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Ordinance 0347ORDINANCE NO. 347 N ew Series AUTHORIZING AND PROVIDING FOR A LEASE OF SIXTY -SIX. (66) ACRES OF TIDELANDS ON THE WESTERN WATERFRONT OF THE CITY OF ALAMEDA FOR USE AS AN AIRPORT, . AIR-CRAFT FACTORY AND SCHOOL, AND CARRYING ON A GENERAL AVIATION BUSINESS. WHEREAS, Chadwick Thompson and Virgil G. Skinner, of San Fran- cisco, as joint tenants have applied for a lease of sixty -six (66) acres of tidelands on the western waterfront of the city for the purpose' of es- tablishing, conducting . and main - taining an .airport and general avia- tion business thereon; including the manufacture and commercial use of ai rCraf an aid to commerce and navigation, and the establishment of a school of instruction in avia- tion; and whereas the council has drily considered said application, and has submitted certain terms and conditions respecting said lease v,7bich are agreeable and .acceptable to said Plessees, now therefore BE IT ORDAINED by the Council of the City of Alameda, as follows: Section 1. That - said sixty -six (66) acres of tidelands be leased to said applicants as joint: tenants' with the right `ofsurvivorship upon the unde *_standing 'and' agreement that fhe applicants will assign said lease to a: corporation which' applicants propose to org[iize immediately to carry out the objects and purposes heroin specified!:! Said lease shall be ranted for a term of ten (10) years, with the option of a renewal thereof for an additional term of ten (10) years, and, . in words and figures, said Lease shall be substantially in the following form. `to -wit: LEASE TH1S 'LEASE, made and tered into on the Any of 1927, by and be- tN een . the City of Alameda, a municipal corporation of the State' of California, `lessor and party of the first part (herein- aftei ' called ` the `'city "), and Chadwick 'Thompson and Virgil G: Skinner of the City and County of San Francisco, said state, as .joint tenants 'with ` the i*ight of survivorship; lessees and parties of the s'second ,part. WITNESSETR- That said "city;" for and in con�sid(. �ation of the rents, cove- nants, and agreements herein- after mentioned, reserved and contained on the part and behalf of the lessees to be paid, kept and performed, does by these presents demise and let unto the said lessees: All that certain niece or parcel of land situate, lying and being south of the Ala- meda Mole, in the City of Alameda, County of Ala- meda; State of - California, and more particularly . de- scribed as follows: Commencing at a point an the United States Bulkhead Linn, said point being - dis- tant due south thereon 202.1 feet, from point "K," as said line and point are 'deline- ated and so designated upon that certain map entitled "Harbor Line Survey San Francisco Bay 1910, Sheet No. 6 on file in the United States Engineer's Office, Custom House, San Fran- cisco, and running thence S. 73° 58' E., 2824.05 feet to a point, said line being par- allel with and distant >south - erly -122.7 'feet, measured at right angles from the center line of the South Pa- cific Coast Railway Com- pany's right of way; thence S. -16 02' W.; 1000 feet, to -a point; thence N. 73° 58'.W., 2900 feet, to a point; thence N. 16 02' E., 1000 'feet, to a point; thence S. 73° 58' ?E., 75.95 feet,: to the point of commencement. TO RAVE AND TO HOLD the said premises; with the appurte- t anees, unto the said lessees, from the first day of January, 1928, for and during, the 'full term of ten (10) years thence next ensuing;, yielding: and fray - ing therefor unto the said "city" a rental equivalent in.. value to the sum of Sixty -four Thousand Dollars '($64,000),• of which Twenty -four Thousand Dollars ($24;000) of said rental shall be in United States gold ;coin pay- able in ten (1,0) installments' of Two - Thousand; Four Hundred Dollars ($2;400) each, payable annually in advance, < on the same day of each and every year 'thereafter during said term, whereas Forty: Thousand Dollars ($40,000) of said rental shall be represented, by and credited upon- certain improve - ments to be made by lessees, as hereinafter specified;, and the lessees covenant to :expend the said sum of Forty Thousand Dollars ($40,000) before Decem- ber 31, 1929. It'is - mutually agreed and un- deirstood that said eland shall be used ': for the : promotion '. and maintenance of a general avia- tion business; including the manufacture of aircraft and the commercial use of aircraft as an -id to commerce and naviga- tion; and for that <purpose that certain structures and other im- provements shall be erected upon said land by the lessees, ( OVER) A City O rdinances Seri s � � (Continued from preceedhig page) designed in general for the fol- lowing purposes: (a) A landing -field with take -offs in two or more di- rections, to