# f f

f f DESER T WING S JE T CENTE R LL C

SPIRI T FLIGH T INC . db a WING S O F TH E CASCADE S Presiden t an d Owner , Mar yA . Sch u 77 7 S E Salmo n Avenu e • Redmond , Orego n • 9775 6

Physica l address : 203 2 S E Airpor t Wa y 541-548-480 1 Offic e • 541-548-277 6 FA X • 541-390-398 0 Cel l 

# COMPLAINANT' S REPLY 

# r T o th e Cit y o f Redmond' s Answe

r C 5 

# f f f f DATED : Septembe r 30 , 200 9

# r r r r p 

# r r r r r 

# Wa s

o f th e Cascade s

Septembe r

30 , 200 9 Offic e o f th e Chie f

Counse l Attention : FA A Par t

1 6 Airpor t

Proceeding s Docke t AGC-610 , Roo m92 5 Federa l Aviatio n Administratio n 80 0 Independenc e Avenue , S W Washington , D C 2059 1 RE : FA A Forma l Par t 1 6 Forma l Complain t Docke t No , 16-09-0 7 Dea r Offic e o f th e Chie f

Counsel : Enclose di s on e origina l an dthre e copie s o f th e Repl y o f

Wing s of th e Cascades , LL C t o th e Responden t Cit y o f Redmond' s Answe r fo r th e filin g i n th e above-reference dproceeding . Your s truly . 

# yyi^^ ^ ^.0^A ^ Mar y A . Sch u

Ful l Servic e FA

A Approve dFBO : Groun dSchoo l an dFligh t Trainin g • Maintenanc e ^2/ 4 Yea r Aviatio n Colleg e Degree s • Charte r Flight s 11 1 SE Salmai Avenu

e • Redmond , O

R9775 6 • (541 ) 548-480 1 • Fa x (541 ) 548-277 6 E-mail : spiritflight@wmgscascades.com• We b site : www.wingscascades.co m1 FA A FORMA L PAR T 1 6 COMPLAIN T - DOCKE T NO . 16-09-0 7 2 3 DESER T WING S JE T CENTE RLL C AN D SPIRI T FLIGH T INC. , DB A WING S O F 4 TH E CASCADES , FILE D B Y MAR Y A . SCHU , PRESIDEN T AN D OWNE R 5 6 REPL Y T O ANSWE RO FTH E RESPONDEN T (cit y o f Redmond ) 7 8 9 INTRODUCTIO N AN D BACKGROUND : 1 0 1 1 Th e RESPONS E fromth e Cit y o f Redmon dt o th e 6 8 pag e FA A Part 1 6 formal complain t

filed 1 2 b y DWJ C ha s littl e basi s i n truth , fact o r reality . It

als o lack s th e documentatio n require db y th e 1 3 FA A t o disprov e th e claims . 1 4 1 5 Th e RESPONS E writte n b y attorne y Stev e Bryan t for th e City o f

Redmon dattempt s t o mak e a 1 6 mocker y o f

th e FA A Part

1 6 formal complain t

an dth e regulator y process , b y demandin g th e 1 7 complain t

"b e dismisse dwit

h prejudice . " "Th e cit

y o f Redmon ddenie s th e complain t in it s 1 8 entirety. " 1 9 2 0 Th e buildin g describe da s "ver y old , small , on e room " that was rente dt o Mary Schu i n 199 8 fo r 2 1 $50.0 0 pe r

mont h di dno t

hav e arestroom . Th e buildin g was locate dnex t t o Butle r

Aircraf t 2 2 Service s whic h allowe dMary an dstudent s t o us e thei r restroom . However , Butle r i s not ope n 2 3 afte r 5:0 0 p mo r

o n weekends . A lo t

o f student s ar e onl y abl e t o tak e classe s an dfly i n th e 2 4 evening s o r

o n th e weekends . Th e city allowe dthi s situatio n (n o restroo mo r porta-potty ) t o 2 5 continu e for

four years , unti l th e "ver y old , small , on e room " buildin g was schedule dfor 2 6 demolition . 2 7 2 8 Mr . Bryan t

als o state s that

th e City ha dno t

receive dan y site pla n review . Thi s i s untrue , a s 2 9 state di n th e origina l Part 1 6 Complain t

an dExhibi t

45 , tw o site plan s wer e submitte dt o th e 3 0 City , alon g with copies o f approve daeronautica l studie s b y th e FA A an dtopographica l drawing s 3 1 o f th e site . 3 2 3 3 Mar

y Schu attempte dt o fiilfill requirement s o f th e lease s b y obtainin g fromth e City , neede d 3 4 informatio n regardin g leas e boundarie s befor e th e projec t coul dproceed . Leas e line s boundarie s 3 5 wer e neve r

receive dfromth e City . (Betwee n Augus t 200 5 an dJanuar y 2008 , monthl y leas e

### Wing s of

the Cascades , Spiri

t Flight , Inc . Complainant' s Repl y Deser t Wing s Jet Center , LLC . Augus t 31,200 9 1 payment s wer

e pai dto th e Cit

y totalin g $50,345.37 . Eac

hlease , startin g in 2005 , wa s rolledint o 2 the nex

t lease , not throughtermination or

fo r non-paymen

t o f leas e payment s a s insinuatedb y 3 Mr . Bryant , but

throughchange s t

o th e plan s fo

r th e proposedFBO . 4 5 Mr . Bryan

t allege s "substantial " improvement s wer e mad e to th e Whittie

r Hangar s afte

r the Cit y 6 obtainedthe

min lat e 2007 an dthe n leasedthe

mto Wing s o f

th e Cascades . D DWJ

C wa s 7 alread

y rentin g one o f

th e hangars . The only improvemen t performedb y th e Cit

y was t o install 8 ne w lights . W

e ha dalread y adde dlarg e light s tha

t we pai dfo

r ourselves , but

they wer e replace d 9 wit hmor e efficien t cit y lights . Wing s of

the Cascade s built

carpetedoffices , acarpeted 1 0 classroom , installe dabathroom , painte d3 5 foo t hig hwalls , painte d10,80

0 squar e fee t o f floors, 1 1 an dbuilt stud y carrel s fo

r student s t

o use . A tota

l of $112,340.8 4 ha s been expendedfo r 1 2 improvements t

o th e Whittie

r Hangars , all t

o th e benefi

t o f th e cit y o f Redmond . Hundred s o f 1 3 hours o f

ou r labor wen t int o thi s project

whic hha dtotally improvedthi s facility . 1 4 1 5 Wing s o f

th e Cascades , Spirit

Flight , Inc . i s the only TRU E FixedBas e Operator

(FBO ) a t 1 6 Robert s Fielda s define din th e Cit

y o f Redmond' s ow

n cit y code 2.55 0 whic

hstate s t o qualif y a s 1 7 a n FB O on th e Redmon

dAirport , a

n entit y mus t provide charte

r service , flight

training , aviation 1 8 maintenance , an

dfiiel. Mr . Bryan

t refer s to bot

hRedmon dAir an dButle r Aircraf t a s FBOs , 1 9 howeve

r Redmon dAir doe s not provide flight

training , an

dButle r Aircraf t only recently starte d 2 0 flight training . 2 1 22 Ver y littl e evidentiar

y suppor t an ddocumentation i s provide db y th e Respondent , th e cit y o f 2 3 Redmond . Mos t

exhibit s have alread

y bee n includedb y DWJC i

n the origina

l forma l FA A Par t 2 4 1 6 complain

t filedon July 10 , 2009 . Ther e i s littl e factua

l evidenc e t

o disput e th e man y 2 5 allegations . The requirement s necessar y t o b e me t by th e Responden

t fo r th e answe r

t o b e 2 6 satisfactor

y ar e addressedin the following : 27 2 8 Sinc e all thre e condition s have bee n satisfied , th e complain

t i s imde r fiirther investigatio n b y th e 2 9 FAA . To glibly proclaimit s insignificanc e seem s t o fly i n the face o f

th e FA A an dothe r 3 0 regulator

y bodie s wh

o ar e chargedt

o upholdthe law s an

drequirement s regardin g publi c fiinds 3 1 an dus e o f publi c propert

y suc has the Redmon

dairport . 3 2 3 3 Within the answe

r b y th e cit y of Redmond , only afe

w o f th e allegation s ar

e addressed . Most , 3 4 including thos e regardin g Redmon dAir , the FB O bein g grantedexclusiv e rights, ar e generally Pag e 2 - Complainant s ReplyWing s o f

th e Cascades , Spiri t

Flight , Inc . Complainant' s Repl y Desert Wing s Je t

Center , LLC . Augus t 31 , 200 9 1 ignored . It

the n coul db e reasone dthat withou t sufficient factual defense , th e claim s unaddresse d 2 stan da s true . 3 4 Accordin g th e Mr . Bryant , "Th e Cit y intend s t o respon dt o eac h o f th e four allege dgran t 5 assuranc e violations , bu t doe s not inten dt o addres s eac h bal dassertio n b y th e Complainant. " A s 6 previousl y mentioned , th e expectatio n b y th e FA A unde r §16.2 3 (g ) (i) , i s that

th e answer , reply , 7 an drebutta l shal l eac h contai n aconcis e bu t complet e statemen t

o f th e fact s relie dupo n t o 8 substantiat e th e answers , admissions , denials , o r averment s made . 9 I t appear s th e "bal dassertions " include s but ar e certainl y no t

limite dto : 1 0 1 1 a ) Giftin g an dfraudulent misus e o f

publi c fimd s for

privat e gai n b y 1 2 th e city o f

Redmon dfo

r Le s Schwab , Redmon dAir, Ai r Lif e an dEpi c Air . 1 3 Mr . Bryan t

state s o n pag e 8 o f

th e city o f

Redmon danswer , that

neithe r Ai r Lif e 1 4 no r

Epi c Ai r

ar e tenant s a

t th e airport . Bu t

th e cit y o f

Redmon dfimdeda

n 1 5 engineere dsit e pla n whic h was develope dfor the mcostin g ten s o f

thousand s o f 1 6 dollars . 1 7 b ) Inequity an ddiscriminatio n i n airport leas e length s o n th e 1 8 Redmon dairport . Thi s include s operatin g withou t aleas e i n plac e a

t al l i f yo u ar e 1 9 Redmon dAi r an dbein g allowe dt o hav e a5 5 year leas e o n propert y whic h shoul d 2 0 hav e reverte dt o th e airport . 2 1 c ) Page s o f documentatio n revealin g th e existenc e o f discriminatio n 2 2 b y grantin g exclusiv e right t o Redmon dAir, a

n FBO . Thi s FB O i s i n th e sam e 2 3 class , utilizin g th e sam e typ e propert y i n a n adjacen t

locatio n t o m y lease d 2 4 property , o n th e Redmon dairport . 2 5 2 6 Responden t

selectivel y disregards , dismisse s an dglosse s ove r thi s discriminatio n a s trivial . I t i s 2 7 part o f ablatan t

patter n o f

discriminatio n an ddisrespec t for m y minorit y businesse s o n th e 2 8 Redmon dairport . It i s an ongoing , recurrin g them e that permeate s al l dealing s with th e cit y o f 2 9 Redmond . Th e Respondent , rathe r tha n answe r

th e claims , spend s mos t o f th e Answe r 3 0 attemptin g t o discredi t m y businesse s an dm y reputatio n with slurs , innuendoes an dpartia l 3 1 truths . 3 2 3 3 A recurrin g them e include di n mos t o f th e respondent' s answer s refer s t o th e "terminatio n o f m y 3 4 lease. " Thi s statement , lik e man y others , i s inaccurat e an dcast s ashado w o f fals e doub t

o n th e 3 5 situatio n an dm y businesses . I t i s mean t t o portra y DWJ C an dWing s o f th e Cascade s a s unable , 3 6 for som e unknown , disparagin g reason , t o perform . Therefore , th e leas e appear s t o hav e bee n 3 7 take n away an dterminatedb y th e cit y o f Redmond . Nothin g coul db e fiirther fromth e truth . 3 8 Th e tw o origina l lease s wer e both supersede dwith mor e comprehensiv e an dvaluable lease s for 3 9 DWJC . Althoug h the y wer e supersede da s "stan dalon e documents" , du e t o bein g enfolde dint o 4 0 anothe r

lease , neithe r

was terminate dfor

an y caus e o r

non-paymen t

a s th e Cit y woul dlik e t o Pag e 3 - Complainant s Repl y 

# IWing s o f

th e Cascades , Spiri t

Flight , Inc . Complainant' s Repl y Desert Wing s Je t

Center , LLC . Augus t 31,200 9 1 portra y regardin g m y compan y an dit s reputation . Eac h adde dmor e propert y t o mak e movin g a 2 roa dabette r

possibilit y after

Redmon dAi r

was allowe dt o buil do n property that i n th e FA A 3 syste mfor

FA A 7460- 1 Heigh t

Studie s t o construc t

th e project . 4 5 Leas e # 1 o f

Jul y 200 5 on e rolle dint o leas e # 2 o f Januar y 200 7 with mor e propert y after FB O 6 approval for

DWJ C was achieve di n 2006 . Mor e propert y was neede dfor th e project . N o 7 payment s wer e missed , n o problem s occurred. N o grac e perio do f 6 month s t o pa y was give n a s 8 wa s give n t o Redmon dAir . 9 1 0 Th e followin g show s payment s mad e o f $17,200.7 7 o n Leas e # 1 pai dright u p unti l leas e # 2 too k 1 1 effec t

i n Januar y 2007 . Anothe r year o f payment s occurre dfor

Leas e # 2 totalin g $33,144.00 . 1 2 W e continue dt o sen dcheck s t o th e city o f Redmon dafter

w e filedth e breac h o f

confrac t lawsui t 1 3 du e t o thei r

attempte dtakeove r

o f m y 3 0 year

lease dproperty . The y di dnot cas h them . 1 4 1 5 That

i s agran dtota l o f

$50 , 345.3 7 i n leas e payment s for propert y o n whic h I hav e neve r bee n 1 6 abl e t o buil dbecaus e o f failure t o b y th e cit y t o provid e correc t leas e lines . Thi s amoun t i s i n 1 7 additio n t o payin g monthl y ren t t o Redmon dAi r

for offic e spac e an dth e city o f Redmon dfor 1 8 hangar

spac e an dbot h FBO s for fiiel an dmaintenance , al l becaus e I ha dn o building . Anothe r 1 9 win-wi n for

everyon e bu t

me . Anothe r

threa di n th e pattern o f discriminatio n an deconomi c 2 0 hardshi p cause db y th e cit y o f Redmond . 2 1 2 2 A s indicate di n th e breac h o f confrac t lawsuit , th e city o f

Redmon dha dothe r

plan s for

m y 2 3 property an di n Novembe r 14,200 7 trie dt o tak e i t

awa y for th e followin g state dreasons : 2 4 2 5 WINGS/DWJ C ha dfaile dt o complet e o r substantiall y complet e abuildin g 2 6 o n th e propert y i n 1 year . Howeve r m y # 2 leas e doe s no t

rea dthat way : It 2 7 state s DWJ C ha don e year t o buil dafter

cit y sit e pla n revie w applicatio n an d 2 8 approva l i s achieved . 2 9 3 0 What

follow s i s acop y o f

th e first pag e o f DWJC' s Leas e Agreemen t date dJanuar y 12 , 2007 , 3 1 showin g verbiag e a s state dabove , a s wel l a s letter s fromtw o attorney s sen t t o Mr . Bryant , 3 2 Respondent' s attorne y regardin g thi s matter . 3 3 Pag e 4 - Complainant s Repl y

### Wing s of

the Cascades , Spirit

Flight , Inc . Complainant' s Repl y Deser t Wing s Jet Center , LLC . August 31,200 9

1 2 LEAS E AGREEMEN T FB O PARCE L THI S AGREEMEN T i s mad e thi s /JL ^ da y ofBiuiiiiWr , 3©86 , b y an dbetwee n TH E CIT Y O FREDMOND , apubli c bod y coiporat e an dpoliti c o f di e Stat e o f

Oregon , hereinafte r caUe d"LESSOR" , an dDESER T WING S JE T CENTER , LLC , hereinafte r calle d"TENANT" . WITNESETH : WHEREAS , Lesso r

desire s t o leas e certai n premise s t o Tenant , an dTenan t desire s t o leas e from Lesso r sai dpremises ; an d NOW , I N CONSIDERATIO N O FTH E FOREGOIN GAN D TH E MUTUA LCOVENANTS , TERMS , AGREEMENTS , PRIVILEGE S AN D OBLIGATION S HEREINAFTE R CONTAINED , I T I S HEREB Y AGREE D B Y AN D BETWEE N TH E PARTIE S HERET O A S FOLLOWS : SECTIO N L LEASE D PREMISES , CONSTRUCTIO N Lesso r agree s t o an dhereb y doe s leas e t o th e Tenan t fo r th e exclusiv e us e o f

th e Tenan t

th e propert y consistin g o f

152,89 9 squar e fee t

describe di n EXHIBI T "A " an d"B " whic har e attache dheret o an db y referenc e mad e apar t hereo f Tenan t agree s t o construc t

th e improvement s o n th e lease dpremise s withi n on e (1 ) year a s approve db y th e Cit y throug hSit e Pla n Revie w A^lication . I f Tenan t fail s t o complet e o r substantiall y complet e th e improvement s withi n on e (1 ) year , thi s leas e shal l b e nul l an dvoid . SECTIO N 2 . TER M A . Origina l Ter m Th e origina l termo f

thi s leas e shal l b e fo r

aperio do f

twent y (20 ) year s firo

mJanuar y 1 , 2007 , unti l Decembe r

31,2027 .
Pag e 1 - Leas e Agreement 12/21/200 6


### Pag e 5 - Complainant s Reply

### Wing s o f

the Cascades , Spirit

Flight , Inc . Complainant' s Reply Deser t Wing s Jet Center , LLC . August 31,200 9

