RFP_LLCAIRPORT_HANGARS_GROUNDLEASE_7.22.2025.pdf

REQUEST FOR PROPOSALS

LEADVILLE - LAKE COUNTY AIRPORT HANGAR DEVELOPMENT

RFP Issued: July 23, 2025 Question Acceptance Deadline: August 18, 2025, by 5:00 p.m.

Questions will be answered by: August 25, 2025, by 5:00 p.m.

Proposals Due: September 5, 2025, by 5:00 p.m.

I. INVITATION

Lake County, Colorado (hereafter the "County") is soliciting proposals from qualified parties to finance, build, manage, and operate aircraft hangars at the Leadville - Lake County Airport ("Airport"), located in Leadville, Colorado. The County is offering parcels of land to be leased in accordance with the Standard Airport Ground Lease Agreement (“Lease”), and all other provisions of this Request for Proposals (“RFP”), to be developed for aeronautical use in alignment with the Airport Master Plan, Strategic Plan, Minimum Standards, and other guiding documents.

The issuance of this RFP does not constitute a commitment by the County to award a contract or an agreement to pay any costs incurred by any individual or company in the preparation of a response to this RFP. The County reserves the right to engage in discussions with any of the respondents to this RFP to explore the viability of a development arrangement or partnership and/or to negotiate a potential memorandum of agreement and/or definitive contract.

QUALIFICATIONS SUBMITTAL INSTRUCTIONS

The Owner desires to receive a clear, concise, economical presentation of the vendor’s proposal. Proposals must be submitted via the electronic submission on BidNet (https://www.bidnetdirect.com/colorado) no later than 5:00 PM prevailing time on September 5th, 2025, as specified on the solicitation notice. Please note that candidates must register on BidNet in order to submit proposals electronically. Late proposals will not be accepted. If you need assistance, please contact BidNet’s Vendor Support Department at 800-835- 4603, Option 2.

No physical copy will be required, please address the Cover Letter to:

Josh Adamson, Leadville-Lake County Airport Director 505 Harrison Avenue Leadville, Colorado 80461

Candidates should not rely on any other statements, either written or oral, that alter any specification or other term or condition of the RFP during the open solicitation period.

Candidates should not contact any team members, or any individual associated with the Owner regarding this RFP or this project.

https://www.bidnetdirect.com/colorado

II. AIRPORT BACKGROUND

The Leadville - Lake County Airport is the highest-elevation public-use airport in North America, located at 9,934 feet above sea level. The Airport serves general aviation needs and offers a unique opportunity for aeronautical development due to its strategic location and land available for hangar construction.

The Airport has undergone recent improvements, and future developments must align with the Airport Master Plan to enhance infrastructure, support aviation business growth, and provide hangar space to meet increasing demand.

III. SITE LOCATION

The County is accepting proposals for the development of designated sites within the Airport.

Proposals may include, but are not limited to, the following:

• Site A: Vacant land designated for new hangar development (see Conceptual Development Plan royal blue outlined polygon); This parcel is available for full development or individual hangar builds within the development area.

• Each site is strategically located to ensure accessibility to taxiways, utilities, and support infrastructure.

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IV.DESIGN CRITERIA

1. Minimum Leasehold Area: Minimum square footage of 3,600 sq. ft.;

2. Hangar Configuration: Proposals may include corporate hangars, multi-bay box hangars, or box hangars;

3. Building Standards: Hangars shall be modern, fully enclosed steel structures with appropriate lighting, electrical services, and other amenities as required by the Airport’s Minimum Standards;

4. Utility and Access Requirements: Proposals must include provisions for connecting to existing utilities and ensuring appropriate vehicle and aircraft access;

5. FAA Compliance: The successful Proponent(s) must submit a Form 7460 and receive a Determination of No Hazard from the FAA Obstruction Evaluation / Airport Airspace Analysis in accordance with 14 CFR 77.9. This requirement is to ensure the construction does not create an obstruction to air navigation, operationally impact the airport, or cause interference with any radio navigational aids https://oeaaa.faa.gov.

V. PERMITTED USES

1. The Lease shall permit the successful Proponent(s) to use the leased premises solely for the construction and operation of an aircraft hangar facility and/or commercial aeronautical business. The successful Proponent(s) may use the leased premises for the purpose of managing, storing, maintaining, and operating the Proposer(s) own aircraft and/or other aircraft. Stored aircraft shall be airworthy and comply with the FAA’s Policy on the Non-Aeronautical Use of Airport of Airport Hangars https:// www.govinfo.gov/content/pkg/FR-2016-06-15/pdf/2016-14133.pdf

2. The successful Proponent(s) will have a non-exclusive right to provide commercial aviation services in a manner consistent with and as described in the most recent LXV Rules and Regulations, attached here as Appendix A, and LXV Minimum Standards, attached here as Appendix B. Any and all commercial aviation businesses must also apply for and be granted an Airport Business License.