be graded and surfaced by the lessees at their own expense, lessees to be permitted to fill in any of the submerged land within the area leased with- out cost to the city or any additional rent to lessees. (b) Suitable steel struc- tures entirely fireproof in character, with concrete flooring to be built by les- sees for the construction, maintenance, operation and repair of aircraft, (c) Hangars of steel or other fireproof construc- tion, with concrete flooring, to be built by lessees for the storage and safekeeping of aircraft. (d) One or more depots and nest rooms to be built by lessees for the convenience of passengers, including all necessary and accessory rooms such as dining rooms and ticket offices. (e) Club house or club rooms to be built by lessees for the use of employees and others engaged in the air service. (f) Structures of steel or other fireproof material to be built by lessees for use as schools or class rooms for instruction in aviation. (g) Such other: strue tures as may be necessary, convenient or proper to carry out the objects and purposes of the lessees. It is agreed and understood that'. said lessees shall Iiave the right. subject to the approval of the City Council of Alameda, to assign this lease to a corpora - tion to be` organized 'under ; the laws of the State of California, following which assignment said corporation shall: have the right; also subject to the ap- proval: of the City rCouncil < of Alameda, to sublet:; portions of said .'property to other subsi- diary corporations to be formed in the furtherance of the air- craft business and to 'carry ; out the objects and the purposes for which this lease is made. No further assignments +or'sublet- ting of said land shall there - after be made without the -con- sent and approval of the coun- cil of said city being firstcob- tained. It is further agreed that any and all aircraft operated by les- sees or any of the corporations to be formed in furtherance of the objects and purposes hereof, shall be licensed under the Iaws of the united States and this state, if such license berneces- sary,: and shall be subject to the regulations of the Department of Commerce of the United States and such local ,regula- tions as, from time to time, may be authorized by law. It is agreed by said lessees that there shall be maintained at said airport at all times dur- ing the life of this lease or any renewal thereof, one or more aircraft mechanics duly and regularly registered and li- censed by the Department of Commerce of the United States, in order that any aircraft which May arrive at said airport at any time during the night or day. may receive speedy and adequate service, which day and night service lessees ex- pressly agree to render at reas- onable charges therefor. It is agreed that said "city" shall have the right at any time hereafter to purchase said 'air- port from lessees, including all the improvements' made' there- on, for a sum equal to the origi- nal cost of said improvements, and th,,, cost to the lessees of fil- ling any of said land which is iiozv submerged, less the credit of Four Thousand Dollars ($4000) per year, to which the "city" may be entitled as here - inbefore provided, on condition that the "city" shall give at least one (1) year's previous notice of its intention so to do by the passage ofan. ordinance to that effect. It is expressly provided, however, . that should the "city" purchase said airport �, ithim two years after the date of this lease, then, and in that case, the "City" shall pay to lessees interest at the rate of seven per cent (7C`U) per annum on the rroney which may have been invested 'by< lessees in said airport,, in addition to the origi- nal >cost of said improvements and the expense incurred by les- sees in filling any submerged land as herein authorized. In the event that the "city" shall exercise its option to pur- chase as provided in the pre- ceding paragraph, then and in that case the lessees shall _ have the exclusive might, at their op- tion, to the commercial use of said airport- for a term of ten (10) years from and after the exercise of said ,option, and also the right to maintain an air- craft factory on said land, in which case the lessees ' shall pay the "city" a rental of Two Thousand, Four Hundred Dol- lars- ($2,400) per annum, pay - able annually in advance. The words "commercial use as herein .used, shall be deemed to mean the transporting of pas - sengers or property for compen- sation. 