1 2 FRANCI S HANSE N & MARTI N LL P C E . "WIN ' FRANCI S ATTOHNB S A T IA W MICHAH . H . MCCIA N Kiwni N E . HANSEN ' H4 8 NWHiaSTWET . B£ND . O R 97701-191 4 AUSONA-HUVC H GERAI O A . hAMn n PHONC : 541-389-301 0 • FAX- . 541-382-706 8 CHRISTOPHE R 1 . MANFRED I t * ADxne D n OKCI M M O WAMNCTO M WWW.nMMCISHANSfN.CO M t ADMirre D n Oacv N tn a Oufcv w Vi a FacsimU e an d U S Mail : 548-189 5 Decembe r21 , 200 7 Steve n D . Bryan t 88 8 S.W . Evergree n Avenu e Pos t Offic e Bo x45 7 Redmond , Orego n Re : Deser

t Wing s Je t Center , LL C - Cityo f Redmon d Dea rSteve : Ou roffic e represent s Deser t Wing s Je t Center , LLC . The yhav e aske d u s t o tak e ai l step s necessaryt o enforc e thei rrights unde rthei rthirty-yea rLeas e Agreennen t wf h th e Cit yo f Redmond . I hav e received a cop yo f you rlette ro f Decembe r18,2007 . Th e Cityo f Redmon d i s i n materia l breac h o f th e Leas e Agreemen t wit h Deser t Wing s Je t Center . Specifically , th e Cit yha s faile d t o provid e al l o f th e lease d propert ycovere d b yth e leas e t o m yclient . Th e Cit yha s altowe d a neighborin g tenan t t o trespas s o n m y client' s lease d propert yove rttie entir e perio d tha t th e leas e ha s bee n i n place . Whil e th e Cit yha s promise d t o rectifythi s situation , to date , the yhav e failed t o d o so . Eve n mor e significan t i s th e Cit/ s failure t o mov e th e vacate d right-of-wayo f Salmo n Avenu e of f o f m yclient' s propert ya s promise d i n th e lease . Th e continue d occupatm n b yth e Cit yo f Redmon d o f Salmo n Avenu e i n th e mkldl e o f m yclient' s propert yha s impede d m yclient' s abilit yto develo p thi s propert ya s intende d unde rth e Leas e Agreemen t Bot h o f thes e breache s b yth e Cit yo f Redmon d ar e substantia l an d material . I n you rletter , yo u mak e th e statemen t tha t thi s leas e wil l temiinat e o n January12 . 2008 . Tha t i s entirel yincorrec t Th e leas e i s quit e specifi cwhe n i t describe s tha t th e tenan t ha s on e yea rfrom approva l b yth e Cit yo f sit e pla n reviewapplicatio n t o buil d it s improvement s unde rth e sit e pla n application . Onl yi f thos e improvement s ar e no t complete d withi n tha t one-yea rperio d o f tim e wil l thi s leas e temiinate . Tha t one-yea r perio d o f tim e ha s no t commenced . First , m yclient' s hav e bee n impede d fro m mak e a sit e pla n applicatio n du e t o th e materia l breache s b yth e Cityo f Redmond . Second , th e Cit ydrafte d thi s leas e an d al l ambiguitie s i n th e leas e ar e construe d



### Pag e 6 - Complainant s ReplyWing s o f

th e Cascades , Spiri t

Flight , hic . Desert Wing s Je t

Center , LLC . Complainant' s Repl y Augus t 31 , 200 9

1 2 Sieve n D . Bryan t

Decembe r21,200 7 Pag e 2 against th e City . Th e City' s straine d interpretatio n tha t thi s leas e tenninate s one-yea r fro m th e dat e of th e leas e i s unsupporte d b yth e languag e i n th e lease . Ther e are man y provision s i n th e leas e that d o commence upo n th e initia l leas e term , an d thos e ar e specificall yset forth . Th e provisio n yo u ar e referrin g t o simpl yrequire s al l improvements to b e complete d withi n on e yea rof th e sit e pla n approval . Give n my client' s substantia l propert yinterest ( a thirty-yea rleas e right), n o cour t i s goin g t o allo w th e landlor

d a forfeiture , especiall ywhe n th e landlord i s i n materia ! breac h unde rth e lease . W e hav e se t fort h abov

e th e man yproblem s tha t th e Cit yo f Redmon d ha s give n thei r failure t o perfon n unde rth e leas e agreement . That t>ein g said , I thin k i t i s importan t fo r ou rclient' s t o meet wit h you , an d I presen t t o se e i f thi s matte rca n b e resolved , bot h t o th e favorof m

yclien t .an d t o th e favorof th e Cit yo f Redmond . Myclien t intend s t o buil d its facilityo n th e airpor t propert yunde rth e lease , bu t i s willin g t o enterfai n cerfai n limite d modification s t o th e leas e ttia t woul d b e beneficia l to bot h parties . I rea d you r lette ras a spiri t o f a n attemp t t o resolve thi s matte rshor t o f litigation . Obviously , litigatio n i s cerfainl ya n optto n myclien t intend s t o pursu e i f thi s matte rcanno t b e resolve d otherwise . Tha

t litigatio n woul d ti e u p thi s propert yfo ra significan t amoun t of time . B e awar e that myclien t i s a minorit yowne d business . Man yof th e condition s tha t yo u requeste d i n you rlette ro f Decembe r18 . 2007 , have neve rbee n require d of an yothe r tenant s a t th e airport . I woul d encourag e th e Cit yo f Redmon d t o negotiat e i n goo d fait h an d no t i n a discriminator

ymanner . Once yo u have ha d a chance t o revie w thi s lette rwit h you rclient , ge t bac k i n touc h wit h m e an d let m e kno

who wyo u wis h t o proceed . Whil e w e ar e willin g t o se e i f negotiation s ca n avoi d litigation , w e wil l not allo wan yadditiona l breache s byth e Cit yo f th e lease . Cal l i f yo u hav

e an yquestions . Sincerely , MARTI N E . HANSE N MEH:cj b cc : Gar

yan d Mar

yDominic k

Pag e 7 - Complainant s Repl y

### Wing s of

the Cascades , Spiri

t Flight , Inc . Deser t Wing s Jet Center , LLC . Complainant' s Repl y August 31,200 9



### MILLE RNAS H

Alycl aN , Sykor a al)Tia.niiani$iniBCTnash,CD( n ii>*J L \iK. l £SN«SH,CO W I >6 7 i.W . Ouadk r

A<ri.iu f o«ic i M l «iI.5»S 7

Decembe r 2i , 200 7 Mr . Steven D . Brjiint Brj^n t Emerso n & Fitc h LL

P 88 8 S WEvergreen Avenue P C Bo x 45 7 Redmond , Orego n 9775 6 Fax : 541.548.189 5



### 1 2 Subject : Deser t Wing s Je t

Center LL C an dth e Citj ' o f

Redmon d Dea r Steve : Thi s firmrepresent s Deser t Wing s Je t

Center , LLC . M

y clien t ha s pro\ide dm e wit h you r lette r date dDecembe

r 18 , assertin g tha t

Deser t ^^^gs ' 30-\-ea

r leas e "vxil l terminat e o n Januao " 12,2008. " The leas e wil l no t terminat e o n January 1 2 unles s a court s o rules . I a

mcon\ince dtha t

th e court ^^il I no t interpre t th e leas e a s you appea r to . Sectio n i of

th e leas e require s Deser

t Wing s "t o construct " o r

t o "substantiall y complete " undefine d"improvements " withi n on e yea r after th e Citj
- approve s th e sit e plan application , not , a s you suggest , fro mth e dat e of

execution . A

s \-oi i know , th e partie s me t

o n Nox-embe

r 14,2007 , an daddresse drequirement s fo r th e sit e plan . Th e Git } ha s no t

approve dDeser

t Wings ' sit e plan . Yo u appear t o interpre t

th e leas e t o requir e substantia l completio n withi n on e yea r fro mth e dat e th e leas e wci

s executed . That

readin g i s no t

supporte dby th e tex t

an d contex t o f th e lease , no r

wT)ul dsuc haproiisio n b e reasonabl e i n thi s heaxily regulate d industty . On e yea

r fromth e leas e dat e wDul

db e a\«r\
- difficult

tim e fram

e t o complet e surveying , architectura l design , th e applicatio n process , meeting s includin g resolutio n o f othe r tenants ' issues , FAAapprox-al , Stat e appro\-al , Citj
- appro\-al , an dcompletio n o f th e hangar , th e flight-school building , an dparking . E\-e n i f it wier e possibl e t o complete in on e year , i f th e partie s ha dagree dt o tha t tim e frame , they simph ° woul dhav e sai dso , a s the\
- di din th e first sentenc e o f

th e thir d paragrap ho f

Sectio n 3 ("Th

e ren t shal l b e adjuste dthre e (3 ) year s fivmth e dat e o f thi s

coROOCS-eoooaMS i



### Pag e 8 - Complainant s Reply

### Wing s o f

th e Cascades , Spirit

Flight , Inc . Complainant' s Reply Deser t Wing s Jet Center , LLC . Augus t 31.200 9

1 2 3 Stex'e n D . Bryan t Decembe r

21,20O 7 Page s leas e an da t

th e en do f

evei y thre e (3 ) year s perio dtbereafte r * * *." ) (emphasi s added) . Uom»>tT , tiuotii^Du t

th e lease , i t

i s dea r tha t Deser t Wing s i s forbidden fro m constructin g o r

erectin g anythin g unti l th e C3t y approve s tiie constructio n pla n i n advance . Th e Gt y drafte dth e lease . If yo u ar e prepare dt o argu e tha t an y leas e ter mi s ambiguous , remembe r

tha t poo r draftin g i s construe dagains t tiie drafter . You r declaratio n tha t

th e leas e wil l tenninat e o n 2 5 days ' notic e for n o lawful reaso n i s itsel f

abreac ho f

th e leas e an dviolate s th e covenan t o f goo dfaith an dfair dealing . I recommen dtha t

Desert Wing s an dth e Cit

y decisionmaker s mee t

a t thei r earlies t convenience , keepin g i n min dtha t tim e i s o f th e essenc e for iny clients . I a m availabl e al l day . A s areminder , o n Decembe r 19 , Gre g Lync han dI lef

t amessag e for

yo u tlia t remain s unretumed . I loo k forwar dt o hearin g fh>

myo u toda y t o se t

ameetin g time , date , an dplac e for

th e partie s t o resoh' e thi s matter . Deser t Wing s look s forwudt o workin g togethe r

withtiie Cit

y o f Redmon dfor

th e nex t 2 9 years . Sincerely , Alyci aN . Sykor a c clien t

COROOC5.-aXI03148. 1

Pag e 9 - Complainant s Repl yWing s o f

th e Cascades , Spiri t

Flight , Inc . Complainant' s Repl y Desert Wing s Je t

Center , LLC . Augus t 31 , 200 9 1 1 . GRAN T ASSURANC E #1 9 - OPERATION S AN D MAINTENANC E 2 3 A . FLOODING : Th e city o f Redmon drequire s eac h tenan t o r propert y owne r

t o 4 maintai n an dmanag e exces s wate r withi n thei r

property . Th e cit y agree dt o addres s 5 stormwate r

runof f fromth e Redmon dai r

Property . 6 7 A publi c record s reques t mad e o n Augus t

27 , 200 9 aske dfor

documentatio n that

th e city 8 ha daddresse dstormwate r runof f with Redmon dAi r

a s state db y Respondent' s attorne y 9 i n hi s Answe r t o th e Par

t 1 6 Complain t

o n Pag e 4 , Lin e 9 , an da s require db y Cit y Code , 1 0 Chapte r

8 , Articl e 4 , Sectio n 7.8.303 5 - Desig n Revie w Criteri aA - Gradin g an d 1 1 Draining , § 4 an d5 . After paymen t t o th e city o f

Redmon do f

$117.7 5 for

3.7 5 hour s t o 1 2 searc h for

an y records , w e wer e tol dtha t non e existed . N o record s t o prov e th e flooding 1 3 ha dbee n addressed . Th e flooding exist s t o thi s day whe n ther e i s aheav y rainfall . 1 4 1 5 Additionally , Mr . Bryan t asstire s al l o f

u s tha t th e flooding proble mi s DWJC's , whe n h e 1 6 state s th e "propert y wa s lease da s is. " 1 7 1 8 1 9 B . TRESPAS S AN D TRENCHING : In respons e t o Mr . Bryant' s assertio n i n ite m 2 0 B . unde r

Gran t Assuranc e #1 9 regardin g th e trespas s an d4 0 foo t trenc h du g o n DWJC' s 2 1 property , tha t th e trenchin g was withou t th e knowledg e o r

consen t o f th e City o f 2 2 Redmond . Thi s statemen t i s totall y false . Airport manage r

Novic k responde dt o a 2 3 12/19/100 7 emai l fromJoh n at Keeto n Kin g statin g the y wer e "bringin g i n natural ga s t o 2 4 th e Dav e Hol t hangar an dCascad e Natura l ga s ha s requeste dyou r (Carri e Novick's ) 2 5 permissio n t o d o so. " A s detaile di n th e origina l formal FA A Part 1 6 Complaint , th e 2 6 airport

manage r approve dth e frespass an dtrenchin g a s show n i n th e emails . (Se e Exhibi t 2 7 4 4 o f

origina l Complaint. ) 2 8

Pag e 1 0 - Complainant s Repl yWing s o f

th e Cascades , Spiri t

Flight , Inc . Complainant' s Repl y Desert Wing s Je t

Center , LLC . Augus t 31,200 9 1 Attorne y Bryan t state s Complainan t

allege s tha t

Redmon dAi r

trespasse do n 2 Complainant' s property , du g afort y foo t trench , an dthat

Cit y consente dt o thi s Action . 3 4 Attorne y Bryan t claims , ".. . However , th e frenching wa s withou t th e knowledg e o r 5 consen t

o f th e City . O n both occasions , whe n airport staf f discovere dth e frenching 6 activity , Redmon dAi r wa s directe dt o ceas e th e activity. " A s attorne y Bryan t state s "I n 7 on e instanc e th e entit y doin g th e trenchin g wa s remove dfromth e airport . Th e airport 8 manage r

personall y directe dRedmon dAi r t o ceas e th e frespassing an ddamag e t o 9 Complainant' s lease dproperty. " Attorne y Bryan t i s grossl y incorrect . In fact , i t was 1 0 DWJC' s genera l manage r wh o demande dth e subconfracto r vacat e th e premise s tha t the y 1 1 wer e trespassin g on ; an dth e City o f Redmon d(Airport

Manage r Carri e Novick ) ha dboth 1 2 knowledg e o f th e frenching an dapprove dth e frenching o n DWJ C property a s describe d 1 3 below : 1 4 1 5 Decembe r

19 , 200 7 8:2 6 am- Emai l fromJoh n Herlocke r (Redmon dAir ) t o Carri e 1 6 Novick . (Exhibit ) 1 7 1 8 "W

e ar e i n th e proces s o f

bringin g i n natura l ga s t o th e Dav e Hol t hanga r an dCascad e 1 9 Natura l Ga s ha s requeste dyou r permissio n t o d o so . " 2 0 2 1 /

hav e attache dalette r

yo u prepare dfo r

apreviou s installatio n a s reference . 2 2 2 3 W

e propos e t o ru n thi s ne w lin e alon g th e drivewa y approximatel y 100 ' fro mSalmo n 2 4 Avenue . W e woul dlike t o perfor mth e work durin g th e firs t

week o f Januar y wit

hal l 2 5 approval s i n place . 2 6 2 7 I f

thi s propose dinstallatio n meet s wit h you r approval , woul dyo u pleas e prepar e an dfa x 2 8 me alette r

approvin g thi s installation . 2 9 3 0 I f

yo u hav e an y question s regardin g thi s installation , pleas e d o not hesitat e t o cal l eithe r 3 1 mysel f

o r Ti mKeeton . 3 2 3 3 Thank

you , 3 4 3 5 Joh n Herlocke r 3 6 3 7
Pag e 1 1 - Complainant s Repl yWing s o f

th e Cascades , Spiri t

Flight , Inc . Complainant' s Repl y Desert Wing s Je t

Center , LLC . Augus t 31,200 9 1 Attache dlette r reference di n paragrap h 2 fromabove : 2 "Jun e 28 , 200 5 3 VI A Facsimil e 388-475 8 4 Cascad e Natura l Ga s 5 Attention : Joh n Coole y 6 7 ITier

e i s autility corrido r

of f S.E . Salmo n Avenu e tha t run s alon g th e fenc e whic h 8 provide s power , phone , an dwate r t o hanga r

developmen t

o n Robert s Fiel d- Redmon d 9 Municipa l Airport . I t i s thi s utility corrido r

tha t yo u ar e t o plac e you r

natura l ga s line . " 1 0 1 1 Sincerely , 1 2 Caroly n S . Novick , A.A.E . 1 3 A irpor t

