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DESERT WINGS JET CENTER LLC 

SPIRIT FLIGHT INC. dba WINGS OF THE CASCADES 

President and Owner, Mary A. Schu 

777 SE Salmon Avenue • Redmond, Oregon • 97756 

Physical address: 2032 SE Airport Way 

541-548-4801 Office • 541-548-2776 FAX • 541-390-3980 Cell 

COMPLAINANT'S REPLY 

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To the City of Redmond's Answer 

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DATED: September 30, 2009 
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of the Cascades 

September 30, 2009 

Office of the Chief Counsel 

Attention: FAA Part 16 Airport Proceedings Docket 

AGC-610, Room 925 

Federal Aviation Administration 

800 Independence Avenue, SW 

Washington, DC 20591 

RE: FAA Formal Part 16 Formal Complaint 

Docket No, 16-09-07 

Dear Office of the Chief Counsel: 

Enclosed is one original and three copies of the Reply of Wings of 

the Cascades, LLC to the Respondent City of Redmond's Answer 

for the filing in the above-referenced proceeding. 

Yours truly. 

yyi^^^ ^.0^A ^ 

Mary A. Schu 

Full Service FAA Approved FBO: Ground School and Flight Training • Maintenance ^2/4 Year Aviation College Degrees • Charter Flights 

111 SE Salmai Avenue • Redmond, OR 97756 • (541) 548-4801 • Fax (541) 548-2776 

E-mail: spiritflight@wmgscascades.com • Web site: www.wingscascades.com 
1 FAA FORMAL PART 16 COMPLAINT - DOCKET NO. 16-09-07 

2 

3 DESERT WINGS JET CENTER LLC AND SPIRIT FLIGHT INC., DBA WINGS OF 

4 THE CASCADES, FILED BY MARY A. SCHU, PRESIDENT AND OWNER 

5 

6 REPLY TO ANSWER OF THE RESPONDENT (city of Redmond) 

7 

8 

9 INTRODUCTION AND BACKGROUND: 

10 

11 The RESPONSE from the City of Redmond to the 68 page FAA Part 16 formal complaint filed 

12 by DWJC has little basis in truth, fact or reality. It also lacks the documentation required by the 

13 FAA to disprove the claims. 

14 

15 The RESPONSE written by attorney Steve Bryant for the City of Redmond attempts to make a 

16 mockery of the FAA Part 16 formal complaint and the regulatory process, by demanding the 

17 complaint "be dismissed with prejudice. " "The city of Redmond denies the complaint in its 

18 entirety." 

19 

20 The building described as "very old, small, one room" that was rented to Mary Schu in 1998 for 

21 $50.00 per month did not have a restroom. The building was located next to Butler Aircraft 

22 Services which allowed Mary and students to use their restroom. However, Butler is not open 

23 after 5:00 pm or on weekends. A lot of students are only able to take classes and fly in the 

24 evenings or on the weekends. The city allowed this situation (no restroom or porta-potty) to 

25 continue for four years, until the "very old, small, one room" building was scheduled for 

26 demolition. 

27 

28 Mr. Bryant also states that the City had not received any site plan review. This is untrue, as 

29 stated in the original Part 16 Complaint and Exhibit 45, two site plans were submitted to the 

30 City, along with copies of approved aeronautical studies by the FAA and topographical drawings 

31 of the site. 

32 

33 Mary Schu attempted to fiilfill requirements of the leases by obtaining from the City, needed 

34 information regarding lease boundaries before the project could proceed. Lease lines boundaries 

35 were never received from the City. (Between August 2005 and January 2008, monthly lease 
Wings of the Cascades, Spirit Flight, Inc. Complainant's Reply 

Desert Wings Jet Center, LLC. August 31,2009 

1 payments were paid to the City totaling $50,345.37. Each lease, starting in 2005, was rolled into 

2 the next lease, not through termination or for non-payment of lease payments as insinuated by 

3 Mr. Bryant, but through changes to the plans for the proposed FBO. 

4 

5 Mr. Bryant alleges "substantial" improvements were made to the Whittier Hangars after the City 

6 obtained them in late 2007 and then leased them to Wings of the Cascades. D DWJC was 

7 already renting one of the hangars. The only improvement performed by the City was to install 

8 new lights. We had already added large lights that we paid for ourselves, but they were replaced 

9 with more efficient city lights. Wings of the Cascades built carpeted offices, a carpeted 

10 classroom, installed a bathroom, painted 35 foot high walls, painted 10,800 square feet of floors, 

11 and built study carrels for students to use. A total of $112,340.84 has been expended for 

12 improvements to the Whittier Hangars, all to the benefit of the city of Redmond. Hundreds of 

13 hours of our labor went into this project which had totally improved this facility. 

14 

15 Wings of the Cascades, Spirit Flight, Inc. is the only TRUE Fixed Base Operator (FBO) at 

16 Roberts Field as defined in the City of Redmond's own city code 2.550 which states to qualify as 

17 an FBO on the Redmond Airport, an entity must provide charter service, flight training, aviation 

18 maintenance, and fiiel. Mr. Bryant refers to both Redmond Air and Butler Aircraft as FBOs, 

19 however Redmond Air does not provide flight training, and Butler Aircraft only recently started 

20 flight training. 

21 

22 Very little evidentiary support and documentation is provided by the Respondent, the city of 

23 Redmond. Most exhibits have already been included by DWJC in the original formal FAA Part 

24 16 complaint filed on July 10, 2009. There is little factual evidence to dispute the many 

25 allegations. The requirements necessary to be met by the Respondent for the answer to be 

26 satisfactory are addressed in the following: 

27 

28 Since all three conditions have been satisfied, the complaint is imder fiirther investigation by the 

29 FAA. To glibly proclaim its insignificance seems to fly in the face of the FAA and other 

30 regulatory bodies who are charged to uphold the laws and requirements regarding public fiinds 

31 and use of public property such as the Redmond airport. 

32 

33 Within the answer by the city of Redmond, only a few of the allegations are addressed. Most, 

34 including those regarding Redmond Air, the FBO being granted exclusive rights, are generally 

Page 2 - Complainants Reply 
Wings of the Cascades, Spirit Flight, Inc. Complainant's Reply 

Desert Wings Jet Center, LLC. August 31, 2009 

1 ignored. It then could be reasoned that without sufficient factual defense, the claims unaddressed 

2 stand as true. 

3 

4 According the Mr. Bryant, "The City intends to respond to each of the four alleged grant 

5 assurance violations, but does not intend to address each bald assertion by the Complainant." As 

6 previously mentioned, the expectation by the FAA under §16.23 (g) (i), is that the answer, reply, 

7 and rebuttal shall each contain a concise but complete statement of the facts relied upon to 

8 substantiate the answers, admissions, denials, or averments made. 

9 It appears the "bald assertions" includes but are certainly not limited to: 

10 

11 a) Gifting and fraudulent misuse of public fimds for private gain by 

12 the city of Redmond for Les Schwab, Redmond Air, Air Life and Epic Air. 

13 Mr. Bryant states on page 8 of the city of Redmond answer, that neither Air Life 

14 nor Epic Air are tenants at the airport. But the city of Redmond fimded an 

15 engineered site plan which was developed for them costing tens of thousands of 

16 dollars. 

17 b) Inequity and discrimination in airport lease lengths on the 

18 Redmond airport. This includes operating without a lease in place at all if you are 

19 Redmond Air and being allowed to have a 55 year lease on property which should 

20 have reverted to the airport. 

21 c) Pages of documentation revealing the existence of discrimination 

22 by granting exclusive right to Redmond Air, an FBO. This FBO is in the same 

23 class, utilizing the same type property in an adjacent location to my leased 

24 property, on the Redmond airport. 

25 

26 Respondent selectively disregards, dismisses and glosses over this discrimination as trivial. It is 

27 part of a blatant pattern of discrimination and disrespect for my minority businesses on the 

28 Redmond airport. It is an ongoing, recurring theme that permeates all dealings with the city of 

29 Redmond. The Respondent, rather than answer the claims, spends most of the Answer 

30 attempting to discredit my businesses and my reputation with slurs, innuendoes and partial 

31 truths. 

32 

33 A recurring theme included in most of the respondent's answers refers to the "termination of my 

34 lease." This statement, like many others, is inaccurate and casts a shadow of false doubt on the 

35 situation and my businesses. It is meant to portray DWJC and Wings of the Cascades as unable, 

36 for some unknown, disparaging reason, to perform. Therefore, the lease appears to have been 

37 taken away and terminated by the city of Redmond. Nothing could be fiirther from the truth. 

38 The two original leases were both superseded with more comprehensive and valuable leases for 

39 DWJC. Although they were superseded as "stand alone documents", due to being enfolded into 

40 another lease, neither was terminated for any cause or non-payment as the City would like to 

Page 3 - Complainants Reply 

I 
Wings of the Cascades, Spirit Flight, Inc. Complainant's Reply 

Desert Wings Jet Center, LLC. August 31,2009 

1 portray regarding my company and its reputation. Each added more property to make moving a 

2 road a better possibility after Redmond Air was allowed to build on property that in the FAA 

3 system for FAA 7460-1 Height Studies to construct the project. 

4 

5 Lease #1 of July 2005 one rolled into lease #2 of January 2007 with more property after FBO 

6 approval for DWJC was achieved in 2006. More property was needed for the project. No 

7 payments were missed, no problems occurred. No grace period of 6 months to pay was given as 

8 was given to Redmond Air. 

9 

10 The following shows payments made of $17,200.77 on Lease #1 paid right up until lease #2 took 

11 effect in January 2007. Another year of payments occurred for Lease #2 totaling $33,144.00. 

12 We continued to send checks to the city of Redmond after we filed the breach of confract lawsuit 

13 due to their attempted takeover of my 30 year leased property. They did not cash them. 

14 

15 That is a grand total of $50, 345.37 in lease payments for property on which I have never been 

16 able to build because of failure to by the city to provide correct lease lines. This amount is in 

17 addition to paying monthly rent to Redmond Air for office space and the city of Redmond for 

18 hangar space and both FBOs for fiiel and maintenance, all because I had no building. Another 

19 win-win for everyone but me. Another thread in the pattern of discrimination and economic 

20 hardship caused by the city of Redmond. 

21 

22 As indicated in the breach of confract lawsuit, the city of Redmond had other plans for my 

23 property and in November 14,2007 tried to take it away for the following stated reasons: 

24 

25 WINGS/DWJC had failed to complete or substantially complete a building 

26 on the property in 1 year. However my #2 lease does not read that way: It 

27 states DWJC had one year to build after city site plan review application and 

28 approval is achieved. 

29 

30 What follows is a copy of the first page of DWJC's Lease Agreement dated January 12, 2007, 

31 showing verbiage as stated above, as well as letters from two attorneys sent to Mr. Bryant, 

32 Respondent's attorney regarding this matter. 

33 

Page 4 - Complainants Reply 
Wings of the Cascades, Spirit Flight, Inc. Complainant's Reply 

Desert Wings Jet Center, LLC. August 31,2009 

1 

2 

LEASE AGREEMENT 

FBO PARCEL 

THIS AGREEMENT is made this /JL ^ day ofBiuiiiiWr, 3©86, by and between THE 

CITY OF REDMOND, a public body coiporate and politic of die State of Oregon, hereinafter 

caUed "LESSOR", and DESERT WINGS JET CENTER, LLC, hereinafter called "TENANT". 

WITNESETH : 

WHEREAS, Lessor desires to lease certain premises to Tenant, and Tenant desires to lease from 

Lessor said premises; and 

NOW, IN CONSIDERATION OF THE FOREGOING AND THE MUTUAL COVENANTS, 

TERMS, AGREEMENTS, PRIVILEGES AND OBLIGATIONS HEREINAFTER 

CONTAINED, IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES HERETO AS 

FOLLOWS: 

SECTION L LEASED PREMISES, CONSTRUCTION 

Lessor agrees to and hereby does lease to the Tenant for the exclusive use of the Tenant the property 

consisting of 152,899 square feet described in EXHIBIT "A" and "B" which are attached hereto 

and by reference made a part hereof 

Tenant agrees to construct the improvements on the leased premises within one (1) year 

as approved by the City through Site Plan Review A^lication. If Tenant fails to complete or 

substantially complete the improvements within one (1) year, this lease shall be null and void. 

SECTION 2. TERM 

A. Original Term 

The original term of this lease shall be for a period of twenty (20) years firom January 1, 

2007, until December 31,2027. 

Page 1 - Lease Agreement 12/21/2006 

Page 5 - Complainants Reply 
Wings of the Cascades, Spirit Flight, Inc. Complainant's Reply 

Desert Wings Jet Center, LLC. August 31,2009 

1 

2 

FRANCIS HANSEN & MARTIN LLP 

C E. "WIN ' FRANCIS ATTOHNBS AT IA W MICHAH. H. MCCIA N 

KiwniN E. HANSEN' H48 NWHiaSTWET. B£ND. O R 97701-1914 AUSONA-HUVC H 

GERAIO A. hAMnn PHONC: 541-389-3010 • FAX-. 541-382-7068 CHRISTOPHER 1. MANFREDI t 

* ADxneD n OKCI M M O WAMNCTOM WWW.nMMCISHANSfN.COM t ADMirreD n OacvN tna Oufcv w 

Via FacsimUe and US Mail: 548-1895 

December 21, 2007 

Steven D. Bryant 

888 S.W. Evergreen Avenue 

Post Office Box 457 

Redmond, Oregon 

Re: Desert Wings Jet Center, LLC - City of Redmond 

Dear Steve: 

Our office represents Desert Wings Jet Center, LLC. They have asked us to take ail 

steps necessary to enforce their rights under their thirty-year Lease Agreennent wfh the 

City of Redmond. I have received a copy of your letter of December 18,2007. 

The City of Redmond is in material breach of the Lease Agreement with Desert Wings 

Jet Center. Specifically, the City has failed to provide all of the leased property covered 

by the lease to my client. The City has altowed a neighboring tenant to trespass on my 

client's leased property over ttie entire period that the lease has been in place. While 

the City has promised to rectify this situation, to date, they have failed to do so. Even 

more significant is the Cit/s failure to move the vacated right-of-way of Salmon Avenue 

off of my client's property as promised in the lease. The continued occupatmn by the 

City of Redmond of Salmon Avenue in the mkldle of my client's property has impeded 

my client's ability to develop this property as intended under the Lease Agreement 

Both of these breaches by the City of Redmond are substantial and material. 

In your letter, you make the statement that this lease will temiinate on January 12. 

2008. That is entirely incorrect The lease is quite specific when it describes that the 

tenant has one year from approval by the City of site plan review application to build its 

improvements under the site plan application. Only if those improvements are not 

completed within that one-year period of time will this lease temiinate. That one-year 

period of time has not commenced. First, my client's have been impeded from make a 

site plan application due to the material breaches by the City of Redmond. Second, the 

City drafted this lease and all ambiguities in the lease are construed 

Page 6 - Complainants Reply 
Wings of the Cascades, Spirit Flight, hic. 

Desert Wings Jet Center, LLC. 

Complainant's Reply 

August 31, 2009 

1 

2 

Sieven D. Bryant 

December 21,2007 

Page 2 

against the City. The City's strained interpretation that this lease tenninates one-year 

from the date of the lease is unsupported by the language in the lease. There are many 

provisions in the lease that do commence upon the initial lease term, and those are 

specifically set forth. The provision you are referring to simply requires all 

improvements to be completed within one year of the site plan approval. Given my 

client's substantial property interest (a thirty-year lease right), no court is going to allow 

the landlord a forfeiture, especially when the landlord is in materia! breach under the 

lease. 

We have set forth above the many problems that the City of Redmond has given their 

failure to perfonn under the lease agreement. That t>eing said, I think it is important for 

our client's to meet with you, and I present to see if this matter can be resolved, both to 

the favor of my client .and to the favor of the City of Redmond. My client intends to 

build its facility on the airport property under the lease, but is willing to enterfain cerfain 

limited modifications to the lease ttiat would be beneficial to both parties. I read your 

letter as a spirit of an attempt to resolve this matter short of litigation. Obviously, 

litigation is cerfainly an optton my client intends to pursue if this matter cannot be 

resolved otherwise. That litigation would tie up this property for a significant amount of 

time. 

Be aware that my client is a minority owned business. Many of the conditions that you 

requested in your letter of December 18. 2007, have never been required of any other 

tenants at the airport. I would encourage the City of Redmond to negotiate in good faith 

and not in a discriminatory manner. 

Once you have had a chance to review this letter with your client, get back in touch with 

me and let me know how you wish to proceed. While we are willing to see if 

negotiations can avoid litigation, we will not allow any additional breaches by the City of 

the lease. 

Call if you have any questions. 

Sincerely, 

MARTIN E. HANSEN 

MEH:cjb 

cc: Gary and Mary Dominick 

Page 7 - Complainants Reply 
Wings of the Cascades, Spirit Flight, Inc. 

Desert Wings Jet Center, LLC. 

Complainant's Reply 

August 31,2009 

MILLER NASH 

Alycla N, Sykora 

al)Tia.niiani$iniBCTnash,CD(n 

ii>*JL \iK.l £SN«SH,COW 

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o«ici Ml «iI.5»S7 

December 2i, 2007 

Mr. Steven D. Brjiint 

Brj^nt Emerson & Fitch LLP 

888 SW Evergreen Avenue 

PC Box 457 

Redmond, Oregon 97756 

Fax: 541.548.1895 

1 

2 

Subject: Desert Wings Jet Center LLC and the Citj' of Redmond 

Dear Steve: 

This firm represents Desert Wings Jet Center, LLC. My client has pro\ided me 

with your letter dated December 18, asserting that Desert ^^^gs' 30-\-ear lease "vxill 

terminate on Januao" 12,2008." The lease will not terminate on January 12 unless a 

court so rules. I am con\inced that the court ^^ilI not interpret the lease as you appear 

to. 

Section i of the lease requires Desert Wings "to construct" or to "substantially 

complete" undefined "improvements" within one year after the Citj- approves the site 

plan application, not, as you suggest, from the date of execution. As \-oii know, the 

parties met on Nox-ember 14,2007, and addressed requirements for the site plan. The 

Git} has not approved Desert Wings' site plan. 

You appear to interpret the lease to require substantial completion within one 

year from the date the lease wcis executed. That reading is not supported by the text and 

context of the lease, nor wT)uld such a proiision be reasonable in this heaxily regulated 

industty. One year from the lease date wDuld be a \«r\- difficult time frame to complete 

surveying, architectural design, the application process, meetings including resolution 

of other tenants' issues, FAAapprox-al, State appro\-al, Citj- appro\-al, and completion of 

the hangar, the flight-school building, and parking. 

E\-en if it wiere possible to complete in one year, if the parties had agreed to that 

time frame, they simph° would have said so, as the\- did in the first sentence of the third 

paragraph of Section 3 ("The rent shall be adjusted three (3) years fivm the date of this 

coROOCS-eoooaMSi 

Page 8 - Complainants Reply 
Wings of the Cascades, Spirit Flight, Inc. Complainant's Reply 

Desert Wings Jet Center, LLC. August 31.2009 

1 

2 

3 

Stex'en D. Bryant 

December 21,20O7 

Pages 

lease and at the end of eveiy three (3) years period tbereafter * * *.") (emphasis added). 

Uom»>tT, tiuotii^Dut the lease, it is dear that Desert Wings is forbidden from 

constructing or erecting anything until the C3ty approves tiie construction plan in 

advance. 

The Gty drafted the lease. If you are prepared to argue that any lease term is 

ambiguous, remember that poor drafting is construed against tiie drafter. 

Your declaration that the lease will tenninate on 25 days' notice for no lawful 

reason is itself a breach of the lease and violates the covenant of good faith and fair 

dealing. 

I recommend that Desert Wings and the City decisionmakers meet at their 

earliest convenience, keeping in mind that time is of the essence for iny clients. I am 

available all day. 

As a reminder, on December 19, Greg Lynch and I left a message for you tliat 

remains unretumed. I look forward to hearing fh>m you today to set a meeting time, 

date, and place for the parties to resoh'e this matter. Desert Wings looks forwud to 

working together with tiie City of Redmond for the next 29 years. 

Sincerely, 

Alycia N. Sykora 

c client 

COROOC5.-aXI03148.1 

Page 9 - Complainants Reply 
Wings of the Cascades, Spirit Flight, Inc. Complainant's Reply 

Desert Wings Jet Center, LLC. August 31, 2009 

1 1. GRANT ASSURANCE #19 - OPERATIONS AND MAINTENANCE 

2 

3 A. FLOODING: The city of Redmond requires each tenant or property owner to 

4 maintain and manage excess water within their property. The city agreed to address 

5 storm water runoff from the Redmond air Property. 

6 

7 A public records request made on August 27, 2009 asked for documentation that the city 

8 had addressed storm water runoff with Redmond Air as stated by Respondent's attorney 

9 in his Answer to the Part 16 Complaint on Page 4, Line 9, and as required by City Code, 

10 Chapter 8, Article 4, Section 7.8.3035 - Design Review Criteria A - Grading and 

11 Draining, § 4 and 5. After payment to the city of Redmond of $117.75 for 3.75 hours to 

12 search for any records, we were told that none existed. No records to prove the flooding 

13 had been addressed. The flooding exists to this day when there is a heavy rainfall. 

14 

15 Additionally, Mr. Bryant asstires all of us that the flooding problem is DWJC's, when he 

16 states the "property was leased as is." 