3. The successful Proponent(s) may be permitted to sublease or license use of the hangar to third parties for aviation purposes consistent with and as described in the most recent LXV Rules and Regulations, and LXV Minimum Standards. Any sublease, sale, or transfer of the Lease shall require prior written consent of the County.

https://oeaaa.faa.gov/ https://oeaaa.faa.gov/

4. The successful Proponent(s) shall insert and enforce the following provisions in any agreement, contract, lease, or other arrangement under which a right or privilege at the Airport is granted to any person, firm, or corporation to conduct or engage in any aeronautical activity for furnishing services to the public at the airport:

a. To furnish said services on a reasonable, and not unjustly discriminatory, basis to all users thereof, and;

b. To charge reasonable, and not unjustly discriminatory, prices for each unit or service, provided that the contractor may be allowed to make reasonable and nondiscriminatory discounts, rebates, or other similar types of price reductions to volume purchasers.

VI. IMPROVMENTS TO BE CONSTRUCTED BY SELECTED PROPOSER(S)

1. The selected Proponent(s) shall finance, design, and construct all required utility extensions including water, sanitary sewer, electric power, propane or natural gas, and telephone/data, as well as any necessary storm water management features at no cost to the County. The selected Proponent(s) shall be responsible for constructing the improvements in accordance with plans and specifications prepared by a professional architectural engineering firm, which shall be reviewed and approved in accordance with the Lake County Land Use Code by Lake County Community Planning and Development.

2. Prior to the start of construction, the selected Proponent(s) shall furnish to the County with a Performance Bond equal to 100% of the total construction cost, to guarantee completion of the approved construction.

3. All improvements, including the proposed hangar facilities, constructed on Airport property shall be subject to conditions, restrictions, reservations, and prior approvals for the following purposes:

a. To encourage and leverage private investment in the Airport and create economic benefit for the Airport, County, and region;

b. To enhance aesthetic value through consistent, attractive, and compatible development;

c. To ensure proper, desirable use and appropriate development and improvement of each site within the Airport;

d. To protect Lessees and/or Tenants of buildings against improper and undesirable use of surrounding building sites which will depreciate the value of their leaseholds;

e. To ensure and maintain proper setbacks from streets, runways, taxiways, and aprons, and adequate, safe spaces between structures;

f. In general, to provide for a high type and quality of improvement of said property;

and

g. To ensure the safety and security of Airport operations and the operations of Airport Tenants.

VII.LEASE TERMS

1. The Lease may be offered with up to an initial thirty (30) year term (“Initial Term”) and may include an option to extend the Lease for one additional ten (10) year term (“Extended Term”). At the conclusion of the Initial Term, or if the Lessee is granted an Extended Term, at the conclusion of the latter, or upon termination of the Lease, ownership of all improvements shall transfer to the County. If Lessee desires to continue occupying the Leased Premises after the expiration of the Extended Term, Lessee may request that the County issue a new lease agreement.

2. The actual leasehold parcel shall be determined from the successful Proponent’s approved site plan and shall include all exclusive-use space necessary to operate the proposed facility. The leasehold parcel shall include: hangar building(s), automobile parking areas, landscaped buffers and/or setbacks, aircraft parking aprons, and any exclusive-use taxilane(s) including the https://www.faa.gov/documentLibrary/media/Advisory_Circular/150_5300_13_chg5.P

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3. The successful Proponent(s) shall be responsible for and shall pay for all maintenance and repair of the land, structures, utilities, and facilities located upon the leasehold parcel during the term of the subject Lease, including without limitation snow removal, grass cutting, landscaping, and routine cleaning of the leased premises.

VIII. SUBMISSION REQUIREMENTS

Interested parties should review the contents and requirement of this RFP and submit their responses by no later than 5:00 p.m. on September 5, 2025.

Please note that candidates must register on BidNet in order to submit proposals electronically. Late proposals will not be accepted. If you need assistance, please contact BidNet’s Vendor Support Department at 800-835- 4603, Option 2.

Interested parties are highly encouraged to submit proposals and other relevant information pursuant to this RFP. The County reserves the right to engage in discussions with any of the Proposers to this RFP to explore the viability of proposals and to negotiate lease terms.

https://www.faa.gov/documentLibrary/media/Advisory_Circular/150_5300_13_chg5.PDF https://www.faa.gov/documentLibrary/media/Advisory_Circular/150_5300_13_chg5.PDF

III. PROPOSAL REQUIREMENTS

All RFP responses should contain, at a minimum, the following information in a single PDF file:

1. Letter of Interest

a. Identifying information on Proponent(s) including name(s), address, telephone number, name of contact person, and the title of the RFP;

b. A description of the submitting Proponent(s)’ current legal status (i.e., Corporation, Partnership, Sole Proprietor, Joint Venture, etc.);

c. A detailed expression of interest in leasing Airport property for the development of aircraft hangars and related facilities;

d. Identification of the type of development that the Proponent has the capability to deliver, along with additional information that assists in highlighting and clarifying potential concepts, structures, funding, and creative approaches that could benefit the Airport and its users; and

e. This letter must be signed by an individual who is authorized to certify, on behalf of the Proponent, that all statements in the submittal are true and correct. The letter must indicate the title or position that the individual holds and must include the federal tax I.D. number of all firms associated with the proposal.

