. 5.5.2 Conditions for Granting; Access Agreement Granted. Cities' staff and the Airport Manager shall review the application for compliance with the CDP and other requirements as set forth in this Article and make a recommendation to the Cities' Airport Steering Committee to allow or not allow access, and the execution of an Access Agreement. If issued, the Access Agreement shall continue in accordance with the negotiated terms as defined in the Access Agreement , or until it expires or is revoked or terminated by the Cities for cause as described below. Said Agreement is renewable with the prior written approval of the Cities. 5.5.3 Assignment of Access Agreement. The Access Agreement may not be sold, transferred or assigned without the prior written consent of the Cities, which consent shall not be unreasonably withheld. 5.5.4 Contents of Agreement; Amendment of Agreement. The Access Agreement shall specify the size of the Access Area and applicable fees and royalties to be charged pursuant to this Article. Applicable access fees may be found in the attached Airport Rates and Charges, Attachment 4 or in specific Access Agreements and Agreements. An Off-Airport User shall have the right to change the Access Area on its Off-Airport Parcel from time to time provided that such user notifies the Cities of such change, provides a new survey of the revised Access Area, and applies for an Access Agreement for such revised Access Area, which Agreement shall be issued if such revised access area complies with the provisions of this Article. The fee shalt be applicable to any real property added to the Access Area. Any further access or change in existing access location(s) may not be allowed if it is conflict with on-Airport future development plans. All on Airport activities will take priority over Off-Airport access. 5.5.5 Revocation; Reinstatement. The Cities may revoke the Access Agreement of any Off-Airport User who either(1) fails to pay its applicable fee or otherwise to comply with any provision of this Article, with such failure not being corrected within sixty(60)days after written notice thereof is given by the Airport Manager to such user, or(2) fails to pay prior to delinquency the lawfully assessed and levied City or County taxes on its Off-Airport Parcel, or(3) as provided for in the Access Agreement. Any Access Agreement that has been revoked shall be reinstated upon payment of such fee, the correction of any such non-compliance or the payment of such taxes plus all penalties and interest, as applicable. The Cities reserve the right at their sole discretion to permanently revoke the Access Agreement, not withstanding the provisions of this paragraph, if such revocation is due to multiple instances of non- compliance with this Article_ Fort Collins-Loveland Municipal Airport Minimum Standards for Commercial Aeronautical Activities 25 5.5.6 Post-revocation Hearing. In the event that an Access Agreement is revoked, the permittee may request in writing within 15 days of such revocation a hearing before the Airport Steering Committee to appeal the revocation of the Access Agreement. 5.5.7 Prohibition Against Un-Permitted Access; Penalty. It shall be an unlawful trespass for any person to utilize an access right, or enter the AOA of the Airport from an off Airport location for aeronautical purposes, unless such person holds a valid Access Agreement and utilizes the access right in the manner described in that Agreement. 5.5.8 Multiple Off-Airport Users; Single Parcels. Each entity shall apply for and obtain its own Access Agreement as outlined in this Article, and shall be directly responsible for the associated fees. In the event that an Access Agreement has been entered into for several parcels within an adjacent property, all fees and conditions may be addressed in a single Access Agreement. In the event that any breach of the Access Agreement occurs, the Cities, in their sole discretion, may deny access to the Airport for all or any of the parcels and lots within such adjacent property that have access to the Airport under such Access Agreement even if fewer than all of the owners of parcels or lots are in breach of the Agreement. 5.5.9 Conflicting Provisions. If any provision of these Minimum Standards is in conflict with a provision of any Access Agreement entered into by the Cities, the provision of these Minimum Standards shall control over the conflicting provision in the Access Agreement unless the Access Agreement expressly provides that the provision in the Access Agreement shall control over the conflicting provision in these Minimum Standards. 