17 

18 

19 B. TRESPASS AND TRENCHING: In response to Mr. Bryant's assertion in item 

20 B. under Grant Assurance #19 regarding the trespass and 40 foot trench dug on DWJC's 

21 property, that the trenching was without the knowledge or consent of the City of 

22 Redmond. This statement is totally false. Airport manager Novick responded to a 

23 12/19/1007 email from John at Keeton King stating they were "bringing in natural gas to 

24 the Dave Holt hangar and Cascade Natural gas has requested your (Carrie Novick's) 

25 permission to do so." As detailed in the original formal FAA Part 16 Complaint, the 

26 airport manager approved the frespass and trenching as shown in the emails. (See Exhibit 

27 44 of original Complaint.) 

28 

Page 10 - Complainants Reply 
Wings of the Cascades, Spirit Flight, Inc. Complainant's Reply 

Desert Wings Jet Center, LLC. August 31,2009 

1 Attorney Bryant states Complainant alleges that Redmond Air trespassed on 

2 Complainant's property, dug a forty foot trench, and that City consented to this Action. 

3 

4 Attorney Bryant claims, "... However, the frenching was without the knowledge or 

5 consent of the City. On both occasions, when airport staff discovered the frenching 

6 activity, Redmond Air was directed to cease the activity." As attorney Bryant states "In 

7 one instance the entity doing the trenching was removed from the airport. The airport 

8 manager personally directed Redmond Air to cease the frespassing and damage to 

9 Complainant's leased property." Attorney Bryant is grossly incorrect. In fact, it was 

10 DWJC's general manager who demanded the subconfractor vacate the premises that they 

11 were trespassing on; and the City of Redmond (Airport Manager Carrie Novick) had both 

12 knowledge of the frenching and approved the frenching on DWJC property as described 

13 below: 

14 

15 December 19, 2007 8:26 am - Email from John Herlocker (Redmond Air) to Carrie 

16 Novick. (Exhibit ) 

17 

18 "We are in the process of bringing in natural gas to the Dave Holt hangar and Cascade 

19 Natural Gas has requested your permission to do so. " 

20 

21 / have attached a letter you prepared for a previous installation as reference. 

22 

23 We propose to run this new line along the driveway approximately 100' from Salmon 

24 Avenue. We would like to perform the work during the first week of January with all 

25 approvals in place. 

26 

27 If this proposed installation meets with your approval, would you please prepare and fax 

28 me a letter approving this installation. 

29 

30 If you have any questions regarding this installation, please do not hesitate to call either 

31 myself or Tim Keeton. 

32 

33 Thank you, 

34 

35 John Herlocker 

36 

37 

Page 11 - Complainants Reply 
Wings of the Cascades, Spirit Flight, Inc. Complainant's Reply 

Desert Wings Jet Center, LLC. August 31,2009 

1 Attached letter referenced in paragraph 2 from above: 

2 "June 28, 2005 

3 VIA Facsimile 388-4758 

4 Cascade Natural Gas 

5 Attention: John Cooley 

6 

7 ITiere is a utility corridor off S.E. Salmon Avenue that runs along the fence which 

8 provides power, phone, and water to hangar development on Roberts Field - Redmond 

9 Municipal Airport. It is this utility corridor that you are to place your natural gas line. " 

10 

11 Sincerely, 

12 Carolyn S. Novick, A.A.E. 

13 A irport Manager 

14 

15 

16 Letter of December 20, 2007 indicating Novick's approval Exhibit ) 

17 

18 December 20, 2007 

19 

20 VIA Facsimile to 541-388-4758 

21 

22 Cascade Natural Gas 

23 Attention: John Cooley 

24 

25 Dear John: 

26 

27 This is a concurrence with Keeton Kings request to install a gas line approximately 100 

28 feet from Salmon Avenue along the property they currently lease from the airport as a 

29 parking lot. If you have any further questions about it please don't hesitate to contact me 

30 at 504-3496. 

31 

32 Sincerely, 

33 

34 Carolyn S. Novick, A.A.E. 

35 Airport Manager 

36 

37 

38 Additional email from Keeton King to Novick regarding the frenching on DWJC's 

39 property (Exhibit ) 

40 

41 "From: Tim Keeton (Timk(a>keetonkins. com) 

42 Sent: Wednesday, December 26, 2007 11:23 am 

43 To: Carrie Novick 

44 

45 Carrie, 

Page 12 - Complainants Reply | 

I 
Wings of the Cascades, Spirit Flight, Inc. Complainant's Reply 

Desert Wings Jet Center, LLC. August 31,2009 

1 / am planning to install the gas line to KC Aero's hangar this week. Unfortunately the 

2 gas line falls within the fence that Wings of the Cascades have erected. Could you please 

3 have them remove enough of it so that could trench for the CNG installation. 

4 

5 Thank you 

6 

7 Tim Keeton 

8 Keeton-King Const. Inc. 

9 923-0704" 

10 

11 

12 Additional email from Winton Piatt to Novick regarding the trenching on DWJC 

13 property; 

14 

15 "From: Winton Piatt 

16 Sent: Wednesday, January 09, 2008 8:55 am 

17 To: Carrie Novick; Carter McClarren 

18 cc: Steve Bryant 

19 Subject: Wings of the Cascades Property vs. Gas Line 

20 

21 On Saturday January 5' I stopped and talked to the Keeton King employee's about 

22 entering Wings of the Cascades property without permission. I spoke with Mark and his 

23 lead person about the trench that was dug out to the existing gas line, waiting for new 

24 pipe to be laid in that would service the 3 new hangars Keeton King was building. I told 

25 them not to enter the property. On Monday the 7** / asked Gary Dominick about the 

26 possibility of hooking to that gas line. Gary told me that Keeton King should stay off 

27 until the issues regarding the area were resolved. 

28 

29 / called Tim Keeton and explained that he should wait and remain clear of the property. 

30 / asked if the gas company was scheduled to place pipe. He stated that they were 

31 scheduled for Tuesday. I told him to stop the work order. The gas company did not place 

32 pipe on Tuesday. " 

33 

34 

35 Januarv 10. 2008 letter from DWJC regarding frespassing on propertv (Exhibit ) 

36 

37 "Mid-morning on January 10, 2008, the DWJC General Manager, Mr. Gary Dominick, 

38 came across workers actually installing a gas line on DWJC property. He immediately 

39 required them to cease the work and remove themselves from the property. The workers 

40 complied and removed themselves from the property. They then called their company 

41 who called Cascade Natural Gas. Mr. Rod Carlile, General Manager, District 

42 Operations, Cascade Natural Gas (phone 541-388-2775) then arrived on the scene. Mr. 

43 Dominick explained to Mr. Carlile that the property was in litigation and that the 

44 workers were trespassing on the property. At this point, Ms. Mary Schu arrived to 

45 continue the discussion with Mr. Carlile. Ms. Schu directed Mr. Dominick to develop a 

46 letter to distribute to any individual who subsequently trespassed on the property. " 

Page 13 - Complainants Reply 

I 
Wings of the Cascades, Spirit Flight, Inc. Complainant's Reply 

Desert Wings Jet Center, LLC. August 31.2009 

1 It was at this time Airport Manager Novick began denying that she had anything to do 

2 with her approval for Keeton-King to frespass on DWJC property. 

3 

4 

5 C. SITE AND DESIGN REVIEW AND APPROVAL: There appears to be confusion among 

6 the departments in the City regarding what building codes are required for businesses or projects 

7 on the Redmond Airport. On January 8, 2008, DWJC requested "Site and design review and 

8 approval" documentation of plans for all buildings on the Redmond Airport. All of the leases on 

9 the Redmond Airport require City Site and Design Review and Approval prior to building 

10 hangars and related buildings. 

11 

12 In a response from Patti FreaufF, City Recorder, on January 23, 2008, she noted "As a side note, 

13 the request of 1/8/2008 for Site and Design -_I have been told there is nothing to give regarding 

14 Site and Design as it was not required. ...The Only thing that can be given is the Building 

15 Permit Application which shows the planning approval." 

16 

17 However, in the latest letter of May 15, 2008 from the City Attorney Bryant, he states "Site and 

18 Design Review is required for all new development unless exempted by Section 8.3010 of the 

19 Development Code. While there is an exemption for "hangar development entirely on and 

20 interior to airport property, not fronting on any public or private sfreet" the subject property is 

21 not interior to the airport property (i.e., not inside the security fence). This Site and Design 

22 Review requirement is not new and a significant number of hangars and related construction, 

23 including the terminal building, have gone through this process. 

24 

25 D. REDMOND AIR ENCROACHMENT: As referenced in the initial complaint (see copy of 

26 exhibits 47, and attached) Redmond Air obtained a building permit to "add a 24,000 square foot 

27 hangar to existing business." No site plan was required as it was in an airport zone. The 

28 building is described as 200 feet by 120 feet hangar; their lease only allowed 100 feet by 200 

29 feet, according to documentation obtained through public records request. The airport manager. 

Page 14 - Complainants Reply 
Wings of the Cascades, Spirit Flight, Inc. Complainant's Reply 

Desert Wings Jet Center, LLC. August 31, 2009 

1 Ms. Novick, solved this dilemma by taking over 25,000 square feet from property that had been 

2 promised to Mary Schu of Wings of the Cascades. 

3 

4 The building in question was a metal building that had been planned and built by Keeton-King as 

5 a skating rink for a building project in Bend. Apparently the skating rink deal fell through so 

6 Keeton-King (Redmond Afr) decided to place the building on the Redmond Airport. Only 

7 problem was they didn't have enough property leased. Additionally, as noted in Exhibit 48, the 

8 building inspection record indicates "catch basins" were to be built to take care of any water 

9 runoff. No catch basins were built, and the item is not checked off on the inspection paperwork. 

10 

11 Grant Assurance #19 - Operations and Maintenance requires the sponsor, in this case, the City of 

12 Redmond, to "operate and maintain the airport and all facilities thereon or connected therewith, 

13 with due regard to climatic and flood conditions." Additionally, in Assurance 17 - Construction 

14 Inspection and Approval requires the City of Redmond to provide and maintain competent 

15 technical supervision at the construction site throughout the project that the work conforms to the 

16 plans, specifications ..." The clause indicates the City of Redmond is responsible to inspect 

17 building projects and assure that the building is built in a manner that complies with City code 

18 and land use laws. How is it the City failed to provide adequate and complete building 

19 inspections of the "skating rink?" The inspection report shows "catch basins" listed imder 

20 Plumbing, however it is not checked off as having been inspected. We believe the failure of the 

21 City of Redmond to adequately inspect Redmond Air's skating rink project is the main reason 

22 for the flooding that occurs on our leased property next to Redmond Air. Even now, when at 

23 Redmond Air's site, there are no catch basins or gutters. Additionally, the City of Redmond 

24 informed us the dry-well that was at the site is not in working order and hasn't been for a number 

25 of years. 

26 

27 Mr. Bryant states Grant assurance #19 does not require the City of Redmond to make 

28 improvements to leased property and that "Complainant was well aware of the site conditions 

29 when she asked to lease the property." Ms Novick responded to Mary Schu's letter declining to 

30 move to the northwest airport property citing concerns about a steep grade and the enormous 

31 amount of fill required to make the site safe. In Ms. Novick's response she stated the following: 

Page 15 - Complainants Reply 
Wings of the Cascades, Spirit Flight, Inc. Complainant's Reply 

Desert Wings Jet Center, LLC. August 31,2009 

1 "In regard to your letter and the fill required for the NW site, the airport has the fill in place, if 

2 additional fill is needed we intend to use fill that will be removed from the terminal basement 

3 area ..." It seems to me Ms. Novick is offering to use fill afready on the Airport to make the NW 

4 site safe for aviation. This is the reason I asked the City and Airport to provide fill for my leased 

5 property where flooding was a problem because of lack of oversight by the City of Redmond. 

6 Why was fill offered at one site and not the other? 

7 

8 Carrie Novick was asked in an October 24, 2006 meeting with Gary Dominick, Mary Schu, 

9 Shannon Egeland, and Eric Porter who the authority was for verifying that other lessees comply 

10 with various rules in place. Ms. Novick answered, "1 am the responsible overseer of compliance 

11 issues on Airport groimd, and that her boss is the City Manager, Mike Patterson." Ms. Novick 

12 indicated at that time, "Anyone can talk with Mike if they believe that I am not responsive to 

13 their concerns." -

14 

15 

16 2. GRANT ASSURANCE #25 - AIRPORT REVENUE - FRAUDULENT MISUSE 

17 OF PUBLIC FUNDS FOR PRIVATE GAIN 

18 

19 The Les Schwab Tire Company, city of Redmond - respondent. Federal Grant Money funded for 

20 the Airline Terminal Expansion project, and Connect (Dregon II Grant Agreement Multimodal 

21 Transportation Fimd Program 2007 North Side Cargo Ramp and Development Agreement No. 

22 24944. 

23 

24 This is a classic example of "gifting" and preferential freatment for a private entity, the Les 

25 Schwab Tfre Company, by the city of Redmond, respondent. 

26 

27 The Les Schwab Tire Company is a self proclaimed one billion, six hundred million dollar ($1.6 

28 billion) per year revenue producing company as quoted recently in our local newspaper. The 

29 Bend Bulletin. "The vast majority of Les Schwab's $1.6 billion in annual tire sales comes from 

30 private-brand tires, as opposed to name brands like Goodyear or Michelin, the company wrote in 

31 a brief to the U.S. International Trade Commission." 

Page 16 - Complainants Reply 

I 
Wings of the Cascades, Spirit Flight, Inc. Complainant's Reply 

Desert Wings Jet Center, LLC. August 31, 2009 

1 In the article the Les Schwab Tire Co. objects to the suggested import tax on the tires from 

2 China, which they primarily sell. The import tax would level the playing field for other 

3 manufacturers trying to make profit on American made tires. 

4 

5 The Respondent's Answer declares the Les Schwab letter of May 26, 2007, was written by Mary 

6 Schu. This is correct. Mr. Hoagland's asked that Mary write the letter. After Mr. Hoagland 

7 edited the letter, it was sent to DWJC, confirming what was discussed during their meeting and 

8 Schwab's company interest in fiirther negotiations. The schematic drawing which accompanied 

9 Schwab's letter was provided by Mr. Hoagland. 

10 

11 As discussed in the original complaint, I stated that Ms. Novick cut Schwab a better deal. This 

12 deal utilized taxpayer money and funding from federal, state and local resources intended to be 

13 utilized for the public good, not hot the private benefit. 

14 

15 Mr. Bryant alleged that Ms. Schu demanded that airport manager Carrie Novick's employment 

16 be terminated. This is not true. Ms. Schu asserted that elected city officials have failed to 

17 supervise and direct Ms. Novick in her employment role, thus permitting non-compliance with 

18 the airport grant assurances. Although they have repeatedly been made aware of the problems, 

19 they choose to further facilitate the discrimination and economic harm through negligence in 

20 their leadership actions and omissions in their responsibilities for correction. As discussed here, 

21 the fraudulent misuse of public funds for private gain which has benefitted a select few on the 

22 federally funded Redmond airport has gone unaddressed. 

23 

24 Further proof is provided by the inequality of the Les Schwab Tire Company's lease with the city 

25 of Redmond when compared to DWJC's lease. A table outlining this is provided below: 

26 

27 

Page 17 - Complainants Reply 
Wings of the Cascades, Spirit Flight, Inc. 

Desert Wings Jet Center, LLC. 

Complainant's Reply 

August 31,2009 

1 ComparisonofLease Agreements between the City of Redmond (owner) and Les Schwab 

2 Warehouse Center, Inc. (Tenant) and Wings of the Cascades, Spirit Flight, Inc. and Desert 

3 Wings Jet Center, LLC (Tenant) 

Les Schwab Warehouse Center, Inc. 

Section 1. Leased Property, Right of First 

Refusal, Construction 

A. Lease Area and Right of First Refusal. 

Construction. Owner agrees to and 

does lease to the Tenant, and Tenant 

leases from Owner, the property as 

described ... In addition. Owner grants 

to Tenant a right of first refusal to lease 

additional property ... 

B. Possession. Tenant shall be entitled to 

possession of the leased property on or 

before September 22, 2008. If Owner 

has not completed the fill or cannot 

deliver possession of the property by 

September 22, 2008, Tenant may 

terminate this lease. 

C. Owner Improvements. 

1) Owner shall fill the property 

consistent with the grading plan 

attached as Exhibit E. Owner will 

slope the fill at a 2:1 ratio where 

possible along the northern line of 

the Property. All fill work provided 

by Owner shall be effected in 

accordance with prevailing 

engineering standards in appropriate 

measured lifts and compaction 

standards (95% minimum). At the 

conclusion of the filling project. 

Owner will provide to Tenant a 

standard engineered fill report 

certifying that the fill was properly 

engineered. 

2) Owner shall temporarUy relocate 

the security fence so that Tenant's 

Wings of the Cascades, Spirit Hight, Inc. 

and Desert Wings Jet Center, LLC 

Section 1. Leased Property, Construction 

A. Tenant shall construct the 

improvements as described ... Tenant 

will submit a complete application for 

site and design review of all proposed 

improvements on the leased premises 

within 180 days of this lease ... 

B. Once Tenant has received the Site and 

Design approval (which may contain 

conditions). Tenant will promptly 

submit final plans to the City Building 

Department and Engineering 

Department for review and approval. 

C. Tenant will begin construction of the 

improvements within 180 days after 

receiving site and design approval. 

Page 18 - Complainants Reply 
Wings of the Cascades, Spirit Flight, Inc. 

Desert Wings Jet Center, LLC. 

Complainant's Reply 

August 31, 2009 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

construction will occur outside the 

security fence. The relocated 

security fence shall be located as 

described in Exhibit F. Upon 

completion of Tenant's 

improvements. Owner shall relocate 

the security fence so that it connects 

as described in Exhibit G. 

3) Owner shall provide paved access 

from the leased property to the 

airfield for Tenant's aircraft. 

Owner will provide the paving 

specifications for the airfield ramp 

by October 15,2008. Owner shall 

complete the paved access consisting 

of approximately 3850 square feet 

connecting the leased property to the 

Butler Aircraft ramp by November 

15,2008. If the access is not 

completed by that date. Tenant has 

the right to construct the access 

consistent with the paving 

specifications and Owner shall 

reimburse Tenant for its actual costs 

to construct the access. 

GIFTING AND FRAUDULENT MISUSE OF PUBLIC FUNDS FOR PRIVATE GAIN 

It would be nice if, as Mr. Bryant states, on page 6, the City of Redmond, at its cost, would 

provide fill or otherwise improve the site condition of the property to resolve the flooding issue. 

They call it gifting in reference to my needs on the airport. 

However, Les Schwab received engineering, fill, compaction, asphalt and a security fence for the 

new hangar they built in 2008 on the "solely for cargo ramp in the northwest comer of the 

airport." As Mr. Bryant states, the city did get a grant. $1.5 million dollars was provided by a 

State of Oregon Connect 2 grant from Oregon Department of Transportation which required a 

local match from the city of Redmond. The "solely for cargo ramp" was to be used to separate 

general aviation from the freight haulers and their loading trucks. Instead we have two Citation 

Page 19 - Complainants Reply 
Wings of the Cascades, Spirit Flight, Inc. Complainant's Reply 

Desert Wings Jet Center, LLC. August 31,2009 

1 business jets capable of 9 passengers each, fuel trucks, and freight aircraft with delivery vans and 

2 people trying to load and unload twice daily in a ramp that only has one 55 X 70 foot attachment 

3 to the exit ramp onto the rest of the airport ramp. 

4 

5 The fill from the terminal expansion and TSA basement dug out with federal grant money was 

6 fransported over to the new ramp construction to be engineered for Les Schwab Tfre Company 

7 which is a self proclaimed $1.6 billion dollar per year revenue producing company. This is the 

8 very essence of gifting, fraudulent misuse of public funds for private gain, and discrimination 

9 causing economic hardship on a small minority owned aviation business. 

10 

11 My property was the only buildable piece on the airport with airside access when Les Schwab 

12 Tire Company came to see me about lease space. I was told by Schwab's pilot that Ms. Novick 

13 had confirmed there was nowhere else on the airport. Ms. Novick wanted to make store they 

14 came to Redmond since all her other aviation relationships had resulted in the companies 

15 locating in neighboring Bend. So it appears she told Schwab she would give them my property -

16 a win for the city with property #2 as a parking lot, a win for Schwab with a great piece of airside 

17 property, #1 that I had paid on for two years. Yet another feather in the hat of the city of 

18 Redmond and the airport manager. They would succeed in keeping Les Schwab from going to 

19 Bend as Lancair Columbia (now Cessna) and Epic Air did. Air Life which had property held for 

20 several years on a hearsay handshake stayed in Bend at their present location although the city 

21 spent a great deal of money engineering a site plan for them. Public Records Request shows 

22 that $51, 070 was spent for HNTB to prepare engineering reports for the northwest airport 

23 development, where the Les Schwab hangar is built. It was all a win win for everyone but me. 

24 However Novick did offer to put my company over on the same cargo ramp. My portion would 

25 be spread over the term of the lease for engineering and fill. ( Uhlike the Schwab arrangement.) 

26 Previously that property was considered unsuitable and was referred to as "imleasable" by Mr. 

27 Bryant. Although it was where Ms. Novick expected me to go when she took away my lease for 

28 the property I had paid on for two years with many yet to go. 

