02/13/1990LEASE
THIS LEASE is made and entered into on the 13th day of
February, 1990, by and between the MONROE COUNTY, a political
subdivision of the State of Florida, Lessor, hereinafter referred
to as "COUNTY", and PRIORITY AIR, INC., a Florida corporation,
Lessee, hereinafter referred to as "PAI".
WHEREAS, COUNTY owns an airport known as Key West Interna-
tional Airport located in Key West, Monroe County, Florida,
hereinafter referred to as the "airport", and
WHEREAS, PAI is engaged in the business of air transporta-
tion of cargo, mail and other property, and
WHEREAS, PAI desires to obtain certain rights and privileges
in connection with the use of the airport facilities, and the
COUNTY is willing to grant and lease the same to PAI on a
non-exclusive basis, upon the terms and conditions hereinafter
stated.
NOW, THEREFORE, for and in consideration of the mutual
covenants and agreements herein contained, and other valuable
considerations, COUNTY does hereby lease unto PAI, and PAI does
hereby lease from COUNTY certain premises and facilities, rights
and privileges, as follows:
1) Premises. COUNTY does hereby lease to PAI, and PAI
leases "from COUNTY, the eastern portion, measuring forty-seven
feet by thirty feet (47' x 30' ) of the Air Cargo building pre-
sently located at the airport, as indicated on the drawing
labelled as Exhibit "A" that is attached hereto and made a part
hereof.
2) Use of the Airport. PAI shall be entitled to use, in
common with others authorized to do so, the airport facilities
and appurtenances, together with all equipment improvements and
services which have been or may hereafter be provided at or in
connection with the airport for common use, in the operation of a
business for the transportation of cargo, mail and other property
by air.
3) Term. The initial term of this lease shall commence on
February 1, 1990, and end on September 30, 1990. PAI
shall have the option to renew this lease for additional terms of
one (1) year or more each, upon such terms and conditions and
rent as may be agreed to by the parties.
4) Rent. During the term of this lease, PAI shall pay to
the COUNTY, rent as follows:
(1) the amount of eight dollars and forty-one
cents ($8.41) per square foot, for the area of one
thousand four hundred ten (1,410) square feet, in the
Air Cargo building, for a total of eleven thousand,
eight hundred fifty-eight dollars and ten cents
($11,858.10) per annum, plus
(2) the amount of thirty-six and three -tenths
cents ($0.363) per square foot, for an area of one
thousand nine hundred forty (1940) square feet, of open
land adjacent to the Air Cargo building, for use of
loading, unloading, and parking of automotive vehicles,
for a total of seven hundred four dollars and
twenty-two cents ($704.22) per annum.
Such rent shall be paid in equal installments, each of which
shall be due and payable on or before the first day of each
calendar month during which this lease is in effect. Upon the
failure of PAI to pay any such installment when due, the COUNTY
will be entitled to charge and collect, and PAI will be obligated
to pay, a late fee of two percent (2%) of any such amount, if
paid within thirty (30) days of the date due, and five percent
M) of any such amount, not paid within thirty (30) days of the
date due. Such late fees will be in addition to the amount of
rent due, and they shall not preclude the COUNTY from seeking any
other remedy for late payment of rent. In the event that any
check, draft, or negotiable instrument by which PAI has tendered
any rent payment is returned to the COUNTY, and not honored,
whether for insufficient funds or other reason, the COUNTY will
be entitled to charge and collect, in addition to any applicable
late payment fees as provided above, a fee of twenty-five dollars
($25.00) for such dishonored instrument. Such penalty fee will
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be in addition to the amount of rent due, and it shall not
preclude the COUNTY from seeking any other remedy for late
payment of rent.
5) Security Deposit. In addition to the rent payments as
provided above, PAI shall pay to the COUNTY, upon the date of
execution of this Agreement, an amount of Two Thousand Five
Hundred Dollars ($2,500.00), which the COUNTY will hold as a
security deposit. In the event of any breach by PAI of any of
the terms of this Agreement, including any failure to timely pay
any rent due, the COUNTY may draw upon the monies held by the
COUNTY as security, to pay and cover any amounts due and owing
from PAI.
6) Landing Fees. In addition to the rent as provided
above, PAI shall pay to the COUNTY, landing fees computed as
follows:
$.55 per 1,000 pounds of approved maximum gross landing
weight. A minimum landing fee of $6.88 will be charged for all
aircraft weighing less than 12,500 lbs. gross landing weight.