5.6 Access Agreement Fee; Time For Payment; Amount of Fee 5.6.1 Agreement Fee; Time of Payment. At the time of issuance of an Access Agreement, Off-Airport Users shall be charged a fee, which shall be defined in the Access Agreement document. The fee shall be subject to late charges as established and from time to time revised by the Cities, if not paid within 60 days of the date due. 5.6.2 Agreement Fee; Amount. The annual fee for Airport access will be those amounts as determined from time to time by the Cities and incorporated in Rates and Charges, Attachment 4 or as specifically defined in the Access Agreement and associated agreements and as may be amended from time to time. Fort Collins-Loveland Municipal Airport Minimum Standards for Commercial Aeronautical Activities 26 ATTACHMENT TO MINIMUM STANDARDS Required General License Clauses 1. Premises to be operated for use and benefit of the public The Operator agrees to operate any leased premises of Operator on the Airport for the use and benefit of the Public and to furnish good, prompt and efficient service,adequate to meet all demands for its service at the Airport. 2. Federal Requirements; Nondiscrimination a. Operator agrees that in conducting its operations under the License it shall maintain and operate its facilities and services in compliance with all requirements imposed pursuant to the Airport and Airway Improvement Act of 1982, as amended,and any regulations issued there under, as well as all other requirements imposed pursuant to 49 CFR Part 21, Nondiscrimination in Federally Assisted Programs of the Department of Transportation, and as said regulations may be amended. b. Operator agrees: (1) that no person on the grounds of race, color, sex, creed or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of any premises and facilities of Operator at the Airport, (2) that in the construction of any improvements on,over,or under such premises and facilities and the furnishing of services thereon, no person on the grounds of race, color, sex, creed or national origin shall be excluded from the participation in,denied the benefits of, or otherwise subjected to discrimination,(3)that Operator shall use any such premises and facilities in compliance with all other requirements imposed by or pursuant to 49 CFR Part 21, Nondiscrimination in Federally Assisted Programs of the Department of Transportation, and as said regulations may be amended. c. Operator agrees that it will undertake an affirmative action program as required by 14 CFR Part 152, Subpart E, Nondiscrimination in Airport Aid Program, or otherwise approved by the FAA,to ensure 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. Operator 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. Operator assures that it will require that its covered sub- organizations provide assurances to Operator that they similarly will undertake affirmative action programs and that they will require assurance from their sub organizations, as required by 14 CFR Part 152, Subpart E, to the same effect. d. Operator agrees that it shall famish its accommodations and/or services on a fair, equal and not unjustly discriminatory basis to all users thereof, and shall charge fair, reasonable and not unjustly discriminatory prices for each unit or service; provided,that Operator may make reasonable and non-discriminatory Fort Collins-Loveland Municipal Airport Minimum Standards for Commercial Aeronautical Activities 27 discounts, rebates, or other similar types of price reductions to volume purchasers. e. Operator agrees that no person shall be excluded from participation in, denied the benefits of,or otherwise discriminated against in the performance of this License on the grounds of race, color, national origin or sex, as provided in 49 CFR Part 23, Participation of Minority Business Enterprise in Department of Transportation Programs, or parallel regulations issued by the FAA. f. Noncompliance with these nondiscrimination provisions after timely notice of noncompliance is provided to Operator by either the Cities or the U.S. Government,and Operator's failure to substantially remedy such noncompliance within a reasonable period, shall constitute a material breach of these provisions and this License. In the event of such noncompliance,the Cities shall have the right to terminate this License and any estate created hereunder, without liability therefore,or at the election of the Cities or the United States,either or both shall have the right to judicially enforce such provisions. 3. Aircraft Service by Owner or Operator of Aircraft No right or privilege granted herein shall serve to prevent persons operating aircraft on the Airport from perfomung any services on their own aircraft with their own regular employees and equipment(including, but not limited to, repair and maintenance); provided that the Airport Rules and Regulations and License provisions are followed. 4. No Exclusive Rights Nothing herein contained shall be construed to grant or otherwise authorize the granting of an exclusive right to provide any aeronautical service to the public or to conduct any aeronautical activity on the Airport. 5. Airport Development The Cities reserve the right to further develop or improve the Airport as they see fit, without unreasonable interference or hindrance. If the physical development of the Airport requires the relocation of Operator-owned facilities during the any lease term, the Cities agree to provide a comparable location without any unreasonable interruption to the Operator's activities, and agree to relocate all Operator-owned buildings or provide similar facilities for the Operator at no cost to the Operator, except as amended by a written lease with the Operator. 