29 

30 Page 8 finds Mr. Bryant stating the following fraudulent claim: "No improvements were made to 

31 the property on the airport for the benefit of either Air Life, Epic Air or any other current or 

Page 20 - Complainants Reply 
I 

I 

I 

Wings of the Cascades, Spirit Flight, Inc. Complainant's Reply 

Desert Wings Jet Center, LLC. August 31, 2009 

1 potential tenant. In fact, neither Air Life or Epic Air are tenants at the airport. I am still waiting 

2 for a public records request to be filled regarding die cost of engineering a site plan for Air Life 

3 and Epic Air complete with their airplanes superimposed on the drawing next to their names. 

4 The drawings was included with the Exhibits in the original Part 16 Complaint. 

5 

6 And I am still complaining about the excessive cost of public records in Redmond. This is 

7 expecially true since the attorney got involved with every record we wish to get. DWJC has 

8 spent approximately $ 1,100 for the few public records requests that were filled. 

9 

10 It now takes at least 5 times as long and costs 10 times as much as when Carter McClarren 

11 worked for the city. I believe it is one more way to discriminate. The most recent refusals 

12 disallowed providing the email of Mr. Randy Povey that is in question. Rather than doing a "he 

13 said, she said", we need to look at the email. Bryant is claiming attorney client privilege 

14 regarding my property. Mr. Povey read the email to me, so must not feel the same about the 

15 relationship. Although I have asked 3 times for the email, and what statute precludes us from 

16 getting it through public records, it is still not forthcoming. 

17 

18 Additionally I am now required to provide cash or a cashier's check for the records. I have spent 

19 several hundred thousand dollars on the airport with the city of Redmond. A business check has 

20 always worked during the past 10 years of my operation as an aviation business owner. The 

21 assistant coimty recorder indicated that the "city attorney" had placed the new requirement of 

22 "cash or cashier's check" for any work on public records requests by DWJC. I believe that is 

23 descrimination. 

24 

25 

26 CONCLUSION 

27 All mayor Endicott's denials and proclamations that my success is his interest, Ms. Novick's 

28 efforts to get everyone to support her and condone her actions on the airport and Mr. Bryant's 

29 undoctunented answers clouded with inaccuracy.... these unanswered questions still remain. 

30 

Page 21 - Complainants Reply 
Wings of the Cascades, Spirit Flight, fric. Complainant's Reply I 

Desert Wings Jet Center, LLC. August 31,2009 * 

1 Why am I blocked by the city of Redmond from constructing a building for my aviation 

2 businesses on the Redmond airport? What is the reason that everyone else can build a building, 

3 but I am battled and denied at every turn? Why is it necessary to file an FAA Part 16 complaint 

4 with the federal government simply to construct an already approved FBO on the Redmond 

5 Airport? What or who is the real problem here? Why are public employees allowed to act this 

6 way to the public they are supposed to serve? 

7 

8 Instead of answering the allegations I proposed, supported 49 Exhibits which accompanied the 

9 original Part 16 Complaint, Mr. Bryant, and the city use the smoke and mirror approach to try to 

10 discredit me and shift the focus from their wrong doing. 

11 

12 It is one more example of the prevailing attitude of disdain toward rules and regulations. It is 

13 one more way to dismiss and reduce my importance as a legitimate aviation business and an 

14 airport user in a contemptuous, scornful way. It is one more piece in the pattern of 

15 discrimination inflicted on me and my small, woman owned aviation business by the city of 

16 Redmond and the airport manager. It is one more way to retaliate against me, through attempted 

17 assassination of my reputation and character. 

18 

19 The RESPONSE is filled with inexact, misleading, deceptive statements. Most are invalid 

20 partial truths; not based on fact or law. Most are not substantiated with any of the documentation 

21 requfred by the Part 16 Complaint process. The city of Redmond appears to operate under the 

22 misconception that simply "saying it," somehow makes is true. Rather than answer documented 

23 facts, they deny the accusation with no facts answering that they are "checking into it." (Mr. 

24 Bryant 

25 

26 The respondent's ANSWER lacks integrity, honesty, and accuracy. It clearly displays the 

27 haughty, scornful, arrogant attitude of the city of Redmond, the airport manager and the attorney 

28 hired to inflict their actions and decisions on people like me. 

29 

I 

I 

Page 22 - Complainants Reply 
Wings of the Cascades, Spirit Flight, Inc. Complainant's Reply 

Desert Wings Jet Center, LLC. August 31, 2009 

1 This prevailing attitude is perpetuated by those in power who see no wrong in their wrong doing 

2 because they have done it for so long ... with no repercussions from the public or those directly 

3 affected. 

4 

5 As in nearly all dealings with Mr. Bryant and the City of Redmond it is an obvious fact that there 

6 is no "operation in good faith." The question must still be asked: Why so much posturing, and 

7 so much difficulty for a small company simply trying to utilize a piece of leased property and 

8 build a building on the Redmond airport? 

9 

10 The recurring theme and pattern of discrimination and causing economic hardship for DWJC is 

11 not addressed by Mr. Bryant except to dismiss it as groundless. However, the response and 

12 materials provided by Mr. Bryant have supplied more facts and evidence of discrimination and 

13 economic damage inflicted on my woman owned aviation businesses Wings of the Cascades 

14 Spirit Flight Inc. and Desert Wings Jet Center LLC (DWJC). This new evidence clearly reveals 

15 this discrimination while others benefit with the blessing of the city of Redmond and the city 

16 council headed by mayor George Endicott. The city of Redmond has approved the actions of 

17 the airport manager, Ms. Carrie Novick, and the attomey, Mr. Steve Bryant. 

18 

19 The city of Redmond does not address or answer in any way an estimated 80% of the facts 

20 documented in the original FAA part 16 complaint put forth by Mary A. Schu and DWJC. 

21 

22 Rather than address the allegations, the RESPONSE by the city of Redmond is filled with 

23 repeated attempts to discredit me and my company DWJC. Slurs on my character, standing and 

24 reputation through innuendo, insinuations and inferences are done continually. It is the oldest 

25 tricks in the book of an attomey with no case and no defense. If you can't beat them, try to 

26 desfroy their credibility. 

27 

28 

Page 23 - Complainants Reply 
I 

I 

A4c?c^3/ 

Ongon 

OtiMifUiHnt of 

Tnnipoitnlon 

ConnectOregon II 

Program Application 2007-2009 

•^0 ensure you have current program information, sign up for the ConnectOregon electronic mailing list at: 

•ttp://listsmart.osl.stat9.or.us/mailman/listinfo/connectoreQon-news 

• Please read ConnectOregon II Application Instructions. 

• The Application Instructions, the Draft Project Agreement, and Frequently Asked Questions are available on the 

Connec/Oregon II Web site: http://www.oreaon.qov/ODOT/COMM/CO 

• Submission Requirements are detailed in Section 8 of the Application Instructions 

PART A: Project Summary and Certification RECEIVED NOV . . / 

1. Applicant 

ORGANIZATION NAME 

Redmond Airport - City of Redmond 

ADDRESS 

2522 SE Jesse Butler Circle #17 

CITY. STATE, ZIP 

Redmond OR 97756-8642 

WEBSITE 

www.ci.redmond.or.us 

CONTACT PERSON NAME 

Carolyn S. Novick, A.A.E. 

CONTACT PERSON TITLE 

Airport Manager 

PHONE 

(541) 504-3496 

FAX 

(541)548-0591 

E-MAIL (REQUIRED) 

carrien@ci. redmond, or. us 

2. Co-applicant/co-sponsor 

ADDRESS 

ORGANIZATION NAME 

CITY, STATE. ZIP 

WEBSITE 

CONTACT PERSON NAME 

CONTACT PERSON TITLE 

PHONE 

E.MAIL 

cc: carterm@ci.redmond.or,us 

I] Check if additional co-applicant(s)/co-sponsor(s) are identified in Page 18 of this application. 

3. Project name and location 

PROJECT NAME 

North Side Cargo Ramp & Development 

PROJECT LOCATION 

Redmond Oregon 

STAFF USE ONLY 

4. Project summary 

BRIEF SUMMARY OF PROJECT 

Construct an air cargo ramp & development area 

Cost summary (These fields will fill automatically as the application is completed.) 

a. ConnecfOregon II grant amount 

b. Match amount (20% of grant) 

c. ConnecfOregon II loan amount 

d. ConnecfOregon II project total 

Certification 

I certify that City of Redmond 

$1,500,000.00 

$375,000.00 

$ 0.00 

$1,875,000.00 

^supports the proposed project, has the legal authority 

APPLICANT ORGANIZATION 

to pledge matching funds, and has the legal authority to apply for ConnecfOregon II funds. I further certify that 

matching funds are available or will be available for the proposed project. I understand that all State of Oregon rules 

for contracting, auditing, underwriting (where applicable), and payment will apply to this project. I certify that we 

have read the SannJI^Dra^Agreemenj and will sign the Agreement if selected. 

APPLKJMT SK3NATURE 

/ 

ioSp'PLICAN i T SIGNATURE 

PRINT NAIkC 

Jim Hendryx. Assistant City Manager 

PRINT NAME 

DATE 

11/20/2007 

DATE 

731-0509 (8/07) ConnecKJregon II Program Application 2007-2009 
PART B: Project Description 

1. Project purpose and description 

Project maps must be included with this application. Maximum map size: 11 by 17 inches. 

I 

I 

SUMMARIZE THE PROJECT'S DESCRIPTION AND PURPOSE 

This project will provide for the construction of an aircraft ramp to be use solely by air cargo companies at 

Roberts Field - Redmond Municipal Airport. It will allow for air cargo to be consolidated and will better serve 

operators and meet anticipated changes in air cargo security requirements. This project not only has the 

potential to provide a great economic stimulus, as expanded air cargo development is more attractive to air 

cargo companies, but also provides safer and more secure operations. 

Currently, Redmond Airport has three (3) small cargo carriers that operate out of the airport six days a week for 

UPS, FedEx and DHL. They are averaging 320 activites monthly and these aircraft use the eastside of the 

general aviation ramp on the northside of the airfield to park and trasfer their cargo to and from their trucks. This 

activity adds vehicular and pedestrian traffic to an area that is already congested with general aviation aircarft 

activity. This situation is no longer acceptable and an alternative area must be developed. 

This project will create a 108,870 square foot ramp solely for use by the air cargo companies, it will provide for 

the addition of the taxi connection to get to the new ramp and have the ability to add a hangar to that same area. 

The ramp is not expected to produce direct revenue to the airport but the hangar area will.. 

Airport staff have reviewed three areas on the airport to relocate the air cargo operation too and have chosen 

this site due to its estimated lower cost and central location. This location will to provide the cargo vehicles with 

direct access through a new vehicular power gate to their aircraft with out any other aircraft parked in the vicinity 

making their trasfer of cargo safer and more efficient. This is not a "build it and they will come" senario; they are 

already here and this will provide them with room to expand when they are ready and will also isolate them from 

other aircraft and activities should the Transportation Security Administration require that in the future. 

The total estimated cost of the project is $2,641,540. 

731-0509 (8/07) ConnocfOregon II Program Application 2007-2009 
I 

2. Project location 

3. 

4. 

STREET ADDRESS OR NEAREST STREET INTERSECTION 

SE Veterans Way & SE 9'" Street 

CITY(1ES) 

Redmond 

OPS COORDINATES 

COUNTYflES) 

Deschutes 

LATITUDE (DEGREES AND DECMALI 

121 9'36,142'W 

LONGITUDE (DEGREES AND DECIMAL) 

44 15'37.404"N 

Project mode (check all that apply): IS Air D Marine D Rail D Transit 

ConnectOregon region Q Region 1 D Region 2 Q Regions 12 Region 4 D Regions 

For more infonmatton, refer to the Application Instructions. For processing purposes, projects should be wholly 

contained in one region. Applicants should complete separate applications for portions of larger projects that 

cross region boundaries. See Application Instructions for additional details. 

Is(are) the applicant(s) current on all state and local taxes, fees, and assessments? El Yes D No 

YEARS 

30 6. What is the project's useful life? 

7. Which applicant/co-applicant will assume responsibility for the continued maintenance and operation of the 

project? 

RESPONSIBLE PARTY 

Redmond Airport - City of Redmond 

8, What will be the source(s) of funds for the continued maintenance and operation of the project? 

SOURCEIS) 

Airport funds 

Is the funding for the continued maintenance and operation 

of the project currently secured or budgeted? 

If no, describe when these steps will occur: 

.12 Yes n No 

DESCRIBE 

I 

I 

731-0509(8/07) ConneclOregon II Program Application 2007-2009 
10. Is all the real estate required for the project owned by the applicants? (See also Questions 11-13.) 

EI Yes. project real estate is wholly owned by the applicant(s). 

D No. project real estate is partly owned by the applicant(s). 

D No. 

If yes, project real estate is wholly owned, what was the price of the property? 

PURCHASE PRICE 

$0.00 

If no, project real estate is partly owned, or if no, include the property owner's information and signature for the 

non-owned portion: 

lORGANIZATION NAME 

ADDRESS 

CITY. STATE. ZIP 

WEB SITE (IF APPLICABLE) 

CONTACT PERSON NAME 

CONTACT PERSON TITLE 

PHONE FAX 

E-MAIL 

I certify that supports the proposed project, has the legal authority 

ORGANIZATION NAME 

to pledge matching funds, and has the legal authority to authorize the use of the real estate underlying the project. 

1 understand that all State of Oregon rules for contracting, auditing, undenvriting (where applicable), and payment 

will apply to this project, and that these rules may require a 20-year lease of the site. 

PROPERTY OWNERyLESSOR SIGNATURE 

X 

PRINT NAME DATE 

Zl Check if additional owners are listed on Page 18 of this application. 

11. Will the property be purchased by the applicant to complete the project? D Yes 

If yes, is the property in escrow? D Yes 

12. Will the property be leased by the applicant? D Yes 

13. Provide any additional real estate details 

S No 

D No 

K No 

ADDITIONAL DETAILS 

731-0509(8/07) Connec/Oregon II Program Application 2007-2009 
PART C: Co/7/iecfOregon II Project Budget 

1. Identify the source and amount of funds composing the project budget, including grants, loans, and matching 

funds. 

SOURCE 

a. Grant portion 

1. Required match 

(For grants: 20% grant 

project subtotal) 

2. ConneciOregon 11 grant 

amount requested 

$375,000.00 

$1,500,000.00 

b. ConnectOregon li loan portion requested 

(no match required) 

c. ConnecfOregon il total (a->-b) 

d. Additional applicant match (not required) 

Project total 

e. Multimodal study fee (2% of line c) 

AMOUNT 

$1,875,000.00 

$0.00 

$1,875,000.00 

$0.00 

$1,875,000.00 

$37,500,00 

DATE AVAILABLE 

CALENDAR 

YEAR MONTH 

Select 

Select 

Select 

Select 

Select 

Select 

STAFF USE ONLY 

1,0000 

,0.2000 

0.8000 

p.oooo 

1 0000 

0.0000 

1.0000 

2. For grant projects, detail the source and timing of the match shown above. 

FUNDS 

Labor (payroll) 

Contracted services 

Materials and supplies 

Capital outlay - land (purchase price) 

Capital outlay - buildings 

Capital outlay ~ equipment 

Other (describe): Mobilization, site prep 

Other (describe): Pavement Construction 

Other (describe): Utilities 

Other (describe); Contingency 

Total 

Total must equal $375,000.00 

1.8.1-Required matcti + l.d-Additional applicant match 

AMOUNT 

$0.00 

$137,500.00 

$0.00 

$0.00 

$0.00 

$72,500.00 

$1,391,200.00 

$716,450.00 

$83,750.00 

$240,140.00 

$2,641,540.00 

DATE AVAILABLE 

CALENDAR 

YEAR 

2009 

2009 

MONTH 

Select 

Select 

Select 

Select 

Select 

Select 

December 

December 

Select 

Select 

STAFF USE ONLY 

0.0000 

0.0521 

0.0000 

0.0000 

0.0000 

0.0274 

0.5267 

0.2712 

0.0317 

0.0909 

1.0000 

731-0509(8/07) Cort/7ec/Oregon 11 Program Application 2007-2009 
If the ConnectOregon II project is part of a larger project, describe the scope of the entire project. Include the total 

amounts of public and private investment in the proposed project. Please note which portions of the project are 

Connec/Oregon ll-eligible. 

DESCRBE 

U Commitment letters from businesses and organizations, stating their intentions regarding private investment 

over a specified period, are included In the Supplemental Information attached to this application. 

4. Complete the following tables regarding current and projected milestones for the project. Check to indicate if the 

project is a construction or a non-construction project. 

MILESTONE 

a. Milestone 1 

b. Milestone 2 

c. Milestone 3 

d. Milestone 4 

e. Milestone 5 

f. Milestone 6 

1 2 CONSTRUCTION PROJECTS 

a. Scoping and planning 

b. Right-of-way and land acquisition 

c. Permits 

d. Final plans/bidding engineering 

documents 

e. Construction contract award 

f. Project completion 

"a OTHER (NON-CONSTRUCTION) PROJECTS - DESCRIBE 

a. 

b. 

c. 

d. 

e. 

f. 

5. For the milestones identified above, provide the following details: 

MILESTONE 

a. Milestone 1 

b. Milestone 2 

c. Milestone 3 

d. Milestone 4 

e. Milestone 5 

f. Milestone 6 

STATUS 

HAS THE MILESTONE 

BEEN MET? 

D Yes E No 

IS Yes D No 

12 Yes n No 

D Yes El No 

D Yes M No 

D Yes El No 

PROJECTED START DATE 

OF MILESTONE VtORK 

1/1/2008 

9/30/2008 

12/1/2008 

1/1/2009 

ESTIMATED LENGTH OF 

PROCESS 

9 months 

2 months 

1 month 

12 months 

PROJECTED MILESTONE 

COMPLETION DATE 

9/30/2008 

12/1/2008 

1/1/2009 

01/01/2010 

I 

I 

731-0509(8/07) ConnecfOregon II Program Application 2007-2009 
Based on the milestones identified on the previous page, provide details of the proposed uses and amount of 

funds needed to complete each milestone. 

a. Milestone 1 

n This milestone is complete or does not apply. 

FUNDS 

Labor (payroll) 

Contracted services (if known) 

Materials and supplies 

Capital outlay - land 

Capital outlay - buildings 

Capital outlay - equipment 

Other (describe): 

Milestone 1 Total 

AMOUNT 

$0.00 

$55,000.00 

$0.00 

$0.00 

$0.00 

$0.00 

$0.00 

$55,000.00 

PART OF GRANT 

MATCH? 

DYes DN O 

DYes ElNo 

DYes DN O 

DYes DN O 

DYes DN O 

DYes DNo 

DYes DNo 

OATEAVAILABU 

CALENDAR 

YEAR MONTH 

Select 

Select 

Select 

Select 

Select 

Select 

Select 

b. Milestone 2 

El This milestone is complete or does not apply. 

FUNDS 

Labor (payroll) 

Contracted services (if known) 

Materials and supplies 

Capital outlay - land 

Capital outlay - buildings 

Capital outlay - equipment 

Other (describe): 

Milestone 2 Total 

AMOUNT 

$0.00 

$0.00 

$0.00 

$0.00 

$0,00 

$0.00 

$0.00 

$ 0.00 

PART OF GRANT 

MATCH? 

DYes DNo 

DYes DNo 

DYes DN O 

DYes QN O 

DYes DNo 

DYes DN O 

DYes DNo 

DATE AVAILABLE 

CALENDAR 

YEAR MONTH 

Select 

Select 

Select 

Select 

Select 

Select 

Select 

c. Milestone 3 

S This milestone is complete or does not apply. 

FUNDS 

Labor (payroll) 

Contracted services (if known) 

Materials and supplies 

Capital outlay - land 

Capital outlay - buildings 

Capital outlay - equipment 

Other (describe): 

Milestone 3 Total 

AMOUNT 

$0.00 

$0.00 

$0.00 

$0,00 

$0,00 

$0.00 

$0,00 

$ 0.00 

PART OF GRANT 

MATCH? 

DYes DNo 

DYes DNo 

DYes DNo 

DYes DNo 

DYes DNo 

DYes DNo 

DYes DNo 

DATE AVAILABLE 

CAI FNOAR 

YEAR MONTH 

Select 

Select 

Select 

Select 

Select 

Select 

Select 

731-0509(8/07) ConnectOregon li Program Application 2007-2009 
d. Milestone 4 

D This milestone is complete or does not apply. 

FUNDS 

Labor (payroll) 

Contracted services (if known) 

Materials and supplies 

Capital outlay - land 

Capital outlay - buildings 

Capital outlay - equipment 

Other (describe): 

Milestone 4 Total 

AMOUNT 

$0.00 

$7,500.00 

$0.00 

$0.00 

$0.00 

$0.00 

$0.00 

$7,500.00 

PART OF GRANT 

MATCH? 

DYes DN O 

DYes SN O 

DYes DN O 

DYes DN O 

DYes DNo 

DYes DN O 

DYes DNo 

DATE AVAILABLE 

CALENDAR 

YEAR MOHTTH 

Select 

Select 

Select 

Select 

Select 

Select 

Select 

e. Milestone 5 

D This milestone is complete or does not apply. 

FUNDS 

Labor (payroll) 

Contracted services (if known) 

Materials and supplies 

Capital outlay - land 

Capital outlay - buildings 

Capital outlay - equipment 

Other (describe): 

Milestone 5 Total 

AMOUNT 

$0.00 

$75,000.00 

$0.00 

$0.00 

$0.00 

$0.00 

$0.00 

$75,000.00 

PART OF GRANT 

MATCH? 