Manage r 1 4 1 5 1 6 Lette r

o f Decembe r

20 , 200 7 indicatin g Novick' s approva l Exhibi t ) 1 7 1 8 Decembe r

20 , 200 7 1 9 2 0 VI

A Facsimil e t o 541-388-475 8 2 1 2 2 Cascad e Natura l Ga s 2 3 Attention : Joh n Coole y 2 4 2 5 Dea r

John : 2 6 2 7 Thi s i s aconcurrenc e wit h Keeto n King s reques t

t o instal l aga s lin e approximatel y 10 0 2 8 fee t

fro mSalmo n Avenu e alon g th e propert y the y currentl y leas e fro mth e airpor t a s a 2 9 parkin g lot . I f yo u hav e an y furthe r

question s abou t

i t pleas e don' t

hesitat e t o contac t

me 3 0 a t

504-3496 . 3 1 3 2 Sincerely , 3 3 3 4 Caroly n S . Novick , A.A.E . 3 5 Airpor t

Manage r 3 6 3 7 3 8 Additiona l emai l fromKeeto n Kin g t o Novic k regardin g th e frenching o n DWJC' s 3 9 propert y (Exhibit ) 4 0 4 1 "From : Ti

mKeeto n (Timk(a>keetonkins . com ) 4 2 Sent : Wednesday , Decembe r 26 , 200 7 11:2 3 am 4 3 To : Carri e Novic k 4 4 4 5 Carrie , Pag e 1 2 - Complainant s Repl y | IWing s o f

th e Cascades , Spiri t

Flight , Inc . Complainant' s Repl y Desert Wing s Je t

Center , LLC . Augus t 31,200 9 1 /

amplannin g t o instal l th e ga s lin e t o K C Aero' s hanga r thi s week . Unfortunatel y th e 2 ga s lin e fall s withi n th e fenc e tha t Wing s o f th e Cascade s hav e erected . Coul dyo u pleas e 3 hav e themremov e enoug h o f i t s o tha t coul dtrenc h fo r

th e CN G installation . 4 5 Thank

yo u 6 7 Ti

mKeeto n 8 Keeton-Kin g Const . Inc . 9 923-0704 " 1 0 1 1 1 2 Additiona l emai l fromWinto n Piatt t o Novic k

regardin g th e trenchin g o n DWJ C 1 3 property ; 1 4 1 5 "From : Winton Piat t 1 6 Sent : Wednesday , Januar y 09 , 200 8 8:5 5 am 1 7 To : Carri e Novick ; Carte r McClarre n 1 8 cc : Stev e Bryan t 1 9 Subject : Wing s o f th e Cascade s Propert y vs . Ga s Lin e 2 0 2 1 On Saturda y Januar y 5 ' I stoppe dan dtalke dt o th e Keeto n Kin g employee' s abou t 2 2 enterin g Wing s o f th e Cascade s propert y withou t permission . I spok e wit h Mark an dhi s 2 3 lea dperso n abou t th e trenc h tha t

was du g ou t

to th e existin g ga s line , waitin g fo r ne w 2 4 pip e t o b e lai di n tha t woul dservic e th e 3 ne w hangar s Keeto n Kin g was building . I tol d 2 5 themno t

t o ente r th e property . On Monda y th e 7* * / aske dGar y Dominic k

abou t th e 2 6 possibilit y o f hookin g t o tha t

ga s line . Gar y tol dme tha t Keeto n Kin g shoul dsta y of f 2 7 unti l th e issue s regardin g th e are awer e resolved . 2 8 2 9 /

calle dTi mKeeto n an dexplaine dtha t h e shoul dwai t

an dremai n clea r

o f th e property . 3 0 /

aske di f

th e ga s compan y was schedule dt o plac e pipe . H e state dtha t the y wer e 3 1 schedule dfo r Tuesday . I tol dhimt o sto p th e wor k order . The ga s compan y di dno t plac e 3 2 pip e o n Tuesday . " 3 3 3 4 3 5 Januar v 10 . 200 8 lette r fromDWJ C regardin g frespassing o n propert v (Exhibi t ) 3 6 3 7 "Mid-mornin g o n Januar y 10 , 2008 , th e DWJ C Genera l Manager , Mr . Gar y Dominick , 3 8 cam e acros s worker s actuall y installin g aga s lin e o n DWJ C property . H e immediatel y 3 9 require dthemt o ceas e th e wor k an dremov e themselve s fro mth e property . Th e worker s 4 0 complie dan dremove dthemselve s fro mth e property . The y the n calle dthei r

compan y 4 1 wh o calle dCascad e Natura l Gas . Mr . Ro dCarlile , Genera l Manager , Distric t 4 2 Operations , Cascad e Natura l Ga s (phon e 541-388-2775 ) the n arrive do n th e scene . Mr . 4 3 Dominic k

explaine dt o Mr . Carlil e tha t th e propert y was i n litigatio n an dtha t th e 4 4 worker s wer e trespassin g o n th e property . At thi s point , Ms . Mar y Schu arrive dt o 4 5 continu e th e discussio n wit h Mr . Carlile . Ms . Schu directe dMr . Dominic k t o develo p a 4 6 lette r

t o distribut e t o an y individua l wh o subsequentl y trespasse do n th e property . "

Pag e 1 3 - Complainant s Repl y 

# I

### Wing s of

th e Cascades , Spirit

Flight , Inc . Complainant' s Repl y Deser t Wing s Jet Center , LLC . Augus t 31.200 9 1 I

t wa s a t thi s time Airpor

t Manage r Novick bega n denying tha

t she ha danything to d

o 2 wit

hhe r approva l fo r Keeton-King to frespass on DWJ C property . 3 4 5 C . SIT

E AN D DESIG N REVIE WAN D APPROVAL : Ther

e appear s to b e confusio

n among 6 the department s i

n the Cit y regardin g wha

t buildin g code s ar

e require dfo

r businesse s or

project s 7 on th e Redmon

dAirport . O

n Januar y 8 , 2008 , DWJ

C requested"Site an

ddesign review an

d 8 approval " documentation of plan s fo r all building s on th e Redmon dAirport . All of

th e lease s on 9 the Redmon

dAirpor t requir e Cit y Sit e an dDesign Review an

dApprova

l prior t o buildin g 1 0 hangar s an

drelatedbuildings . 1 1 1 2 I n arespons e fromPatt

i FreaufF, Cit

y Recorder , on Januar

y 23 , 2008 , she noted"A s aside note , 1 3 the reques t

of 1/8/200 8 fo

r Sit e an dDesign -_

I hav e been tol dthere i s nothin g to give regardin g 1 4 Sit e an dDesign a s i

t wa s not required . ...Th e Onl

y thin g tha

t ca n b e give n i s the Building 1 5 Permi

t Applicatio n whichshow s th e planning approval. " 1 6 

### 1 7 However , i

n th e lates t

lette r o f Ma y 15 , 200 8 fromth e Cit

y Attorney Bryant , h e state s "Site an d 1 8 Design Revie

w i s require dfo

r all ne w developmen

t unles s exemptedb y Section 8.301 0 o f the 1 9 Developmen

t Code . Whil e ther

e i s a n exemption fo

r "hanga r developmen

t entirely on an

d 20 interior

t o airpor t property , not

fronting on an

y publi c or

private sfreet " th e subject

propert y i s 2 1 not interior t o th e airpor

t propert y (i.e. , not

inside th e securit

y fence) . Thi s Sit

e an dDesign 22 Revie

w requiremen

t i s not ne w an dasignifican

t numbe r o f hangar s an

drelate dconstruction , 2 3 including the termina l building , hav e gone throughthi s process . 2 4 

### 2 5 D . REDMON

D AI RENCROACHMENT : A s referencedi n th e initia

l complain t (se e copy o f 2 6 exhibit s 47 , an

dattached) Redmon

dAi r obtaine dabuildin g permit t o "ad da24,00 0 squar

e foo t 27 hanga

r t o existin g business. " No site pla n wa s require da s i

t wa s in a n airpor t zone . The 2 8 building i s describeda s 20 0 fee t b y 12 0 fee t hangar ; their

leas e only allowed10

0 fee t b y 200 29 feet, according to documentatio n obtaine dthroughpubli c record s request . The airpor t manager . Pag e 1 4 - Complainant s Reply

### Wing s o f

the Cascades , Spirit

Flight , Inc . Complainant' s Repl y Deser t Wing s Je t Center , LLC . August 31 , 200 9 1 Ms . Novick , solvedthi s dilemmaby takin g ove r 25,00 0 squar

e fee t frompropert

y tha t ha dbee n 2 promisedt

o Mar y Sch u o f Wing s o f the Cascades . 3 4 The buildin g i

n question wa s ameta

l buildin g tha

t ha dbee n planne dan

dbuilt b y Keeton-King a s 5 askating rink

fo r abuildin g project

i n Bend . Apparently the skating rink dea l fel l throug hs o 6 Keeton-King (Redmon dAfr ) decidedt

o plac e the buildin g on th e Redmon dAirport . Onl

y 7 proble

mwas they didn' t

hav e enoug

hpropert y leased . Additionally , a s notedi n Exhibi t 48 , the 8 building inspection recor dindicate s "catchbasins " wer e t o b e built t o tak e car e of an y wate r 9 runoff

. N o catchbasin s wer

e built , an dth e ite mi s not checkedof

f on the inspectio n paperwork . 1 0 1 1 Gran t Assuranc e #1 9 - Operation s an dMaintenanc e require s th e sponsor , i n thi s case , the Cit y o f 1 2 Redmond , to "operat

e an dmaintain th e airpor

t an dall facilitie s thereo n o

r connectedtherewith , 1 3 wit hdue regar

dto climati c an

dfloodconditions. " Additionally , in Assuranc e 1 7 - Construction 1 4 Inspectio n an

dApprova

l require s th e Cit

y o f Redmon dto provide an

dmaintain competen

t 1 5 technica

l supervision a

t the constructio n site throughout th e project

tha t th e wor k conforms t

o the 1 6 plans , specification s ... " The claus e indicate s th e Cit y o f Redmon di s responsibl e t

o inspect 1 7 buildin g project s an

dassur e tha t th e buildin g i s built

in amanne

r tha t complie s wit

hCit y cod e 1 8 an dlan dus e laws . Ho

w i s i t the Cit y faile dt o provide adequat

e an dcomplet e building 1 9 inspection s o f

the "skatin g rink?" The inspectio n repor t show s "catc hbasins " listedimde r 20 Plumbing , howeve

r it i s not checkedof

f a s havin g bee

n inspected . W

e believ e the failur

e o f the 2 1 Cit y o f Redmon dto adequately inspect

RedmondAir' s skating rink project i s the main reason 22 fo r the flooding tha

t occur s on ou

r leasedpropert

y nex t t o RedmondAir . Eve

n now , whe

n a t 2 3 Redmon

dAir' s site , ther

e ar e n o catchbasin s or

gutters . Additionally , th e Cit y o f Redmon d 2 4 informedu s th e dry-well tha t wa s a t the site i s not

in working orde

r an dhasn' t bee n fo r anumbe r 2 5 o f years . 2 6 2 7 Mr . Bryan

t state s Gran

t assuranc e #1 9 doe s not requir e th e Cit y o f Redmon dt o mak e 2 8 improvements t

o leasedpropert

y an dtha t "Complainan

t wa s well awar

e o f the sit e condition s 2 9 whe n sh e askedt o leas e th e property. " M s Novick respondedt

o Mar y Schu' s lette

r declining t

o 3 0 move to th e northwes t airpor t propert y citin g concern s abou

t astee p grade an

dth e enormou s 3 1 amoun

t o f fill require dt

o mak e th e sit e safe . I n Ms . Novick' s respons e she statedthe following : Pag e 1 5 - Complainant s Repl y

### Wing s o

f the Cascades , Spirit

Flight , Inc . Complainant' s Repl y Deser t Wing s Jet Center , LLC . Augus t 31,200 9 1 "In regar

dt o you r letter an dth e fill requiredfo

r th e N Wsite , the airpor

t ha s th e fill in place , i f 2 additiona

l fill i s neededwe intendt o us e fill tha

t will b e removedfromth e termina l basemen t 3 area... " I

t seem s to m

e Ms . Novic

k i s offerin g t o us e fill afread

y on th e Airpor

t t o mak e th e N W 4 sit e saf e fo r aviation . Thi s i s the reason I askedth e Cit y an dAirpor t t o provide fill fo

r m y leased 5 propert

y wher e flooding wa s aproble

mbecaus e o f

lac k of oversigh t b y th e Cit

y o f Redmond . 6 Wh y was fill offere

da t one site an

dnot the other ? 7 8 Carri e Novic

k wa s askedin a

n Octobe r 24 , 200 6 meeting wit

hGar y Dominick , Mar

y Schu , 9 Shanno

n Egeland , an

dEri c Porte

r wh o th e authorit

y wa s fo r verifying tha

t othe r lessee s compl

y 1 0 wit hvariou s rule s i

n place . Ms . Novic

k answered , " 1 a

mthe responsibl e oversee

r o f complianc e 1 1 issue s o

n Airpor t groimd , an

dtha t he r bos s i s th e Cit

y Manager , Mik

e Patterson. " Ms . Novick 1 2 indicateda

t tha t time , "Anyone ca

n tal k wit hMik e if they believ e tha

t I a mnot responsiv e t

o 1 3 thei r concerns. " - 1 4 1 5 1 6 2 . GRANT ASSURANC E #2 5 - AIRPOR T REVENUE - FRAUDULENT MISUS E 1 7 OFPUBLI C FUND S FO RPRIVATE GAIN 1 8 

### 1 9 Th e Le s Schwa

b Tire Company , cit

y o f Redmon d- respondent . Federa

l Gran t Mone y funde dfo r 20 the Airline Termina

l Expansion project , an

dConnect (Drego n I I Gran t Agreemen

t Multimoda

l 2 1 Transportation Fim

dProgra m2007 Nort

hSid e Carg o Ram

p an dDevelopmen

t Agreemen

t No . 22 24944 . 2 3 24 Thi s i s aclassi c example of "gifting " an

dpreferentia

l freatment

fo r aprivat e entity , th e Le s 2 5 Schwa

b Tfr e Company , b y the cit

y o f Redmond , respondent . 2 6 27 Th e Le s Schwa

b Tir e Compan y i s aself proclaimedone billion , si x hundre dmillion dolla r ($1. 6 2 8 billion ) pe

r yea r revenu e producing compan y a s quotedrecently in ou r loca l newspaper . Th

e 2 9 Ben dBulletin . "The vas t

majorit y o f Le s Schwab' s $1. 6 billio n i n annua l tire sale s come s from 3 0 private-brandtires , a s opposedt o nam e brand s lik

e Goodyea r o r Michelin , the compan

y wrot e in 3 1 abrief

to th e U.S . Internationa

l Trade Commission. " Pag e 1 6 - Complainant s Repl y 

# I

### Wing s o f

the Cascades , Spirit

Flight , Inc . Complainant' s Repl y Deser t Wing s Je t Center , LLC . August 31 , 2009 1 I n th e articl e th e Le s Schwa b Tir e Co . object s t

o th e suggestedimpor

t ta x on the tire s from 2 China , whic

hthey primarily sell . The impor t ta x wouldleve

l the playing fieldfo

r othe r 3 manufacturers tryin g t o mak e profi t on America

n mad e tires . 4 5 Th e Respondent' s Answe

r declare s the Le s Schwa

b lette r o f Ma y 26 , 2007 , wa s written by Mar y 6 Schu . Thi s i s correct . Mr . Hoagland' s askedtha t Mar y writ e th e letter . Afte

r Mr . Hoaglan

d 7 editedth e letter , i

t wa s sen t t o DWJC , confirming wha

t was discusseddurin g thei

r meeting an

d 8 Schwab' s compan

y interes t in fiirther

negotiations . The schemati c drawing whichaccompanied 9 Schwab' s lette

r was provide dby Mr . Hoagland . 1 0 1 1 A s discussedi

n the origina

l complaint , I statedtha

t Ms . Novic

k cu t Schwa b abette r deal . Thi s 1 2 dea l utilize dtaxpaye

r mone y an dfundin g fromfederal , stat

e an dloca l resource s intendedt

o b e 1 3 utilize dfo

r the publi c good , not

hot the privat e benefit . 1 4 1 5 Mr . Bryan

t allegedtha

t Ms . Sch u demandedtha

t airpor t manage r Carri e Novick' s employmen t 1 6 b e terminated . Thi s i s not true . Ms . Sch

u assertedtha

t electedcit

y official s hav e failedt

o 1 7 supervis e an

ddirect Ms . Novic

k in he r employmen

t role , thu s permittin g non-complianc e wit h 1 8 the airpor

t gran t assurances . Although they hav e repeatedly been made awar e of the problems , 1 9 they choos e t

o furthe r facilitat e the discriminatio n an

deconomi c har

mthroughnegligenc e i

n 20 thei r leadership action s an

domission s in their

responsibilitie s fo

r correction . A s discussedhere , 2 1 th e fraudulent

misus e o f publi c funds fo

r privat e gain whic

hha s benefittedaselect

fe w on th e 22 federall

y funde dRedmondairpor

t ha s gone unaddressed . 2 3 2 4 Furthe

r proo f i s providedb y th e inequalit y o f the Le s Schwa

b Tire Company' s leas e wit hthe cit y 2 5 o f Redmon dwhe n comparedto DWJC' s lease . A tabl e outlining thi s i s provide dbelow : 2 6 2 7