2. Development Proposal Details (see IV. Design Criteria for requirements specific to each site):

a. Description/exhibit of proposed leasehold area: Written description and/or diagram identifying the extent of the proposed leasehold area, including dimensions and total area;

b. Proposed annual rent per square foot based on leasehold area: The minimum current rate for unimproved property (with limited or no nearby infrastructure/utilities) is $0.31 per square foot. The minimum current rate for improved property (with adequate access to nearby infrastructure/utilities) is $0.439 per square foot. If the Proponent intends to generate revenue by sub-leasing existing facilities (Site A only), higher rent rates will be required;

c. Site Plan: a site plan, drawn to scale, showing existing and planned final contour grades, the location of all improvements, including structures, aprons, taxilanes, walks, patios, driveways, parking, fences and walls, utilities, and the location of all improvements that may occur in any proposed future phases of development.

All site data and dimensions shall be included;

d. Elevations: Colored exterior elevations drawn to scale illustrating all sides of planned structure(s). Building heights to the highest point shall be included.

Elevations shall include building mounted signage and descriptions of all materials to be used, including colors, textures, and shapes;

e. Landscape Plan: Landscape plan drawn to scale showing the size, type, location, and spacing of all plants and other materials, elevation changes, and irrigation systems for all unpaved areas within the leased area; and

f. Project Narrative: A written description of the uses and activities associated with the planned facilities, including number and type of aircraft, frequency of aircraft operations, and business activities. Include an explanation of any anticipated project phasing and construction timelines.

3. Additional Information

a. A profile of the individual/organization, including without limitation a description of the entity’s legal structure, principal officers, and organizational structure.

Submitting individuals/organizations should identify and distinguish between their own experience and qualifications and that of any parent entity, predecessor, and/or wholly owned or partially owned subsidiary, or affiliated tenant;

b. Resumes of key personnel and principals;

c. Audited and certified financial statements, or other similar statement or information indicating financial capacity and capability;

d. Experience with financing, constructing, managing, and/or operating aircraft hangars or other aeronautical facilities within the last ten (10) years, with an emphasis on similar projects. Information provided should include a description of services provided, and examples of successful strategies, with particular attention to:

i. Professional references from other entities with whom the Proponent(s) have development, management, operation, or public-private-partnership experience within the last ten (10) years, including contact name(s), address(es), telephone number(s), and industry/facility/project type;

ii. An explanation of Proponent(s)' experience in working with public entities, including cooperative efforts, philosophy, and results;

iii. Other information that could be helpful to the County in its evaluation of the qualifications and experience of the Proponent(s), including:

1. Additional information about relevant project experience and past project results;

2. Concept(s) for potential development and funding opportunities;

3. Concept(s) for potential contractual management/operations and lease/agreement term frameworks; and/or

4. Other concepts or creative implementations that could benefit the Airport and its users and serve the County’ desired short and long-term objectives.

IX. EVALUATION CRITERIA AND REVIEW PROCESS

The County intends to offer lease agreement(s) to proponent(s) whose proposal(s) closely meet the following evaluation criteria. Incomplete proposal(s) will not be considered. The County reserves the right to reject any or all proposals submitted, and to negotiate with any or all Proponent(s).

The County will evaluate each proposal submitted according to the criteria established below and will analyze information obtained from the RFP package, references, and other sources as appropriate. The County may request presentations or interviews with any or all of the Proponent(s). After final scoring, recommendations for an award will be made to the Lake County Board of County Commissioners.

Evaluations will be made using the following criteria:

1. Experience and Detail (20 points):

The proposal must demonstrate that the Proponent has the capacity and support required to successfully complete the project as proposed. The proposal must also demonstrate that the Proponent has previous experience with successfully completing similar projects.

2. Financial Capability and Level of Proposed Investment (20 points):

The proposal must demonstrate that the Proponent has the necessary financial resources and/or ability to obtain funding to achieve the desired outcome. To that end, the proposal must include cost-related information, including but not limited to information on whether the proposed level of investment meets or exceeds what is typical or can be accommodated on the site(s), and identify what incentives, if any, the Proponent is requesting that the County provide in conjunction with their proposal.

3. Alignment with Airport Guiding Documents (20 points):

The proposal must include enough information to demonstrate that information contained in the guiding documents was used in the creation of the applicant’s proposal. The proposal should also speak to how and whether it furthers the vision and mission of the Airport and address how the design and operation of the Proponent’s proposed facilities aligns with the Master Plan, Strategic Plan, and Minimum Standards of the Airport.

4. Innovation and Sustainability (20 points):

The proposal must demonstrate original ideas that increase efficiencies within the available space, including ideas that would contribute to energy efficiency and/or environmental stewardship. The proposal should include information about the proposal’s impact upon the financial sustainability of the Airport and should demonstrate the kind of innovative thinking that will allow the Airport to grow, adapt, and thrive.

5. Economic & Community Impact (20 points):

The proposal must address, in detail, how it will economically benefit to Lake County and the region, including but not limited to: how the proposal will help meet the demand for aeronautical facilities and benefit Airport users; whether and to what extent the proposal creates long-term jobs and opportunities; whether and to what extent the proposal has the ability to leverage revenues for the betterment of the Airport and the County. The proposal should also detail how it will impact existing Airport users, nearby residents/businesses, the County, and the region. The County reserves the right to negotiate lease terms and development plans with the selected Proponent(s).

