2006-03......................
RESOLUTION NO. 2006-3
EXTRACT FROM THE MINUTES OF AN OFFICIAL MEETING OF THE
Airport Authority OF Blair , NEBRASKA, SPONSOR OF
THE Blair MUNICIPAL AIRPORT, HELD ON
20
The following resolution was introduced by D. Johnson ,
Motion b L r nzen
read in full, secon$ie( �y Havekost and considered;
RESOLUTION ADOPTING AND APPROVING THE EXECUTION OF A
REVOLVING HANGAR PROGRAM. AGREEMENT AND , FINANCING
STATEMENT FOR HANGAR PROJECT NO. H-01 WITH THE
DEPARTMENT OF AERONAUTICS OF THE STATE OF NEBRASKA TO
OBTAIN STATE FUNDS UNDER THE PROGRAM FOR THE DEVELOP-
MENT OF A HANGAR ON THE Blair MUNICIPAL
AIRPORT.
Be it resolved by the Chairman
Airport Authority
that:
and members of the
of Blair , Nebraska,
1. The Airport Authority shall enter into a Revolving
Hangar Program. Agreement and Financing Statement with the
Nebraska Department of Aeronautics for Project No. H-01
for the purpose of obtaining State funds for the construction
of a hangar on.the Municipal Airport and that such agreement
shall be as set forth hereinbelow.
2. The Chairman of the Authority is hereby
authorized and directed to execute said Revolving Hangar
Program Agreement and Financing Statement on behalf of the
Authority , and the Secretary is hereby
authorized and directed to attest said execution.
3. The said agreement and financing statement referred to
herein above is inserted in full and attached herewith, and
made a part hereof as Exhibit "0".
Upon calling for a vote on the resolution, 5 voted yea, and
0 voted nay, and the resolution therefore was declared passed
and approved n September 19 , 20 06
ATTEST:
C k a retary '(/Ma - airman
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q°e on ffleyow v
i
REVOLVING HANGAR PROGRAM AGREEMENT
PROJECT NO. BLAIR H-01
This is an agreement between the Department of Aeronautics, State of Nebraska, referred to as the Department, and
the Airport Authority, of Blair, Nebraska, referred to as the Sponsor.
RECITALS
1) The Sponsor, who has title to or controls the Blair Municipal Airport, wants to increase available hangar space
at their public -use airport. The Department agrees to assist the Sponsor as an effort to aid and foster aviation interests
and activities within the State.
CONSTRUCTION
2) The Sponsor agrees to construct a new hangar or purchase an existing hangar of the specific size and
configuration described on page 5 and shown on Exhibit A, attached hereto and made a part hereof by reference. The
construction will be according to the contract or sales agreement, noted on page 5, between the Sponsor and the
Contractor. New construction shall be completed according to the plans approved by the Department, identified on
page 5, which are made a part of this agreement by reference.
3) The Sponsor will construct or will require that the hangar be constructed in compliance with all applicable
state and local building codes and regulations. These codes and regulations may include but are not limited to the
requirements of the State Electrical Division, the State Department of Environmental Quality, the State Department of
Health and the State Fire Marshal.
4) The Sponsor shall be responsible for the day to day and final inspection of the hangar during construction.
The hangar shall be subject to the inspection and approval of the Department, or any other agency responsible for the
enforcement of applicable state or local building codes or regulations, at any time. This includes, but is not limited to,
the inspections and approvals of those agencies mentioned above. If the building is inspected by agencies other than
the Department the Sponsor shall obtain and provide to the Department copies of inspection reports and final
acceptance certificates.
5) The Sponsor shall pay all costs of construction and periodically submit to the Department progress estimates
or invoices. The Department agrees to reimburse the Sponsor for seventy (70) percent of the eligible project costs up
to $200,000.00.
The Department shall retain ten (10) percent from each reimbursement until the Sponsor has completed the following
items. When these items are complete, title to the hangar shall be vested with the Department:
a) paid the final construction estimate;
b) inspected and advised the Department in writing of their acceptance of the building;
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c) provided the Department with any applicable inspection reports; and
d) provided the Department with proof of insurance for the building, according to paragraph 13;
CONDITIONAL SALE AGREEMENT
6) When the Sponsor accepts the building as complete or uses the building before completion, the building shall
be considered complete only for monthly payment purposes. Upon acceptance the Sponsor shall retain possession of
the building as lessee. The hangar shall be considered personal property at all times. and shall become the personal
property of the Department upon its completion.