6. Cities' Right to Maintain the Airport The Cities reserve the right(but shall not be obligated to the Operator) to maintain and 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 Operator in this regard. 7. Right of Flight Fort Collins-Loveland Municipal Airport Minimum Standards for Commercial Aeronautical Activities 28 There is hereby reserved to Cities,their successors and assigns, for the use and benefit of the public, a right of flight for the passage of aircraft in the airspace above the surface of any leased premises of Operator on the Airport, together with the right to cause in said airspace such noise as may be inherent in the operation of aircraft using said airspace for landing at, taking off from or operating on the Fort Collins-Loveland Municipal Airport. 8. Airport Obstructions or Other Hazards The Operator expressly agrees for itself, its successors and assigns that it will (I) not erect nor permit the erection of any structure or object nor permit the growth of any tree on any leased premises of Operator on the Airport that violatesl4 CFR Part 77 Surfaces; (2) not make use of any such leased premises in any manner which might interfere with operation or safety of the Airport or otherwise constitute a hazard; and (3) submit form 7460-1 and 7480-1 (if applicable)to the FAA at least 30 days prior to the construction of any structure or potential obstacle. The Cities reserve the right to take any action it considers necessary to protect the aerial approaches of the Airport against obstruction, and to prevent and abate any hazard or interference, including(1)the right to prevent the Operator from erecting, or permitting to be erected, any building or other structure on the Airport which, in the opinion of the Cities, would limit the usefulness of the Airport or constitute a hazard to the aircraft, and (2)the right to enter upon leased premises and to remove the offending structure or object, abate the interference, or cut the offending tree, all of which shall be at the expense of the Operator. 9. Compliance with Laws, etc. The Operator shall comply with the Airport Rules and Regulations,the Airport Security Plan, Airport Minimum Standards,and the Airport Operations Manual, as existing at the time the License is granted, or as amended from time to time thereafter at the Cities' sole discretion. The Operator shall comply with all federal, state and municipal laws, ordinances, codes and other regulatory measures(specifically including but not limited to all FAA and U.S. Environmental Protection Agency("EPA") requirements) now in existence or, as may be hereafter modified or amended, applicable to the operation conducted. If the Operator fails to comply with this provision and the requirements referenced herein and such failure results in damage or expense to the Cities, the Operator shall indemnify the Cities for that damage or expense. Operator shall, at its sole cost and expense,pay all taxes, fees and other charges that may be levied, assessed or charged by any duly authorized agency. 10. Required Licenses and Certificates The Operator shall procure and maintain during the term of the agreement all licenses, certificates, permits and other similar authorizations required for the conduct of its authorized business operations on the Airport. 11. Handling of Waste Liquids No substances likely to impair the operation of sewage or drainage systems, or otherwise not permissibly placed in such sewage or drainage systems, shall be placed therein; nor shall oils, greases, detergents or other liquid wastes be disposed of by pouring on the Fort Collins-Loveland Municipal Airport Minimum Standards for Commercial Aeronautical Activities 29 ground. All rules, regulations, advisory publications or other requests issued by the United States EPA or competent governmental authority shall be complied with at all times, including but not limited to the installation of a grease and oil trap designed to catch all oils, greases,detergents, and other insoluble substances used in the maintenance and washing of the Operator's or the Operators customers',aircraft. Installation of said trap shall conform to the recommended specifications of the USEPA, the State of Colorado, the Cities, any applicable special district, and the sewage operator. 12. Indemnification a. In concert with and in addition to the insurance requirements set forth herein,Operator shall indemnify, protect, defend, and hold Cities, their officers, employees, and agents, and their insurers, completely harmless from and against any and all liabilities, losses, suits,claims,judgments, fines or demands arising by reason of injury or death of any person or damage to any property, including all reasonable costs for investigation and defense thereof(including but not limited to attorney fees,court costs, and expert fees),of any nature whatsoever arising out of or incident to this License and/or the use or occupancy of any leased premises of Operator on the Airport,or the acts or omissions of Operator's officers,agents, employees, contractors, subcontractors, licensees,or invitees, regardless of where the injury, death, or