The following criteria, as established by the Lake County Purchasing Policy, shall also be relevant to the County’s review of proposals:

1. Price;

2. Proponent’s ability, capacity, and skill to perform the specified requirements;

3. Proponent’s experience, reputation, efficiency, judgment, and integrity;

4. Proponent’s past performance;

5. Sufficiency of proponent’s financial resources to fulfill the contract;

6. Proponent’s ability to provide future maintenance and/or services in relation to its deliverables;

7. Proponent’s location. If the Proponent is an entity that is headquartered in Lake County, conducts the majority of its business within Lake County, and/or employs residents of Lake County, or if the Proponent is an entity that is headquartered within an adjacent county, conducts the majority of its business within an adjacent county, and/or employs residents of adjacent counties this should be specified in the proponent’s proposal;

8. Other applicable factors that the County determines necessary or appropriate, such as compatibility with existing facilities, programs, equipment or hardware; and

9. Any special criteria specified in this RFP.

Additionally, Lake County reserves the right to waive informalities in proposals, reject all proposals, and accept the proposal deemed most advantageous to the best interest of the County.

IX. INSURANCE REQUIREMENTS

Successful Proponent(s) who enter into hangar leases with the County (“Lessees”), shall be governed by the following insurance requirements. During the term of any hangar lease with the County, Lessee shall procure and maintain its insurance coverage in compliance with and subject to the County’s insurance requirements as they exist and are amended from time-to-time. Insurance shall be issued by an insurer whose business reputation; financial stability and claims payment reputation is satisfactory to the County, for the County’s protection only. Unless otherwise agreed, the amounts, form and type of insurance shall conform to the following minimum requirements:

a. General Liability Insurance. Lessee shall, at its sole cost and expense, procure and maintain in force a policy of general liability insurance insuring the Premises and Lessee against loss or injury to any person or property arising from Lessee’s use and/or occupancy of the Premises and any improvements thereon. Such insurance policy shall be issued by a company authorized to do business in Colorado and shall be in an amount not less than those limits of liability established from time-to- time for governmental entities under the provisions of the Colorado Governmental Immunity Act, C.R.S. § 24-10-114. Currently, such limits are $350,000.00 per person and $990,000.00 per occurrence. Should Lessee intend to conduct commercial aviation operations from the Premises, additional general liability insurance will be required to cover such services in an amount reasonably acceptable to the County.

b. Property Insurance: All risk property insurance coverage in an amount equal to the replacement cost (without deduction for depreciation) of the improvements constructed on the Premises. Lessee may purchase insurance for Lessee’s personal property as Lessee may determine.

c. Automobile Insurance: If Lessee drives any automobile other than in the roadways and automobile parking areas at the Airport (e.g., Aircraft Movement Area), comprehensive automobile liability coverage for claims and damage due to bodily injury or death of any person or property damage arising out of Lessee’s ownership, maintenance, or use of any motor vehicles whether owned, hired, or non-owned, of not less than $500,000.00 single, combined limit per accident for bodily injury and property damage.

d. Pollution Insurance: Lessee is responsible for environmental losses. Any pollution legal liability insurance obtained by the Lessee shall comply with requirements stated in the Airport’s Guiding Documents.

e. Aircraft Insurance: Lessee is responsible for any damage or loss to the Aircraft.

Lessee shall obtain insurance coverage for Aircraft as Lessee may determine.

f. Performance Security: County reserves the right to require a performance security in a form and amount acceptable to the County upon any material default by the Lessee.

g. Certificates of Insurance: The County, at the Lessee’s expense, shall be named as an additional insured on all insurance policies required by the County, and such insurance shall act as primary insurance with respect to all claims, injuries, or casualties occurring on or to, or arising from, the Lessee’s occupancy and/or use of the Premises.

X. Additional Contractual Terms and Conditions

The selected Proponent(s) will be expected to enter into the Airport’s Hangar Ground Lease Amendment to be prepared by the Lake County Attorney’s Office and approved by the Lake County Board of County Commissioners.

GENERAL CONDITIONS

Reserved Rights:

Lake County reserves the right to:

• Modify or cancel the selection process or schedule at any time;

• Waive minor irregularities;

LEADVILLE LAKE COUNTY AIRPORT HANGAR GROUND LEASE AGREEMENT

(Non-Commercial Use)

This Airport Hangar Ground Lease Agreement (hereinafter referred to as “Agreement”), is made and entered into this , 20 , by and between Lake County, Colorado, a political subdivision of the State of Colorado, through its Board of County Commissioners (herein referred to as the "County"), and [Insert Tenant Name], a [insert form of entity]existing under the laws of the State of [insert state name] (hereinafter referred to as the “Lessee”).

WITNESSETH:

WHEREAS, the County owns, operates, and maintains the Leadville Lake County Airport (hereinafter referred to as "Airport") located in Lake County, Colorado, for the use and benefit of the public and has the right to authorize the use of portions of such Airport and to grant Lessee privileges thereon subject to the terms and conditions hereinafter set forth; and

WHEREAS, the Lessee desires to lease a tract of ground on said Airport property for the purpose of constructing and occupying a new Aircraft Hangar (hereinafter referred to as the “Hangar”).