7) ' The Department agrees to sell the building to the Sponsor. The Sponsor agrees to purchase the building from
the Department for the purchase price listed on page 5 of this agreement. The Sponsor agrees to repay the Department
the entire purchase price according to the monthly schedule shown on page 5 or as revised by an addendum fully
executed by the Sponsor and the Department.
8) The express condition of this sale and purchase is that the title, ownership and right of possession of the
building shall remain with the Department for the life of this agreement. The title shall not pass to the Sponsor until
the Sponsor pays the entire amount of the agreement to the Department. When the Sponsor has paid the full amount
of the agreement the building shill become the property of the Sponsor and all title, right and ownership shall transfer
to, and automatically vest in, the Sponsor. At that time this agreement shall serve as a conveyance to the Sponsor.
9) When the full purchase price has been paid and title passed to the Sponsor this agreement shall terminate.
GENERAL CONDITIONS
10) The Department has the right to enter the airport and the building for inspection purposes at any time for the
life of this agreement.
11) The Sponsor shall have the right to pay all or any part of the balance of the purchase price to the Department at
any time without penalty.
12) The Sponsor shall include in all subleases to others a clause that makes such subleases subject to immediate
cancellation if the Department repossesses the building, and generally subject to this agreement.
13) The Sponsor agrees to take good care of the building and keep it insured at its own expense against the
hazards of fire, windstorm, and hail with loss payable to the Department and the Sponsor as their interests may appear.
The Sponsor shall insure the building for an amount at least equal to the purchase price of the building.
14) If the Sponsor:
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a) fails to pay any installment of the purchase price promptly when it becomes due by the terms of this
agreement, or
b) leases space in the proposed building for non -aeronautical purposes without adequate provisions for
making space available for aviation purposes, or
C) removes or attempts to remove, encumbers or attempts to encumber, or sells or attempts to sell, the
above described building, or
d) fails to keep the building in good condition, or
e) fails to perform any provision of this agreement
without the written permission of the Department, the Department may consider this agreement breached by the
Sponsor. At their option the Department.may take over the immediate possession of the building, retaining all other
rights set out in this agreement. In that event, all rights and interests of the Sponsor in the building shall end; all
payments made by the Sponsor may be retained by the Department as liquidated damages and as compensation for the
Sponsor's use of the building; and the Department may:
i) use and operate the building for any purpose, or
ii) sublease the building or any part of it, or
iii) remove the building, or
iv) make necessary repairs.
15) If the Department removes the building, it may do anything necessary to disconnect the building from the
footings and foundations. The Department shall not be liable for any damage to the airport nor shall they be required
to return the airport to its natural condition. If the Department repairs the building the Sponsor shall reimburse the
Department for all costs associated with the repairs within thirty (30) days.
16) If the Sponsor stops operating the present airport as a public -use airport the Sponsor can: a) abandon the
building and immediately reimburse the Department for the remaining amount due on the building; or b) relocate the
hangar onto a new public -use airport and continue the repayment program established by this agreement. If the
Sponsor relocates the building they shall pay all costs associated with the relocation of the building without additional
Department funds. The relocated hangar shall be in a useable and functional location, according to the approved
Airport Layout Plan.
17) Not withstanding anything to the apparent contrary herein contained, in the event of a default under the
Conditional Sale Agreement, the parties' rights shall be governed by Article 9, Part 5 of the Uniform Commercial
Code.
EFFECTIVE DATES
18) This agreement shall become effective as an executory contract and lease immediately upon the date of
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execution by the Municipality.
This agreement shall become effective as a conditional sale contract when the building is complete according to the
Conditional Sale Agreement portion of this agreement.
Remainder of page intentionally
left blank
(Continued on page 5)
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SPECIFIC CONDITIONS
The loan amount of the Agreement is $200,000.00.
The Lease Period and Repayment Schedule is 15 years (180 months).
The Monthly Loan Payments are Payment #1-$1,310.00; Payment #2 through #180-$1110.00.
The Sponsor has entered into a contract or sales agreement with Henningsen Construction of
Atlantic, Iowa for the furnishing and/or erection of one 10 place nested "T" and one 4 place executive Hangar.
And Construction of ramps from proposed hangar to existing taxiway to be constructed
according to the approved plans identified as Blair Municipal Airport, Project No. H-01
This document, executed by each party on the date shown, has five pages and Exhibit A.
. ,. ,'. . •. , ..
. �• ; .. .
Signature
Title: Chairman
Date
Witness.00 'V
is
DEPARTMENT ` F AERONAUTICS
STATE OF SKA
.-�
Signature ` W e
Title: Director
Date °-
Witness:
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