'In case said option to purchase is exercised as here- in provided, the .'city" further agrees to allow the lessees to maintain upon or _adjacent to said land a school L to be con - ducted by lessees for the train - ing of aircraft operators, pro - vided _that lessees-shall pay an additional rental therefor to -be (Continued on next page) Alameda ty Ordinances fkdiname No. 347 (Continue(I front preceeding page) agreed upon at that time or ad- shall be deemed to mean and justed as herein otherwise pro- include any structure so de- vided. It is further. agreed that signed that it cannot be readily in case the "city" should -exer- dismantled, whereas a "remov- cise its option, to purchase and able structure" shall be deemed lessees should make a corn- to mean any buildings, or struc- mercial use of said airport the tures so designed as to be ca.p- managetnent and control of said able of being dismantled and re- airport shall be subject to reas- assembled, such as factory onable and proper` regulation by buildings, hangars, and school the City of Alameda. buildings erected for - instrue- In the event that the parties tion in aviation. hereto should' at any time not Said "city'" hereby agrees, if he able to agree as to the mean- requested by lessees at least six ing of the terms or covenants months before the expiration of contained in any section of this the term hereby granted, that it lease or upon any of the prices shall and will grant a further to be paid, one to the other, un- lease of said premises to said der the terms hereof, :then and lessees, for a further: term of in that case each of said parties ten years, to Commence: from shall appoint a disinterested ar- the expiration of the term here - bitrator and appraiser to deter- by 'granted, at a rental to be mine.. the :matter in question, fixed at that time by mutual and in case the two persons thus agreement, if possible, or then appointed shall be unable to by arbitration as herein pro- agree they in turn shall ap- vided, having like terms, cove- point a third, and the decision rants and agreements as herein of any two of them shall be final contained, the parties hereto and conclusive. executing at the same time a In the event that said "city" counterpart hereof. shall,: during' the term of this It is mutually agreed and on- lease or of any renewal or ex- derstood that upon the termina- tension thereof, negotiate for the sale or grant of said land to the ' United States government, said sale or grant shall be made subject to the rights of the les- sees under the terms of this lease, and the right shall be re- served to the lessees to continue in possession of said land for the full period of said lease or of any renewal or extension thereof, or to dispose of said leasehold to the United States government on such `. terms' as may be agreed upon: between said lessees and the said gov- ernment. In the event that said "city" shall, .tduring :.the term of this lease or of any renewal; or ex- tension thereof, desire to ac- quire the land upon :. which said airport: is situated for any com- rncrcial or Harbor :development, and use said land in connection with the doela water frontage of the estuary, said lessees agree to remove the said airport' and improvements to another -loca- tion on the `,tidelands of said "city" provided the "city" fur- nishes a suitable parcel of land to the lessees of the 'same 'gen- oral form and :size at any point to the southward or.:southeast -: , e, and of the Sand 'hereby de- raised; provided. however, that if tha removal is desired by said < "city" for the >accommoda- tion of some rother enterprise or industry purely comrnorcial= in chharacter, then the entire cost of such removal shall be borne by the "city. whereas if the re- moval is desired by the "city" for the development of itsbar- bor, then the "city" shall pay the cost of removing the perma- nent structures only. In the event of removal, the term "permanent structure" tion of the initial ten- year pe- riod` herein provided, permanent improvements to the extent of he then appraised 'value' of Forty Thousand Dollars ($44,- 000) not exceeding the original cost, shall revert to and become the property of said "city," and that in the event o € = renewal of this lease, the value of "all structures erected upon said land -shall be totally amortized in the rental thereof, so that at the termination of the renewal, they shall revert to and bceome the property of said "city." For the purpose of this section, the hangars shall be deemed perma- nent'structures. In the event that at any time Before the expiration of the ini- tial .ten -year' period of this lease, the lessees shall '. desire to terminate or ` abandon their leasehold they shall have the option to do so upon the pay - nnent of all rentals due: and pay- able at the 'date of such termi- nation', provided that in such case all structures of every kind and character which may have been 'erected upon said land' by the lessees shall imme- diately ;revert to and become the property of -said "city "; pro- vided >further, 'however, that the lessees shall` have the right to remove all'rnachinery? and