NOW THEREFORE, in consideration of the mutual terms and conditions contained in this Agreement, the parties agree on the terms and conditions hereinafter set forth.

ARTICLE 1 LEASED PREMISES

A. Agreement to Lease Premises. The County hereby leases to the Lessee and the Lessee hereby leases from County, the Airport hangar site described in Exhibit A, which is specifically incorporated herein (the “Premises”) for the purposes set forth in this Agreement. Lessee agrees to accept the Premises “as is” and the County makes no warranty as to the condition of the Premises or its suitability for any particular purposes.

B. Purpose of the Agreement. Lessee agrees that it shall use the Premises on a non-commercial basis only for the following purposes: to construct and utilize the Hangar for parking, storage, operation and maintenance of Lessee’s Aircraft (as defined below), and for no other Aircraft, consistent with Federal Aviation Administration (FAA) standards. An “Aircraft” is any aircraft that the Lessee owns or leases (or that is subject to an authorized sublease approved in writing in advance by the County). Lessee shall provide proof of ownership or lease of any Aircraft upon County’s request.

C. Unauthorized Uses. The Premises shall not be used for residential or sleeping quarters, aviation fixed base operations, or any other commercial aviation operation. The operation of any commercial aviation activity on the Premises without first obtaining the written approval from the County is cause for the County to immediately terminate this Agreement without notice or opportunity to cure.

D. Access. The County agrees that Lessee shall have the right of ingress and egress over the Airport to and from the Premises by routes of travel designated from time to time by the County and subject to such security rules and policies as may be imposed by the County or by the FAA.

Leadville Lake County Airport – Non-Commercial Ground Lease Agreement

Leadville Lake County Airport – Non-Commercial Ground Lease Agreement Page 2 of 15

ARTICLE 2 TERM OF THE LEASE

A. Initial Term. The initial term of this Agreement shall be for a period of Thirty (30) years commencing on the day of , 20 and shall end the day of 20 (the “Initial Term”).

B. Renewal. Lessee may be permitted to renew this Agreement for an additional period of Ten (10) years upon consent of the County as long as the Lessee is not in breach of this Agreement and delivers a written request for renewal to the County at least ninety (90) days before the expiration of the Initial Term. After any such renewal, the County, in its sole discretion, may determine whether to permit any subsequent extensions of this Agreement on terms offered by the County, which shall be agreed to by both parties in writing.

C. Expiration Date. The date on which this Agreement expires under the terms of section

2.A or Section 2.B shall be the Expiration Date.

D. Reversion. When this Agreement terminates for whatever reason, the right to occupy the Premises and any improvements constructed thereon shall revert to the County. The

Hanger shall be permanently and inseparably attached to the real property and title to same shall be vested in the Lessee while this Agreement is in effect, but shall vest in the County when this Lease terminates for whatever reason. Lessee shall remove from the Premises any of their personal property, including without limitation aircraft, aircraft parts, tools and equipment used in conjunction with the storage and maintenance of Lessee’s aircraft, so long as the Lessee repairs any damage to the Premises occasioned by such removal, and does not cause any structural damage or remove items permanently attached to the Hangar. The County, in its sole discretion, shall determine whether Lessee shall remove the Hangar and return the Premises as close as reasonably possible to its original state, or whether the County shall accept title to the Hangar at the termination of the Lease. If the County decides not to accept title to the Hangar, notice shall be given to the Lessee within ten (10) days after termination of this Agreement and Lessee shall have sixty (60) days thereafter to remove the Hangar and restore the premises as close as reasonably possible to its original state.

ARTICLE 3 RENT, PAYMENT, AND FEES

A. Rent. Lessee shall pay to the County annual rent for the lease of Premises in the amount of [insert amount] dollars ($[insert amount].00) for the area of the leasehold shown in Exhibit A.

B. When Due. The first payment is due upon signing of this Lease and will be prorated for the remaining portion of the calendar year. Annual rent for the calendar year shall be payable in advance on or before the 1st day of January each year thereafter.

C. Annual Increases. The County and Lessee agree that the Lessee’s annual rent shall increase by % each year this Agreement is in effect, beginning January 1, 20

D. Additional Rent. Any sum (other than the rent required in 3.A) that the Lessee is obligated to pay the County arising from or relating to this Agreement or Lessee use, occupancy, or operations at the Airport constitutes additional rent, which may include, but not limited to, charges for additional services provided by the County, utility hook-up and

Leadville Lake County Airport – Non-Commercial Ground Lease Agreement Page 3 of 15 maintenance fees, fines, civil penalties, damages, claims, and interest charges.

E. Overdue Rent. Any rent overdue for more than thirty (30) days will incur interest charges and an administrative fee. The unpaid amount shall bear interest at a rate of twelve (12%) per annum from the due date of such amount to the date of payment in full including accrued interest. In addition, the County may also charge an administrative fee of ten percent (10%) of the unpaid amount. In the event the County is required to initiate any collection procedures or incure costs to collect any unpaid rent from Lessee, the Lessee shall pay all of the County’s expenses in connection therewith, including reasonable attorneys’ fees and costs. The County will not be obligated to provide the Lessee with written notice of past due obligations.