DYes DNo 

DYes El No 

DYes DNo 

DYes DNo 

DYes DNo 

DYes DNo 

DYes DNo 

DATE AVAILABLE 

CALENDAR 

YEAR MONTH 

Select 

Select 

Select 

Select 

Select 

Select 

Select 

f. Milestone 6 

D This milestone is complete or does not apply. 

FUNDS 

Labor (payroll) 

Contracted services (If known) 

Materials and supplies 

Capital outlay - land 

Capital outlay - buildings 

Capital outlay - equipment 

Other (describe): 

Milestone 6 Total 

AMOUNT 

$1,391,200.00 

$240,140,00 

$800,200,00 

$0.00 

$0.00 

$72,500.00 

$0.00 

$2,504,040.00 

PART OF GRANT 

MATCH? 

El Yes DNo 

El Yes DNo 

EI Yes DNo 

DYes DNo 

DYes DNo 

DYes ^N o 

DYes DNo 

DATE AVAILABLE 

CALENDAR 

YEAR MONTH 

Select 

Select 

Select 

Select 

Select 

Select 

Select 

/ 

731-0509(8/07) Connec/Oregon II Program Application 2007-2009 
Totals 

Labor (payroll) 

Contracted services (if known) 

Materials and supplies 

Capital outlay - land 

Capital outlay - buildings 

Capital outlay - equipment 

Other 

Total 

AMOUNT 

$1,391,200.00 

$377,640,00 

$800,200.00 

$ 0.00 

$ 0.00 

$72,500.00 

$ 0.00 

$2,641,540.00 

STAFF USE ONLY 

0.5267 

0.1430 

0.3029 

0.0000 

0.0000 

0.0274 

0.0000 

1,0000 

I 

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I 

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I 

731-0509(8/07) ConnectOregon 11 Program Application 2007-2009 
PART D: Project details 

1. Does the project improve an existing connection or add a new connection to an industrial or employment center? 

D Yes E] No 

If yes. this project improves or creates access to: 

3. 

D Industrial center 

D Employment center 

SPECIFY 

SPECIFY 

D This project provides access to 

which is a site certified 

Department (OECDD). 

SITE NAME 

as "Project Ready' by the Oregon Economic and Community Development 

For more information, refer to the Application Instructions, 

2. Does this project link workers to jobs? 

D Yes 12 No 

EXPLAIN 

PASSENGER MODE UNKS (CHECK ALL THAT APPLY) 

D Fixed-route bus 

D Demand-responsive bus 

D Other 

D Light rail D Air services 

D Passenger rail D Ferry 

D Commuter rail D Water taxi 

DESCRIBE 

IDENTIFY GEOGRAPHIC SERVICE LEVEL (CHECK ALL THAT APPLY) 

D Rural 

D Intra-city (within a town or city) 

D Interstate (between states) 

D Intercity (between towns or cities) 

D International 

Identify if the project serves one or more of Oregon's Statewide Trade Clusters or the tourism industry. For more 

information, refer to the Application Instructions. 

STATEVWDE TRADE CLUSTERS (CHECK ALL THAT APPLY) 

D Agricultural products D 

D Apparel and sporting goods design D 

D Business services D 

D Communications equipment D 

D Electronics and advanced materials D 

D Information technology D 

D Logistics and distribution 

Medical products 

Metals 

Processed food and beverage products 

Transportation equipment and parts 

Wood and other forest products 

Tourism 

PROVIDE DETAIL 

Air Cargo activity at Redmond Airport potentially serves all of the above. 

731-0509(8/07) 10 Co/7/wc/Oregon II Program Application 2007-2009 

I 

I 
Does this project benefit the Oregon economy by providing improvements that ensure specific non-speculative job 

creation or retention (beyond short-run construction jobs)? 

D Yes* S No 

If yes, please complete the following: 

a. Numtter of non-construction jobs created or retained as a direct result of the 

oroiect 

b. Averaoe annual waoe of non-construction lobs created or retained 

c. Connec/Oregon 11 funding requested per job 

ConnecfOregon 11 funding requested * number of non-construction jobs identified 

in response to this question 

0 

$0.00 

$0.00 

* D Required for a yes answer Commitment letters are included in Supplemental Information. (These 

letters must be from businesses or organizations stating their intention to operate in Oregon and 

detailing the number of jobs retained or created over a specific period of time as a result of this project.) 

EXPLAIN 

7. Does this project improve the use or efficiency of Oregon's transportation system? 

12 Yes D No 

If yes, please complete the following; 

CHECK ALL THAT APPLY. AND EXPLAIN IN THE BOX BELOW 

The project.., 

El improves safety. 

12 increases system capacity. 

12 improves a bottleneck or congestion point. 

D completes one or more gaps in Oregon's transportation system. 

D removes an existing barrier, 

D reduces traffic or use conflicts. 

D provides another measurable system improvement (described below). 

EXPLAIN 

This project improves safety by separating air cargo operations from those of general aviation. These two 

activities conflict when operating in the same area. 

This project provides an essential increase in the air cargo capacity to serve businesses, government and nongovernment oreganization as they continue to grow and expand in the Redmond area. 

This project will eliminate a very conjested area on the Rdmond Airport by moving air cargo operations to their 

own ramp; it will make it possible to secure the area when the Transportation Security Administration deems it 

neccessary. 

I 

I 

731-0509 (8/07) 12 ConnectOregor\ il Program Application 2007-2009 
4. Does this provide an economic benefit by attracting new businesses or industry to Oregon? 

D Yes D No 

EXPLAIN 

Increased opportunity for growth of air cargo could potentially attract new businesses. 

[LIST U P T O FIVE BUSINESSES THAT y«LL BE SERVED BY THE PROJECT 

BUSINESS NAME 

1, 

2. 

3. 

4, 

5, 

NAME OF CONTACT PERSON CONTACT PERSON PHONE 

D Commitment letters are included in Supplemental Information. These letters must be from businesses or 

organizations stating their intention to operate in Oregon and detailing any private investment over a 

specified period of time. These letters should document the need for, and intent to use, the project by the 

businesses and entities to be served. 

What is the size of the initial investment by these businesses? $ 

1 

5. Is this project located in an economically distressed or severely distressed community, as defined by the 

OECDD? For more information, refer to the Application Instructions. 

D Yes S No 

LIST (OECDO-IOENTIf lEO CITY. COUNTY. OR AREA) 

EXPLAIN HOW THE PROJECT BENEFITS THE COMMUNITY 

I 

731-0509(8/07) 11 ConneciOregon II Program Application 2007-2009 
I 

Documentation that supports Question 7: 

TITLE 

AUTHOR OR AGENCY 

DATE PAGES URL 

D Copies of pages are included in Supplemental Infomnation. 

Tm.E 

AUTHOR OR AGENCY 

DATE PAGES URL 

D Copies Of pages are included in Supplemental Information. 

TITLE 

AUTHOR OR AGENCY 

DATE PAGES URL 

D Copies of pages are included in Supplemental Information. 

8. Does the project provide links between, or include improvements in, multiple modes of transportation (air, marine, 

pipeline, passenger rail, freight rail, transit, truck, bus, bicycle..pedestrian, personal automobile)? 

D Yes K No 

EXPLAIN 

D Check if contact and confirmation information for key stakeholders is included in Supplemental Information. 

I 

I 

I 

E 

731-0509(8/07) 13 Connec/Oregon II Program Application 2007-2009 
9. Does the project improve or create linkages to transportation networks outside Oregon? 

D Yes S No 

EXPLAIN 

Currently all air cargo to Redmond comes from PDX. 

10. Does the project use technology to improve the use or efficiency of Oregon's transportation system? 

D Yes S No 

EXPLAIN 

731-0609(8/07) 14 ConnecfOregon II Program Application 2007-2009 

I 

I 

I 
11. Complete the following table regarding pre-construction documentation and permits. (Potential projects are 

expected to be at varying stages of construction readiness; some of the steps below will not apply, or must be 

marked "Still required" or "Don't know." See the Connec/Oregon il Application Instructions for detailed 

explanations of the terms below.) 

1 

STEP STATUS 

ALREADY 

COMPLETED 

INCOMPLETE/ 

UNDERWAY 

STILL NOT 

REQUIRED APPUCABLE 

Environmental impact Statement (EIS) D D D -

Environmental assessment (EA) D D D -

Inclusion in adopted transportation system plan (TSP) D D D • 

Inclusion in adopted local comprehensive plan D D D • 

• D . 

• D. 

• D. 

• D . 

.D. 

• D . 

•D. 

•D. 

.El. 

.El. 

.El. 

• El. 

El. 

EI. 

.El. 

.El. 

Inclusion in adopted regional transportation plan (RTP)....D. 

Air-quality conformity determination D . 

In-water work permit D . 

Zoning amendment D -

Coordination of project approval with any 

Native American tribe or another state D . 

Goal exception (as required by state planning goals) D D 

25% design complete. 

50% design complete D . 

75% design complete D • 

Final design complete D -

Plans and specifications D . 

Permits D . 

Other: D . 

Other: D . 

Other: D -

Other: D . 

12, Is the construction of the project limited to specific construction windows due to environmental considerations 

(such as bird-nesting or fish-spawning seasons, or temperature)? 

D Yes ^ No D No; however, additional infonnation is included in Section E, 

If yes, note the periods when construction is limited: 

DON'T 

KNOW 

..D 

..D 

..D 

-D 

..D 

..D 

..D 

..D 

RESTRICTION DESCRIPTION 

START DATE 

OF RESTRICTION 

END DATE 

OF RESTRICTKJN 

731-0509(8/07) 15 ConnocfOregon II Program Application 2007-2009 
13. Can the project demonstrate support from public agencies that must approve the project? 

[2 Yes D Yes, started but not completed D No 

EXPLAIN 

The airport is owned by the City of Redmond and the Redmond City Council has approved the submittal of this 

grant application. 

D Check if documentation of the coordination is attached in Supplemental Information. 

14. What permits or approvals (beyond those noted above) are required prior to project construction? 

PERMITS OR APPROVALS 

None 

15. Describe any unique construction-readiness issues or likely delays not identified above: 

DESCRIBE 

731-0509(8/07) 16 ConnectOregon tl Program Application 2007-2009 

I 

I 
Part E: Other Considerations and Information 

Describe any other considerations and information that support why the project should be selected: 

DESCRIBE 

The Redmond Airport has stock piled fill material for this area for several years. It is our plan to utilize the fill and if 

necessary use fill from the terminal site excavation to complete the work. This would not require us to purchase or 

import fill from an off airport site keeping the cost of the project down. This site was chosen over the others because 

of lower development cost, increased safety for freight delivery vehicles and drivers, access to Veterans Way, 

access to other general aviation facilities even though the area will be specifically for air cargo aircraft. 

Supporting materials 

List the supporting materials to be submitted in your paper application packet. 

Part C. Item 3: Commitment letters. 

1, 

2, 

3, 

4, 

5. 

Part D, Item 4: Commitment letters from businesses and organizations stating their intention to operate in 

Oregon, 

I 

I 

I 

I 

I 

1, 

2. 

3, 

5. 

731-0509(8/07) 17 ConnectOregon II Program Application 2007-2009 
PartD Item 6: Commitment letters from businesses and organizations stating their intentions 

creation and private investment plans over a specified period. 

regarding job 

1, 

2. 

3. 

4. 

5. 

PartD. Item 7: Other supporting documents 

1. 

2. 

3. 

PartD. Item 8: Key stakeholder contacts and confirmation letters 

1. 

2. 

3. 

4. 

5. 

PartD, Item 13: Documentation of coordination with approving agencies 

1. 

2. 

3. 

4. 

5. 

Other supporting documents 

1. 

2. 

3. 

4, 

5. 

731-0509(8/07) 18 ConnectOregon II Program Application 2007-2009 I 

I 
Addenda 

Attach additional text here as necessary, identifying the part and question number (example: "Part B, Question 2" or 

"6/2"). Please note: Only additional text contained on this page will be considered as part of this application. 

Additional pages will not be considered. 

The airport has not submitted any letters of support because this is a Redmond airport project that will not impact 

anything orther than the relocation of aircraft pari<ing from the eastside of the general aviation ramp to the west side 

of that ramp. 

731-0509(8/07) 19 ConnecWfegon II Program Application 2007-2009 
Additional co-applicants/co-sponsors, additional property owners/lessors 

Check one: D Co-applicant/co-sponsor D Property owner/lessor 

ORGANIZATION NAME 

ADDRESS 

CITY, STATE, ZIP 

VI^B SITE 

Check one: D Co-applicant/co-sponsor 

CONTACT PERSON NAME 

CONTACT PERSON TITLE 

PHONE FAX 

E-MAIL 

D Property owner/lessor 

lORGANIZATION NAME 

ADDRESS 

CITY, STATE. ZIP 

WEBSITE 

Check one: D Co-applicant/co-sponsor 

CONTACT PERSON NAME 

CONTACT PERSON TITLE 

PHONE FAX 

E-MAIL 

D Property owner/lessor 

ORGANIZATION NAME 

ADDRESS 

CITY, STATE, ZIP 

VI«BSITE 

CONTACT PERSON NAME 

CONTACT PERSON TITLE 

PHONE FAX 

E-MAIL 

Co-applicant/co-sponsor certification 

I certify that supports the proposed project, has the legal authority 

APPLICANT ORGANIZATION 

to pledge matching funds, and has the legal authority to apply for ConnectOregon II funds, I further certify that matching 

funds are available or will be available for the proposed project, I understand that all state of Oregon rules for 

contracting, auditing, undenA^riting (where applicable), and payment will apply to this project. I certify that we have read 

the Sample Draft Agreement and will sign the agreement if selected. 

CO-APPLICANT SIGNATURE 

X 

CO-APPLICANT SIGNATURE 

X 

CO-APPLICANT SIGNATURE 

X 

PRINT NAME 

PRINT NAME 

PRINT NAME 

DATE 

DATE 

DATE 

Owner/lessor certification 

I certify that supports the proposed project, has the legal authority 

APPLICANT ORGANIZATION 

To authorize the use of the real estate underlying the project. I understand that all state of Oregon rules for contracting, 

auditing, underwriting (where applicable), and payment will apply to this project. 

PROPERTY OWNERrt.ESSOR SIGNATURE 

X 

PROPERTY OWNER/LESSOR SIGNATURE 

X 

PROPERTY OWNER/LESSOR SIGNATURE 

X 

PRINT NAME 

PRINT NAME 

PRINT NAME 

DATE 

DATE 

DATE 

See Application Instruction for submittal requirements. 

731-0509(8/07) 20 ConnecKDregon It Program Application 2007-2009 

I 

I 

I 
^ 

^ 

y' 

euum c RcsnucTiON UNC 

Ju.Z..... 

I 
N .OOOYTot^ J ,000>Tot^ 

I 

I 

N ,000YTo-bi7 J ,000>lot ^ 
I 

I 

The following documents are contained (or will be added as 

received) in this application package: 

1. Region 4 Project Summary 

2. Modal Committee Summary 

3. Applicant Response to Modal Committee Questions 

4. Modal Committee Questions to Applicants 

5. Applicant Response to Modal Staff Questions 

6. Economic Benefits Analysis 

7. Applicant Responses to Feasibility Questions 

8. ConnectOregon II Staff Questions to the Applicant 

(December 28, 2007 through January 4, 2007) 

9. Feasibility Review 

10. Completeness Review 

11. Project Application 

Reviewer Instructions are posted online at: 

http://www.oregon.gov/QDOT/COMM/CO/reviewerinfo.shtml 
DRAFT REGIONAL PROJECT REPORT 

Region 4 

Applicant: Redmond 

Airport - City of 

Redmond 

Project: A40031 

Requested Funds: 

$1,500,000 

Region: 4 

Report Date: 

Tier 

(1-4) 

1 

Rank 

(High/Medium/Low) 

H 

Priority 

3 

Project Description: Construct an air cargo ramp & development area. 

Review Comments: 

Strategic Criterion a) - Project reduces transportation costs or improve access to 

jobs. 

Strategic Criterion b) - Project serves Oregon's Statewide Traded Clusters and the 

tourist industry. 

Strategic Criterion c) - Project improves tlie efficiency of the transportation system by 

increasing safety, capacity and improving a cargo handling 

bottleneck. 

Standard Criterion d) - Project has a local overmatch of 43%. 

Standard Criterion e) - Project can be under construction by 6/30/09. 

\ 
MODAL PROJECT REPORT 

MOD E Aviation 

Applicant: Redmond 

Airport - City of 

Redmond 

Project: A40031 

Requested Funds: 

$1,500,000 

Region: 4 

Report Date: 

February 28, 2008 

Tier 

(1-4) 

1 

Rank 

(High/Medium/Low) 

High 

Priority 

7 

Project Description: Construct an air cargo ramp & development area. 

Review Comments: 

Project will improve efficiency of both air cargo and air passenger movements in this 

airport, which is the 14*^ busiest airport in the six western states. 

I 

I 
MODAL PROJECT REPORT 

OFAC 

Applicant: Redmond 

Airport - City of 

Redmond 

Project: A40031 

Requested Funds: 

$1,500,000 

Region: 4 

Report Date: 

3/3/08 

Tier 

(1-4) 

3 

Rank 

(High/Medium/Low) 

M 

Priority 

23 

Project Description: Construct an air cargo ramp & development area. 

Review Comments: 

OFAC reviewed 40 freight related projects and assigned this a priority 23 of 36. 

This project has a strong freight connection, and would benefit current users. 

However, the security requirements attributed to the TAS are speculative and not a 

current requirement. 
ComweiOfgon 11 Review of 

Economic Benefit to tiie State 

Note to fconomtc revtewvrt: B«rly !• Ou appleattoii developmmt prMtn, U wti decided that givaa the Uinited 

(hie and ntowrtm of applkanti, economic aoMtt produced by eonsNitiuiti would aot be repaired. The 

appUcatloa tMstfoaa irare enfled lo icrve aa Indlcaton of eeononle benefit 

Project NMmber and Mode:^ i^aaZ.! Ajitt^,^ 

Project DieriDtioa; A)^m-^ r.\^P*ti:,f€A ^ h^^latt^iufiAtM^rr 

Houae Bill 2278, which aothoriza. the CowwcfOregon 11 progmv. rajaires die Oiogon;; 

Tmspoitatkm CommiiBwon to ooosider "WkeAer « proposed trw«poct»tloB project reralti in 

•B oeoaoarfe bmeflt to tUt itite"'. 

1. The followfaig appUcation questjons measure on aspect of econonuc ^efl t to die state: (Use die 

foJlowing checklist as a quick guide to die qiplioation. Provide i critiGal rerview of die applicant's 

answer before dwddng yes. Indicate in die comments seodon if an qiplicadon deady ovenrtatea a 

prqject benefit) 

Applieatlon 

SMtion 

QuMtfon 

f 

YM\N O 

B What la the usefullifB of the pn#ct (as tdenWiad on the 

applcatlon)? 

•Yes 

la the projectjp an Industrial or employmant oanlor? 

The F>ro|eciSln a State of Oregon Certmad Industrial Site. Under 

the Dragon Cerdflod Industrial 8fta program? 

DNo 

Does the protjoct sarva ona or mora of Oregon's Statewide 

Traded Clustars or the tourism Industry? 

DYST 

Qrtb 

Does this proi|ect provide an eoonomie banafit to the State of 

Oregon by attracting new business or Industry to the State? 

Qrfo 

UYae 

0 9 0 

la this prqiact located in an aoonomicaliy distrassad or ssveraiy 

distraased oommuntty, as dallnad by the Oregon Economic and 

CommunKy Davslopmant Department (OECDD)? 

Does thia project provide an aconomlo baneflt to the State of 

Oregon by creating an immadiata non^^peculaHve opportunity for 

Job craaUon or retention? 

Does the prqiact improve or create Hnlcages to transportation 

networlcs and marftets outside of Oregon? 

i^oes this project use technology to improve the use or sfRdency 

of Oregon's transportation ayatam? 

DYST 

Bfto 

10 Dvir 

While economic studies are not required to quantify die answers above, letters of ootmnitment of 

economic resources, or investment were reqaested to txeppott statements made on die application. 

Please contact die ODOT Freight Mobihty Section at 503-986-3208 for assistance. 
CoiiffeeiOregon il Review of 

Economic Benefit to tiie State 

Note to ecoaomic reWctren: briy In die appHcatfon dcvvlopneat proceet, It wat dedded rliat glvan die limited 

tlnie and naoureei of applieaiiit, econonie itndies prodnead by eoMoIumtt would sot be reqolrad. The 

appllcadon qaeedoat were crafted to lerve as indlcatan of ecMMOife beneflt 

2. ODOT ComnMots (Including ady additional tecodomio benefiu Identified in Part E Item 1 of die 

qjpUcadon) 

^ .3 . - l*r r •SMrOK.T=^«>-Rj»^>cOLOirr%<.V ^Csu«.W ix , AtSF^ 

3. OECDD Comments 

F'^? (TViCvtf^ ^-.^ 

4. Baaed on diis review of die application materials pleaae select dw statement below diat most 

clearly daacribes die project: 

ODOT 

hiidals 

^il»< ^ 

OECDD 

ifr/ ^ ] / 

-The project will clearty result in an economic benefit to diis state 

The project will likely result in an economic benefit to diis state 

The project has the potsndal to result in an econ<nnicba]efit to diis state 

The project is nnllkely to result in an economic benefit to this state 

The project would not result in an economic benefit to diis state 

Reviewers: 

ODOT Reviewer NSOM: 7,*.HAA^ALj*iPi)^ 

ODOTRevkwerSignature: ^ZT?^ " ',,\\^ySi''-

OECDD Reviewer Name: 

OECDD Reviower Signature: 

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CONNECTOREGON II FEASIBILITY REPORT FORM 

Feaaibility Reviewer: J. Richard Ludders. Hovie. Tanner & Associates. Inc. 