### Pag e 1 7 - Complainant s Repl y

### Wing s of

the Cascades , Spiri

t Flight , Inc . Deser t Wing s Jet Center , LLC . Complainant' s Repl y August 31,200 9 1 ComparisonofLeas e Agreement s betwee n the Cit y o f Redmon d(owner ) an dLe s Schwa

b 2 Warehous e Center , Inc . (Tenant ) an dWing s o f

th e Cascades , Spirit

Flight , Inc . an

dDeser t 3 Wing s Jet

Center , LL

C (Tenant ) Le s Schwa

b Warehous e Center , Inc . Sectio n 1 . Lease

dProperty , Righ

t o f Firs t Refusal , Construction A . Leas e Are aan

dRigh t o f Firs t Refusal . Construction . Owne

r agree s to an

d doe s leas e t

o the Tenant , an

dTenan t lease s fromOwner, the propert y a s described.. . I

n addition . Owne

r grant s t o Tenan t aright o f first refusa l t o leas e additiona l propert y .. . B . Possession . Tenan

t shall b e entitle dt

o possessio n of

th e leasedpropert

y on o r befor e Septembe

r 22 , 2008 . If

Owne r ha s not completedthe fill or

cannot delive r possessio n of

th e propert

y b y Septembe r 22 , 2008 , Tenan

t ma y terminat e thi s lease . C . Owne r Improvements . 1 ) Owne r shal l fill th e propert y consisten t wit hth e grading pla

n attacheda s Exhibit

E . Owne r will slop e the fill a

t a2: 1 rati o wher

e possibl e along th e norther

n lin e o f the Property . All fill wor

k provided b y Owne r shall b e effecte

din accordanc e wit

hprevailin g engineering standard s in appropriat e measuredlifts an

dcompaction standard s (95 % minimum) . A t th e conclusio n o f

the filling project . Owne r will provide t

o Tenan t a standar dengineeredfill repor

t certifying tha

t th e fill wa s properly engineered . 2 ) Owne r shal l temporarU y relocat e th e securit y fence s o tha

t Tenant' s Wing s o

f th e Cascades , Spiri t

Hight , Inc . an dDeser t Wing s Je t

Center , LL C Sectio n 1 . Lease

dProperty , Construction A . Tenan t shall construct

th e improvement s a s describe d.. . Tenan t will submit

acomplet e application fo

r sit e an ddesign review o f

all proposed improvements on the leasedpremise s within 18 0 day s of thi s leas e .. . B . Once Tenan

t ha s receive dthe Sit

e an d Design approva

l (whichma

y contain conditions) . Tenan

t will promptl

y submi t final plan s to the Cit

y Building Departmen

t an dEngineering Departmen

t fo r review an dapproval . C . Tenan t will begin constructio n of

th e improvement s within 18

0 day s afte r receivin g site an

ddesig n approval .

Pag e 1 8 - Complainant s ReplyWing s o f

th e Cascades , Spiri t

Flight , Inc . Desert Wing s Je t

Center , LLC . Complainant' s Repl y Augus t 31 , 200 9

1 2 3 4 5 6 7 8 9 1 0 1 1 1 2 1 3 

### construction will occu r outside the securit y fence . The relocate d securit y fence shall b e locatedas describedi n Exhibit F . Upo n completion o f

Tenant' s improvements . Owne

r shall relocat

e the securit y fence s o tha

t it connect s a s describedi

n Exhibit G . 3 ) Owner shal l provid e pave dacces s fro mth e lease dpropert y t o th e airfiel dfor

Tenant' s aircraft . Owne r will provide th e pavin g specification s fo

r th e airfieldram

p by Octobe r 15,2008 . Owne

r shall complet e th e pavedacces s consisting of approximatel

y 385 0 squar

e fee t connecting th e lease dpropert y to the Butle r Aircraf t ram p b y Novembe

r 15,2008 . I

f th e acces s i s not completedb y tha

t date . Tenan

t ha s the right t o construc t

th e acces s consisten t wit hthe pavin g specification s andOwne

r shall reimburs e Tenan

t fo r it s actua l cost s t o construct

th e access . GIFTIN GAN D FRAUDULEN T MISUS E O FPUBLI C FUND S FO RPRIVAT E GAI N It woul db e nic e if

, a s Mr . Bryan t

states , o n pag e 6 , th e Cit y o f Redmond , at

it s cost , woul d provid e fill o r

otherwis e improv e th e site conditio n o f th e propert y t o resolv e th e flooding issue . The y cal l i t

giftin g i n referenc e t o my need s o n th e airport . However , Le s Schwa

b receive dengineering , fill, compaction , asphal t an dasecurity fenc e for

th e ne w hangar

the y buil t

i n 200 8 o n th e "solel y for carg o ramp i n th e northwes t come r o f th e airport. " A s Mr . Bryan t

states , th e cit y di dge t

agrant . $1. 5 millio n dollar s wa s provide db y a Stat e o f Orego n Connec t

2 gran t fromOrego n Departmen t o f Transportatio n whic h require da local matc hfromth e cit y o f Redmond . Th e "solel y for carg o ramp " wa s t o b e use dt o separat e general aviatio n fromth e freight hauler s an dthei r

loadin g trucks . Instea dw e hav e tw o Citatio n Pag e 1 9 - Complainant s Repl y

### Wing s o

f th e Cascades , Spiri

t Flight , Inc . Complainant' s Repl y Deser t Wing s Jet Center , LLC . August 31,200 9 1 busines s jet s capable o f 9 passenger s each , fue

l trucks , an

dfreight aircraf t wit hdeliver y van s an d 2 people tryin g t

o loa dan dunloa dtwic e daily i

n aram p tha t only ha s one 5 5 X 7 0 foo

t attachmen

t 3 t o th e exit ram p ont o th e res t o f th e airpor t ramp . 4 5 Th e fill fromth e termina

l expansion an

dTS A basemen

t du g out wit hfedera l gran t mone y was 6 fransportedove

r t o th e ne w ram p construction t

o b e engineeredfo

r Le s Schwa

b Tfr e Compan y 7 whic hi s aself proclaimed$1. 6 billio n dolla r pe r yea r revenu e producing company . Thi s i s th e 8 ver y essenc e o f

gifting , fraudulent

misus e o f publi c funds fo

r privat e gain , an ddiscrimination 9 causing economi c hardship on asmal l minorit y ownedaviatio n business . 1 0 1 1 M y propert y wa s th e only buildabl e piec e on the airpor t wit hairside acces s whe

n Le s Schwa

b 1 2 Tir e Compan y cam e t o see m e abou t leas e space . I wa s tol db y Schwab' s pilo t tha t Ms . Novic

k 1 3 ha dconfirmedthere wa s nowher e els e on the airport . Ms . Novic k wantedt o mak e stor e the y 1 4 cam e t o Redmon

dsinc e all he

r othe r aviatio n relationship s ha dresulte din th e companie s 1 5 locating i

n neighborin g Bend . S o it

appears she tol dSchwa

b she wouldgiv e the

mm y propert y - 1 6 awi n fo r the cit y wit hpropert y # 2 a s aparkin g lot , awin fo

r Schwa b wit hagrea t piec e o f airside 1 7 property , # 1 tha

t I ha dpai don fo

r tw o years . Ye

t anothe r feathe r in the ha t of the cit y o f 1 8 Redmon

dan dth e airpor

t manager . They wouldsucceedin keeping Le s Schwa b fromgoing t

o 1 9 Ben da s Lancai

r Columbi a(now Cessna

) an dEpi c Air did . Ai r Lif e whichha

dpropert y hel dfo r 20 severa

l year s on ahearsa

y handshak

e stayedin Ben

da t their presen t locatio n althoughthe cit

y 2 1 spen t agrea t dea l o f mone y engineering asit

e pla n fo r them . Publi c Record s Request show s 22 tha t $51 , 07 0 wa s spen

t fo r HNT B t o prepar e engineerin g report s fo

r th e northwes t

airpor t 2 3 development , wher

e th e Le s Schwa

b hanga r i s built . I

t wa s all awin win fo

r everyone but

me . 24 Howeve

r Novic k didoffe r t o pu t m y compan y ove r o n th e sam

e carg o ramp . M

y portio n would 2 5 b e sprea

dove r the ter mo f th e leas e fo

r engineerin g an

dfill. ( Uhlik

e the Schwa

b arrangement. ) 2 6 Previously tha

t propert y wa s consideredunsuitabl e andwa s referredto a s "imleasable " b y Mr . 27 Bryant . Althoughi

t wa s wher e Ms . Novic

k expecte dm

e t o g o whe n she took awa y m y leas e fo r 2 8 the propert

y I ha dpai don fo

r tw o year s wit

hman y ye t to go . 2 9 3 0 Page 8 finds Mr . Bryan t stating th e following fraudulent claim : "No improvement s wer e mad e t o 3 1 the propert

y on th e airpor

t fo r the benefi

t o f eithe r Air Life , Epi c Air

or an y othe r curren t or Pag e 20 - Complainant s Reply

# I I I Wing s of

the Cascades , Spirit

Flight , Inc . Complainant' s Reply Deser t Wing s Jet Center , LLC . August 31 , 200 9 1 potentia

l tenant . I n fact, neithe

r Ai r Lif e or Epic Ai r ar e tenant s a t the airport . I a

mstill waiting 2 fo r apubli c record s reques t

t o b e filledregardin g di e cos t o f engineering asit

e pla n fo r Ai r Lif e 3 an dEpic Ai r complet e wit htheir airplane s superimposedo n the drawing nex

t t o thei r names . 4 The drawing s wa s include dwit hthe Exhibit s i

n the origina

l Par t 1 6 Complaint . 5 6 An dI a mstill complaining abou

t the excessiv e cos t

o f publi c record s i

n Redmond . Thi s i s 7 expecially tru e sinc e the attorney go t involvedwit

hever y recor dwe wisht

o get . DWJ

C ha s 8 spen t approximately $ 1,10

0 fo r the fe w publi c record s request s tha t wer e filled. 9 1 0 I t now take s a

t leas t 5 time s a s long an

dcost s 1 0 time s a s muc

has whe n Carte r McClarre n 1 1 workedfo

r the city . I believ e i

t i s one mor

e wa y t o discriminate . The most recen t refusal s 1 2 disallowedproviding the email o f Mr . Rand y Povey tha

t i s i n question . Rathe

r tha n doing a"h e 1 3 said , sh

e said" , w e needt

o loo k a t the email . Bryan

t i s claiming attorney clien t privileg e 1 4 regarding m

y property . Mr . Pove

y rea dthe email t

o me , s o mus t

not fee l th e sam e abou t the 1 5 relationship . AlthoughI hav e asked3 time s fo r the email , an

dwha t statut e preclude s u s from 1 6 getting i

t throughpubli c records , i

t i s still no t forthcoming . 1 7 1 8 Additionally I a

mnow require dt

o provide cash or

acashier' s chec

k fo r th e records . I hav e spen

t 1 9 severa

l hundredthousanddollar s on the airpor t wit hthe cit y o f Redmond . A busines s chec k ha s 20 alway s workeddurin g th e pas t 1 0 year s of

m y operatio n a s a

n aviatio n busines s owner . The 2 1 assistan

t coimt y recorde r indicatedtha

t th e "cit y attorney " ha

dplacedthe ne

w requiremen

t o f 22 "cas ho

r cashier' s check " fo

r an y wor k on publi c record s request s by DWJC . I believ e tha t i s 2 3 descrimination . 2 4 25 2 6 CONCLUSIO N 27 All mayo

r Endicott' s denial s an

dproclamation s tha

t m y succes s i s hi s interest , Ms . Novick' s 2 8 efforts t

o ge t everyone t

o suppor t he r an dcondone he

r action s on th e airpor

t an dMr . Bryant' s 2 9 undoctunentedanswer s cloudedwit hinaccuracy... . thes e unansweredquestion s still remain . 3 0 Pag e 2 1 - Complainant s Repl yWing s o f

th e Cascades , Spiri t

Flight , fric. Complainant' s Repl y I Desert Wing s Je t

Center , LLC . Augus t 31,200 9 * 1 Wh y a

mI blocke db y th e city o f Redmon dfromconstructin g abuildin g for m y aviatio n 2 businesse s o n th e Redmon dairport ? What i s th e reaso n tha t

everyon e els e ca n buil dabuilding , 3 bu t I a mbattle dan ddenie da

t every turn ? Wh y i s i t

necessary t o file a

n FA A Part

1 6 complain t 4 wit hth e federal governmen t simpl y t o construc t

a n alread y approve dFB O o n th e Redmon d 5 Airport ? What

o r wh o i s th e real proble mhere ? Wh y ar e publi c employee s allowe dt o ac t thi s 6 way t o th e publi c the y ar e suppose dt o serve ? 7 8 Instea do f

answerin g th e allegation s I proposed , supporte d4 9 Exhibit s whic h accompanie dth e 9 origina l Part

1 6 Complaint , Mr . Bryant , an dth e city us e th e smok e an dmirro r approac h t o try t o 1 0 discredi t

m e an dshif

t th e focu s fromthei r

wron g doing . 1 1 1 2 It i s on e mor e exampl e o f th e prevailin g attitud e o f disdai n towar drule s an dregulations . I t i s 1 3 on e mor e wa y t o dismis s an dreduc e m y importanc e a s alegitimat e aviatio n busines s an da n 1 4 airport

use r i n acontemptuous , scornfu l way . It i s on e mor e piec e i n th e patter n o f 1 5 discriminatio n inflicte do n m e an dm y small , woma n owne daviatio n busines s b y th e cit y o f 1 6 Redmon dan dth e airport manager . It

i s on e mor e way t o retaliat e agains t me , throug h attempte d 1 7 assassinatio n o f

m y reputatio n an dcharacter . 1 8 1 9 Th e RESPONS E i s filledwith inexact , misleading , deceptiv e statements . Mos t ar e invali d 2 0 partia l truths ; no t

basedo n fact

o r law . Mos t

ar e not substantiate dwith an y o f th e documentatio n 2 1 requfre db y th e Part 1 6 Complain t

process . Th e city o f

Redmon dappear s t o operat e unde r th e 2 2 misconceptio n tha t simpl y "sayin g it, " someho w makes i s true . Rathe r tha n answe r

documente d 2 3 facts , the y den y th e accusatio n with n o fact s answerin g tha t the y ar e "checkin g int o it. " (Mr . 2 4 Bryan t 2 5 2 6 Th e respondent' s ANSWE Rlacks integrity , honesty , an daccuracy . I t clearl y display s th e 2 7 haughty , scornful , arrogan t attitud e o f

th e cit y o f

Redmond , th e airport

manage r an dth e attorne y 2 8 hire dt o inflic t

thei r action s an ddecision s o n peopl e lik e me . 2 9 

# I I

Pag e 2 2 - Complainant s Repl yWing s o f

th e Cascades , Spiri t

Flight , Inc . Complainant' s Repl y Deser t Wing s Je t

Center , LLC . Augus t 31 , 200 9 1 Thi s prevailin g attitud e i s perpetuate db y thos e i n powe r wh o se e n o wron g i n thei r wron g doin g 2 becaus e the y hav e don e i t for s o lon g .. . with n o repercussion s fromth e publi c o r thos e directl y 3 affected . 4 5 A s i n nearl y al l dealing s with Mr . Bryan t an dth e City o f

Redmon di t

i s a n obviou s fac t

that ther e 6 i s n o "operatio n i n goo dfaith. " Th e questio n mus t stil l b e asked : Wh y s o muc h posturing , an d 7 s o muc hdifficulty for asmal l compan y simpl y tryin g t o utiliz e apiec e o f lease dproperty an d 8 buil dabuildin g o n th e Redmon dairport ? 9 1 0 Th e recurrin g them e an dpatter n o f discriminatio n an dcausin g economi c hardshi p for DWJ C i s 1 1 no t addresse db y Mr . Bryan t excep t t o dismis s i t

a s groundless . However , th e respons e an d 1 2 material s provide db y Mr . Bryan t hav e supplie dmor e fact s an devidenc e o f discriminatio n an d 1 3 economi c damag e inflicte do n m y woma n owne daviatio n businesse s Wing s o f th e Cascade s 1 4 Spiri t