per - sonal property from said lazed. It is agreed that said "city," at its option, shall be'- entitled 'to appoint one member of ' the board of directors of each cor- poration organized by the les- sees- for the purpose of op- erating and carrying on the business defined herein, such director to be appointed by the city council of said "city." It is agreed that the corpora- tion to be organized for the (( )VER Alam C ity O r d inances , ' . " Ordinance No. 347 New series (Coutinuc&d fro Purpose of onerating the said airport shall be known as "ALAM'DA AIRPORT INCOR- PORATED," if such name shall be available for corporate pur- poses under the laws of the State, .cf_California, and in case said name is not available it shall be incorporated 'under such available name as 'shall be selected by the council of said ., city." Said lessees agree at all times to maintain said airport in a manner approved by , the best aviation practice and.,with. due regard to the safety of'persons and property. For that purpose it is agreed by -said "city" that the lessees shall have the right to fence said property and to exclude all persons from such portions thereof,, as may be deemed dangerous; ` provided, however, : that ' ally accredited representative of said ' "city "'or any official in the discharge of it is duties may enter upon said land at any time,' provided 'such person, before entering , ?said Prohibited area, shall have.noti- fied said lessees or their agents in advance of his desire so to do. It is hereby agreed and -un- derstood that if the money ;ren- tal above reserved or any part thereof shaii 'not lie paid on the respective days when the same is payable, or within ten (10) days thereafter, or if default shall be made in any of, the covenants herein contained . on the part of the said lessees to,be paid, kept or performed, then and from thenceforth it sliall and may be lawful for the said "city" to enter upon ;the said premises, and every . :part there- of, and to have ,again, re- possess, and enjoy the same as in its first and former estate, anything Iiereinbefore con - tainedto the contrary ,notw'ith- standing. And the, said lessees do hereby covenant and agree to and with the,-said "city" that they shall and will annually, as aforesaid, during the said term, pay, or cause to be paid, unto the said "cit "; the said rent, on the days and in the manner lim- ited and prescribed as 'aforesaid for the payment thereof, with- out any deduction, -fraud , or de- lay. according to the true intent and meaning of these •presents; and that on the last day of said term, or other: sooner determina- tion of the estate herein granted, the said lessees shall and will peaceably and quietly, leave, surrender and yield ,up unto said city" the said prem- ises and impm ernents in as - state and condition as the same are now or may be put u preceeding page) into, reasonable use and wear thereof and damages by the ele- ments excepted. And:' the said_ "city" hereby covenants and agrees that the said lessees„ paying the said rent and performing the cove- nants and agreements aforesaid, shall and may at all times'dur- ing the said term, peaceably and .quietly have, ]told, and enjoy the said premises, without any manner of let, suit, trouble or hindrance of or from the said city.' : It is agreed that Iessees in- terestin all improvements made hereunder shall be subject to taxation unless exempted by law. It is further agreed that all the provisions of this lease shall extend to and include the successors and assigns of said "city," .and' the successors and assigns 'of the lessees, IN WITNESS WHEREOF, the said parties have hereunto set their Bands on the day and year first above written. CITY OF ALAME:DA, By Mayor. Attest: City Clerk, Sec, 2. The mayor of the City of Alameda is hereby authorized' and directed to execute and, deliver foregoing lease,�for and on behalf of said "city," and the city clerk is directed to attest ,the, same, as soon as this ordinance becomes effective. Sec. 3. This 'ordinance shall go into full force and effect asixty `(60) days from and after its final pas- sage. Adopted and passed by the Coun- cil of the City of Alameda this 19th day of July, 1927. 1 FRANK OTIS, Presiding Officer of the Council I, the undersigned, hereby certify that the foregoing Ordinance was duly :,'and regularly: adopted - and passed by the Council of the City of Alameda in =regular' meeting as- sembled on the,:19th -day of Jule; 1927, by the rfollowing vote; <to-wit: AYES: Councilmen C.alcutt,� , La- tham, Neiss, Noble and Council - President Otis; (5). NOES: None. ABSENT: ; None. IN TESTIMONY WHEREOF; I have hereunto set my hand and af- fixed the official seal of said city this 20th day of July, 1927. W. E. VARCOE, -! City Clerk of the City of Alameda. (Seal) Publish July 22, 1927.