DATE: December 10.2007 

AoDlication Number: A40031 

Applicant Name: Redmond Airoort - CItv of Redmond 

Co-Applicant: N/A 

Project Name: North Side Cargo Ramo & Development 

n/lode: Aviation 

Is the Project generally feasible as discuss in technical feasibility section below. 

X Yes D No 

Technical Feasibility 

Is the budget estimate complete? 

XYBSDN O 

If budget estimate information is complete, does the cost estimate appear reasonable? 

X Yes • No 

IS timeline feasible in relation to tasks not yet completed? 

X Yes D No 

Are there any elements of the project that could cause unanticipated delays? 

a Yes X A/o (if yes, explain in Comments below) 

Can all applicable and required permits be obtained as indicated in the schedule? 

X Yes n No 

Does the application package include documentation (Application Part C, Item 3 Part D, Items 4, and 

6 of the desire for and support of the Project from the businesses and entities to be served by the 

Project? 

DYesXWo 

Comments: 

This project is heavily financed by the City of Redmond - 43% is local match. The CO grant is only 57% 

of the project. 

Project concept is fundamentally sound - removes on-ramp truck/aircraft cargo transfers from the GA 

ramp area. The City views it as an airport-focused project primarily benefiting the Redmond Airport and 

has no outside letters of support for the project. 

^o Conflict of interest Certification: I do not have any conflict of interest with the proposer submitting this 

project application. A conflict of interest may include any family members presently associated with a 

proposer, or any financial relationships with a proposer (does not include past employment). I have read and 

rated the project application independently, and without interference or pressure from anyone. I have not had 

conversation or other contact with the proposer conceming this project application since it was issued. I have 

noted any potential conflicts or concerns on this form." 

FEASIBILITY EVALUATOR SIGNATURE: 

^ IcJL ^ CJJU-^ 

Name Date 

PRINCIPAL CONSULTANT SIGNATURE: 

December 10. 2007 

^j^Cj) < yJ'^C^s..,^ 

December 10. 2007 

Name Date 

F.AAviation Reviews\A40031 .doc 
DUE BACK TO FREIGHT MOBILITY ON 11/30/07 

Piea.sc note on checklist any item you arc still reviewing, but Please return the checklist by 

11/30/07. All additional information must be received by Freight Mobility no later than 

Friday, 12/7/07. 

COMPLETENESS CHECKLIST 

ConnecOxeqQT\ II Completeness Checklist 

Project Number and Mode: A40031 Aviation 

Project Name: North Side Cargo Ramp & Development 

Reviewer Name: Sandi Larsen 

Reviewer Plione: 503-378-2529 

Application: 

Q Electronic Submission (Received on: ) 

H Paper Submission (Received on: November 21 ) 

Completeness: 

Part A 

E Item 1 and 2 - Contact Information (Kl Additional applicant box checked) 

IS Item 3 and 4 - Name location and summary 

^ Item 5 - Even thougli cells fill in automatically, this section still needs to be checked for 

accuracy. Doesn't match Part C 

E Item 6 - (Signatures match names from Item 1 and 2) 

Parte 

IS Item 1 - Description completed 

^ Item 2 - Detailed Location 

la Item 3 - IVIode 

E] Item 4 - Region 

^ Item 5 - Taxes - administrative requirement 

^ Item 6 - Life of project (|S Useful life is less than 20 years) 

IS Item 7 - Responsible Party 

IS Item 8 - Source of operational funds 

IS Item 9 - Funding for operation secured or budgeted 

IS Item 10 - Real estate ( ^ Signature) (D Additional owner box checked) 

IS Item 11 - Property purchase 

S Item 12 - Property leased 

• Item 13 - Property Details (optional) 

Parte 

PartD 

IS Item 1 - Source and amount of funds 

IS Item 2 - Source of match (Grant projects only) 

• Item 3 - Description of larger project context (optional) 

E] Item 4 - Milestones 

IS Item 5 - Milestone details 

El Item 6 - Milestone budgets 

IS Item 1 - Improve connections 

IS Item 2 - Link workers to jobs 

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DUE BACK TO FREIGHT MOBILITY ON 11/30/07 

Please note on checklist any item you arc still reviewing, but Please return the checklist by 

11/30/07. All additional information must be received by Freight Mobility no later than 

Friday, 12/7/07. 

Q Item 3 - Statewide traded clusters 

D Item 4 - Attract new business (Q Commitment letters box checked) 

E) Item 5 - Economically distressed communities 

IS item 6 - Job creation (Q Commitment letters box checked) 

IS Item 7 - Improve use of efficacy of transportation system (Q Documentation included in 

supplemental information box checked) 

IS Item 8 - Multi-modal links(D Contact information of stakeholders in supplemental 

infonnation box checked) 

E Item 9 - Interstate linkages 

H Item 10 - Technological solutions to improve of efficacy of transportation system 

E] Item 11 - Construction readiness checklist 

IS Item 12- Construction limits 

IS Item 13 - Support of public agencies 

El Item 14 - Other permit approvals 

n Item 15 - Other Construction readiness text box (optional) 

PartE 

El Item 1 Other Considerations Text box (optional) 

Supplemental Information 

• Part C, Item 3 - Commitment letters 

D Part D. Item 4 - Commitment letters 

n Part D, Item 6 - Commitment letters 

D Part D, Item 8 - Key stakeholder letters and contacts 

Q Part D, Item 13 - Documentation of coordination with approving agencies 

D Other Supporting documentation 

Addenda 

^ Additional text (optional) 

Additional Signature page 

^ Not applicable 

D Complete ( • Signatures match names) 

NOTES: ly^iiestone budgets don't add up correctly 

Additional match not reported In correct place 

Dates not filled in on budget or milestones 
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regoi^ Department of Transportation 

Transportation Building 

Theodore R. Kulongwki, Governor 355 Capitol Street NE 

\ Salem, Oregon 97301 

\ 

Augus t 20 , 200 8 File Code: 

Carolyn S. Novick 

City of Redmond 

P.O. Box 726 

Redmond, OR 97756-0100 

Subject: ConnectOregon II Agreement No, 24944 

North Side Cargo Ramp & Development 

Dear Ms. Novick: 

Attached is a copy of your Connec/Oregon II Agreement which has been fully 

executed. A "blue-backed" copy will be sent to you through the mail within the 

next few days. You are authorized to begin work on the last signature date 

shown on the agreement. Only work performed on the project after the 

agreement was fully signed and as described In the agreement will be eligible for 

reimbursement. 

From this point forward, your contact for sending monthly invoices, monthly 

progress reports on your project milestones, and addressing questions or issues 

on your ConnecWregon II project is ODOT's Project Liaison: 

Teddie A. Baker, OPMA 

Oregon Department of Transportation 

555 13"" Street NE, Suite 2 

Salem, OR 97301-4178 

(503) 986-3703 

Monthly invoices must contain the agreement number, project name and 

additional Information detailed in the project Agreement under Recipient 

Obligations. Please confirm the infonnation required with ODOT's Project 

Liaison shown above. 

Progress Reports are due on a monthly basis at the time of the month 

established between you and the ODOT Project Liaison. A copy of the Monthly 

Progress Report is shown as an attachment to the Agreement. 

734-3122/01-03 
Carolyn Novick 

August 20, 2008 

Page 2 

As stated in the Agreement, Recipients must pay the two percent fee for the 

statewide multimodal study of the transportation system mandated by the 

Legislature. Reimbursement of any work pertormed will not be made until ODOT 

has received this payment from the Recipient (see Recipient Obligations, 

paragraphs 5, 5a and 5b for further details and Exhibit A, Table 3). I will notify 

the ODOT Project Liaison when the fee has been received. 

If you anticipate that any of your project milestones will be delayed by more than 

90 days, you will need to fill out the Request for Change Order, sign and date it 

and send it to Teddie Baker. She will evaluate the request and fonA/ard it to me 

with a recommendation for approval. The Request for Change Order is shown 

as attachment to the Agreement. 

If you have any questions, please contact me at (503) 986-3640. 

Marty Andersen, PE, Manager 

Local Government Section 

cc: Teddie A. Baker 

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Misc. Contracts and Agreements 

Agreement No. 24944 

GRANT AGREEMENT 

ConnectOregon il 

MULTIMODAL TRANSPORTATION FUND PROGRAM 2007 

North Side Cargo Ramp & Development 

THIS GRANT PROGRAM AGREEMENT, hereinafter refenred to as "Agreement" is 

made and entered into by and between the STATE OF OREGON, acting by and through 

Its Department of Transportation, hereinafter refenred to as "ODOT," and the City of 

Redmond, acting by and through Its designated officials, hereinafter referred to as 

"Recipient," hereinafter individually referred to as the "Party" and collectively referred to as 

the "Parties." 

RECITALS 

1. By the authority granted in Oregon Revised Statute (ORS) 190.110, 366.572. and 

366.576, state agencies may enter Into agreements with counties, cities, and units of 

local govemment for the performance of any or all functions and activities that a 

party to the agreement,. Its ^o^ have the authority to perform 

2. By the authority granted in ConnectOregon Partnership - Program Administration 

Agreement No. 24685, Incorporated herein and by this reference made a part 

hereof, ODOT may enter Into this Agreement for the performance of wori< on 

Projects. 

3. Pursuant to ORS 367.080 through 367.086, there Is established the Multimodal 

Transportation Fund, separate and distinct from the General Fund, allowing for the 

issuance of lottery bonds for the purpose of financing grants and loans to fund 

Transportation Projects to public bodies and private entities that Involve air, marine, 

rail or public transit. 

4. The Multimodal Transportation Fund Program began through Connec/Oregon, a 

$100 million lottery-bond-based Initiative approved by the Oregon Legislative 

Assembly in 2005 (Oregon Law 2005, Ch. 815), to Invest in air, rail, public transit, 

and marine transportation projects to ensure Oregon's transportation system is 

strong, diverse and efTicient. The Oregon Legislative Assembly added an additional 

$100 million In 2007 (Oregon Law 2007, Ch. 859). The Multimodal Transportation 

Fund Program Is focused on improving the connections between air, rail, marine and 

transit modes of transportation to reduce transportation costs to businesses, remove 

key bottlenecks, and increase connectivity. 

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City of Redmond/ODOT 

~?^reement"N6.24944 

5. The receipt and use of Multinnodal Transportatbn Funds and the execution of this 

Agreement by Recipient are subject to conditions imposed by ORS 367.080 through 

367.086 and Oregon Administrative Rule (OAR) Chapter 731 Division 35. 

6. The Oregon Transpoilation Commission approved the projects to be funded under 

the Multimodal Transportation Fund Program at Its June 2008 meeting. The OTC 

has set specific conditions on all approved projects and the Inability to meet these 

OTC conditions may result in a loss of project funding. Final approval for the project 

is subject to meeting all the OTC conditions as stated below. 

7. Safety is of paramount concern to ODOT. ODOT encourages recipients of 

Connec/Oregon grant funds to have safety as a high priority for all phases of 

work. 

DEFINITIONS 

1. The Multimodal Transportation Fund Program also known as "Connec/Oregon" as 

defined in OAR 731-035-0010 Is a legislatively authorized lottery-bond-based 

Initiative to invest in airv rail, public transit* and marine transportation projects in 

Oregon. 

2. Recipient, as defined in OAR 731-035-0020(18), means an Applicant that enters into 

Agreement with ODOT to receive funds from the Multimodal Transportation Fund. 

3. Connec/Oregon Oversight Committee Is to be composed of (A) Connec/Oregon 

Program Manager, (B) Oregon Department of Aviation Administrator (ODA). (C) 

ODOT Chief of Staff, (D) ODOT Freight Mobility Manager, (E) ODOT Region 

representative, and (F) a non-agency representative, appointed by ODOT's 

Connec/Oregon Program Manager to address the Connec/Oregon Program and 

Project specific issues. 

NOW THEREFORE, the premises being general as stated in the foregoing Recitals, it is 

agreed by and between the Parties hereto as follows: 

TERMS OF AGREEMENT 

1. The foltowing documents are attached hereto and by this reference made a part 

hereof: 

a. "ExhibitA"-StatementofWori< 

b. "Exhibit A-r-Ma p 

c. "Exhibit B" - Acknowledgement of State Assistance 

d. "Exhibit C" - Perfonnance Bond I 

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Agreement No. 24944 

e. "Exhibit D" - Connec/Oregon Monthly Progress Report (Fomi 734-2668) 

f. "Exhibit E" - Request for Change Order (Fomn 734-2648) 

2. Under such authority, ODOT and Recipient agree that Recipient shall construct an 

aircraft ramp to be used solely by air cargo companies at Roberts Field - RedmorKJ 

Municipal Airport. The project Includes a 108,870 square foot ramp, and the addition 

of the taxi connection to get to the new ramp, hereinafter referred to as "Project." 

The Project descriptton, tasks and deliverables, schedule and budget are further 

described In Exhibit A. The locatton of the Project Is approximately as shown on the 

detailed map marited Exhibit A-1. 

3. The Project cost Is estimated at $2,641,540, which is subject to change. The 

Connec/Oregon grant funds are limited to $1,500,000 or eighty (80) percent of the 

total eligible Project costs, whichever is less. Eligible costs for this Project will be 

reimbursed at eighty (80) percent until the $1,500,000 limit Is reached. ODOT cannot 

reimburse Recipient for any wori^ performed, or for Project costs incunred prior to the 

effective date of this Agreement. 

a, jyiatchjng funds.must 

for elements necessary for Implementation of the Project, including land, 

excavation, pennits, engineering, payroll, special equipment purchase, rental or 

lease and cover at least twenty (20) percent of the eligible Project costs. 

Recipient shall be responsible for the twenty (20) percent match requirement and 

any costs in excess of the Connec/Oregon grant funds. 

b. If the Project is not completed in accordance with the application and this 

Agreement as they may be amended, the Recipient shall pay back all of the 

Connec/Oregon grant funds to ODOT, Any funds disbursed but not used for the 

approved Project must be retumed to ODOT. Recipient understands eligibility for 

Connec/Oregon grant funds applies only to Project costs incurred on or after the 

effective date of this Agreement. 

4. The term of this Agreement is effective on the date all required signatures are 

obtained and shall terminate five (5) years from the date of execution. 

RECIPIENT OBLIGATIONS 

1. Recipient shall perform the wori« described in Exhibit A. 

2. Recipient shall submit to ODOT's Project Liaison for review and approval, monthly 

invoices and updated monthly progress reports on the Project schedule. 

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City of Redmond/ODOT 

Agreement No. 24944 

a. The Invotoe must adhere to generally accepted accounting principals and will 

Identify the Project, Agreement number, the Project start and end date, the 

Invoice number or the account number or both, and will Itemize all expenses as 

well as provide a detailed breakdown of funds expended to date and dollars 

remaining. In the event an Invoice is not necessary during a specific period, an 

updated monthly progress report on the Project schedule must be submitted 

separately each month reflecting continuous progress. 

b. The monthly progress report ^11 be prepared using the, Connec/Oregon Monthly 

Progress Report (Fonn 734-2668), and will be submitted to the ODOT Project 

Liaison by the monthly submittal date established by ODOT's Project Liaison. 

Recipient must sign, date, and submit the Connec/Oregon Monthly Progress 

Report to the ODOT Project Liaison. The flllable fomn can be downloaded on-line 

at the following address: 

httD://www.oreqon.qov/ODOT/HWY/LGS/onllne.shtml. 

c. If the Recipient anticipates the Project key milestones will be delayed by more 

than ninety (90) days from the key milestones shown in Exhibit A. Recipient shall 

submit Exhibit E, Request for Change Order {Form 734-2648) to the ODOrs 

Project Liaison as soon as Recipient becomes aware of any possible delay. The 

Request for Change Order must be submitted prior to the milestone completion 

date shown in Exhibit A. The tillable forni can be downloaded on-line at the 

following address: http://www.oreaon.oov/ODOT/HWY/LGS/online.shtml. 

d. Any changes to the Project scope or delivery schedule must be approved by the 

Connec/Oregon Oversight Committee prior to execution of an amendment to this 

Agreement. The Connec/Oregon Oversight Committee may choose to request 

review by the Oregon Transportation Commission. Recipient's obligation to 

maintain and operate the Project will survive termination of this Agreement. 

3. The Recipient must produce and provide all documentation identified in the Project 

application, which includes the Project key milestones, schedule, budget and cash 

flow, feasibility readiness to construct, pemiits and complete all other promised 

elements. The documentation must Indicate the likelihood the Project can be 

completed in the time frame planned. 

4. Upon execution of this Agreement, Recipient, or Its Contractor shall fumlsh and 

maintain In effect at all times during this Agreement, a Perfonnance Bond, in a sum 

equal to the Connec/Oregon grant funds total for this Project. 

a. Recipient can use Exhibit C or can obtain the Perfontiance Bond forni by 

contacting ODOTs Connec/Oregon Program Manager. The bond form must be 

notarized by Recipient's surety company, which is authorized to do business in 
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City of Redmond/ODOT 

Agreement No. 24944 

Oregon, and is the only acceptable fomi of perfonnance security, unless 

othen/vlse specified in this Agreement. 

6. Recipient shall pay two (2) percent of Recipient's total Connec/Oregon grant fund 

amount plus two (2) percent of its twenty (20) percent match requirement to ODOT 

within ninety (90) days of the Agreement effective date. Said funds shall be available 

for ODOT to conduct a statewide multimodal study of the transportation system as 

mandated by the Legislature. Reimbursement of any work perfonned will not be 

made until ODOT has received this payment from Recipient. The two (2) percent 

may be paid by the Recipient using one of two methods as follows: 

a. Payment Method 1: Recipient shall send a check for 100 percent of the two (2) 

percent described above to ODOT, Attn: Receipts Technician, Transportation 

Building, 355 Capitol St NE, Rm. 434, Salem. OR 97301-3871, within ninety (90) 

days of the effective date of this Agreement. The check shall identify the 

Agreement number and Connec/Oregon Application number. 

b. Payment Method 2: Recipient shall send a check to the address shown In 

paragraph. 6a aboye for the match amount and ask ODOT.to. transfer the 

remaining amount of the two (2) percent, described above, from Recipient's grant 

to an ODOT account to cover this cost. 

6. Recipient shall comply with all federal, state, and local laws, regulations, executive 

orders and ordinances applicable to the work under this Agreement, Including, 

without limitation, the provisions of ORS 279A, 279B and 279C, as applicable. 

Incorporated herein by reference and made a part hereof. Without limiting the 

generality of the foregoing. Recipient expressly agrees to comply with (i) Title VI of 

Civil Rights Act of 1964; (il) Title V and Section 504 of the Rehabilitation Act of 1973; 

(Hi) the Americans with Disabilities Act of 1990 and ORS 659A.142; (iv) all 

regulations and administrative rules established pursuant to the foregoing laws; and 

(v) all other applicable requirements of federal and state civil rights and rehabilitation 

statutes, ailes and regulations. 

7. Recipient shall, to the extent pennitted by the Oregon Constitution and the Oregon 

Tort Claims Act, indemnify, defend, save, and hold harmless the State of Oregon, 

Oregon Transportation Commission and its members, Oregon Department of 

Transportation, its officers and employees from any and all claims, suits, or action of 

any nature arising out of activities of Recipient, its consultant, its contractor, its 

officers, subcontractors, agents, or employees under this Agreement. 

8. Notwithstanding the foregoing defense obligations In the paragraph above, neither 

Recipient nor any attorney engaged by Recipient shall defend any claim in the name 

of the State of Oregon or any agency of the State of Oregon, nor purport to act as 
City of Redmond/ODOT 

Agreement No. 24944 

legal representative of the State of Oregon or any of Its agencies, without the prior 

written consent of the Oregon Attomey General. The State of Oregon may, at 

anytime at its election assume its own defense and settlennent in the event that it 

determines that Recipient Is prohibited from defending the State of Oregon, or that 

Recipient Is not adequately defending the State of Oregon's Interests, or that an 

important governmental principle Is at Issue or that it Is in the best interests of the 

State of Oregon to do so. The State of Oregon reserves all rights to pursue any 

claims it may have against Recipient If the State of Oregon elects to assume its own 

defense. 

9. Recipient acknowledges and agrees that ODOT, the Oregon Secretary of State's 

Office, the federal govemment, and its duly authorized representatives shall have 

access to the books, documents, papers, and records of Redplent which are directly 

pertinent to this Agreement for the purpose of making audit, examinatfon, excerpts, 

and transcripts for a period of six (6) years after final payment. Copies of applicable 

records will be made available upon request. Payment for costs of copies is 

reimbursable by the requesting Party. 