Fligh t Inc . an dDesert

Wing s Je t

Cente r LL C (DWJC) . Thi s ne w evidenc e clearl y reveal s 1 5 thi s discriminatio n whil e other s benefi t with th e blessin g o f

th e cit y o f

Redmon dan dth e city 1 6 counci l heade db y mayo r Georg e Endicott . Th e cit y o f Redmon dha s approve dth e action s o f 1 7 th e airport

manager , Ms . Carri e Novick , an dth e attomey , Mr . Stev e Bryant . 1 8 1 9 Th e city o f

Redmon ddoe s not

addres s o r

answe r i n an y wa y an estimate d80 % o f th e fact s 2 0 documente di n th e origina l FA A par t 1 6 complain t

put fort h b y Mar y A . Sch u an dDWJC . 2 1 2 2 Rathe r

tha n addres s th e allegations , th e RESPONS E b y th e cit y o f Redmon di s filledwith 2 3 repeate dattempt s t o discredi t m e an dm y company DWJC . Slur s o n my character , standin g an d 2 4 reputatio n throug h innuendo , insinuation s an dinference s ar e don e continually . It i s th e oldes t 2 5 trick s i n th e boo k

o f a n attome y with n o cas e an dn o defense . I f yo u can' t

bea t them , try t o 2 6 desfro y thei r

credibility . 2 7 2 8

Pag e 2 3 - Complainant s Repl y

# I I A4c?c^3 /

Ongo n OtiMifUiHn t o f Tnnipoitnlo n 

### ConnectOrego n I I Progra m Applicatio n 2007-200 9 •^ 0 ensur e yo u hav e curren t progra m information , sig n u p fo rth e ConnectOrego n electroni c mailin g lis t at : •ttp://listsmart.osl.stat9.or.us/mailman/listinfo/connectoreQon-new s • Pleas e rea d ConnectOrego n I I Applicatio n Instructions . • Th e Applicatio n Instructions , th e Draft Project Agreement , an d Frequentl yAske d Question s ar e availabl e o n th e Connec/Orego n I I We b site : http://www.oreaon.qov/ODOT/COMM/C O • Submissio n Requirement s ar e detaile d i n Sectio n 8 o f th e Applicatio n Instruction s PAR T A : Projec t Summar yan d Certificatio n RECEIVE D NO V . . / 1 . Applican t ORGANIZATIO N NAM E Redmon d Airport - Cityo f Redmon d ADDRES S 252 2 S E Jess e Butle rCircl e #1 7 CITY . STATE , ZI P Redmon d O R 97756-864 2 WEBSIT E www.ci.redmond.or.u s CONTAC T PERSO N NAM E Caroly n S . Novick , A.A.E . CONTAC T PERSO N TITL E Airport Manage r PHON E (541 ) 504-349 6 FA X (541)548-059 1 E-MAI L (REQUIRED ) carrien@ci . redmond , or . u s 2 . Co-applicant/co-sponso r

ADDRES S ORGANIZATIO N NAM E

CITY , STATE . ZI P WEBSIT E CONTAC T PERSO N NAM E CONTAC T PERSO N TITL E PHON E E.MAI L cc : carterm@ci.redmond.or,u s I ] Chec k

i f additiona l co-applicant(s)/co-sponsor(s ) ar e identifie d i n Pag e 1 8 o f thi s application . 3 . Project nam e an d locatio n PROJEC T NAM E Nort h Sid e Carg o Ram p & Developmen t PROJEC T LOCATIO N Redmon d Orego n STAF F US E ONL Y 4 . Project summar

y BRIE F SUMMAR Y O F PROJEC T Construct a n ai rcarg o ram p & developmen t are a Cos t summar

y(Thes e field s wil l fil l automaticall ya s th e applicatio n i s completed. ) a . ConnecfOrego n I I gran t amoun t b . Matc h amoun t (20 % o f grant ) c . ConnecfOrego n I I loa n amoun t d . ConnecfOrego n I I project tota l Certificatio n I certifytha t Cityo f Redmon d $1,500,000.0 0 $375,000.0 0 $ 0.0 0 $1,875,000.0 0 ^support s th e propose d project , ha s th e lega l authority APPLICAN T ORGANIZATIO N t o pledg e matchin g funds , an d ha s th e lega l authorit yt o appl yfo rConnecfOrego n I I funds . I furthe rcertifytha t matchin g fund s ar e availabl e o rwil l b e availabl e fo rth e propose d project . I understan d tha t al l Stat e o f Orego n rule s fo rcontracting , auditing , underwritin g (wher e applicable) , an d paymen t wil l appl yt o thi s project . I certifytha t w e hav e rea d th e SannJI^Dra^Agreemen j an d wil l sig n th e Agreemen t i f selected . APPLKJM T SK3NATUR E / ioSp i

'PLICAN T SIGNATUR E PRIN T NAIkC Ji m Hendryx . Assistan t Cit yManage r PRIN T NAM E DAT E 11/20/200 7 DAT E

731-050 9 (8/07 ) ConnecKJrego n I I Progra m Applicatio n 2007-200 9PAR T B : Projec t Descriptio n

1 . Project purpos e an d descriptio n Project map s mus t b e include d wit h thi s application . Maximu m ma p size : 1 1 by1 7 inches . 

# I I

SUMMARIZ E TH E PROJECT' S DESCRIPTIO N AN D PURPOS E Thi s project wil l provid e fo rth e constructio n o f a n aircraft ram p t o b e us e solel yb yai rcarg o companie s a t Robert s Fiel d - Redmon d Municipa l Airport . I t wil l allo wfo rai rcarg o t o b e consolidate d an d wil l bette rserv e operator s an d mee t anticipate d change s i n ai rcarg o securityrequirements . Thi s project not onl yha s th e potentia l t o provid e a grea t economi c stimulus , a s expande d ai rcarg o developmen t i s more attractiv e t o ai r carg o companies , bu t als o provide s safe ran d more secur e operations . Currently , Redmon d Airport ha s thre e (3 ) smal l carg o carrier s tha t operat e ou t o f th e airpor t si xdays a wee k

fo r UPS , FedE xan d DHL . The yar e averagin g 32 0 activite s monthl yan d thes e aircraft us e th e eastsid e o f th e genera l aviatio n ram p o n th e northsid e o f th e airfiel d t o par k an d trasfe rthei rcarg o t o an d fro m thei rtrucks . Thi s activit yadd s vehicula ran d pedestria n traffi cto a n are a tha t i s alread ycongeste d wit h genera l aviatio n aircarft activity . Thi s situatio n i s n o longe racceptabl e an d a n alternativ e are a mus t b e developed . Thi s project wil l creat e a 108,87 0 squar e foo t ram p solel yfo rus e byth e ai rcarg o companies , i t wil l provid e fo r th e additio n o f th e tax i connectio n t o ge t t o th e ne wram p an d hav e th e abilit yt o ad d a hanga rt o tha t sam e area . Th e ram p i s no t expecte d t o produc e direc t revenu e t o th e airpor t bu t th e hanga rare a will. . Airport staff have reviewe d thre e area s o n th e airpor t t o relocat e th e ai rcarg o operatio n to o an d hav e chose n thi s sit e du e t o it s estimate d lowe rcos t an d centra l location . Thi s locatio n wil l t o provid e th e carg o vehicle s wit h direc t acces s throug h a ne wvehicula rpowe rgat e t o thei raircraf t wit h ou t an yothe raircraft parke d i n th e vicinity makin g thei rtrasfe ro f carg o safe ran d mor e efficient . Thi s i s no t a "buil d i t an d the ywil l come " senario ; the yare alread yher e an d thi s wil l provid e the m wit h roo m t o expan d whe n the yar e read yan d wil l als o isolat e the m fro m othe raircraf t an d activitie s shoul d th e Transportatio n Securit yAdministratio n requir e tha t i n th e future . Th e tota l estimate d cos t o f th e project i s $2,641,540 .

731-050 9 (8/07 ) ConnocfOrego n I I Progra m Applicatio n 2007-200 9

# I 2 . Project locatio n

3 . 4 . STREE T ADDRES S O R NEARES T STREE T INTERSECTIO N S E Veteran s Wa y& S E 9' " Stree t CITY(1ES ) Redmon d OP S COORDINATE S COUNTYflES ) Deschute s LATITUD E (DEGREE S AN D DECMAL I 12 1 9'36,142' W LONGITUD E (DEGREE S AN D DECIMAL ) 4 4 15'37.404" N Project mod e (chec k

al l tha t apply) : I S Ai rD Marin e D Rai l D Transi t ConnectOrego n regio n Q Regio n 1 D Regio n 2 Q Region s 1 2 Regio n 4 D Region s Fo rmor e infonmatton , refe rt o th e Applicatio n Instructions . Fo rprocessin g purposes , project s shoul d b e wholl y containe d i n on e region . Applicant s shoul d complet e separat e application s fo rportion s o f large rproject s tha t cros s regio n boundaries . Se e Applicatio n Instruction s fo radditiona l details . Is(are ) th e applicant(s ) curren t o n al l stat e an d loca l taxes , fees , an d assessments ? E l Ye s D N o YEAR S 3 0 6 . Wha t i s th e project' s usefu l life ? 7 . Whic h applicant/co-applican t wil l assum e responsibilityfo rth e continue d maintenanc e an d operatio n o f th e project ? RESPONSIBL E PARTY Redmon d Airport - Cityo f Redmon d 8 , Wha t wil l b e th e source(s ) o f fund s fo rth e continue d maintenanc e an d operatio n o f th e project ? SOURCEIS ) Airport fund s I s th e fundin g fo rth e continue d maintenanc e an d operatio n o f th e projec t currentl ysecure d o rbudgeted ? I f no , describ e whe n thes e step s wil l occur : .1 2 Ye s n N o
DESCRIB E



# I I 731-0509(8/07 ) ConneclOrego n I I Progra m Applicatio n 2007-200 910 . I s al l th e rea l estate required fo rth e projec t owned b yth e applicants ? (See als o Question s 11-13. ) E I Yes . projec

t rea l estate i s wholl yowned b yth e applicant(s) . D No . projec

t rea l estate i s partl yowned b yth e applicant(s) . D No . I f yes , projec

t rea l estate i s wholl yowned , wha t wa s th e pric e o f th e property? PURCHAS E PRIC E $0.00 I f no , projec

t rea l estate i s partl yowned , o ri f no , includ e th e propert yowner' s informatio n an d signatur e fo rth e non-owned portion : lORGANIZATIO N NAM E ADDRES S CITY . STATE . ZI P WE B SIT E (I F APPLICABLE ) CONTAC T PERSO N NAM E CONTAC T PERSO N TITL E PHON E FAX E-MAI L support s th e propose d project , ha s th e lega l authorit

y I certif ythat ORGANIZATIO N NAM E t o pledg e matchin g funds , an d ha s th e lega l authorit

yt o authorize th e use o

f th e rea l estate underlyin g th e project . 1 understan d tha

t al l Stat e o f Orego n rule s fo rcontracting , auditing , undenvritin g (wher e applicable) , an d payment wil l appl yt o thi s project , an d tha t thes e rules ma

yrequir e a 20-yea rlease o

f th e site . PROPERTY OWNERyLESSO R SIGNATUR E X PRIN T NAM E DAT E Z l Check i f additiona l owner

s ar e liste d o n Pag e 1 8 o

f thi s application . 11 . Wil l th e propert

yb e purchased b

yth e applican t t o complet e th e project ? D Ye s I f yes , i s th e propert

yi n escrow? D Ye s 12 . Wil l th e propert

yb e lease d b yth e applicant ? D Ye s 13 . Provid e an

yadditiona l rea l estate detail s S N o D N o KN o
ADDITIONA L DETAIL S

731-0509(8/07 ) Connec/Orego n I I Progra m Applicatio n 2007-200 9PAR T C : Co/7/iecfOrego n I I Projec t Budge t

1 . Identifyth e sourc e an d amoun t o f fund s composin g th e project budget , includin g grants , loans , an d matchin g funds .
SOURC E a . Gran t portio n 1 . Require d matc h (Fo rgrants : 20 % gran t project subtotal ) 2 . ConneciOrego n 1 1 gran t amoun t requeste d $375,000.0 0 $1,500,000.0 0 b . ConnectOrego n l i loa n portio n requeste d (n o matc h required ) c . ConnecfOrego n i l tota l (a->-b ) d . Additiona l applican t matc h (no t required ) Projec t tota l e . Multimoda l stud yfe e (2 % o f lin e c ) AMOUN T $1,875,000.0 0

$0.0 0 $1,875,000.0 0 $0.0 0 $1,875,000.0 0 $37,500,0 0 DAT E AVAILABL E CALENDA R YEA R MONT H

Select Select Select Select Select Select STAF F US E ONL Y

1,000 0 ,0.200 0 0.800 0 p.ooo o 1 000 0 0.000 0 1.000 0

2 . Fo rgran t projects , detai l th e sourc e an d timin g o f th e matc h show n above .
FUND S Labo r(payroll ) Contracte d service s Material s an d supplie s Capita l outla y- lan d (purchas e price ) Capita l outla y- building s Capita l outla y~ equipmen t Othe r(describe) : Mobilization , sit e pre p Othe r(describe) : Pavemen t Constructio n Othe r(describe) : Utilitie s Othe r(describe) ; Contingency Tota l Tota l mus t equa l $375,000.0 0 1.8.1-Require d matct i + l.d-Additiona l applican t matc h AMOUN T $0.0 0 $137,500.0 0 $0.0 0 $0.0 0 $0.0 0 $72,500.0 0 $1,391,200.0 0 $716,450.0 0 $83,750.0 0 $240,140.0 0 $2,641,540.0 0 DAT E AVAILABL E CALENDA R YEA R

200 9 200 9 MONT H

Selec t Select Selec t Selec t Select Selec t Decembe r Decembe r Select Select STAF F US E ONL Y

0.000 0 0.052 1 0.000 0 0.000 0 0.000 0 0.027 4 0.526 7 0.271 2 0.031 7 0.090 9 1.000 0

731-0509(8/07 ) Cort/7ec/Orego n 1 1 Progra m Applicatio n 2007-200 9I f th e ConnectOrego n I I project i s part o f a large rproject , describ e th e scop e o f th e entir e project . Includ e th e tota l

amount s o f publi can d privat e investmen t i n th e propose d project . Pleas e not e whic h portion s o f th e projec t ar e Connec/Orego n ll-eligible . DESCRB E

U Commitmen t letter s fro m businesse s an d organizations , statin g thei rintention s regardin g privat e investmen t ove ra specifie d period , are include d I n th e Supplementa l Informatio n attache d t o thi s application . 4 . Complet e th e followin g table s regardin g curren t an d projecte d milestone s fo rth e project . Chec k t o indicat e i f th e project i s a constructio n o ra non-constructio n project .