F. Utilities. All utilities including water, sewer, electricity, propane, internet, and trash service shall be the sole responsibility of the Lessee. Lessee will be responsible for all costs to extend utility lines to the Hangar including all costs associated with connection fees, tap fees, meter fees, and any other fees that may be charged by the utility companies associated with the Lessee's Hangar. Connections to County water and sewersystems or any other utilities will require hook-up and annual maintenance fees.

G. Place of Payment. Payments to the County may be made by credit card payment or check.

The Lessee can fill out a credit card authorization form and provide it to the Department of Public Works. If Lessee elects not to make payments by credit card, payments to the County shall be made payable to the Lake County Treasurer and mailed to: Lake County Treasurer, PO Box , Leadville, CO 80461.

ARTICLE 4 LESSEE IMPROVEMENTS

A. Authorized Improvements. Lessee shall not make or cause to be made to the Premises any alteration or improvement without the County’s prior written consent. Lessor shall not alter or improve any area of the Airport that is not leased by the Lessor. Subject to the terms of this Agreement, Lessee has the right to construct and maintain a hangarand other aviation-related improvements on the Premises described in Exhibit A. As part of the hangar construction, Lessee shall construct at Lessee’s sole expense, a paved ramp in front of the hangar. The ramp area must be designed at the same weight- bearing capacity as the ramp in front of the County Hangar #1 and the SRE building. This ramp must be built to the full width of the Premises and connect to any adjacent rampor automobile parking area in order that a continuous and safe paved area results.

B. Title to Improvements. During the term of this Agreement, all portions of the hangar and any other improvements that are constructed or acquired by the Lessee shall be and remain the personal property of the Lessee.

C. Permits. Lessee shall obtain all necessary Permits and approvals including, but notlimited to a Building Permit issued by the Lake County Building Department. As part of the Application for the Building Permit, the Lessee will submit a detailed description, inclusive of engineering drawings as well as a site plan that shows details pertaining to site drainage, automobile parking, sidewalks, landscaping, specific site layout, construction details, fire protection systems, utility improvement plans, building design, architectural profiles showing shape and colors, and any other specific items as may be reasonably required by the County.

D. Building Standards. Improvement shall be constructed in accordance with Lake County

Leadville Lake County Airport – Non-Commercial Ground Lease Agreement Page 4 of 15

Building and Fire Codes, the Airport Master Plan, and the Stormwater Management Plan in effect for the Airport.

E. Schedule. Construction of the aircraft ramp, taxiway and automobile parking must be completed at a schedule established by Lake County Public Works and the Lessee.

F. As-Built Drawings. Not later than sixty (60) days after receiving a certificate of occupancy, the Lessee will submit to the County a complete set of as-built drawings for all improvements.

ARTICLE 5 USE OF THE RAMP BY OTHER AIRPORT USERS

Lessee grants to the users of the Airport the right to operate on its aircraft ramp area from time to time for passage of aircraft moving through this area of the Airport. The County reserves the right at any time it is deemed in the best interest of the Airport to allow other Lessees or the County to connect onto the ramp built by Lessee with additional taxiways or ramp areas.

ARTICLE 6 LESSEE RESPONSIBILITIES

Lessee’s use, occupancy, and operations at the Premises shall be without cost or expense to the County. Lessee shall be solely responsible to design and construct all improvements and to maintain, repair, reconstruct, and operate the Premises and all improvements at Lessee’s sole cost and expense, including but not limited to, all charges for utility services (and their installation and maintenance), janitorial services, waste disposal, and ramp repair. Lessee shall at all times maintain the Premises and all improvements in a condition that is equal to the level of maintenance by the County in comparable areas and that is clean, free of debris, safe, sanitary, and in good repair. Lessee shall not store on the Premises any inoperable equipment, discarded or unsightly materials, or materials likely to create a hazard; shall not use areas outside of enclosed buildings for storage; and shall store trash in covered metal receptacles. Any substance or material that is regulated by local, state, and federal environmental law, shall be governed by Article 7.F and Article 15.

ARTICLE 7 MAINTENANCE OBLIGATIONS

A. General Conditions. The Lessee shall keep the hangar area in a neat clean and orderly condition, free of debris or waste of any kind. The Lessee, at its expense, shall keep the Hangar located on the Premises in good repair and maintenance, and in safe, sanitary, orderly, and attractive condition, all at its own risk and expense; including by way of example and not limited to: structures, exterior painting in a color approved by the County, electrical, plumbing, roof and structural repair and window replacement; and with respect to ramp areas adjacent to the Hangar, mowing and weed control, graveling and/or dust control.

B. Painting. Lessee will not alter, paint the exterior or improve the completed Hangar except to the extent required to maintain its original state. Any alteration, painting of the exterior or improvement must receive prior written notice form the County.

C. Parking. Lessee shall not park or leave aircraft or vehicles on the taxiways or on pavement adjacent to the Hangar in a manner that unduly interferes with or obstructs aircraft or vehicle access to adjacent Hangars. Parking of vehicles will be permitted only in designated parking areas.