10. If- Recipient enters into a construction contract for performance of work .on the 

Project, then Recipient will require Its Contractor to provide the following: 

a. Contractor shall Indemnify, defend and hold hamnless ODOT from and against all 

claims, suits, actions, losses, damages, liabilities, costs and expenses of any 

nature whatsoever resulting from, arising out of, or relating to the activities of 

Contractor or Its ofiiceis,_emplQyfi^^-jELUbjcojnti^ctQrsH_jiiijag.en^ 

Contract. 

b. Contractor and recipient shall name ODOT as a third party beneficiary of the 

resulting contract. 

c. Commercial General Liability. Contractor shall obtain, at Contractor's expense, 

and keep In effect during the term of this Contract, Commercial General Liabilify 

Insurance covering bodily injury and property damage In a form and with 

coverages that are satisfactory to ODOT. This insurance will include personal 

and advertising Injury liabilify, products and completed operations. Coverage may 

be written in combination with Automobile Liabilify Insurance (v^nth separate 

limits). Coverage will be written on an occurrence basis. If written In conjunction 

with Automobile Liability the combined single limit per occun^ence will not be less 

than $ 1,000,000 for each job site or location. Each annual aggregate limit will 

not be less than $ 2,000,000. 

d. Automobile Liability. Contractor shall obtain, at Contractor's expense, and keep 

in effect during the term of this Contract, Commercial Business Automobile 

Liability Insurance covering all owned, non-owned, or hired vehicles. This 
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City of Redmond/ODOT 

Agreement No. 24944 

coverage may be written in combination with the Commercial General Liability 

Insurance (with separate limits). Combined single limit peroccunence will not be 

less than $1,000,000. 

e. Additional Insured. The liability insurance coverage, except Professional LiabH'ity, 

Enx)rs and Omissions, or Wori^ers' Compensation. If Included, required for 

performance of the Contract will include ODOT and its divisions, officers and 

emptoyees as Additional Insured but only with respect to Contractor's activities to 

be performed under this Contract. Coverage will be primary and non-contributory 

with any other insurance and self-insurance. 

f. Notice of Cancellation or Change. There will be no cancellation, material change,-

potentlal exhaustion of aggregate limits or non-renewal of insurance coverage(s) 

without thirty (30) days written notice from Contractor's or its lnsurer(s) to ODOT. 

Any failure to comply with the reporting provisions of this clause will constitute a 

material breach of Contract and will be grounds for immediate terminatton of this 

Contract. 

11. Recipient, and Its Contractors, shall work as an independent contractor and shall be 

exclusively responsible for all costs and expenses related to Its employment of 

Individualis to perform the work under this Agreiemen^^ 

retirement contributions, wori<ere' compensation, unemployment taxes, and state 

and federal income tax withholdings. 

12.All employers, including Recipient, that employ subject workers In the State of 

Oregon shall comply with ORS 656.017 and provide the required Woricers' 

Compensation coverage unless such employers are exempt under ORS 656.126. 

Recipient shall ensure that each of its subcontractore complies with these 

requirements. 

13. Recipient shall, upon execution of this Agreement and as a condition to this 

Agreement, complete and file with the appropriate County Cleri<, Exhibit B, 

"Acknowledgment of ODOT Assistance". Recipient shall provide confirmation of this 

filing by fonwarding to ODOT's Project Liaison a notarized copy of the recorded 

Exhibit B. By means of said acknowledgment, a lien shall be established against 

said property and assets subject to the satisfaction of Recipient's financial 

obligations, the continued use of said property for public purposes, and the 

maintenance of the facility or service at a level consistent vWth normal depreciation 

or demand or both. ODOT's Interest in said property is proportional to the state 

participation in Project. While in default of conditions underiying the lien, Recipient 

will be ineligible to receive state funds from any ODOT-administered program for any 

project on a street, road or property. The Acknowledgment of ODOT Assistance 

shall remain In place for the useful life of the Project. The useful life of the Project Is 
City of Redmond/ODOT 

Agreement No. 24944 

defined as twenty (20) years. Reimbursement to Recipient will not t>e made until a 

copy of the recorded Exhibit B has been fonwarded to the ODOT Project Liaison. 

14. Recipient and ODOT's Project Liaison shall, upon completion of all on-site wori^ for 

the Project, perfonn an on-site review. Once review is completed, the ODOT Project 

Liaison shall recommend acceptance of the Project by signing the Connec/Oregon 

"Recommendatton of Acceptance" (Fonn 734-2649), which will be signed by the 

ODOT Project Liaison and Recipient and is hereby incorporated by reference. The 

full text of the above referenced exhibit may be reviewed and downloaded at the 

following web address: 

http://www.oreoon.aov/ODOT/HWY/LGS/docs/Fonns/COProlectAccept2649.doc 

15. Recipient shall, at its own expense, maintain and operate the Project upon 

completion and throughout the useful life of the Project at a minimum level that is 

consistent with nomnal depreciation or service demand or both. ODOT and Recipient 

agree that the useful life of this Project Is defined as twenty (20) years. Recipient 

has. by submitting its application for this Connec/Oregon grant, represented and 

certified to sufficient funds and to its ability to operate and maintain the Project. 

ODOT may conduct peri^^^ 

to verify that Project is being properly maintained and continues to serve the 

purpose for which Connec/Oregon grant funds were provided. 

16. Maintenance responsibilities and potential ODOT Inspections of the Project shall 

survive any termination of this Agreement. 

17. Recipient certifies and represents that the Individual(s) signing this Agreement has 

been authorized to enter into and execute this Agreement on behalf of Recipient, 

under the direction or approval of Its governing body, commission, board, officers, 

members, or representatives, and to legally bind Recipient and shall provide ODOT 

proof of such authorify upon request. 

18. Recipient's Project Manager Is Carolyn S. Novick, A.A.E., PO Box 726, Redmond, 

OR 97756-0100; (541) 548-0646, camen(gci.redmond.or.us, or assigned designee 

upon individual's absence. ODOTs Project Liaison shall be notified in writing of any 

contact information changes during the tenn of this Agreement. 

ODOT OBLIGATIONS 

1. Based upon the Connec/Oregon grant fund allocation allowed, ODOT agrees to pay 

Recipient $1,500,000, or eighty (80) percent of the total eligible Project costs, 

whichever is less. Eligible costs for this Project will be reimbursed at eighty (80) 

percent until the $1,500,000 limit is reached. 

8 
City of Redmond/ODOT 

Agreement No. 24944 

2. ODOT shall, upon receipt of a monthly invoice and updated monthly progress report 

on the Project schedule, review for approval and make payment to Recipient for 

approved eligible costs. 

3. This Agreement Is contingent upon issuance and sale of lottery bonds sufficient to 

fund this Project. The Agreement is effective and vwrk may begin upon execution of 

this Agreement, but ODOT's obligation to make Project payments is contingent upon 

the issuance and sale of lottery bonds by the State Treasurer. ODOT will notify 

Recipient when such sale has occurred and Connec/Oregon grant funds are 

available. 

4. ODOT shall monitor the Project for compliance and notify the Recipient in writing if It 

appears Recipient is falling to comply with Multimodal Transportation Fund Program 

requirements as specified In ORS Chapter 367: OAR Chapter 731. Division 35. the 

terms of this Agreement and Recipient's application. 

5. ODOT may impose sanctions against Recipient for failing to comply with the 

requirements governing the Multimodal Transportation Fund Program. Before 

imposing sanctions, ODOT will send a potice to cure to Recipient^^i^^^^ 

roinpiy with Prograrh^^^^^^^ will allow fifteen (15) days from the date the 

notice to cure is sent for Recipient to respond and con-ect the deficiencies noted. 

The following circumstances may wan-ant sanctions: 

a. Wori< on the approved Project has not been substantially initiated within six (6) 

months of the effective date of this Agreement or if continuous progress on the 

Project has not been maintained for six (6) months; 

b. State of Oregon statutory requirements have not been met; 

c. There is a significant deviation from the terms and conditions of this Agreement; 

d. Significant con-ective actions have been found to be necessary to protect the 

integrify of the funds for the approved Project, and those corrective actions are 

not, or will not, be made within a reasonable time; 

e. Key Milestones shown in the Project schedule are delayed by more than ninety 

(90) days; or 

f. Failure to submit monthly progress reports as required in Recipient Obligations, 

Paragraph number 2. 

6. One or more of the following sanctions may be Imposed If the circumstances listed 

above are not remedied virtthin the time specified in the notice to cure: 

9 
Cify of Redmond/ODOT 

Agreement No. 24944 

a. Revocatfon of an existing award; 

b. Withholding of unexpended funds; 

c. The return of unexpended funds or repayment of expended funds; 

d. The barring of the Recipient from applying for future assistance; or 

e. Other remedies that may be Incorporated into this Agreement, 

7. The remedies set forth In this Agreement are cumulative, are not exclusive, and are 

In addition to any other rights and remedies provided by iaw or under this 

Agreement. 

8. ODOT's Project Liaison and Recipient shall, upon completion of all on-site vw)rk for 

Project, perfonn an on-site review. Once review Is completed, the ODOT Project 

Liaison shall recommend acceptance of the Project by signing the Connec/Oregon 

Recommendation of Acceptance (Form 734-2549), which will be signed by the 

ODOT Project Liaison and Recipient. Upon receipt of signatures by the Parties the 

ODOT Project Liaison shall forward the original signed copy to the ODOT 

Connec/Oregon Program Manager. 

9. ODOT's Connec/Oregon Program Manager is the Local Govemment Section 

Manager, Local Govemment Section, 355 Capitol St. NE, Room 326, Salem, OR 

97301-3871. 503.986.3640. Martin.E.ANDERSEN(@odot.state.or.us, or assigned 

designee upon Individual's absence. 

GENERAL PROVISIONS 

1. This Agreement may be terminated effective upon delivery of written notice to 

Recipient, or at such later date as may be established by ODOT under any of the 

following conditions: 

a. If Recipient fails to perfonn any of the provisions of this Agreement, or so fails to 

pursue the work as to endanger performance of this Agreement in accordance 

with its terms, and within ten (10) days or such longer period as ODOT may 

authorize, after receipt of written notice from ODOT, fails to correct such failures. 

b. The Legislature fails to approve, reduces, eliminates or othenwse Interferes with 

appropriations of state expenditure limitation to the extent that legal authorify Is 

insufficient to enable ODOT. in its reasonable discretion, to continue making 

payments under this Agreement. 

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CIfy of Redmond/ODOT 

Agreement No. 24944 

c. ODOT, the Department of Justice, or a court of competent jurisdiction detemiines 

that state law, rules, regulation or guklelines are modified, changed, or 

Interpreted in such a way that the activities described in Exhibit A are no longer 

allowable or no longer eligible for funding proposed by this Agreement. 

2. ODOT may impose one or more of the sanctions described under ODOT 

Obligations, Paragraph 6, without prior notice and without opportunity to cure, in the 

event ODOT detemriines: 

a. Statements, Information, or representations in the Connec/Oregon application for 

this Project were false, misleading, fraudulent or misrepresentattons; or 

b. There has been a change in circumstances so ttiat infonnation provided In the 

application and relied upon in making the grant or loan, or representations 

conceming considerations In the selection of this Project for Connec/Oregon II. 

pursuant to OAR 731-035-0060(8), are no longer true or accurate, 

3. Recipient may terminate this Agreement effective upon delivery of written notice to 

ODOT under any of the following conditions: 

a. ODOT fails to make payments due under this Agreement, or 

b. ODOT fails to perform any of the provisions of this Agreement, or so fails to 

pursue the work as to endanger performance of this Agreement In accordance 

with Its terms, and within ten (10) days or such longer period as Recipient may 

authorize, after receipt of written notice from Recipient, fails to con-ect such 

failure. 

4. Any termination of this Agreement shall not prejudice any rights or obligations 

accrued to the parties prior to termination. 

5. ODOT and Recipient are the only Parties to this Agreement and, as such, are the 

only Parties entitled to enforce Its terms. Nothing in this Agreement gives or shall be 

construed to give or provide any benefit, direct, indirect or otherwise to third persons 

unless such third persons are expressly identified by name and specifically 

described as Intended to be beneficiaries of its tenns. 

6. ODOT and Recipient hereto agree that If any term or provision of this Agreement Is 

declared by a court of competent jurisdiction to be invalid, unenforceable. Illegal or in 

conflict with any law. the valldify of the remaining terms and provisions will not be 

affected, and the rights and obligations of the Parties shall be construed and 

enforced as if the Agreement did not contain the particular term or provision held to 

be invalid. 

11 
CIfy of Redmond/ODOT 

Agreement No. 24944 

7. This Agreement may be executed in several counterparts (facsimile or otherwise) all 

of which when taken together shall constitute one agreement binding on all Parties, 

notwithstanding that all Parties are not signatories to the same counterpart. Each 

copy of this Agreement so executed shall constitute an original. 

8. This Agreement and attached exhibits constitute the entire agreement between the 

Parties on the subject matter hereof. There are no understandings, agreements, or 

representations, oral or written, not specified herein regarding this Agreement. No 

waiver, consent, modification or change of terms of this Agreement shall bind either 

parfy unless in writing and signed by both parties and all necessary approvals have 

been obtained. Such waiver, consent, modification or change, if made, shall be 

effective only In the specific Instance and for the specific purpose given. The failure 

of either Party to enforce any provision of this Agreement shall not constitute a 

waiver by that Party of that or any other provision. 

THE PARTIES, by execution of this Agreement, hereby acknowledge that each Party 

has read this Agreement, understands It, and agrees to be bound by its terms and 

conditions. 

The Oregon Transportation Commission on June 18, 2003, approved Delegation Order 

No. 2. which authorizes the Director to approve and execute agreements for day-to-day 

operations. Day-to-day operations include those activities required to implement the 

biennial budget approved by the Legislature, including activities to execute a project in 

the Statewide Transportation Improvement Program. 

SIGNATURE PAGE TO FOLLOW 

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City of Redmond/ODOT 

Agreement No. 24944 

Oregon Transportatbn Commission on June 20, 2008, approved the Connec/Oregon 

project applicatton list and delegated authority to the Director of the Oregon Department 

of Transportation to enter into project agreements. 

CITY OF REDMOND, by and through STATE OF OREGON, b; 

its City Council 

nd through 

Bv JJ^UT^AJLL^K^ 

Date 

B y _ 

Date 

APPROVED AS TO LEGAL 

SUFFICIENCY. 

Recipient Counsel 

Date -g-tZ-o ^ 

Recipient Contact: 

Carolyn S. Novick 

PO Box 726 

Redmond, OR 97756-0100 

(541) 548-0646 ext. 3496 

canien@ci.redmond.or.us 

ODOT Contact: 

Local Govemment Section Manager 

Local Govemment Section 

355 Capitol St. NE. Room 326 

Salem, OR 97301-3871 

503.986.3640 

Martin.E.ANDERSEN(5)odot.state.or.us 

Its Departri^nt 

By_2_4^ 

Director 

Date (r-i?'* ^ 

APPROVAL RECOMMENDED 

iger 

Datr %'\}\'€>W^ 

Date ^-/ / "(^ ^ 

APPJWVED ASJO LEGAL SUFFICIENCY 

By Cy~cc. A , f^C ^ 

Assistant Attomey General 

Date 

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EXHIBIT A 

Statement of Work 

Application Number A40031 

North Side Cargo Ramp and Development 

City of Redmond-Redmond Airport 

A. PROJECT DESCRIPTION 

This Project consists of the construction of an aircraft ramp to be used solely by air 

cargo companies at Roberts Field - Redmond Municipal /Mrport. The Project Includes a 

108,870 square foot ramp, and the addition of the taxi connection to get to the new 

ramp. 

B. PROJECT KEY MILESTONES AND SCHEDULE 

1. Project has six (6) Key Milestones. Key Milestones are used for evaluating 

perfonnance on Project and determining level of compensation for completed work 

as described in the Agreement. Key Milestones cannot be changed without an 

amendment to the Agreement. Recipient may shift tiie estimated grant funds shown 

t)elow between milestones without an amendment to the Agreement, but shall not. 

under any circumstano^ 

Recipient shall report dhanges to the Estimated Amounts corresponding to each Key 

Milestones, shown below, In Recipient's Monthly Report to the ODOT Project 

Liaison. 

2. If the Recipient anticipates the Project key milestones will be delayed by more than 

ninety (90) days. Recipient shall submit a Request for Change Order (see attached 

Exhibit E) to the ODOT Project Liaison as soon as Recipient becomes aware of any 

possible delay. The Request for Change Order must be submitted prior to the Key 

Milestone completion date shown in this Exhibit. 

The anticipated start date of tiie Project is: 9/30/2008 

The estimated completion date of the Project is: 01/31/2010 

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EXHIBIT A 

Table 1: Key Milestones 

Key 

Milestone 

1 

2 

3 

4 

5 

6 

Description 

Scoping and planning 

Right of way and land acquisition 

Pennits 

Final plans/bidding engineering 

documents 

Construction contract award 

Project completion 

Estimated 

Due Date 

10/31/2008 

N/A 

N/A 

12/01/2008 

01/31/2009 

01/31/2010 

Total Project Cost 

Estimate 

Amount 

$55,000 

$0 

$0 

$7,500 

$75,000 

$2,504,040 

$2,641,540 

Table 2 - Funding Breakd_pwn 

A 

B 

C 

D 

E 

Total Not to Exceed Grant Fund Allocation 

ConnectOregon 20 percent required match 

ConnectOregon II Total 

Other Funds In Addition to 20 percent 

Required Match 

Total Project Funding 

$1,500,000 

$375,000 

$777,540 

$1,875,000 

$2,641,540 

Table 3- 2 Percent Statewide Multimodal Study Fee Amount 

2 percent of ConnectOregon II total from Table 2, line C ($37,500) 

C. BUDGET 

Total Not to Exceed payable to Recipient is $1,500,000. 

Total Project costs are estimated at $2,641,540. The Connec/Oregon grant fund 

allocation for this Project is $1,500,000. Recipient shall be responsible for any 

unanticipated costs over the identified Connec/Oregon grant fund allocation. 
EXHIBIT A-1 

Map 

eMfime aamann ui« 
EXHIBIT B 

Acknowledgment of State Assistance 

Agreement Number: 24944 

Project Name: North Side Cargo Ramp & Development 

ACKNOWLEDGMENT OF STATE ASSISTANCE 

The property and assets under the jurisdiction of Cify of Redmond, were improved with 

assistance from the State of Oregon, Department of Transportation under an agreement 

executed between City of Redmond, and the Oregon Department of Transportation 

(ODOT) dated . Such assistance was provided to City of Redmond, In 

reimbursement of costs associated with the North Side Cargo Ramp & Development. 

The use and disposition of said property is subject to the terms of the above noted 

Agreement, copies of which may be obtained from the Director of ODOT. 

By: 

Title: 

SUBSCRIBED and SWORN to before me this day of , 20. 

NOTARYPUBLIC FOR OREGON 

My commission expires: 

I 
Exhibit C 

STATE OF OREGON 

ConnectOregon Grant Agreement 

Agreement Number: 24944 

Project Name: Nortti Side Cargo Ramp & Development 

PERFORMANCE BOND 

Bond No. 

Project Name Nortii Side Cargo Ramp & Development, 

^(Surety #1) Bond Amount No. 1: $ 

.(Surety #2)* Bond Amount No. 2:* $ 

If using multiple sureties Total Penal Sum of Bond:$ 1,500,000, 

Y^PAQJP^ 9^f^^^.9^'^K^^3^ snd the above identified Surefy(ies), authorized to 

transact surety business in Oregon, as Surety, hereby jointly and severally bind 

oureelves, our respective heirs, executors, administrators, successors and assigns 

finnly by these presents to pay unto ODOT the sum of (Total Penal Sum of Bond) 

$1,500,000, (provided, that we the Sureties bind ourselves In such sum "jointly and 

severally" as well as "severally" only for the purpose of allowing a joint action or actions 

against any or all of us, and for all other purposes each Surefy binds itself, jointiy and 

severally with the Recipient, for the payment of such sum only as Is set forth opposite 

the name of such Surefy), and 

WHEREAS, the Recipient has entered Into an Agreement with the ODOT; and 

WHEREAS, the tenns and conditions of the Agreement, together with applicable plans, 

standard specifications, special provisions, schedule of perfonnance, and Agreement 

budget, are made a part of this Performance Bond by reference, whether or not 

attached to the Agreement (all hereafter called "Agreemenf); and 

WHEREAS, the Recipient has agreed to perfonn the Agreement in accordance with the 

terms, conditions, requirements, plans and specifications, and schedule of Agreement 

prices which are set forth in the Agreement and any attachments, and all authorized 

modifications of the Agreement which increase the amount of the work, or the cost of 

the Agreement, or constitute authorized extensions of time for performance of the 

Agreement, notice of any such modifications hereby being waived by the Surety: 

NOW, THEREFORE, THE CONDITION OF THIS BOND IS SUCH that if the Recipient 

herein shall faithfully and truly observe and comply with the terms, conditions and 

provisions of the Agreement, in all respects, and shall well and truly and fully do and 
perfonn all matters and things undertaken by Recipient or its subcontractor to be 

performed under the Agreement or subsequent contract, upon the terms set fortii 

therein, and within the time prescrit>ed therein, or as extended as provkjed in the 

Agreement, with or without notice to the Sureties, and shall indemnify and save 

harmless the State of Oregon, Oregon Transportation Commisston and Its memljers, 

the Connec/Oregon Subcommittee, ODOT, and members thereof. Its officers, 

employees and agents, against any direct or indirect damages or claim of every kind 

and description that shall be suffered or claimed to be suffered In connectksn with or 

arising out of the performance of the Agreement or subsequent contract by the 

Recipient or its subcontractors, and shall in all respects perform said contract according 

to law, then this obligation is to be void; otherwise, it shall remain in full force and effect. 

Nonpayment of the bond premium will not invalidate this bond nor shall ODOT, or the 

above-referenced agency(ies), be obligated for the payment of any premiums. 