MILESTON E a . Mileston e 1 b . Mileston e 2 c . Mileston e 3 d . Mileston e 4 e . Mileston e 5 f . Mileston e 6 1 2 CONSTRUCTIO N PROJECT S

a . Scopin g an d plannin g b . Right-of-wa yan d lan d acquisitio n c . Permit s d . Fina l plans/biddin g engineerin g document s e . Constructio n contrac t awar d f . Project completio n 

# " a OTHE R (NON-CONSTRUCTION ) PROJECT S - DESCRIB E a . b . c . d . e . f . 5 . Fo rth e milestone s identifie d above , provid e th e followin g details :

MILESTON E a . Mileston e 1 b . Mileston e 2 c . Mileston e 3 d . Mileston e 4 e . Mileston e 5 f . Mileston e 6 STATU S HA S TH E MILESTON E BEE N MET ? D Ye s E N o I S Ye s D N o 1 2 Ye s n N o D Ye s E l N o D Ye s M N o D Ye s E l N o PROJECTE D STAR T DAT E O F MILESTON E VtOR K 1/1/200 8
9/30/200 8 12/1/200 8 1/1/200 9 ESTIMATE D LENGT H O F PROCES S 9 month s

2 month s 1 mont h 1 2 month s PROJECTE D MILESTON E COMPLETIO N DAT E 9/30/200 8
12/1/200 8 1/1/200 9 01/01/201 0 

# I I

731-0509(8/07 ) ConnecfOrego n I I Progra m Applicatio n 2007-200 9Base d o n th e milestone s identifie d o n th e previou s page , provid e detail s o f th e propose d use s an d amoun t o f

fund s neede d t o complet e eac h milestone . a . Mileston e 1 n Thi s mileston e i s complet e o rdoe s not apply .
FUND S Labo r(payroll ) Contracte d service s (i f known ) Material s an d supplie s Capita l outla y- lan d Capita l outla y- building s Capita l outla y- equipmen t Othe r(describe) : Mileston e 1 Tota l AMOUN T $0.0 0 $55,000.0 0 $0.0 0 $0.0 0 $0.0 0 $0.0 0 $0.0 0 $55,000.0 0 PAR T O F GRAN T MATCH ? DYe s DN O DYe s ElN o DYe s DN O DYe s DN O DYe s DN O DYe s DN o DYe s DN o OATEAVAILAB U CALENDA R YEA R MONT H Selec t Selec t Selec t Selec t Selec t Selec t Selec t b . Mileston e 2 E l Thi s mileston e i s complet e o rdoe s not apply . FUND S Labo r(payroll ) Contracte d service s (i f known ) Material s an d supplie s Capita l outla y- lan d Capita l outla y- building s Capita l outla y- equipmen t Othe r(describe) : Mileston e 2 Tota l AMOUN T $0.0 0 $0.0 0 $0.0 0 $0.0 0 $0,0 0 $0.0 0 $0.0 0 $ 0.0 0 PAR T O F GRAN T MATCH ? DYe s DN o DYe s DN o DYe s DN O DYe s QN O DYe s DN o DYe s DN O DYe s DN o DAT E AVAILABL E CALENDA R YEA R MONT H Selec t Selec t Selec t Selec t Selec t Selec t Selec t

c . Mileston e 3 S Thi s mileston e i s complet e o rdoe s no t apply . FUND S Labo r(payroll ) Contracte d service s (i f known ) Material s an d supplie s Capita l outla y- lan d Capita l outla y- building s Capita l outla y- equipmen t Othe r(describe) : Mileston e 3 Tota l AMOUN T $0.0 0 $0.0 0 $0.0 0 $0,0 0 $0,0 0 $0.0 0 $0,0 0 $ 0.0 0 PAR T O F GRAN T MATCH ? DYe s DN o DYe s DN o DYe s DN o DYe s DN o DYe s DN o DYe s DN o DYe s DN o DAT E AVAILABL E CA I FNOA R YEA R MONT H Selec t Selec t Selec t Selec t Selec t Select Selec t

731-0509(8/07 ) ConnectOrego n l i Progra m Applicatio n 2007-200 9d . Mileston e 4

D Thi s mileston e i s complet e o rdoe s not apply . FUND S Labo r(payroll ) Contracte d service s (i f known ) Material s an d supplie s Capita l outla y- lan d Capita l outla y- building s Capita l outla y- equipmen t Othe r(describe) : Mileston e 4 Tota l AMOUN T $0.0 0 $7,500.0 0 $0.0 0 $0.0 0 $0.0 0 $0.0 0 $0.0 0 $7,500.0 0 PAR T O F GRAN T MATCH ? DYe s DN O DYe s SN O DYe s DN O DYe s DN O DYe s DN o DYe s DN O DYe s DN o DAT E AVAILABL E CALENDA R YEA R MOHTT

H Selec t Selec t Selec t Selec t Selec t Selec t Selec t

e . Mileston e 5 D Thi s mileston e i s complet e o rdoe s not apply . FUND S Labo r(payroll ) Contracte d service s (i f known ) Material s an d supplie s Capita l outla y- lan d Capita l outla y- building s Capita l outla y- equipmen t Othe r(describe) : Mileston e 5 Tota l AMOUN T $0.0 0 $75,000.0 0 $0.0 0 $0.0 0 $0.0 0 $0.0 0 $0.0 0 $75,000.0 0 PAR T O F GRAN T MATCH ? DYe s DN o DYe s E l N o DYe s DN o DYe s DN o DYe s DN o DYe s DN o DYe s DN o DAT E AVAILABL E CALENDA R YEA R MONT H Selec t Selec t Selec t Selec t Selec t Selec t Selec t f . Mileston e 6 D Thi s mileston e i s complet e o rdoe s no t apply . FUND S Labo r(payroll ) Contracte d service s (I f known ) Material s an d supplie s Capita l outla y- lan d Capita l outla y- building s Capita l outla y- equipmen t Othe r(describe) : Mileston e 6 Tota l AMOUN T $1,391,200.0 0 $240,140,0 0 $800,200,0 0 $0.0 0 $0.0 0 $72,500.0 0 $0.0 0 $2,504,040.0 0 PAR T O F GRAN T MATCH ? E l Ye s DN o E l Ye s DN o E I Ye s DN o DYe s DN o DYe s DN o DYe s ^N o DYe s DN o DAT E AVAILABL E CALENDA R YEA R MONT H Selec t Selec t Selec t Selec t Selec t Selec t Selec t /

731-0509(8/07 ) Connec/Orego n I I Progra m Applicatio n 2007-200 9Total s

Labo r(payroll ) Contracte d service s (i f known ) Material s an d supplie s Capita l outla y- lan d Capita l outla y- building s Capita l outla y- equipmen t Othe r Tota l AMOUN T $1,391,200.0 0 $377,640,0 0 $800,200.0 0 $ 0.0 0 $ 0.0 0 $72,500.0 0 $ 0.0 0 $2,641,540.0 0 STAF F US E ONL Y 0.526 7 0.143 0 0.302 9 0.000 0 0.000 0 0.027 4 0.000 0 1,000 0



# I I I I I 731-0509(8/07 ) ConnectOrego n 1 1 Progra m Applicatio n 2007-200 9PAR T D : Projec t detail s

1 . Doe s th e projec t improv e a n existin g connectio n o rad d a ne wconnectio n t o a n industria l o remploymen t center ? D Ye s E ] N o I f yes . thi s projec t improve s o rcreate s acces s to :

3 . D Industria l cente r D Employment cente r SPECIF Y SPECIF Y D Thi s projec

t provides access t

o whic h i s a site certifie d Departmen t (OECDD) . SIT E NAM E

a s "Projec t Ready ' b

yth e Orego n Economi c an d Communit yDevelopment Fo rmor e information , refe rto th e Applicatio n Instructions , 2 . Doe s thi s projec t lin k worker s t o jobs ? D Ye s 1 2 N o EXPLAI N

PASSENGE R MOD E UNK S (CHEC KAL L THA T APPLY ) D Fixed-route bu s D Demand-responsiv

e bu s D Othe r D Ligh t rai l D Ai rservice s D Passenge rrai l D Ferr y D Commute rrai l D Wate rtax i DESCRIB E IDENTIF Y GEOGRAPHI C SERVIC E LEVE L (CHEC KAL L THAT APPLY ) D Rura l D Intra-cit

y(withi n a tow n o rcity

) D Interstate (betwee n states ) D Intercit y(betwee n town s o rcities ) D Internationa l Identif yi f th e project serve s on e o rmor e o f Oregon' s Statewid e Trad e Cluster s o rth e touris m industry . Fo rmore information , refe rt o th e Applicatio n Instructions . STATEVWD E TRAD E CLUSTER S (CHEC KAL L THAT APPLY ) D Agricultura l product s D D Appare l an d sportin g good s desig n D D Busines s service s D D Communication s equipmen t D D Electronic s an d advance d material s D D Informatio n technolog yD D Logistic s an d distributio n Medica l product s Metal s Processe d foo d an d beverag e product s Transportatio n equipmen t an d part s Woo d an d othe rfores t product s Touris m PROVID E DETAI L Ai rCarg o activit ya t Redmon d Airport potentiall yserve s al l o f th e above .

731-0509(8/07 ) 1 0 Co/7/wc/Orego n I I Progra m Applicatio n 2007-200 9 

# I IDoe s thi s project benefi t th e Orego n econom yb yprovidin g improvement s tha t ensur e specifi c non-speculativ e jo b creatio n o rretentio n (beyon d short-ru n constructio n jobs) ? D Yes * S N o I f yes , pleas e complet e th e following : a . Numtte ro f non-constructio n job s create d o rretaine d a s a direct resul t o f th e oroiect b . Averao e annua l wao e o f non-constructio n lob s create d o rretaine d c . Connec/Orego n 1 1 fundin g requeste d pe rjo b ConnecfOrego n 1 1 fundin g requeste d * numbe ro f non-constructio n job s identifie d i n respons e t o thi s questio n 0 $0.0 0 $0.0 0

* D Require d fo ra ye s answe rCommitmen t letters ar e include d i n Supplementa l Information . (Thes e letter s mus t b e fro m businesse s o rorganization s statin g thei rintentio n t o operat e i n Orego n an d detailin g th e numbe ro f job s retaine d o rcreate d ove ra specifi c perio d o f tim e a s a resul t o f thi s project. ) EXPLAI N

7 . Doe s thi s project improv e th e us e o refficiencyo f Oregon' s transportatio n system ? 1 2 Ye s D N o I f yes , pleas e complet e th e following ; CHEC KAL L THA T APPLY . AN D EXPLAI N I N TH E BOX BELO W Th e project.. , E l improve s safety . 1 2 increase s syste m capacity . 1 2 improve s a bottlenec k o rcongestio n point . D complete s on e o rmor e gap s i n Oregon' s transportatio n system . D remove s a n existin g barrier , D reduce s traffi co rus e conflicts . D provide s anothe rmeasurabl e syste m improvemen t (describe d below) . EXPLAI N Thi s projec t improve s safetybyseparatin g ai rcarg o operation s fro m thos e o f genera l aviation . Thes e tw o activitie s conflic t whe n operatin g i n th e sam e area . Thi s projec t provide s a n essentia l increas e i n th e ai rcarg o capacityt o serv e businesses , governmen t an d non governmen t oreganizatio n a s the ycontinu e t o gro wan d expan d i n th e Redmon d area . Thi s projec t wil l eliminat e a ver yconjeste d are a o n th e Rdmon d Airport b ymovin g ai rcarg o operation s t o thei r ow n ramp ; i t wil l mak e i t possibl e t o secur e th e are a whe n th e Transportatio n SecurityAdministratio n deem s i t neccessary . 

# I I 731-050 9 (8/07 ) 1 2 ConnectOregor \ i l Progra m Applicatio n 2007-200 94 . Doe s thi s provid e a n economi cbenefi t b yattractin g ne wbusinesse s o rindustr yt o Oregon ? D Ye s D N o EXPLAI N Increase d opportunit yfo rgrowt h o f ai rcarg o coul d potentiall yattract newbusinesses .

[LIS TU P T O FIV E BUSINESSE S THAT y«L L B E SERVE D B Y TH E PROJEC T BUSINES S NAM E 1 , 2 . 3 . 4 , 5 , NAM E O F CONTAC T PERSO N CONTAC T PERSO N PHON E

D Commitmen t letters ar e include d i n Supplementa l Information . Thes e letters mus t b e fro m businesse s o r organization s statin g thei rintentio n t o operat e i n Orego n an d detailin g an yprivat e investmen t ove ra specifie d perio d o f time . Thes e letter s shoul d documen t th e nee d for , an d inten t t o use , th e project byth e businesse s an d entitie s t o b e served . Wha t i s th e siz e o f th e initia l investmen t b ythes e businesses ? $ 1 5 . I s thi s projec t locate d i n a n economicall ydistresse d o rseverel ydistresse d community , a s define d b yth e OECDD ? Fo rmor e information , refe rt o th e Applicatio n Instructions . D Ye s S N o LIS T (OECDO-IOENTI f lE O CITY . COUNTY . O R AREA )

EXPLAI N HO W TH E PROJEC T BENEFIT S TH E COMMUNIT Y



# I

731-0509(8/07 ) 1 1 ConneciOrego n I I Progra m Applicatio n 2007-200 9

# I Documentatio n tha t support s Questio n 7 : TITL E AUTHO R O R AGENC Y DAT E PAGE S UR L D Copie s o f page s ar e include d i n Supplementa l Infomnation . Tm. E AUTHO R O R AGENC Y DAT E PAGE S UR L D Copie s O

f page s ar e include d i n Supplementa l Information . TITL E AUTHO R O R AGENC Y DAT E PAGE S UR L D Copie s o f page s ar e include d i n Supplementa l Information . 8 . Doe s th e project provid e links between , o rinclud e improvement s in , multipl e mode s of transportatio n (air , marine , pipeline , passenge rrail , freigh t rail , transit , truck , bus , bicycle..pedestrian , persona l automobile) ? D Ye s KN o EXPLAI N

D Chec k

i f contact an d confirmatio n informatio n fo rkeystakeholder s i s include d i n Supplementa l Information . 

# I I I E 731-0509(8/07 ) 1 3 Connec/Orego n I I Progra m Applicatio n 2007-200 99 . Doe s th e project improv e o rcreat e linkage s t o transportatio n networks outsid e Oregon ?

D Ye s S N o EXPLAI N Currentl yal l ai rcarg o t o Redmon d come s fro m PDX .

10 . Doe s th e projec t us e technolog yt o improv e th e us e o refficiencyo f Oregon' s transportatio n system ? D Ye s S N o EXPLAI N

731-0609(8/07 ) 1 4 ConnecfOrego n I I Progra m Applicatio n 2007-200 9 

# I I I11 . Complet e th e followin g tabl e regardin g pre-constructio n documentatio n an d permits . (Potentia l project s ar e

expecte d t o b e a t varyin g stage s of constructio n readiness ; som e o f th e step s belo wwil l no t apply , o rmus t b e marke d "Stil l required " o r"Don' t know. " Se e th e Connec/Orego n i l Applicatio n Instruction s fo rdetaile d explanation s o f th e term s below. )



# 1 STE P STATU S ALREAD Y COMPLETE D INCOMPLETE /

UNDERWA

Y STIL L NO T

REQUIRE D APPUCABL E Environmenta l impact Statemen t (EIS ) D D D - Environmenta l assessmen t (EA) D D D - Inclusio n i n adopte d transportatio n syste m pla n (TSP ) D D D • Inclusio n i n adopte d loca l comprehensiv e pla n D D D • • D . 

## • D . • D . • D . 

### .D .

• D . 

### •D . •D . 

## .El . .El . .El . • El . El . EI. 

## .El . .El . Inclusio n i n adopte d regiona l transportatio n pla n (RTP)....D . Air-qualit yconformit ydeterminatio n D . In-wate rwor k

permi t D . Zonin g amendmen t D - Coordinatio n o f project approva l wit h an y Nativ e America n trib e o ranothe rstat e D . Goa l exceptio n (a s require d b ystat e plannin g goals ) D D 25 % desig n complete . 50 % desig n complet e D . 75 % desig n complet e D • Fina l desig n complet e D - Plan s an d specification s D . Permit s D . Other : D . Other : D . Other : D - Other : D . 12 , I s th e constructio n o f th e project limite d t o specifi cconstructio n window s du e t o environmenta l consideration s (suc h a s bird-nestin g o rfish-spawnin g seasons , o rtemperature) ? D Ye s ^

N o D No ; however , additiona l infonnatio n i s include d i n Sectio n E , I f yes , not e th e period s whe n constructio n i s limited : DON' T KNO W



### .. D

.. D

.. D



## - D

.. D

.. D

.. D

.. D

RESTRICTIO N DESCRIPTIO N STAR T DAT E O F RESTRICTIO N EN D DAT E

O F RESTRICTKJ N

731-0509(8/07 ) 1 5 ConnocfOrego n I I Progra m Applicatio n 2007-200 913 . Ca n th e project demonstrat e suppor t fro m publi c agencie s tha t mus t approv e th e project ? [ 2 Ye s D Yes , starte d bu t no t complete d D N o EXPLAI N Th e airpor

t i s owne d b

yth e Cit yo f Redmon d an d th e Redmon d Cit yCounci l ha s approve d th e submitta l o f thi s gran t application .

D Chec k

i f documentatio n o f th e coordinatio n i s attache d i n Supplementa l Information . 14 . Wha t permit s o rapproval s (beyon d thos e note d above ) ar e require d prio rt o project construction ? PERMIT S O R APPROVAL S Non e

15 . Describ e an yuniqu e construction-readines s issue s o rlikel ydelay s no t identifie d above : DESCRIB E

731-0509(8/07 ) 1 6 ConnectOrego n t l Progra m Applicatio n 2007-200 9 

# I IPar t E : Othe rConsideration s an d Informatio n

Describ e an yothe rconsideration s an d informatio n tha t suppor t wh yth e project shoul d b e selected : DESCRIB E Th e Redmon d Airport ha s stoc k pile d fil l materia l fo rthi s are a fo rsevera l years . I t i s ou rpla n t o utiliz e th e fil l an d i f necessar yus e fil l fro m th e termina l sit e excavatio n t o complet e th e work . Thi s woul d no t requir e u s t o purchas e o r impor t fil l fro m a n of f airport sit e keepin g th e cos t o f th e project down . Thi s sit e wa s chose n ove rth e others becaus e o f lowe rdevelopmen t cost , increase d safetyfo rfreigh t deliver yvehicle s an d drivers , acces s t o Veteran s Way , acces s t o othe rgenera l aviatio n facilitie s eve n thoug h th e are a wil l b e specificall yfo rai rcarg o aircraft .