D. Snow Removal. Snow removal ten (10) feet in front of the Lessee’s hangar is the

Leadville Lake County Airport – Non-Commercial Ground Lease Agreement Page 5 of 15 responsibility of the Lessee. Snow removal may be performed by the County as a courtesy but is not an obligation of the County. The County may cease to provide snow removal to Lessee or snow removal may not be provided on a particular occasion, at theCounty's sole discretion. The County acknowledges that unless Lessee demands in writing that the County cease any such snow removal, the County shall have no liability whatsoever for any damage to the Premises caused by such snow removal.

E. Trash and Waste. Lessee shall not pile boxes, cartons, carts, drums, or the like on the outside of the buildings, or dump any waste matter of any nature, in a liquid state or otherwise, on the Premises or contaminate the County's sewers or the Airport's drainage control reservoir.

F. Hazardous Materials. The storage and accumulation of flammable, explosive liquids or solids, waste, debris or other hazardous materials is not permitted within the Hangar or adjacent to the Hangar with the exception of those items needed for periodic aircraft maintenance. Lessee shall maintain the Premises in accordance with all applicable laws, orders, rules, ordinances and regulations of Lake County, the State of Colorado, and federal agencies having jurisdiction over environmental risks, materials handling, and wastes. The Lessee shall be responsible for all costs associated with mitigating any contamination of the soil or improvements thereon caused by the Lessee.

G. Damage. The County shall not be liable for damage to the Premises caused by wind, water, steam, sewage, snow, ice, gas, bursting or leaking of pipes or plumbing or electrical causes, unless the damage is proved to be the result of negligence of the County.

ARTICLE 8 TAXES AND LIENS

The Lessee shall pay promptly all taxes, fees, assessments, and levies that relate to the Lessee’s use, occupancy, or operations at the Premises or the Airport and all other obligations for which a lien may be created relating thereto (including, but not limited to, utility charges and work forany improvements). Within thirty (30) days, Lessee shall remove any such lien that may be created or commence a protest of such lien by depositing with the County cash or other security acceptable to the County in an amount sufficient to cover the cost of removing such lien. When contracting for any work in connection with the Premises, Lessee shall include in such contract a provision prohibiting the contractor or any subcontractor or supplier from filing a lien or asserting a claim against the County’s real property or any interest therein.

ARTICLE 9 COUNTY AUTHORITY

A. County Role. County is a governmental entity and the proprietor of the Airport and has all lawful rights, powers, and privileges to act in those capacities. The County includes Lake County itself, the Airport, any subsidiaries or affiliates, elected and appointedofficials, employees, volunteers, representatives and agents.

B. Inspections. The County reserves the right to enter the Premises during reasonable business hours and after prior written notice for the purpose of inspecting and protecting such premises, and of doing any and all things which the County may deem necessary for the proper general conduct, security, or safety, and operation of the Airport, and in the exercise of said Airport’s police power.

Leadville Lake County Airport – Non-Commercial Ground Lease Agreement Page 6 of 15

ARTICLE 10 INDEMNITY AND INSURANCE

A. Indemnity by Lessee. Lessee agrees to indemnify, hold harmless, and defend County and its officers, agents, and employees from and against losses of every kind and character (including, but not limited to, liabilities, causes of action, losses, claims, costs, fees, attorney fees, expert fees, court or dispute resolution costs, investigation costs, environmental claims, mitigation costs, judgments, settlements, fines, demands, damages, charges, and expenses) that arise out of or relate to: (a) any use, occupancy, or operations at the Premises or the Airport by the Lessee or Lessee’s Associates; or (b) any wrongful, reckless, or negligent act or omission of Lessee or Lessee’s Associates. Lessee shall use attorneys, experts, and professionals that are reasonably acceptable to the County in carrying out this obligation. This obligation stated in Section 10A shall survive the expiration or other termination of this Agreement with respect to matters arising before such expiration or other termination. These duties shall apply whether or not the allegations made are found to be true.

B. Waiver. Lessee assumes all risk of the use of the Premises and the Airport, and the Lessee hereby knowingly, voluntarily, and intentionally waives any and all losses, liabilities, claims, and causes of action, of every kind and character, that may exist now or in the future (including, but not limited to, claims for damage to any aircraft or property on the Premises) against the County and its officers and employees arising from or relating to Lessee’s use, occupancy, or operations at the Premises or the Airport.

C. Insurance. At all times during the term of this Agreement, Lessee shall procure the following insurance coverage prior to entering the Premises, and Lessee shall maintain its insurance coverage in force at all time when this Agreement is in effect in compliancewith and subject to the County’s insurance requirements as they exist and are amended from time-to-time. Insurance shall be issued by an insurer whose business reputation; financial stability and claims payment reputation is satisfactory to the County, for the County's protection only. Unless otherwise agreed, the amounts, form and type ofinsurance shall conform to the following minimum requirements.

a. General Liability Insurance. Lessee shall at its sole cost and expense procure and maintain in force a policy of general liability insurance insuring the Premises and Lessee against loss or injury to any person or property arising from Lessee’s use and/or occupancy of the Premises and any improvements thereon. Such insurance policy shall be issued by a company authorized to do business in Colorado and shall be in an amount not less than those limits of liability established from time-to-time for governmental entities under the provisions of the Colorado Governmental Immunity Act, C.R.S. § 24-10-114. Currently, such limits are $350,000.00 per person and $990,000.00 per occurrence.