This bond Is given and received under authorify of ORS Chapter 279C, the provisions of 

which hereby are incorporated into this bond and made a part hereof. 

THE PARTIES, by execution of this Agreement, hereby acknowledge that each Party 

has read this Agreement, understands it, and agrees to be bound by Its ternis and 

conditions. 

Dated this _dayof. 

Oivgon 

O«p«[lm«ntor 

' T«n«port.iiongY ATTORNEY-IN-FACT: 

(Power-of'Attorney must accompany each 

bond) 

Name 

:.20O8 

PRINCIPAL: 

By. 

Signature 

Official Capacify 

Attest: 

Signature 

Address 

Cify State Zip 

Corporation Secretary 

SURETY: 

(Add signatures for eachi If using multiple 

bonds) 

Phone Fax 
ConnectOregon 

MONTHLY PROGRESS REPORT 

Overview of Actions and Responsibilities 

. EXHIBIT D 

Who initiates the fonn? The ConnectOregon Project Recipient. 

Action required by the Recipient: Fill out the Monthly Progress Report and send to 

the ODOT Project Liaison by the established 

monthly report date. 

When is the form processed? Montfily, on the date established as the monthly 

progress report due date, tiiroughout the life of the 

Project. 

Where does the Recipient send the form? To the ODOT Project Liaison identified in the 

Notice to Proceed Letter or as later identified by 

ODOT if ODOT Project Liaison has changed. 

Action required by ODOT Project Liaison: The ODOT Project Liaison reviews the Monthly 

Progress Report. The ODOT Project Liaison 

contacts Local Government Section Manager If 

Recipient is not submitting reports. 

734-2668 (5/08) Overview 
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EXHIBIT "D" 

LOCATED IN THE NEl/4 NW)/4 OF SECTION 22, 

T15S., R.15E., WM., CITY OF REDMOND. 

DESCHUTES COUNTY, OREGON 

FUTURE LEASE 

COKIMENCING AT POINT "fl". FROM WHICH A 2-1/2 " BRASS CAP 

MONUMENTINC THE NORTHWEST CORNER OF SECTION 22. TOWNSHIP 

15 SOUTH, RANGE 13 EAST. WILLAMETTE MERIDIAN BEARS 

Nar27'or w - 2341.25 FEET, AND FROM WHICH A 2-1/2 " BRASS 

CAP MONUMENTINC THE NORTH 1/4 CORNER OF SAID SECTION 22 

BEARS N44-52'48^'E - 489.08 FEET, SAID POINT "B" BEING THE 

POINT OF BEGINNING: THENCE N53'08-00"W - 80.00 FEET: THENCE 

S3V52'0Crw - 155.00 FEEJ: THENCE SSffOBVCE - 80.00 FEET: 

THENCE N3V52'00''E - 155.00 FEET TO THE POINT OF BEGINNING. 

THE SAME CONTAINING 12.400 SQUARE FEET. 

S16 

S21 

S15 

S22 

1/4 

•00-

^ 

REGISTERED 

PROFESSIONAL 

LAND SURVEYOR 

OREGO N 

JULr 15. 1983 

WILUAM G. BAHRKE 

^ 2039 > 

R«newol Dote: 12/31/09 

PREPARED AUGUST 7. 2003 

POVEy AND ASSOC.. LAtiD SURVEYORS 

P.O. BOX 131. REDMOND. OR 97756 

(541) 548-6778 

08-Oa8/00-000/AP1.DWG 
EXHI3IT "C" 

LOCATED IN THE NEl/4 NWl/4 OF SECTION 22. 

T15S., R.13E.. W.M., CITY OF REDMOND. 

DESCHUTES COUNTY. OREGON 

FUELING-PARKING LEASE 

COMMENCING AT POINT "A", FROM WHICH A 2 - 1/2' BRASS CAP 

MONUMENTING THE NORTHWEST CORNER OF SECTION 22, TOWNSHIP 

15 SOUTH, RANGE 13 EAST, WILLAMEUE MERIDIAN BEARS 

N81'37'39''W - 2536.00 FEET. AND FROM WHICH A 2-1/2 " BRASS 

CAP MONUMENTINC THE NORTH 1/4 CORNER OF SAID SECTION 22 

BEARS N22'22'07"E - 397.75 FEET. SAID POINT "A" BEING THE 

POINT OF BEGINNING: THENCE S31'52'0Crw - 239.22 FEET: THENCE 

S58'08'00''E - 74.00 FEET: THENCE N31'52'00''E - 175.36 FEET; 

THENCE 90.82 FEET ALONG THE ARC OF A 100.00 FOOT RADIUS 

CUR\fE. CONCA'/E WEST. THE LONG CHORD OF WHICH BEARS 

N05'50'54"E - 87.73 FEET: THENCE N8r00'0O''W - 38.54 FEET 

TO THE POINT OF BEGINNING. 

THE SAME CONTAINING 17.627 SQUARE FEET. 

S16 

521 

S15 

S22 

1/^ 

•{XI-

^ 

REGISTERED 

PROFESSIONAL 

LAND SURVE?rOR 

OREGO N 

JULY 15. 1983 

WILL'AVI G. BAHRKE 

^ 2039 

R«r.«wcl Dote: 12/31/09 

PREPARED AUGUST 7. 2008 

POVEY AA/0 ASSOC LAND SURVEYORS 

P.O. BOX 131. REDMOND. OR 97756 

(541) 548-6778 

oa-oaa/QQ-ooQ/AP i .owe 

I 
EXHIBIT "B " 

LOCATED IN THE NEl/4 NWl/4 OF SECTION 22. 

T15S., R.13E., W.M., CITY OF REDMOND, 

DESCHUTES COUNTY, OREGON 

HANGAR LEASE 

COMMENCING AT POINT "A", FROM WHICH A 2-1/2 " BRASS CAP 

MONUMENTING THE NORTHWEST CORNER OF SECTION 22, TOWNSHIP 

15 SOUTH. RANGE 13 EAST. WILLAMETTE MERIDIAN BEARS 

N81'37'39''W - 2536.00 FEET. AND FROM WHICH A 2-1/2 " BRASS 

CAP MONUMENTING THE NORTH 1/4 CORNER OF SAID SECTION 22 

BEARS N22'22'0rE - 397.75 FEET. SAID POINT "A" BEING THE 

POINT OF BEGINNING: THENCE S3r52'00''W - 239.22 FEET; THENCE 

N58r08'00''W - 175.77 FEET; THENCE N3V52'00''E - 155.00 FEET: 

THENCE N76'20-00"E - 42.82 FEET: THENCE S5745'00''E - 18.24 

FEET: THENCE S81'00'00"E - 138.40 FEET TO THE POINT OF 

BEGINNING. 

THE SAME CONTAINING 35.569 SQUARE FEET. 

S16 

321 

S15 

S22 

•CXl-

^ 

I ' REGISTERED 

I PROFESSIONAL 

LAND SURVEYOR 

OREGO N 

JULY IS. 19B3 

WILUAM G. BAHRKE 

^ 2039 > 

RcnewQl Dote: 12/31/09 

PREPARED AUGUST 7. 2008 

POVEY AND ASSOC.. LAA/O SURVEYORS 

P.O. BOX 131. REDMOND, OR 97756 

(541) 548-6778 

G8-088/QC-000/AP1.DWG 
I 

:XHIBIT "A" 

i SFP-C LEASES 

GATED IN THE NEl/ 4 NWl/ 4 OF 

. :TI0 N 22, T15S.. R.13E., W.M., 

CITY OF REDMOND. DESCHUTES 

COUNTY, OREGON 

S16 

S21 

DETAIL SCALE: 1" = WOO' 

^ ^ ^ S69'58'08'E 

322 

2-1/T 

BRASS CAP 

2660.35' 

V 4 

2-1/2' 

BRASS CAP 

HtjrAM>«MB m 

REGISTERED 

PROFESSIONAL 

LAND SURVEYOR 

OREGO N 

JULY 15. 1963 

WILUAM G. BAHRKE 

^ 2P^9 < 

Renewal Dote: 12/31/09 

^'REPARED AUGUST 7. 2008 

•^OVEY AND ASSOC. LAND SURVEYORS 

P.O. BOX 131. REDMOND. OR 97756 

(541) 548-6778 

Qd~0d8/0O-0C0/AP1.DWG 

LEGEND 

MONUMENT TO BE SET 

AT A FUTURE DATE - • 

CURVE DATA 

NO. RADIUS LENGTH DELTA BEARING CHORD 

C f 'IOO.OQ' '90.82' ~5ZQ2'i'i' NOfsb'si'E'i???! ' 

TIE TO NORTH UNE NW1/4 

POINT DIRECTION AND DISTANCE DIRECTION AND DISTANCE 

NO. TO NW SECTION CORNER TO NORTH 1/4 CORNER 

"A" Tie i'37~3'rV YsSi.oo'" Nini'OT i ' 597775' ~ 

" 8 " N81'27^rw 2341.25' N44r52'48'E 489.08' 
I 

between airport lights and others, result in glare in the eyes of pilots using the airport, 

impair visibility in the vicinity of the airport, create bird strict hazards, or otherwise in 

any way endanger or interfere with the landing, takeoff or maneuvering of aircraft 

intending to use the airport. In the event the aforesaid covenant is breached, the Owner 

reserves the right to enter on the land conveyed hereunder and cause the abatement of 

such interference at the expense of Tenant. 

IN WITM:S S WHEREO F the parties hereto have caused this agreement to be executed. 

LES SCHWAB WAREHOUSE CENTER, L\C. 

Corey J 

Secre 

THE CITY OF REDMOND 

Alan Unger, Mayor 

ATTEST: 

City RecorderPage 14 • Lease Agreement 
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This agreement shall be deemed to have been made in, and performance thereof shall be 

construed in accordance with the laws of the State of Oregon. 

I. Costs and Attorney Fees 

In the event suit or action is instituted to enforce any of the terms of this contract, the 

prevailing party shall be entitled to recover from the other party such sum as the court 

may adjudge reasonable as attorney's fees at trial or on appeal of such suit or action, in 

addition to all other sums provided by law. 

J. Nondiscrimination 

Pursuant to Title VI of the Civil Rights Act of 1964. and by Part 15 of the Federal 

Aviation Regulations, Tenant agrees it will not on the grounds of race, creed, color, 

national origin, or sex, discriminate or permit discrimination against any person or group 

of persons in any manner prohibited by Part 15 of the Federal Aviation Regulations. The 

Tenant further assures that it will undertake an affirmative action program as required by 

14 CFR Part 152, Subpart E, to insure that no person shall on the ground of race, creed, 

color, national origin, or sex be excluded from participating in any employment activities 

covered in 14 CFR Part 152, Subpart E. The Tenant assures that no person shall be 

excluded on these grounds from participating in or receiving the services or benefits of 

any program or activity covered by this subpart. The Tenant assures that it will require 

that its covei'ed suborganizations provide assurances to the Tenant that they similarly will 

undertake affirmative action programs and that they will require assurances from their 

suborganizations, as required by 14 CFR Part 152, Subpart E, to the same effect. 

The Owner reserves the right to take such action as the United States may direct to 

enforce the provisions of these covenants. 

K. Right of flJRh; 

The Owner reserves unto itself, its successors and assigns, for the use and benefit of the 

public a right of flight for the passage of aircraft in the airspace above the surface of the 

real property described above, together with the right to cause in said airspace stich noise 

as may be inherent in the operation of aircraft, now known or hereafter used, for 

navigation of or flight in the said airspace, and for use of said airspace for landing on, 

taking off from or operaung on the Redmond Municipal Airport. 

The Tenant expressly agrees for itself, its successors and assigns that it will not erect nor 

permit the erection of any structure of object nor permit the growth of any tree on the 

land conveyed hereunder that would violate the standards established in Federal Aviation 

Regulations, Part 77, Objects Affecting Navigable Airspace, as amended. 

In the event the aforementioned covenant is breached, the Ovmer reserves the right to 

enter on the land conveyed hereunder to remove, lower, mark or light the offending 

structure, tree, or other objects, all of which shall be at the expense of the Tenant. 

The Tenant expressly agrees for itself, its siurcessors and assigns to prevent any use of 

the above described real property which would interfere with landing or taking oH^ of | 

aircraft at the Redmond Municipal Airport, or otherwise constitute a hazard. Such | 

hazards include uses that create electrical interference with navigational signals or radio | 

communication between the airport and aircraft, make it difficult for fHots to distinguish I 

Page 13 - Lease Agreonent I 

'—^—^^—TM—•^•^^ — u 
In addition to the above. Owner will Join in executing any and all instruments which legal 

counsel for any lender on the security of Tenant's leasehold estate may reasonably require 

in order to accomplish the same, provided that nothing herein shall be construed as 

obligation Owner to incur any personal liability for repayment of any such loan, nor as 

subordination the Owner's rights and reversionary interest in and to the leased property to 

any such encumbrance. 

C. Non-Waiver 

Waiver by either party or strict performance of any provision of this agreement shall not 

be a waiver of or prejudice the parties' right to require strict performance of the same 

provision of the future or of any other provision. Acceptance of either party of 

performance allowing a default will not be deemed a waiver of such default. No waiver 

by either party of a default will constitute a waiver of any other default. 

D. P?a<;?fal fosstssipn 

So long as Tenant complies with all provisions of this agreement. Owner will defend 

Tenant's right to quiet enjoyment of the leased property and all rights that are licensed or 

permitted under this lease. 

E. tMssi 

All notices or communications required under this agreement shall be deemed to be 

property served if sent by certified mail to the last address previously furnished by the 

parties hereto. Until hereafter changed by the parties by notice in writing, notices shall 

be sent to Owner at: 

THE CITY OF REDMOND, 

PO Box 726, 

Redmond, Oregon 97756, 

and to the Tenant at: 

LES SCHWAB WAREHOUSE CENTER, INC., 

20900 NE Cooley Road, 

Bend, Oregon, 97701. 

Date of service of such notice is the date such notice is deposited in a post office of the 

United States Post Office Department, postage prepaid. 

F. Invalidity 

The invalidity of any provision of this agreement will not affect the other provisions, 

unless the purpose of the parties in making this agreement would be thereby frustrated. 

G. Wan-anties/Guarantees 

Owner makes no warranty, guarantee, or averment of any nature whatsoever conceming 

the physical condition of the leased property, its suitability of the proposed 

improvements, or the availability of utilities. Tenant has had a full opportunity to inspect 

the leased property and, except as otherwise provided in this lease, accepts the leased 

property as is. It is agreed that the Owner will not be responsible for any loss, damage, 

or costs which may be incurred by the Tenant by reason of the condition of the leased 

property. 

H. Interpretation 

Page 12 - Lease Agreement 
I 

I 

I 

I 

corporation with which Tenant may merge or consolidate part thereof and which Tenant may 

merge or consolidate part thereof and which will assume Tenant's obligation hereunder. Tenant 

shall pay Owner's cost to approve the sublease or assignment. The amount to be paid will be set 

by the City Council by resolution. 

B. Leasehold Mortgage Protection It is recognized that Tenant may, from time to 

time, encumber this lease for financing purposes. This lease, therefore, is subject to the 

following provisions: 

1) The Tenant is to furnish the Owner an executed counterpart of any such 

mortgage. 

2) Any notice, demand, other document of any kind whatever served by Owner 

upon Tenant including, but not limited to notice of default under the lease, 

shall also be served on the lender, but Owner shall not be required to serve an 

assignee of the Lender unless and until a copy of the assignment is served 

upon the Owner. 

3) Whenever ownership of the mortgage passes into the hands of more than one 

party, all such owners must fiimish the Owner a written designation of the 

party to be served on behalf of all such owners. 

4) The lender shall have the right to cure Tenant's defaults and perform all his 

covenants. 

5) As to any default of breach of covenant that can be cured by lender without 

taking possession of the leased property, the lender shall have sixty (60) days 

to cure such default or breaches after Owner has given the lender notice of 

intention to terminate the lease or dispossess Tenant. 

6) As to any default or breach that can only be cured by taking possession, the 

Owner may require the lender to fiimish a reasonable guarantee of its 

performance under the lease of all Tenant's obligations, including the care of 

all defaults and breaches, and that lender will proceed with reasonable 

diligence to take possession of the leased property and either foreclose the 

mortgage or acquire the leasehold by assigiunent in lieu of foreclosure. 

7) Any acquisition of the leasehold by the lender may be taken in the name of a 

nominee. 

8) The Owner will not terminate the lease as long as lender performs 

promptly all of its covenants in the guarantee. 

9) In case of termination of the lease for default or breach of covenant by Tenant, 

the lender may serve notice on Owner of its desire to enter into a new lease 

for the balance of the term at the same rentals and with the same covenants 

contained in the lease. The notice to be served on the Owner thirty (30) days 

prior to termination by the Owner, which notice shall be accompanied by a 

payment of all arrears of lease payments and a reasonable sum to compensate 

the OwTier for expenses, including reasonable attomey fees, and establishing 

the new relationship and a guarantee satisfactory to Owner that lender will 

cure all Tenant's defaults and breaches other than arrears in lease payments. 

The new lease will commence as of the termination of the old one, but shall 

be prior and superior to all rights, liens and encumbrances that would have 

been extinguished by foreclosure to lender if t he lender so demands. A 

statement of this obligation shall be included in all subleases. 

Page 11 - Lease Agreement 
I 

1) Tenant shall vacate the property immediately, remove any property of Tenant 

including fixtures which Tenant is required to remove at the end of the 

agreement terms, perform any clean-up alterations or other work required at 

the end of the term, and deliver all keys to Owner. Any personal property 

remaining after termination of the lease shall be the property of Owner. 

2) Owner may reenter, take possession of the leased property and remove any 

persons and property by legal action. 

SECTION lO.TERMINATION 

A. Upon termination of the agreement, Tenant shall surrender the leased property in 

good condition, normal wear and tear excepted provided normal maintenance has been provided. 

Buildings constructed by the Tenant with permission from the Owner shall not be removed. 

B. Upon termination of the agreement, the building and all improvements which are 

a part of this lease shall become the exclusive property of the Owner. Any personal property 

remaining on the leased property at the termination of the lease shall be the property of Owner. 

C. Upon termination of this agreement (provided the termination was not for a 

default by Tenant), Tenant shall have the right of first opportunity to lease the property and 

improvements firom the Owner for five (5) years and renewable every five years, thereafter with 

aimual lease payments equal to ten percent of fair market valve of land and improvements, and 

on such other tenns, including adjustments to the lease payments, as are acceptable to both 

Owner and Tenant.. 

SECTION ILEiVUNENTDOiVLUN 

A. Effect of Total Condemnation In the event the entire leased property shall be 

appropriated or taken under the power of the eminent domain by any public or quasi-public 

authority, this lease shall terminate and expire as of the date of such taking, and Tenant shall 

thereupon be released from any liability thereafter accruing hereunder. 

B. Effect of Partial Copdemnation In the event a portion of the leased property shall 

be so appropriated or taken and the remainder of the property shall not be suitable for use then 

being made of the property by Tenant, or if the remainder of the property is not one undivided 

parcel of property. Tenant shall have the right to tenninate this lease as of the date of such taking 

on giving to Owner written nodce of such termination within 120 days after Owner has notified 

Teiumt in writing that this property has l)een appropriated or taken. If there is disagreement 

between the Owner and Tenant on the effect of partial condemnation, the issue of suitable use 

shall be determined by arbitration. In the event of such partial taking and Tenant does not so 

terminate this lease, then this lease shall continue in fiill force and effect as to part not taken, and 

the rental to be paid by Tenant during the remainder of the term shall be adjusted as 

proportionate to the area taken. 

C. Condemnation .\ward Any award or settlement made in eminent domain 

proceedings involving the leased property shall be distributed as between the Owner and Tenant 

as follows: 

1) The Owner shall receive all smas awarded as compensation for the taking of 

the land. 

2) The Tenant shall receive those sums for any improvements taken. 

SECTION 12.GENERAL PROVISIONS 

A. Assignment and Subleases The Tenant will not assign this agreement or sublease 

the leased property, or transfer any rights hereunder without the consent of the Owner in writing 

which shall not be withheld unreasonably. Consent shall not be required for an assignment to a 

Page 10 - Lease Agreement 
All additions, alterations and repairs exceeding 25% of the value of the existing building(s) or 

the leased property, shall be subject to the Building and the Improvement provisions of Section 4 

of this lease. 

SECTION 8. EVENTS OF DEFAULT 

A. Default in Lease Pavment 

1) Failure of Tenant to make lease payments provided for in this agreement 

within five (5) working days following written notice of delinquency. 

2) Failure of Tenant to make lease payments provided for in this agreement on 

the due date if Owner sent a default notice under section 8 A (1) during the 

prior 12 months. 

B. Default in Other Covenants 

1) Failure of Tenant to comply with any term or condition or fulfill any 

obligation of this agreement within thirty (30) days after written notice by 

Owner specifying the nature of the default with reasonable particularity. 

Owner may allow Tenant additional time to correct the default if the default is 

of such a nature that it cannot be completely remedied within the thirty (30) 

day period and Tenant proceeds with reasonable diligence and in good faith to 

effect the remedy as soon as practicable. 

2) Failure of Tenant to comply with any term or condition or fulfill any 

obligation of this agreement if Owner sent a default notice under section 8 

B(l) for the same violation dtiring the prior 12 months. Tenant shall not be 

entitled to remedy any default or cure under this subsection without the 

written consent of Owner. 