Supportin g material s Lis t th e supportin g material s t o b e submitte d i n you rpape rapplicatio n packet . Par t C . Ite m 3 : Commitmen t letters . 1 , 2 , 3 , 4 , 5 . Par t D , Ite m 4 : Commitmen t letter s fro m businesse s an d organization s statin g thei rintentio n t o operat e i n

Oregon , 

# I I I I I 1 ,

2 . 3 , 5 .

731-0509(8/07 ) 1 7 ConnectOrego n I I Progra m Applicatio n 2007-200 9Part D Ite m 6 : Commitmen t letters fro m businesse s an d organization s statin g thei rintention s creatio n an d privat e investmen t plan s ove ra specifie d period . regardin g jo b 1 , 2 . 3 . 4 . 5 . PartD . Ite m 7 : Othe rsupportin g document s 1 . 2 . 3 . PartD . Ite m 8 : Keystakeholde rcontact s an d confirmatio n letters 1 . 2 . 3 . 4 . 5 . PartD , Ite m 13 : Documentatio n o f coordinatio n wit h approvin g agencie s 1 . 2 . 3 . 4 . 5 . Othe rsupportin g document s 1 . 2 . 3 . 4 , 5 . 731-0509(8/07 ) 1 8 ConnectOrego n I I Progra m Applicatio n 2007-200 9 

# I IAddend a

Attac h additiona l text her e a s necessary , identifyin g th e par t an d questio n numbe r(example : "Par t B , Questio n 2 " o r "6/2") . Pleas e note : Onl yadditiona l text containe d o n thi s pag e wil l b e considere d a s par t o f thi s application . Additiona l page s wil l no t b e considered . Th e airport ha s not submitte d an yletter s o f suppor t becaus e thi s i s a Redmon d airport projec t tha t wil l no t impac

t anythin g orthe rtha n th e relocatio n o f aircraf t pari<in g fro m th e eastsid e o f th e genera l aviatio n ram p t o th e wes t sid e o f tha t ramp .

731-0509(8/07 ) 1 9 ConnecWfego n I I Progra m Applicatio n 2007-200 9Additiona l co-applicants/co-sponsors , additiona l propert yowners/lessor s

Chec k one : D Co-applicant/co-sponso rD Propertyowner/lesso r ORGANIZATIO N NAM E ADDRES S CITY , STATE , ZI P VI^ B SIT E Chec k one : D Co-applicant/co-sponso r CONTAC T PERSO N NAM E CONTAC T PERSO N TITL E PHON E FA X E-MAI L D Propertyowner/lesso r lORGANIZATIO N NAM E ADDRES S CITY , STATE . ZI P WEBSIT E Chec k one : D Co-applicant/co-sponso r CONTAC T PERSO N NAM E CONTAC T PERSO N TITL E PHON E FA X E-MAI L D Propertyowner/lesso r ORGANIZATIO N NAM E ADDRES S CITY , STATE , ZI P VI«BSIT E CONTAC T PERSO N NAM E CONTAC T PERSO N TITL E PHON E FAX E-MAI L Co-applicant/co-sponso rcertificatio n I certifytha t support s th e propose d project , ha s th e lega l authority APPLICAN T ORGANIZATIO N t o pledg e matchin g funds , an d ha s th e lega l authorit yt o appl yfo rConnectOrego n I I funds , I furthe rcertifytha t matchin g fund s ar e availabl e o rwil l b e availabl e fo rth e propose d project , I understan d tha t al l stat e o f Orego n rule s fo r contracting , auditing , undenA^ritin g (wher e applicable) , an d paymen t wil l appl yt o thi s project . I certifytha t w e have rea d th e Sampl e Draft Agreemen t an d wil l sig n th e agreemen t i f selected . CO-APPLICAN T SIGNATUR E X CO-APPLICAN T SIGNATUR E X CO-APPLICAN T SIGNATUR E X PRIN T NAM E PRIN T NAM E PRIN T NAM E DAT E DAT E DAT E Owner/lesso rcertificatio n I certifytha t support s th e propose d project , ha s th e lega l authority APPLICAN T ORGANIZATIO N T o authoriz e th e us e o f th e rea l estat e underlyin g th e project . I understan d tha t al l stat e o f Orego n rule s fo rcontracting , auditing , underwritin g (wher e applicable) , an d paymen t wil l appl yt o thi s project . PROPERT

Y OWNERrt.ESSO R SIGNATUR E X PROPERT

Y OWNER/LESSO R SIGNATUR E X PROPERT

Y OWNER/LESSO R SIGNATUR E X PRIN T NAM E PRIN T NAM E PRIN T NAM E DAT E DAT E DAT E Se e Applicatio n Instructio n fo rsubmitta l requirements . 731-0509(8/07 ) 2 0 ConnecKDrego n I t Progra m Applicatio n 2007-200 9 

# I I I^ ^ 

# y '

euum cRcsnucTiO N UN C

Ju.Z.... .



# IN .OOOYTot ^ J ,000>Tot ^



# I I N ,000YTo-bi 7 J ,000>lot ^

# I I Th e followin g document s are containe d(o r wil l b e adde da s received ) i n thi s applicatio n package : 1 . Regio n 4 Projec t

Summar y 2 . Moda l Committe e Summar

y 3 . Applicant

Respons e to Moda

l Committe e Question s 4 . Moda l Committe e Question s to Applicant s 5 . Applicant

Respons e t o Moda

l Staf f Question s 6 . Economi c Benefit s Analysi s 7 . Applicant

Response s to Feasibility Question s 8 . ConnectOrego n I I Staf

f Question s to th e Applicant (December

28 , 200 7 throug h Januar y 4 , 2007 ) 9 . Feasibility Revie w 10 . Completenes s Revie w 11 . Projec t

Applicatio n Reviewer Instruction s ar e poste donlin e at : http://www.oregon.gov/QDOT/COMM/CO/reviewerinfo.shtml

## DRAF T REGIONA L PROJEC T REPOR T 

# Regio n 4 Applicant : Redmon d Airpor t - Cit yo f Redmon d Project : A4003 1 Requeste d Funds : $1,500,00 0 Region : 4 Repor t Date : Tie r (1-4 ) 

# 1 Ran k

(High/Medium/Low ) 

# H Priorit y 

# 3

Projec t Description : Construct a n ai rcarg o ram p & developmen t area . Revie wComments : Strategi cCriterio n a ) - Project reduce s transportatio n cost s o rimprov e acces s t o

jobs . Strategi cCriterio n b ) - Project serve s Oregon' s Statewid e Trade d Cluster s an d th e

touris t industry . Strategi cCriterio n c ) - Project improve s tli e efficiencyo f th e transportatio n syste m by

increasin g safety , capacit yan d improvin g a carg o handlin g bottleneck . Standar d Criterio n d ) - Project ha s a loca l overmatc h o f 43% . Standar d Criterio n e ) - Project ca n b e unde rconstructio n b y6/30/09 .

\

## MODA L PROJEC T REPOR T

MOD E Aviatio n Applicant : Redmon d Airpor t - Cit yo f Redmon d Project : A4003 1 Requeste d Funds : $1,500,00 0 Region : 4 Repor t Date : Februar y28 , 200 8 Tie r (1-4 ) 

# 1 Ran k

(High/Medium/Low ) 

# Hig h Priorit y

7
Projec t Description : Construc t a n ai rcarg o ram p & developmen t area . Revie wComments : Project wil l improv e efficiencyo f bot h ai rcarg o an d ai rpassenge rmovement s i n thi s airport , whic h i s th e 14*

^ busies t airport i n th e si xwester n states .



# I I

## MODA L PROJEC T REPOR T 

# OFA C Applicant : Redmon d Airpor t - Cit yo f Redmon d Project : A4003 1 Requeste d Funds : $1,500,00 0 Region : 4 Repor t Date : 3/3/0 8 Tie r (1-4 ) 

# 3 Ran k

(High/Medium/Low ) 

# M Priorit y 

# 2 3

Projec t Description : Construct a n ai rcarg o ram p & developmen t area . Revie wComments : OFA C reviewe d 4 0 freigh t relate d project s an d assigne d thi s a priorit y2 3 o f 36 . Thi s project ha s a stron g freigh t connection , an d woul d benefi t curren t users . However , th e securit yrequirement s attribute d t o th e TA S ar e speculativ e an d no t a curren t requirement .

## ComweiOfgo n 1 1 Revie w of Economi cBenefi t t o tii e Stat e Not e t o fconomt c revtewvrt : B«rl

y ! • O u appleattoi i developmm

t prMtn , U wt i decidedtha t

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eeononl e benefi t Projec t NMmbe r an dMode: ^ i^aaZ. ! Ajitt^, ^ Projec t DieriDtioa ; A)^m- ^ r.\^P*ti:,f€A ^ h^^latt^iufiAtM^r r Houa e Bil l 2278 , whic haothoriza . th e CowwcfOrego n 1 1 progmv . rajaires di e Oiogon; ; Tmspoitatk mCommiiBwon t o oooside r "WkeAe r

« propose dtrw«poct»tlo B projec t reralt i i n • B oeoaoarf

e bmefl t t o tU t itite"' . 1 . Th e followfaig appUcatio n questjon s measur e o n aspec t o f econonu c ^efl t

t o di e state : (Us e di e foJlowing checklis t

a s aquic k guid e t o di e qiplioation . Provid e i critiGa l rervie w o f di e applicant' s answe r befor e dwddn g yes . Indicat e i n di e comment s seodo n i f a n qiplicado n dead y ovenrtate aa prqjec t benefit ) Applieatlo n SMtio n QuMtfo n

f YM\N O B Wha t l a th e usefullif B o f th e pn#c t (a s tdenWia d o n th e applcatlon) ?

•Ye s l a th e projectj p a n Industria l o remployman t oanlor ?

Th e F>ro|eciSl n a Stat e o f Orego n Certma d Industria l Site . Unde r th e Drago n Cerdflo d Industria l 8ft a program ? DN o Doe s th e protjoc

t sarv a on a o rmor a o f Oregon' s Statewid e Trade d Clustar s o rth e touris m Industry ? DYS T 

### Qrt b Doe s thi s proi|ec

t provid e a n eoonomi e banafi t t o th e Stat e o f Orego n b yattractin g ne wbusines s o rIndustr yt o th e State ? 

### Qrf

o UYa e 0 9 0 l a thi s prqiac t locate d i n a n aoonomicali ydistrassa d o rssverai y distraase d oommuntty , a s dallna d b yth e Orego n Economi can d CommunKyDavslopman t Departmen t (OECDD) ? Doe s thi a projec t provid e a n aconoml o banefl t to th e Stat e o f Orego n b ycreatin g a n immadiat a non^^peculaHv e opportunit yfo r Jo b craaUo n o rretention ? Doe s th e prqiac t improv e o rcreat e Hnlcages t o transportatio n networlc s an d marftet s outsid e o f Oregon ? i^oe s thi s projec t us e technolog yt o improv e th e us e o rsfRdenc y o f Oregon' s transportatio n ayatam ? DYS T Bft o 

## Dvi r 1 0 Whil e economi c studie s ar e no t require dt o quantif

y di e answer s above , letter s o f ootmnitmen t

o f economi c resources , o r

investmen t

wer e reqaeste dt o txeppot

t statement s mad e o n di e application . Pleas e contac t

di e ODO T Freigh t

Mobiht y Sectio n a t

503-986-320 8 fo r

assistance .

### CoiiffeeiOrego n i l Revie w o f Economi cBenefi t t o tii e Stat e Not e t o ecoaomi c reWctren : bri y I

n die appHcatfo

n dcvvlopnea

t proceet , I t wa t dedde drlia t glva n die limite d tlni e an dnaouree i o

f applieaiiit, econoni

e itndie s prodnea

db y eoMoIumt

t woul dso t b e reqolrad . Th

e appllcado n qaeedoa t wer e crafte dt o lerve as indlcata

n o f ecMMOif e benefl t 2 . ODO T ComnMots (Includin g ad y additional tecodomio benefi u Identifie di n Part E Ite m1 o f

di e qjpUcadon ) ^ . 3 . - l*r r

•SMrOK.T=^«>-Rj»^>cOLOirr%<. V ^Csu«. Wix , AtSF ^

3 . OECD D Comment s

F'^ ? (TViCvtf ^ ^-. ^ 4 . Baaedo n dii s revie w o f

di e applicatio n material s pleaa e selec t dw statement

belo w diat

mos t clearl y daacribe s di e project : ODO T hiidal s
^il»< ^ OECD D 

# ifr / ^ ] / -Th e projec t

wil l cleart y resul t

i n a n economi c benefi t

t o dii s stat e Th e projec t

wil l likel y resul t

i n a n economi c benefit

t o dii s stat e Th e projec t

ha s th e potsnda l t o resul t i n a n econ<nnicba]efi t

t o dii s stat e Th e projec t

i s nnllkel y t o resul t

i n an economi c benefi t

to thi s stat e Th e projec t

woul dno t

resul t i n a n economi c benefi t

t o dii s state Reviewers : ODO T Reviewe r

NSOM : 7,*.HAA^ALj*iPi) ^ ODOTRevkwerSignature : ^ZT?^ " ',,\\^ySi''
- OECD D Reviewe r

Name : OECD D Reviower

Signature : 

# I [ I

# I I I CONNECTOREGO N I I FEASIBILIT Y REPOR T FOR M

Feaaibilit yReviewer : J . Richar d Ludders . Hovie . Tanne r& Associates . Inc . DATE : Decembe r10.200 7 AoDlicatio n Number : A4003 1 Applican t Name : Redmon d Airoor t - CIt vo f Redmon d Co-Applicant : N/ A Projec t Name : Nort h Sid e Carg o Ram o & Developmen t n/lode : Aviatio n I s th e Project generall yfeasibl e a s discus s i n technica l feasibilit ysectio n below . X Ye s D N o Technica l Feasibilit y I s th e budge t estimat e complete ?

XYBSDN O I f budge t estimat e informatio n i s complete , doe s th e cos t estimat e appea rreasonable ? X Ye s • N o I S timelin e feasibl e i n relatio n t o task s not ye t completed ? X Ye s D N o Ar e ther e an yelement s o f th e project tha t coul d caus e unanticipate d delays ? a Ye s X A/

o (i f yes , explai n i n Comment s below ) Ca n al l applicabl e an d require d permit s b e obtaine d a s indicate d i n th e schedule ? X Ye s n N o Doe s th e applicatio n packag e includ e documentatio n (Applicatio n Par t C , Ite m 3 Par

t D , Item s 4 , an d 6 o f th e desir e fo ran d suppor t o f th e Project fro m th e businesse s an d entitie s t o b e serve d byth e Project ? DYesXW o Comments : Thi s project i s heavil yfinance d byth e Cityo f Redmon d - 43 % i s loca l match . Th e C O gran t i s onl y57 % o f th e project . Project concep t i s fundamentall ysoun d - remove s on-ram p truck/aircraf t carg o transfer s fro m th e G A ram p area . Th e Cityview s i t a s a n airport-focuse d project primaril ybenefitin g th e Redmon d Airport an d ha s n o outsid e letter s o f suppor t fo rth e project . ^ o Conflic t o f interes t Certification : I d o no t hav e an yconflict o f interes t wit h th e propose rsubmittin g thi s project application . A conflict o f interes t mayinclud e an yfamil ymembers presentl yassociate d wit h a proposer , o ran yfinancia l relationship s wit h a propose r(doe s no t includ e pas t employment) . I hav e rea d an d rate d th e project applicatio n independently , an d withou t interferenc e o rpressur e fro m anyone . I hav e not ha d conversatio n o rothe rcontact wit h th e propose rconcemin g thi s project applicatio n sinc e i t wa s issued . I hav e note d an ypotentia l conflict s o rconcern s o n thi s form. " FEASIBILIT Y EVALUATO R SIGNATURE : 

# ^ IcJL ^

CJJU- ^ Nam e Dat e PRINCIPA L CONSULTAN T SIGNATURE : Decembe r10 . 200 7 

## ^j^Cj) < yJ'^C^s.., ^ Decembe r10 . 200 7 Nam e Dat e

F.AAviatio n Reviews\A4003 1 .do cDU E BAC K T O FREIGH T MOBILIT Y O N 11/30/07 Piea.s c note o

n checklis t

an y itemyo

u ar c stil l reviewing , but

Pleas e retur n th e checklis t b y 11/30/07 . All additional informatio n mus t b e receive db

y Freigh t Mobilit y n o late r tha n Friday , 12/7/07 . 