damage may occur, unless such injury, death or damage is caused by the sole negligence of the Cities. Operator shall use counsel reasonably acceptable to the Cities in carrying out its obligations hereunder. b. Cities shall give Operator reasonable notice of any claims or actions against the Cities, which directly or indirectly affect Operator, and Operator, shall have the right to compromise and defend the same to the extent of its own interest. C. Operator agrees that if a prohibited incursion into the Air Operations Area occurs, or the safety or security of the Air Operations Area, the Field and Runway Area, or other sterile area safety or security is breached by or due to the negligence or willful act or omission of any of Operator's employees, agents, or contractors and such incursion or breach results in a civil penalty action being brought against the Cities by the U.S. Government, Operator will reimburse Cities for all expenses, including attorney fees, incurred by Cities in defending against the civil penalty action and for any civil penalty or settlement amount paid by Cities as a result of such incursion or breach of airfield or sterile area security. Cities shall notify Operator of any allegation, investigation, or proposed or actual civil penalty sought by the U.S. Government for such incursion or breach. Civil penalties and settlement and associated expenses reimbursable under this paragraph include but are not limited to those paid or incurred as a result of violation of TSA Part 1542, Airport Security,TSA Part 1544, or FAR Part 139, Certification and Operations: Land Airports Serving Certain Air Carriers. d. The provisions of this section shall survive the expiration or early termination of this License for matters arising before such expiration or early termination. Fort Collins-Loveland Municipal Airport Minimum Standards for Commercial Aeronautical Activities 30 13. Right of Entry a. Any official representative of the Cities may enter upon any leased premises of Operator on the Airport during normal operating hours, and for any purpose incidental to, or connected with the performances of the Operator's obligations under this License or in the exercise of their function as a representative of the Cities. b. Further, any official representative of the Cities may enter upon any leased premises of Operator on the Airport at any time in response to an emergency- C. To facilitate 13.b above,the Operator shall either provide escrowed door keys, access codes, or the like to the Airport Manager for any leased premises of Operator on the Airport, or accept responsibility and hold Cities harmless for possible damage to such leased premises as a result of a forced entry by Cities representatives in responding to an emergency. 14. Termination Upon the expiration or other termination of this License, the Operators rights to the premises, facilities, other rights, licensed services and privileges granted in this License shall cease, and the Operator shall, upon such expiration or termination immediately and peacefully surrender the same. 15. Assignment All covenants, stipulations and provisions in this License shall extend to and bind the Operator's legal representatives, successors and assigns. This License may not be assigned, without the prior written consent of the Cities, which shall be exercised in the Cities'sole discretion after consideration of, among other things, the qualifications of the proposed assignee, the effect of the assignment on the Cities, and the effect of the assignment on competition at the Airport. Assignment shall not relieve the Operator from its obligations under the License unless expressly so stated in the Cities'written consent. As used herein, "assignment" means and includes, but is not limited to, (i)the grant or transfer of any right, title, possession, lien, encumbrance, security interest or other interest in, on or to any party of the stock or other ownership interest of Operator,(ii) grants or transfers to a single person or entity, including to any other person(s) and entity(ies) directly or indirectly controlled by it or which directly or indirectly control it, of any right, title, possession, lien, encumbrance, security interest or other interest in,on or to any part of the stock or other ownership interest of Operator, (iii))the grant or transfer of any right, title, lien, encumbrance, security interest or other interest in, on or to some or all of the income or profits(however they may be measured or defined, e.g., gross income, gross profit, operating profit, net profit)of Operator, and (iv) the grant or transfer of any right, title, lien, encumbrance, security interest or other interest in, on or to some or all of the cash flow (however it may be measured or defined)of Operator. If Operator shall assign or attempt to assign its interest in the whole or Fort Collins-Loveland Municipal Airport Minimum Standards for Commercial Aeronautical Activities 31 any part of this License in violation of this Article, such assignment shall be void and this License shall thereupon automatically terminate. Cities'consent to one assignment shall not be deemed to be a consent to any subsequent assignment. 