Term Sheet for Hangar Lease Agreement
This term sheet (the “Term Sheet”) summarizes the principal terms of the Hangar Lease Agreement (the “Lease”) offered by Northside Hangars LLC, a New York limited liability company (the “Landlord”), for the long term lease by tenant (the “Tenant”) of hangar space (the “Hangar”) at Francis S. Gabreski Airport, Westhampton Beach, NY 11978 (the “Airport”). This Term Sheet is an expression of intent only, is not a commitment, and except for the Section herein titled “Confidentiality” no legally binding obligations will be created until definitive agreements are executed and delivered by the parties. Interested parties should review the full lease for all applicable terms. This Term Sheet shall be governed in all respects by the laws of the State of New York.
If interested in reserving a Hangar, please email Steve Mark northsidefok@gmail.com to request the full Lease.
Offering Terms
Term:
The term (the “Term”) shall commence on the day the Hangar is delivered to Tenant and shall run through a date that is on or about January 1st, 2054 (the “Expiration Date”). The intent is for the Term to be as close as possible to 30 years in duration. Should the term of Landlord’s lease with the County under the Prime Lease be extended, the Term shall be extended commensurately with no additional charge to Tenant
Commencement Date:
The commencement date (the “Commencement Date”) shall occur when Landlord delivers possession of the Hangar to Tenant, which shall occur no later than April 1, 2025 (the “Outside Date”) 1
Deposit:
10% of the Rent (the “Deposit”) is due upon signing the Lease, and is to be applied towards the Rent that is paid on the Commencement Date. The Deposit shall be refunded to Tenant if possession of the Hangar has not been delivered to Tenant by the Outside Date, unless such date is extended by the parties.
Rent:
The rent due for the lease of the Hangar for the Term (the “Rent”) is set forth on the following table and is due in full on the Commencement Date:
The developer will consider financing.
Management Fee:
The annual management fee owed to Landlord (the “Management Fee”) is $2,500.00 and increases at a rate of 3% per annum.
Operating Expenses:
Tenant to pay semi-annual fee equal to its proportionate share (based on size of Hangar, as set forth in the following table) of all operating expenses of Landlord (the “Operating Expenses”), including, but not limited to, insurance, taxes, and general maintenance and repair.
Permitted Use:
Hangar may be used for all uses permitted by the Airport’s rules and regulations.
Termination / Assignment / ROFR:
Tenant may assign and transfer the Lease to a third party subject to Landlord’s Right of First Refusal.
Lease Subject to Prime Lease:
The Lease shall be subject in all respects to the lease (the “Prime Lease”) between Landlord and County of Suffolk (the “County”), the Airport’s rules and regulations, and the Airport’s minimum standards, each as promulgated from time to time.
Confidentiality:
The terms and conditions of this Term Sheet, including its existence, shall be confidential information and shall not be disclosed to any third party without the consent of the Landlord, except that the Landlord and the Tenant may disclose the terms and conditions described in this Term Sheet to their respective officers, directors, partners, employees, attorneys and other advisors, provided that such persons agree to the confidentiality restrictions contained herein.
1 NTD: Exact delivery date and Term is impossible to ascertain at this time due to permitting and construction required. The Outside Date protects Tenant given this uncertainty. Landlord has a 30yr lease under the Prime Lease, which begins upon receipt of permits from DPW and FAA. Upon receipt, Landlord constructs the Hangar Facility, for which plans are already prepared so that construction can begin immediately.