b. Property Insurance. All risk property insurance coverage in an amount equal to the replacement cost (without deduction for depreciation) of the improvements constructed on the Premises. Lessee may purchase insurance for Lessee’s personal property as Lessee may determine.

c. Automobile Insurance. If Lessee drives any automobile other than in the roadways and automobile parking areas at the Airport (e.g. Aircraft Movement Area), comprehensive automobile liability coverage for claims and damage due to bodily injury or death of any person or property damage arising out of Lessee’s ownership, Leadville Lake County Airport – Non-Commercial Ground Lease Agreement Page 7 of 15 maintenance, or use of any motor vehicles whether owned, hired, or non-owned, of not less than $500,000.00 single, combined limit per accident for bodily injury and property damage.

d. Pollution Insurance. Lessee is responsible for environmental losses. Any pollution legal liability insurance obtained by the Lessee shall comply with requirements stated in this Agreement and by reference, with the Guiding Documents listed in Article 15.

e. Aircraft Insurance. Lessee is responsible for any damage or loss to the Aircraft. Lessee shall obtain insurance coverage for Aircraft as Lessee may determine.

f. Performance Security. County reserves the right to require a performance security in a form and amount acceptable to the County upon any material default by the Lessee under this Agreement.

g. Certificates of Insurance. The County, at the Lessee’s expense, shall be named as an additionally insured on all insurance policies required under this Agreement, and such insurance shall act as primary insurance with respect to all claims, injuries, or casualties occurring on or to, or arising from, the Lessee’s occupancy and/or use of the Premises. Lessee shall provide the County with copies of certificates of insurance demonstrating required coverage not later than the date of execution of this Lease and annually (January 1st) of each year thereafter, and upon occupancy of theHangar, which shall be updated upon all renewals and changes in coverage. The certificates shall provide that the insurance may not be materially changed, altered, or canceled by the insurer without first giving thirty (30) days written notice by Certified mail, return receipt requested, postage prepaid, properly addressed to the County. The "Certificate Holder” address should read: County of Lake, Colorado, Board of County Commissioners, Post Office Box 952, Leadville, CO 80461.

ARTICLE 11 ASSIGNMENT AND SUBLEASING

A. Assignment by Lessee. Lessee shall not assign any of its rights under this Agreement including but not limited to, rights in any improvements, (whether such assignment is voluntarily or involuntarily) and shall not delegate any performance under this Agreement, except by prior written consent of the County to any of the same. The County shall not unreasonably withhold such consent, and as a condition of obtaining such consent, the transferee receiving any such right shall be required to execute a new Lease Agreement provided by the County. If assignment occurs by inheritance, Section 2.F in this Agreement applies. Regardless of the County’s consent, Lessee shall not be released from any obligations for matters arising during the time when this Agreement was in effect. Any purported assignment or delegation of rights or delegation of performance in violation of this Article 11.A is void.

B. Assignment by County. The County shall have the right, in the County’s sole discretion, to assign any of its rights under this Agreement (and in connection therewith, shall be deemed to have delegated its duties), and upon any such assignment, Lessee agrees to perform its obligations under this Agreement in favor of such assignee.

C. Subleasing. Upon obtaining County’s prior consent, which the County may provide or withhold in the County’s sole discretion, Lessee shall have the right to sublease portions of the Premises for the storage of aircraft in the areas approve by and subject to the terms of this Agreement to provide for the rights and protections afforded to the County

Leadville Lake County Airport – Non-Commercial Ground Lease Agreement Page 8 of 15 hereunder. Lessee shall reserve the right to amend subleases to conform to the requirements of this Agreement, and all such subleases shall be consistent with and subordinate to this Agreement as it is amended from time to time. Such subleases shall include an agreement that the sub lessees will attorn to and pay rent to the County, if the Lessee ceases to be a party to this Agreement. The County shall have the right to approve any sublease in the County’s sole discretion, and the Lessee shall provide to theCounty a copy of every sublease executed by the Lessee (which shall include the make, model and identification number of all Aircraft making use of such space). No sublease shall relieve the Lessee of any obligation under this Agreement.

ARTICLE 12 DAMAGE AND DESTRUCTION

A. Damage of Premises. If any portion of the Premises or the improvements on the Premises is damaged in any manner, Lessee shall promptly remove from the Airport all debris and initiate repairs to restore the same to an orderly and safe condition. All work shall be performed in accordance with plans and specifications that are approved by theCounty as being consistent with or better than the original improvements. All repairs for which Lessee is liable and which are not undertaken after the County has given Lessee notice to so do shall be performed by the County, in which event Lessee shall reimburse the County for the cost thereof, plus a ten percent (10%) administrative charge, and said amount shall be due by the 10th day of the following month in addition to any other payment due.

B. Destruction of Premises. If the Premises are destroyed beyond repair, the Lessee will furnish a performance or payment bond, in an amount at least equal to the cost of removing all damaged or destroyed improvements and any other debris and restoring the Premises to the conditions existing at the time Lessee first entered…