C. Abandonment 

Following construction, the failure of the Tenant to occupy the property for thirty (30) 

days or more for the purposes permitted under this agreement unless such failure is 

excused under other provisions of this agreement shall constitute abandonment. This 

thirty (30) day period shall begin only after written notice by Owner specifying 

abandonment of the leased property. 

SECTION 9. REMEDIES ON DEFAULT 

In the event of a default, the Owner may terminate the agreement by written notice sent by 

certified mail to Tenant. Owner may include the notice of default with the notice required under 

section 8 A I or section 8 B 1. If the property is abandoned by the Tenant, termination shall be 

automatic and without further notice. 

A. .Qamagss 

In the event of termination or default. Owner shall be entitled to recover immediately, 

without waiting until the due date of any future lease payment or until the date fixed for 

expiration of the agreement term, the following amounts as damages: 

1) The reasonable costs of reentry and reletting including without limitation the 

cost of any clean up, refurbishing, removal of Tenant's property and fixnires, 

or any other expense occasioned by Tenant's failure to quit the property upon 

termination and to leave them in the required condition, 

2) The loss of reasonable rental value from the date of default until a new Tenant 

has been, or with the exercise of reasonable efforts could have been secured, 

B. Reentry after Termination 

?agc 9 - Lease Agreement 
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I 

L. Security and Airport Regulations 

Tenant, its employees, contractors, subcontractors, licensees, subtenants, and invites, 

shall observe and comply with all rules, regulations, and directions of the Federal 

Aviation Administration and the Transportation Security Administration and with the 

terms and conditions of the Airport Security Program as from time to time may be 

amended. They shall also comply with all current and future airport regulations and 

policies adopted by the Owner. 

SECTION 5. RIGHTS OF OWNER 

Owner shall have the right during the lease term to pay any taxes, assessments, water, sewer or 

other charges against the leased property. The amount paid shall be an additional lease payment 

due firom Tenant at the next lease payment day after such payment with interest thereon at the 

rate of 10% per annum from the date of payment thereof by Owner, until the repayment thereof 

to Owner by Tenant. 

If the Owner, at its option, shall advance or pay any such taxes, insurance, assessments, water, 

sewer or other charges, or pay, cancel and clear off any tax sales, liens or charges and claims on 

and against the leased property or the reversionary interest therein, it shall not be obligatory on 

Owner to inquire into the validity of such taxes, assessments, water, sewer, or other charge, or 

any such tax sale. Provided, however, that if Tenant shall be actively prosecuting its 

administrative or legal remedies in protest of any tax, assessment, water, sewer, or other charges. 

Owner shall not have the right to pay or advance sums referable thereto until such remedies shall 

have been exhausted. 

SECTION 6. RIGHT TO ENTER AND INSPECT 

Owner and its authorized employees, agents, contractors, subcontractors and other 

representatives shall have the right at all reasonable times during the term of this lease, to enter 

upon the leased property to inspect and ascertain the conditions of the same or for any other 

purpose whatsoever. Owner is not required to provide notice to Tenant or any such inspection. 

Tenant shall immediately provide access for inspection upon demand by Owner. 

It is understood and agreed by and between the parties that at the completion of construction, the 

City shall be provided a copy of the building plans and specifications for the improvements. 

Owner may ftom time to time inspect the leased property to ensure that the property is 

maintained in good condition, reasonable wear and tear excepted. Prior to the completion of the 

lease term. Owner may inspect the property and if there are deficiencies. Owner may require 

those deficiencies to be corrected before the leased property is turned over to The City of 

Redmond at the end of the lease term, 

SECTION 7. DA>UGE OR DESTRUCTION 

If the leased property and improvements are destroyed l^ fire or other casualty. Tenant shall 

have the option of either (a) terminating die lease and provide the Owner with the proceeds of 

the insurance on the building, or (b) repairing the damage at its own expense. 

If any repairs or reconstruction undertaken by the Tenant pursuant to this section are not 

substantially completed (85%) within one year of the date of the settlement of the insurance 

claim for the leased property that was damaged. Owner may tenninate this agreonent in whole 

or in part upon notice. To Tenant 

Page 8 - Lease Agreement 
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However, so long as the net worth of Tenant exceeds Twenty Million Dollars 

($20,000,000), Tenant shall have the right to self-insure the risk that would otherwise be 

covered by the insurance policies required to be maintained under this Section, In the 

event Tenant's net worth falls below Twenty Million Dollars ($20,000,000) or if it 

terminates its program of self-insurance. Tenant shall promptly give Owner written 

notice of such event accompanied by a certificate of insurance from a third-party 

insurance company which evidences the existence of the insurance coverage required to 

be maintained pursuant to the terms of this Section. 

J. Insurance 

The Tenant shall, at all times during the term of this lease, and at Tenant's sole expense, 

keep all improvements which are now or hereafter a part of the leased property insured 

against loss or damage by fire and the extended coverage hazards for the full replacement 

value of such improvements. Losses shall be payable to the Owner and Tenant according 

to their respective interests as provided for in this lease, provided, however, Tenant may, 

at its election, apply any amount accrued from an insured loss to the restoration or repair 

of the leased property. Any loss adjustment shall require the written consent of both the 

Owner and Tenant. Such insurance shall name the Owner as an additional named insured 

with a certificate providing thirty (30) days notice to Owner prior to cancellation. Tenant 

shall fiimish the Owner a certificate evidencing the date, amount and type of insurance 

that has been procured pursuant to the agreement. If a subtenant provides proof of 

insurance sufficient imder this section naming the Owner as an additional named insured 

such proof shall satisfy this requirement. 

However, so long as the net worth of Tenant exceeds Twenty Million Dollars 

($20,000,000), Tenant shall have the right to self-insure the risk that would otherwise be 

covered by the insurance policies required to be maintained under this Section. In the 

event Tenant's net worth falls below Twenty Million Dollars ($20,000,000) or if it 

terminates its program of self-insurance. Tenant shall promptly give Owner written 

notice of such event accompanied by a certificate of insurance from a third-party 

insurance company which evidences the existence of the insurance coverage required to 

be maintained pursuant to the terms of this Section. 

K. ^''•^"W^Mff yif?^?'*"r'r 

Tenant shall not use any hazardous or toxic substances as defined in Oregon Revised 

Laws 453.005 without prior written notice to Owner. Said Notice shall identify the 

substance to be used, the area in which the substance is used, the manner in which the 

substance is to be stored and applied, and plans to dispose of any excess. Owner has the 

option of refusing to consent to such use, storage or disposal of toxic substances; Tenant's 

failure to comply with such a decision shall constitute an event of default by Tenant, All 

hazardous or toxic materials shall be used strictly in accordance with all applicable laws, 

rules and ordinances and Tenant shall not allow any hazardous or toxic waste into the air, 

ground, or water that is not in compliance with said laws and regulations. Tenant shall 

indemnify and hold Owner harmless from any claim, liability, loss, cost or expense 

(including but without limitation, attorneys fees) resulting from hazardous or to,xic 

wastes placed on the property by Tenant. 

Page 7 - Lease Agreement 
9) Cleaning parts: It is not permitted for any person to clean any aircraft, 

engines or parts of aircraft in an aircraft hangar or within fifty (50) feet of another 

aircraft, building or hangar with any flammable liquid. 

10) Running engines: No person shall run the engine of any aircraft in any 

aircraft hangar. 

F. Liens 

Tenant agrees to pay, when due, all stuns of money that may become due for or 

purporting to be for any labor, services, materials, supplies, utilities, furnishing, 

machinery or equipment which have been furnished or ordered with Tenant's consent to 

be furnished to or for the Tenant in, upon or about the leased property, which may be 

secured by any lien against the leased property, Owner's interests in the leased property, 

or the improvements to the leased property. Tenant will cause each such lien to be fully 

discharged and released at the time the perfonnance of any obligation secured by any 

such lien matures or becomes due, provided that the Tenant may in good faith contest any 

liens filed or established, and in such event may permit the items so contested to remain 

undischarged and unsatisfied during the period of such contest. 

G. Taxes, Assessments 

Tenant agrees to pay any taxes, assessments (including Local Improvement District 

assessments), water, sewer or other charges on the leased property as they become due 

provided the Tenant may m good faith contest any such liability filed or established, and 

in such event may permit the items so contested to remain undischarged and unsatisfied 

during the period of such contest, 

H. iDdsimui]^ 

Tenant agrees fully to indemnify, save harmless and defend the Owner, the Redmond 

City Council and the City of Redmond officers and employees from and against all 

claims and actions and all expenses incidental to the investigation and defense thereof, 

based upon or arising out of all damages or injuries to third persons or their property, 

caused by Tenant's negligent or intentional acts or omissions in the occupation and use of 

the leased property or any other airport property by Tenant, its subtenants or employees, 

OwTier shall give to the Tenant prompt and reasonable notice of any such claims or 

actions, and the Tenant shall have the right to investigate, compromise and defend same, 

provided such claim is not the result of the negligent act of Owner. 

I, Liability Insurance 

Tenant agrees to procure and maintain at its cost during the temi of this agreement or any 

renewal hereof, bodily injury and property damage insurance which shall cover all risks 

arising directly or indirectly out of Tenant's activities on, or any condition of, the leased 

property, whether or not related to an occurrence caused or contributed to by the Owner's 

negligence. The policy limits shall not be less than $1,000,000 per incident for each 

personal injury and property damage. Such msurance shall name the Owner as additional 

named insured with a certificate providing thirty (30) days notice to Owner prior to 

cancellation. Tenant shall furnish to the Owner a certificate evidencing the date, amount 

and type of insurance that has l>een procured pursuant to the agreemeiu. If a sub-tenant 

provictes proof of insurance sufficient under this section naming the Owner as an 

additional named insured such proof shall satisfy this requirement. 

Page 6 - Lease Agreement 
Tenant shall exercise due and reasonable care and caution to prevent and control fire on 

the property and to that end shall adhere to the following minimum standards or other 

requirements particular to Tenant's use of the property as set forth by the Fire Marshal: 

1) Access: Precautions shall be taken to ensure ready access to hangars from 

all sides. The space around hangars shall not be used for the storage of any combustible 

materials and all vegetation shall be kept trinuned in a fire safe manner. 

2) Portable fire extinguisher: Portable fire extinguisher suitable for 

flammable or combustible liquid and electrical type fires shall be installed in the aircraft 

hangar and serviced annually. ABC type/minimum 2A:10BC rating. Use of any fire 

extinguisher under any circumstances shall be reported to the manager of the airport and 

the fire chief immediately after use. 

3) Combustible storage: No person shall store combustible materials or 

other hazardous materials in an aircraft hangar except in containers approved by the Fire 

Marshal. 

4) Open Flame: Open flame, flame-producing device or other source of 

ignition (examples; gas, or gasoline/propane heaters, welding apparatus, etc.) shall not be 

pennitted in any hangar. 

5) Transferring Fuel: No flammable or combustible liquid shall be 

dispensed into or removed from the fuel system of an aircraft within any aircraft hangar. 

a) Flammable material is any material that will readily ignite from common 

sources of heat or any material that will ignite at a temperature of 600' F 

or less. 

b) Flammable liquid is any liquid having a flash point below 100° F and 

having a vaipor pressure not exceeding 40 pounds per square inch 

(absolute) at 100° F. 

6) Smoking: No smoking is permitted on the Airport Operating Area except 

in designated areas. 

7) Repairing aircraft: All aircraft repairs requiring the use of open flames, 

spark-producing devices or the heating of parts above 500° F shall not be permitted in an 

aircraft hangar. 

8) Application of flammable or combustible liquid finishes: The application 

of Class I or Class II liquid finishes is prohibited unless all of the following conditions 

are met: 

a) The application methods and procedures are in accordance with Article 45 

of the Uniform Fire Code; and 

b) The application of the liquid finish is accomplished in an {qsproved 

location, (note that no locations on airpon property are currently 

approved) 

Page 5 - Lease Agreement 
I 

the request of either party. In calculating the fair market value of the leased property, the value 

shall be either the value agreed upon by the parties or its appraised value. If the parties cannot 

agree upon one licensed appraiser to prepare the appraisal, both parties shall obtain appraisals 

and the fair market value shall be the average of Owner's appraisal and Tenant's appraisal. 

SECTION 4. OBLIGATIONS OF TENANT 

The Tenant shall have the following obligations: 

A. UjcQfthePrppgrty 

Tenant shall be entitled to use the Property for the development and operation of an 

airplane hanger to maintain, store, and operate aircraft used by Tenant and its affiliates 

during the course of their business. Tenant agrees to use the lease property and to 

conform to all present and future applicable laws and regulations of any public authority 

affecting the leased property and use of the leased property. 

B. Mldiogs 

All improvements including, but not limited to, buildings and ramps shall be constructed 

to conform to all applicable rules and regulations of the City of Redmond, the State of 

Oregon, and the FAA. Prior to any construction of any ramp, building or buildings, all 

building plans and site plans must be approved by the Owner, as the owner of the 

property. This is separate from and in addition to any Site and Design Review or 

approvals from any other agency. It is agreed that upon the construction of any ramp or 

buildings by Tenant, that the Owner shall have no responsibilities with respect to 

maintenance, repair or alterations to any ramp or buildings, and Tenant shall have the full 

responsibility to maintain the improvements. 

C. Maintenance 

Tenant shall keep and maintain the leased property and all improvements of any kind 

which may be erected, installed or made thereon by Tenant in good and substantial repair 

and condition, including the exterior condition thereof, and all landscaping and shall 

make all necessary repafrs and alterations thereto. Tenant shall provide proper containers 

for trash and garbage and shall keep the leased property free and clear of rubbish, debris 

and litter at all times. 

D. Improvements bv Tenant 

Tenant, subject to Owner's written approval and any other required approvals, may 

install, erect or place in or about the leased property, buildings or expand any buildings 

which Tenant considers appropriate to the operation of its business. All buildings shall 

be the property of Owner upon the termination of this lease. Prior to any construction, 

alteration or changes upon the property, Tenant shall submit to Owner (as the property 

owner) final plans and specifications, site use plan, and architectural rendering thereof 

and shall not commence any construction until it has received Owner's written i^pproval. 

Owner shall take action conceming plans and/or specifications submitted to it within 

forty-five (45) days. The approval by Owner is separate from any other required 

approvals, including Site and Design Review. 

E. Fire Prevention 

Page 4 - Lease Agreement 
I 

F. Fuelint^ Tanks. 

In addition, and subject to Owner's approval. Tenant may be permitted to install and 

maintain a fueling tank to store and provide fiiel use solely to fiiel aircraft housed by 

Tenant and its affiliates at the Redmond Airport. In order for a Tenant have storage of or 

dispense fuel on the airport, Tenant must be compliance with the standards for Aircraft 

Fuel Servicing, which have been established by the National Fire Protecting Associations 

NFPA 407. Tenant will comply with any other local or state fire code regulations. In 

addition. Tenant will comply with 14 CFR Part 139.321 Handling and storing of 

hazardous substances and materials. Outlined in 139.321 are training requirements for 

fueling personnel, which include initial and recunent training. The airport will be 

conducting quarterly inspections of fuel storage facilities, fuel dispensing vehicles and 

training records in order to verify compliance with these regulations continues to be 

maintained. Tenant will also be required to pay to owner a ftiel flowage fee as set by 

Owner, and to comply with any fuel flowage reporting requirements set by Owner. 

SECTION 2. TERM 

A. Original Term. 

The term of this lease shall be for a period of twenty (20) years, from the date of this 

lease (from September 10,2008 through September 9,2030). 

B. Extended Tenn. 

Owner shall have the right to two five (5) year lease extensions of this lease. A request 

to extend the lease must be in writing and must be made at least sixty (60) days, but no 

more than one-hundred and eighty (180) days prior to the end of the lease term. 

SECTION 3. LEASE FEE 

For the first year of the Lease, the Lease fee for the leased property shall be based on a fair 

market lease value of twenty-one cents ($0.21) per square foot. The initial aimual fee for the 

leased property shall be $ 11,171.16. 

The annual lease fee shall be paid in twelve (12) equal monthly increments. The first payment 

shall be due and payable on October I, 2008 in the amount of $930.03. Each monthly payment 

is due in advance on the 1" day of each month, becoming delinquent if unpaid by the lO*" day of 

the month. Delinquent payments shall bear interest at the rate of twelve percent (12%) per 

aimum and shall be due and payable without demand. 

The lease payment shall be adjusted three (3) years firom the date of this lease and at the end of 

every three (3) year period thereafter by the percentage change in the Consumer Price Index 

(Urban-West C) published by the U.S. Department of Labor over the prior three (3) years. If the 

index cited above is discontinued, then Owner shall designate the replacement index. 

At the end of the five (5) year period from the initial date of this lease, and at the end of each 

five (5) year period thereafter, the fair market value of this leased property may be adjusted at 

Page 3 - Lease Agreement 
3) Owner shall provide paved access from the leased property to the airfield 

for Tenant's aircraft. Owner will provide the paving specifications for the airfield ramp 

by October 15, 2008. Owner shall complete the paved access consisting of 

approximately 3850 square feet connecting the leased property to the Butler Aircraft 

ramp by November 15, 2008. If the access is not completed by that date. Tenant has the 

right to construct the access consistent with the paving specifications and Owner shall 

reimburse Tenant for its actual costs to construct the access. 

D. Access and Utilities. 

1) No later than October 15, 2008, Owner will provide Tenant with 

reasonable shared access to the leased property via a driveway over Owner's adjacent 

property (to be used by Tenant for construction and access to the leased property) and 

onto the airfield by means of an automatic security gate. The adjacent property is 

currently leased by Owner's Public Works Department. To the best of Owner's ability, 

Tenant's access over Owner's property shall be uninterrupted. The shared access is as 

generally described on EXHIBIT H. The shared access will meet all standards and 

requirements of the City of Redmond (including Public Works and the Fire Department), 

Federal Aviation Administration, and the Transportation Security Adn>unistration. If 

paving is not otherwise required to meet the above standards, then Owner shall pave the 

shared access no later than June 15, 2009. If the shared access does not meet the above 

standards or the standards are not otherwise waived by October 15, 2008, Tenant has the 

right to construct the shared access consistent with the standards and requirements and 

Owner shall reimburse Tenant for its actual costs to construct the shared access. 

2) Owner will permit Tenant to install and maintain its underground utilities 

v/ithin the utility corridors as described on EXHIBIT H. Tenant's use of the utility 

corridors shall comply with all City of Redmond code and public works standards 

£. Construction of Tenant Improvements. 

Tenant agrees to construct the improvements described in EXHIBIT H on the leased 

property within one (1) year of the date of this lease. Tenant understands that it must 

obtain all required approvals prior to construction, including approval by the City 

through Site and Design Review process and any required FAA approvals. City's 

issuance of a building permit to Tenant shall constitute all City approvals. All 

construction must meet City of Redmond code requirements and all Airport regulations 

and policies in effect as of the date of this lease. If Tenant fails to complete or 

substantially complete the improvements within one (1) year, this lease shall terminate 

without further action by either party. Teiuuit may request from Owner an extension of 

time to complete the improvements. Any such extension is solely within the discretion of 

Owner. 

Page 2 • Lease Agreement 
LEASE AGREEMENT 

THIS AGREEMENT is made this 10th day of September. 2008 by and between THE CITY 

OF REDMOND, a municipal corporation of the State of Oregon, hereinafter called 

"OWNER", and LES SCHWAB WAREHOUSE CENTER, INC, hereinafter called 

"TENANT". 

WITNESETH : 

IN CONSIDERATION OF THE MUTUAL COVENANTS, TERMS, AGREEMENTS, 

PRIVILEGES AND OBLIGATIONS CONTAINED IN THIS AGREEMENT, IT IS 

HEREBY AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS: 

SECTION 1. LEASED PROPERTY, RIGHT OF FIRST REFUSAL, CONSTRUCTION 

A. Lease Area and Right of Firat Refiisai 

Owner agrees to and does lease to the Tenant, and Tenant leases from Owner, the 

property described in EXHIBITS B and C and as mapped on EXHIBIT A, (the "leased 

property") subject to an easement for utility purposes as set forth on the attached 

EXHIBIT A. lll«MMiapi«QRBIBpnV4>«IBinil«Mit^^ 

additionali pr»yftih«onii»tinB.ftfi.thaiipropwty. d«80Bbtd ia EXUHBIT P and a» miyytJ i 

on EXHIBIT A. The right of first refusal must be exercised within 30 days after notice 

from Owner that it has a bona fide ofTer to lease the property firom another party. 

B. Possession. 

Tenant shall be entitled to possession of the leased property on or before September 22, 

2008. Owner will provide notice to Tenant if it can take possession prior to September 

22, 2008. If Owner has not completed the fill or cannot deliver possession of the 

property by September 22,2008, Tenant may terminate this lease. 

C. Owner Improvements. 

1) Owner shall fill the property consistent with the grading plan attached as 

EXHIBIT E. Owner will slope the fill at a 2:1 ratio where possible along the northern 

line of the Property. All fill work provided by Owner shall be effected in accordance 

with prevailing engineering standards in appropriate measured lifts and compaction 

standards (95% minimum). At the conclusion of the filling project. Owner will provide 

to Tenant a standard engineered fill report certifying that'the fill was i^operly 

engineered. 

2) Owner shall temporarily relocate the security fence so that Tenant's 

construction will occur outside the security fence. The relocated security fence shall be 

located as described in EXHIBIT F. Upon completion of Tenant's improvements, 

Owner shall relocate the security fence so that it connects as described in EXHIBIT G. 

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