16. Subordination This License shall be subordinate to the provisions and requirements of any existing or future agreement between Cities, the State of Colorado, and the United States, relative to the development, operation or maintenance of the Airport. This License 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 nonexclusive use of the Airport by the United States, during the time of war or national emergency. Fort Collins-Loveland Municipal Airport Minimum Standards for Commercial Aeronautical Activities 32 ATTACHMENT 2 Minimum Insurance Requirements Fort Collins-Loveland Municipal Airport for Commercial Aeronautical Activities Note: In all cases, the minimum insurance requirements for each of the below-listed commercial aeronautical activities shall not be less that the maximum amount that may be recovered against the Cities under the Colorado Governmental Immunity Act,(See. 24-10-101-et sec.C.RS.) whichever is greater. Fixed Base Operator(FBO) Aircraft Liability - $5,000,000 per occurrence combined single limit for bodily injury and property damage including passengers. Comprehensive Public Liability and Property Damage(Premises)- $5,000,000 per occurrence of combined single limit bodily injury and property damage. Hangar Keeper's Liability- $5,000,000 per occurrence. Products & Completed Operations Liability - $5,000,000 per occurrence. Environmental Liability - $1,000,000 Retail Self Service Fueler(RSFO) Aircraft Liability - $5,000,000 per occurrence combined single limit for bodily injury and property damage including passengers. Comprehensive Public Liability and Property Damage(Premises) - $5,000,000 per occurrence of combined single limit bodily injury and property damage. Hangar Keeper's Liability - $1,000,000 per occurrence. Products & Completed Operations Liability- $5,000,000 per occurrence. Environmental Liability- $1,000,000 Aviation Repair Services SASO (Avionics, Painting, Upholstery, Propeller, Instruments, Accessories,etc.) Premises Liability - $1,000,000 per occurrence of combined single limit for bodily injury and property damage. Products & Completed Operations Liability for Repairs & Services and Parts not Installed - $1,000,000 per occurrence. Hangar Keeper's Liability—$600,000 per occurrence. Fort Collins-Loveland Municipal Airport Minimum Standards for Commercial Aeronautical Activities 33 Motor Vehicle Liability- If using vehicles on the air operations area in support of business, $600,000 per occurrence combined single limit for bodily injury and property damage. Specialized Commercial Flying Services SASO Aircraft Liability - $1,000,000 per occurrence combined single limit for bodily injury (including passengers) and property damage. With respect only to passenger bodily injury, a minimum sub-limit of$100,000 per passenger will be permitted, as applicable. Premises Liability- $1,000,000 per occurrence of combined single limit for bodily injury and property damage. Motor Vehicle Liability- If using vehicles on the air operations area in support of business, $600,000 per occurrence combined single limit for bodily injury and property damage. Flight Training SASO Aircraft Liability - $1,000,000 per occurrence combined single limit for bodily injury (including passengers) and property damage. With respect only to passenger bodily injury a minimum sub-limit of$100,000 per passenger will be permitted, as applicable. Premises Liability - $1,000,000 per occurrence of combined single limit for bodily injury and property damage. Motor Vehicle Liability- If using vehicles on the air operations area in support of business, $600,000 per occurrence combined single limit for bodily injury and property damage. Aircraft Sales SASO (New and/or Used) Aircraft Liability - $2,000,000 per occurrence combined single limit for bodily injury and property damage with respect only to passenger bodily injury, a minimum of $100,000 each person. Premises Liability - $1,000,000 per occurrence of combined single limit for bodily injury and property damage. Products & Completed Operations Liability for Sale of Aircraft - $1,000,000 per occurrence. Motor Vehicle Liability - If using vehicles on the air operations area in support of business, $600,000 per occurrence combined single limit for bodily injury and property damage. Aircraft Airframe& Engine Repair& Maintenance SASO Fort Collins-Loveland Municipal Airport Minimum Standards for Commercial Aeronautical Activities 34 Premises Liability(hangar operation) -$1,000,000 per occurrence combined single limit for bodily injury and property damage. Products & Completed Operations Liability for Repairs& Services and Parts not Installed-$1,000,000 per occurrence. Hangar Keeper's Liability— $600,000 per occurrence. Motor Vehicle Liability—If using vehicles on the air operations area in support of business, $600,000 per occurrence combined single limit for bodily injury and property damage. Aircraft Rental SASO Aircraft Liability- $1,000,000 per occurrence combined single limit for bodily injury (including passengers)and property damage. With respect only to passenger bodily injury a minimum sub-limit of$100,000 per