PAI shall report to the COUNTY not later than the loth day
of each month, PAI's Actual Revenue Trip Arrivals at the airport
during the preceding calendar month, which shall include the
number and type of such arrivals. The numbers of arrivals so
operated, multiplied by the applicable approved maximum gross
landing weights for each type of aircraft, shall determine the
weight for which the monthly payment shall be made.
The term "approved maximum gross landing weight" for any
aircraft as used herein shall be the maximum gross landing weight
approved by the Federal Aviation Administration for landing such
aircraft at the airport herein.
7) Lease Hold Improvements and Use. PAI shall have the
right to occupy the eastern portion, measuring forty -seven -feet
by thirty feet (47' x 30') of the Air Cargo building, and an area
of one thousand nine hundred forty (1,940) square feet of open
land adjacent to the Air Cargo building. During the term of this
lease PAI shall not park or place any automotive vehicles in any
spaces other than those designated by the COUNTY for parking, and
PAI shall not park any vehicle overnight anywhere on airport
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property, without prior written consent to do so, obtained from
the Director of Airports.
8) Common Areas. PAI shall have the right to use, in
common with others, the airport space and facilities to permit
landing, taking off, taxiing, loading, unloading and servicing of
PAI aircraft, subject to reasonable rules and regulations of
COUNTY as to the use of such common spaces and facilities.
9) Right of Ingress and Egress. PAI, its agents, employ-
ees, customers,suppliers and patrons shall have the right of
ingress and egress to and from the leased premises, which shall
not be unreasonably restricted by COUNTY.
10) Utilities. PAI shall be responsible for the payment
for electrical service, water service, trash removal service, and
similar utility services as needed.
11) Assignment. The premises leased hereunder may not be
sublet, and this lease may not be assigned without the written
consent of the COUNTY.
12) Maintenance of Premises. PAI shall be responsible for
and shall properly maintain the lease premises, and upon the
termination of this lease, shall leave the premises in at least
as good condition as at the time of the commencement of this
lease, normal use and occupancy excepted.
13) Insurance. PAI agrees to indemnify and save COUNTY
harmless from and against all claims and actions and expenses
incidental thereto, arising out of damages or claims for damages
resulting from the negligence of PAI, its agents, or employees in
the use or occupancy of the leased premises and the common areas
of the airport facilities by PAI. PAI agrees to carry and keep
in force Comprehensive General Liability Insurance coverage with
combined single limits for bodily injury and property damage in
the amount of One Million Dollars ($1,000,000.00). The COUNTY
shall be named an additional insured and will be furnished with a
Certificate in evidence of the insurance providing for no less
than thirty (30) days notice in the event of material change or
cancellation. Lessee shall carry its insurance coverages with a
company authorized to do business in the State of Florida.
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14) Default. The
failure
of
PAI to
pay any
installment of
rent when it becomes
due or
any
other
charges
or fees shall
constitute a default under the terms of this lease. Further, the
failure of PAI to perform any other of the covenants of this
lease, which failure shall continue for a period of fifteen (15)
days after notice thereof is given to PAI in writing by the
COUNTY shall also constitute a default under the terms of this
lease. In the event of a default, COUNTY may, at its options,
declare the lease forfeited and may immediately re-enter and take
possession of the leased premises, and this lease shall
terminate. If it shall be necessary to employ the services of an
attorney in order to enforce its rights under this paragraph, or
to collect any of its rentals or fees or charges due, COUNTY
shall be entitled to reasonable attorney's fees.
15) Cancellation of Lease. COUNTY may cancel this Lease
agreement by giving PAI sixty (60) days advanced written notice
upon the happening of any one of the following events: the
filing of a voluntary petition in bankruptcy by PAI; the institu-
tion of an involuntary proceeding in bankruptcy and the adjudica-
tion of PAI as bankrupt; the taking by a court of competent
jurisdiction of PAI and its assets, pursuant to a proceeding
under the provisions of any federal reorganization act; the
appointment of a receiver of PAI's assets; the divesting of PAI's
lease hold estate by other operation of law; the abandonment of
PAI of its air cargo transportation business at the airport for a
period of sixty (60) days.
IN WITNESS WHEREOF, the parties hereto caused this lease to
be executed as of the day and year above written.
BOARD OF COUNTY COMMISSIONERS (SEAL)
OF MONROE COUNTY, FLORIDA Attest :DA=y 4 40ISAGE, Clerk
By: By
or/Chairman erc
PRIORITY AIR, INC. (SEAL)
Attest:
By By:
President Secretary 40VODMAJTO
(AND LEG& SU
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