passenger will be permitted, as applicable. Premises Liability- $1,000,000 per occurrence of combined single limit for bodily injury and property damage. Motor Vehicle Liability—If using vehicles on the air operations area in support of business, $600,000 per occurrence combined single limit for bodily injury and property damage. Air Charter& Air Taxi SASO Aircraft Liability Per Occurrence—combined single limit for bodily injury and property damage with respect only to passenger bodily injury and property damage, based on passenger seating capacity as follows: Seating Capacity Amount 1-4 passengers $2,000,000 5-9 passengers $5,000,000 10 & over $15,000,000 Premises Liability- $1,000,000 per occurrence of combined single limit for bodily injury and property damage. Motor Vehicle Liability—If using vehicles on the air operations area in support of business, $600,000 per occurrence combined single limit for bodily injury and property damage. Flying Club SASO Aircraft Liability- $1,000,000 per occurrence combined single limit for bodily injury (including passengers)and property damage. With respect only to passenger bodily injury a minimum sub-limit of$100,000 per passenger will be permitted, as applicable. Premises Liability- $1,000,000 per occurrence combined single limit for bodily injury and property damage. Fort Collins-Loveland Municipal Airport Minimum Standards for Commercial Aeronautical Activities 35 Motor Vehicle Liability—If using vehicles on the air operations area in support of business, $600,000 per occurrence combined single limit for bodily injury and property damage. Multiple Commercial Activities Operator shall provide certificates of insurance coverage in an amount equal to the highest individual insurance requirement stipulated for the specific commercial aeronautical services being performed as stated above. Air Carrier Aircraft Liability Per Occurrence—combined single limit for bodily injury and property damage based on passenger seating capacity as follows: Seatine Capacity Amount 1-19 passengers $20,000,000 20-59 passengers $50,000,000 60-99 passengers $100,000,000 100+passengers $150,000,000 The above insurance limits shall be determined by the capacity in passenger seats of the largest aircraft that services Airport in the airlines fleet. Premises Liability- $1,000,000 per occurrence of combined single limit for bodily injury and property damage. Hangars Keepers Liability—If applicable, while in care, custody and control $5,000,000 per occurrence. Motor Vehicle Liability—If using vehicles on the air operations area in support of business, $600,000 per occurrence combined single limit for bodily injury and property damage. Fort Collins-Loveland Municipal Airport Minimum Standards for Commercial Aeronautical Activities 36 ATTACHMENT Application For Business License Fort Collins-Loveland Municipal Airport 1. BUSINESS NAME: ADDRESS: PHONE: FAX: 2. RESPONSIBLE PARTY OR PRINCIPALS& OWNERSHIP PERCENTAGE: ( %) PHONE: ( %) PHONE: ( %) PHONE: (Use additional sheet if necessary to completely answer.) 3. BUSINESS LICENSE REQUESTED (Category from Minimum Standards): 4. DESCRIPTION OF SERVICES IN DETAIL (Attach Additional Sheets If Necessary): 5. DESCRIPTION OF FACILITY(Include Size,Type Building, Intent to Lease or Build): 6- PROPOSED DATE OF COMMENCEMENT OF BUSINESS: BUSINESS NAME: 7. NUMBER OF EMPLOYEES/NEW JOBS CREATED: 8. ANTICIPATED SALARY RANGES OF EMPLOYEES: 9. NAMES AND QUALIFICATIONS OF KEY PERSONNEL: 10. PROPOSED HOURS OF OPERATION: Fort Collins-Loveland Municipal Airport Minimum Standards for Commercial Aeronautical Activities 37 8. FAA CERTIFICATES & LICENSES HELD FOR PROPOSED ACTIVITIES (Include Type Certificate and Certificate Number): 9. INSURANCE(List All Insurance Coverage Applicable and Limits of Liability. Must Meet Minimum Insurance Requirements Contained In Minimum Standards): to- Are the Cities of Fort Collins and Loveland,Colorado named as an Additional Insured? YES NO 11. ATTACHMENTS: The following documents at a minimum must accompany the submittal of this Application. Failure to attach may cause Application to be incomplete and not considered. a. Corporate Financial Statements b. Banking References C. Personal Financial Statements for Previous Two(2) Years(If a family owned business or no previous corporate financial history available,or at the discretion of the Authority). All commercial activities conducted on the Fort Collins-Loveland Municipal Airport require an approved Business License. All questions and comments should be directed to the Airport Manager. Fort Collins Loveland Municipal Airport Minimum Standards for Commercial Aeronautical Activities 38 ATTACHMENT Rates and Charges Fort Collins-Loveland Municipal Airport License Fee - $300.00 per year 1. All FBOs, RSFOs, and SASOs licensed to provide services at the Airport either on Airport property or on off-Airport property subject to an access agreement shall pay a license fee at the time of issuance of the license in the amount of $300.00 per calendar year, prorated in amount based on partial year licensing. Fort Collins-Loveland Municipal Airport Minimum Standards for Commercial Aeronautical Activities 39