## COMPLETENES S CHECKLIS T ConnecOxeqQT

\ I I Completenes s Checklis t Projec t Numbe ran d Mode : A4003 1 Aviatio n Projec t Name : Nort h Sid e Carg o Ram p & Developmen t Reviewe rName : Sand i Larse n Reviewe rPlione : 503-378-252 9 Application : Q Electroni cSubmissio n (Receive d on : ) H Pape rSubmissio n (Receive d on : Novembe r2 1 ) Completeness : Par t A E Ite m 1 an d 2 - Contac t Informatio n (K l Additiona l applican t boxchecked ) I S Ite m 3 an d 4 - Nam e locatio n an d summar y ^ Ite m 5 - Eve n thougl i cell s fil l i n automatically , thi s sectio n stil l need s t o b e checke d fo r

accuracy . Doesn' t matc h Par t C E Ite m 6 - (Signature s matc h name s fro m Ite m 1 an d 2 ) Part e I S Ite m 1 - Descriptio n complete d ^ Ite m 2 - Detaile d Locatio n l a Ite m 3 - IVIode E ] Ite m 4 - Regio n ^ Ite m 5 - Taxe s - administrativ e requiremen t ^ Ite m 6 - Lif e o f projec t (| S Usefu l lif e i s les s tha n 2 0 years ) I S Ite m 7 - Responsibl e Part y I S Ite m 8 - Sourc e o f operationa l fund s I S Ite m 9 - Fundin g fo roperatio n secure d o rbudgete d I S Ite m 1 0 - Rea l estat e ( ^ Signature ) ( D Additiona l owne rboxchecked ) I S Ite m 1 1 - Propert

ypurchas e S Ite m 1 2 - Propert

ylease d • Ite m 1 3 - Propert

yDetail s (optional ) Part e

Part D I S Ite m 1 - Sourc e an d amoun t of fund s I S Ite m 2 - Sourc e of matc h (Gran t project s only) • Ite m 3 - Descriptio n of large rprojec t contex t (optional ) E ] Ite m 4 - Milestone s I S Ite m 5 - Mileston e detail s E l Ite m 6 - Mileston e budgets I S Ite m 1 - Improve connection s I S Ite m 2 - Lin k

workers t o job s 

# iDU E BAC K T O FREIGH T MOBILIT Y O N 11/30/07 Pleas e not e o

n checklis t

any itemyou ar c stil l reviewing , but Pleas e retur n th e checklis t by 11/30/07 . All additiona l informatio n mus t b e receive dby Freigh t

Mobilit y n o late r tha n Friday , 12/7/07 . Q Ite m 3 - Statewid e trade d clusters D Ite m 4 - Attrac

t newbusines s ( Q Commitmen t letters bo xchecked ) E ) Ite m 5 - Economicall ydistresse d communitie s I S ite m 6 - Jo b creatio n ( Q Commitmen t letter s bo xchecked ) I S Ite m 7 - Improve us e o f efficac yof transportatio n syste m ( Q Documentatio n include d i n supplementa l informatio n bo xchecked ) I S Ite m 8 - Multi-moda l links( D Contac t informatio n o f stakeholder s i n supplementa l infonnatio n bo

xchecked ) E Ite m 9 - Interstat e linkage s H Ite m 1 0 - Technologica l solution s t o improve o f efficac yof transportatio n syste m E ] Ite m 1 1 - Constructio n readines s checklist I S Ite m 12 - Constructio n limit s I S Ite m 1 3 - Suppor

t o f publi cagencie s E l Ite m 1 4 - Othe rpermi t approval s n Ite m 1 5 - Othe rConstructio n readines s tex t bo x(optional ) Part E E l Ite m 1 Othe rConsideration s Tex t bo x(optional ) Supplementa l Informatio n • Par t C , Ite m 3 - Commitmen t letter s D Par t D . Ite m 4 - Commitmen t letter s n Par t D , Ite m 6 - Commitmen t letter s D Par t D , Ite m 8 - Ke

ystakeholde rletter

s an d contacts Q Par t D , Ite m 1 3 - Documentatio n of coordinatio n wit h approvin g agencie s D Othe rSupportin g documentatio n Addend a ^ Additiona l tex

t (optional ) Additiona l Signature pag e ^ No t applicabl e D Complet e ( • Signature s matc h names ) NOTES : ly^iieston e budget s don' t ad d u p correctl y Additiona l matc h no t reporte d I n correc t plac e Date s no t fille d i n o n budge t o rmilestone s

# I I 

# regoi ^ Departmen t o f Transportatio n Transportatio n Buildin g Theodore R . Kulongwki , Governo r 35 5 Capito l Stree t N E \Salem , Orego n 9730 1 \ Augus t 20 , 200 8 Fil e Code : Caroly n S . Novic k Cityo f Redmon d P.O . Box72 6 Redmond , O R 97756-010 0 Subject : ConnectOrego n I I Agreemen t No , 2494 4

Nort h Sid e Carg o Ram p & Developmen t Dea rMs . Novick : Attache d i s a cop yo f you rConnec/Orego n I I Agreemen t whic h ha s bee n full y executed . A"blue-backed " cop ywil l b e sen t t o you throug h th e mai l withi n th e next fe w days . Yo u ar e authorize d t o begi n wor k o n th e las t signatur e dat e show n o n th e agreement . Onl ywor k performe d o n th e project afte rth e agreemen t was full ysigne d an d a s describe d I n th e agreemen t wil l b e eligibl e fo r reimbursement . Fro m thi s poin t forward , you rcontact fo rsendin g monthl yinvoices , monthl y progres s report s o n you rprojec t milestones , an d addressin g question s o rissue s o n you rConnecWrego n I I project i s ODOT' s Projec t Liaison : Teddi e A . Baker , OPM A Orego n Departmen t o f Transportatio n 55 5 13" " Stree t NE , Suit e 2 Salem , O R 97301-417 8 (503 ) 986-370 3 Monthl yinvoice s mus t contai n th e agreemen t number , project nam e an d additiona l Informatio n detaile d i n th e projec t Agreemen t unde rRecipien t Obligations . Pleas e confir m th e infonnatio n require d wit h ODOT' s Project Liaiso n show n above . Progres s Report s ar e du e o n a monthl ybasi s a t th e tim e o f th e mont h establishe d betwee n yo u an d th e ODO T Project Liaison . A cop yo f th e Monthl y Progres s Report i s show n a s a n attachmen t t o th e Agreement .

734-3122/01-0 3Caroly n Novic k

Augus t 20 , 200 8 Pag e 2 A s state d i n th e Agreement , Recipient s mus t payth e tw o percen t fe e fo rth e statewid e multimoda l stud yo f th e transportatio n syste m mandate d b yth e Legislature . Reimbursemen t o f an ywor k pertorme d wil l no t b e mad e unti l ODO T ha s receive d thi s paymen t fro m th e Recipien t (se e Recipien t Obligations , paragraph s 5 , 5 a an d 5 b fo rfurthe rdetail s an d Exhibi t A , Tabl e 3) . I wil l notify th e ODO T Project Liaiso n whe n th e fe e ha s bee n received . I f yo u anticipat e tha t an yo f you rproject milestone s wil l b e delaye d b ymor e tha n 9 0 days , yo u wil l nee d t o fil l ou t th e Reques t fo rChang e Order , sig n an d dat e i t an d sen d i t t o Teddi e Baker . Sh e wil l evaluat e th e reques t an d fonA/ar d i t t o m e wit h a recommendatio n fo rapproval . Th e Reques t fo rChang e Orde ri s show n a s attachmen t t o th e Agreement . I f yo u hav e an yquestions , pleas e contact m e a t (503 ) 986-3640 .

MartyAndersen , PE , Manage r Loca l Governmen t Sectio n cc : Teddi e A . Bake r



# I

# I Misc . Contract s an d Agreement s Agreemen t No . 2494 4 GRAN T AGREEMEN T ConnectOrego n i l MULTIMODA L TRANSPORTATIO N FUN D PROGRA M 200 7

Nort h Sid e Carg o Ram p & Developmen t THI S GRAN T PROGRA M AGREEMENT , hereinafte rrefenred t o a s "Agreement " i s mad e an d entere d int o b yan d betwee n th e STAT E O F OREGON , actin g b yan d throug h It s Departmen t o f Transportation , hereinafte rrefenre d t o a s "ODOT, " an d th e Cityo f Redmond , actin g byan d throug h It s designate d officials , hereinafte rreferre d t o a s "Recipient, " hereinafte rindividuall yreferre d t o a s th e "Party " an d collectivel yreferre d t o a s th e "Parties. " RECITAL S 1 . B yth e authorit ygrante d i n Orego n Revise d Statut e (ORS ) 190.110 , 366.572 . an d 366.576 , stat e agencie s mayente rInt o agreement s wit h counties , cities , an d unit s o f loca l govemmen t fo rth e performanc e o f an yo ral l function s an d activitie s tha t a part yt o th e agreement, . Its ^o ^ hav e th e authorit yt o perfor m 2 . B yth e authorit ygrante d i n ConnectOrego n Partnershi p - Progra m Administratio n Agreemen t No . 24685 , Incorporate d herei n an d b ythi s referenc e mad e a par t hereof , ODO T ma yente rInt o thi s Agreemen t fo rth e performanc e o f wori < o n Projects . 3 . Pursuan t t o OR S 367.08 0 throug h 367.086 , ther e I s establishe d th e Multimoda l Transportatio n Fund , separat e an d distinc t fro m th e Genera l Fund , allowin g fo rth e issuanc e o f lotter

ybond s fo rth e purpos e o f financin g grant s an d loan s t o fun d Transportatio n Project s t o publi c bodie s an d privat e entitie s tha t Involv e air , marine , rai l o rpubli c transit . 4 . Th e Multimoda l Transportatio n Fun d Progra m bega n throug h Connec/Oregon , a $10 0 millio n lottery-bond-base d Initiativ e approve d b yth e Orego n Legislativ e Assembl yi n 200 5 (Orego n La w 2005 , Ch . 815) , t o Inves t i n air , rail , publi c transit , an d marin e transportatio n project s t o ensur e Oregon' s transportatio n syste m i s strong , divers e an d efTicient . Th e Orego n Legislativ e Assembl yadde d a n additiona l $10 0 millio n I n 200 7 (Orego n La w 2007 , Ch . 859) . Th e Multimoda l Transportatio n Fun d Progra m I s focuse d o n improvin g th e connection s betwee n air , rail , marin e an d transi t mode s o f transportatio n t o reduc e transportatio n cost s t o businesses , remov e ke ybottlenecks , an d increas e connectivity . 

# ICit yo f Redmond/ODO T

~?^reement"N6.2494 4 5 . Th e receip t an d us e o f Multinnoda l Transportatb n Fund s an d th e executio n o f thi s Agreemen t b yRecipien t ar e subject t o condition s impose d b yOR S 367.08 0 throug h 367.08 6 an d Orego n Administrativ e Rul e (OAR ) Chapte r73 1 Divisio n 35 . 6 . Th e Orego n Transpoilatio n Commissio n approve d th e project s t o b e funde d unde r th e Multimoda l Transportatio n Fun d Progra m at It s Jun e 200 8 meeting . Th e OT C ha s se t specifi c condition s o n al l approve d project s an d th e Inabilityt o mee t thes e OT C condition s ma yresul t i n a los s o f project funding. Fina l approva l fo rth e project i s subject t o meetin g al l th e OT C condition s a s state d below . 7 . Safet yi s o f paramoun t concer n t o ODOT . ODO T encourage s recipient s o f Connec/Orego n gran t fund s t o hav e safet ya s a hig h priorit yfo ral l phase s o f work . DEFINITION S 1 . Th e Multimoda l Transportatio n Fun d Progra m als o know n a s "Connec/Oregon " a s define d i n OA R 731-035-001 0 I s a legislativel yauthorize d lottery-bond-base d Initiativ e t o inves t i n air vrail , publi c transit * an d marin e transportatio n project s i n Oregon . 2 . Recipient , a s define d i n OA R 731-035-0020(18) , mean s a n Applican t tha t enter s int o Agreemen t wit h ODO T t o receiv e fund s fro m th e Multimoda l Transportatio n Fund . 3 . Connec/Orego n Oversigh t Committe e I s t o b e compose d o f (A ) Connec/Orego n Progra m Manager , (B ) Orego n Departmen t o f Aviatio n Administrato r(ODA) . (C ) ODO T Chie f o f Staff , (D ) ODO T Freigh t Mobilit yManager , (E ) ODO T Regio n representative , an d (F ) a non-agencyrepresentative , appointe d b yODOT' s Connec/Orego n Progra m Manage rt o addres s th e Connec/Orego n Progra m an d Project specifi c issues . NOW THEREFORE , th e premise s bein g genera l a s state d i n th e foregoin g Recitals , i t i s agree d b yan d betwee n th e Partie s heret o a s follows : TERM S O F AGREEMEN T 1 . Th e foltowin g document s ar e attache d heret o an d b ythi s referenc e mad e a par t hereof : a . "ExhibitA"-StatementofWori < b . "Exhibi t A-r-Ma p c . "Exhibi t B " - Acknowledgemen t o f Stat e Assistanc e d . "Exhibi t C " - Perfonnanc e Bon d 

# I I I

### cit yof Redmond/ODO T Agreemen t No . 2494

4 e . "Exhibi t D " - Connec/Orego n Monthl yProgres s Repor t (Fom i 734-2668 ) f . "Exhibi t E " - Reques

t fo rChang e Orde r(Fom n 734-2648 ) 2 . Unde rsuc h authority , ODO T an d Recipien t agre e that Recipien t shal l construc t a n aircraf t ram p t o b e used solel yb yai rcarg o companie s a

t Robert s Fiel d - RedmorK

J Municipa l Airport . Th e projec t Include s a 108,87 0 squar e foot ramp , an d th e additio n of th e tax i connectio n t o ge t to th e ne

w ramp , hereinafte rreferre d t o as "Project. " Th e Projec

t descriptton , task

s an d deliverables , schedul e an d budge t ar e furthe r describe d I n Exhibi t A . Th e locatto n of th e Projec t I s approximatel yas show n o n th e detaile d ma p marite d Exhibi t A-1 . 3 . Th e Projec

t cos t I s estimate d at $2,641,540 , whic h i s subjec t t o change . Th e Connec/Orego n gran t fund s ar e limite d t o $1,500,00 0 o reight y(80 ) percen t of th e tota l eligibl e Projec

t costs , whicheve ri s less . Eligibl e costs fo rthi s Projec t wil l b e reimburse d at eight

y(80 ) percen t unti l th e $1,500,00 0 limi t I s reached . ODO T canno t reimburs e Recipien t fo ran ywori ^ performed , o rfo rProjec

t cost s incunre d prio rt o th e effective dat e of thi s Agreement . a , jyiatchjn g funds.mus

t fo relements necessar

yfo rImplementatio n of th e Project , includin g land , excavation , pennits , engineering , payroll , specia l equipmen t purchase , renta l o r leas e an d cove ra

t leas t twent y(20 ) percen t of th e eligibl e Projec t costs . Recipien t shal l b e responsibl e fo rth e twent y(20 ) percen t matc h requiremen t an d an ycost s i n excess of th e Connec/Orego n gran t funds . b . I f th e Projec

t i s not complete d i n accordance wit h th e applicatio n an d thi s Agreemen t as theyma

yb e amended , th e Recipien t shal l pa ybac k al l of th e Connec/Orego n gran t fund s t o ODOT , An yfund s disburse d bu t no t use d fo rth e approve d Projec

t mus t b e retume d t o ODOT . Recipien t understand s eligibilit yfo r Connec/Orego n gran t fund s applie s onl yt o Projec t cost s incurre d o n o rafte rth e effective date o

f thi s Agreement . 4 . Th e ter m of thi s Agreemen t i s effective o n th e dat e al l require d signature s ar e obtaine d an d shal l terminate five (5 ) year s fro m th e dat e o

f execution . RECIPIEN T OBLIGATION S 1 . Recipien t shal l perform th e wori « describe d i n Exhibi t A . 2 . Recipien t shal l submi t t o ODOT' s Projec t Liaiso n fo rrevie

w an d approval , monthl y invoice s an d update d monthl yprogres s reports o n th e Projec t schedule . 

# I

### Cit

yo f Redmond/ODO

T Agreemen t No . 2494

4 a . Th e Invoto

e mus t adher e t o generall yaccepte d accountin g principal s an d wil l Identif yth e Project , Agreemen t number , th e Projec t star t an d en d date , th e Invoic e numbe ro rth e accoun t numbe ro rboth , an d wil l Itemize al l expense s as wel l a s provid e a detaile d breakdow n o f fund s expended t o dat e an d dollar s remaining . I n th e even t a n Invoic e i s no t necessar

ydurin g a specifi cperiod , a n update d monthl yprogres s repor t o n th e Projec

t schedul e mus

t be submitte d separatel yeac h mont h reflectin g continuou s progress . b . Th e monthl yprogress repor t ^1 1 b e prepare d usin g the , Connec/Orego n Monthl y Progres s Repor

t (Fon n 734-2668) , an d wil l be submitte d to th e ODO T Projec t Liaiso n b yth e monthl ysubmitta l dat e establishe d b yODOT' s Projec

t Liaison . Recipien t mus

t sign , date , an d submi t th e Connec/Orego n Monthl yProgress Repor t t o th e ODO

T Projec t Liaison . Th e flllabl e fom n ca n be downloade d on-lin e at th e followin g address : httD://www.oreqon.qov/ODOT/HWY/LGS/onllne.shtml . c . I f th e Recipien t anticipate s th e Projec t ke ymilestone s wil l b e delaye d b ymor e tha n ninet y(90 ) day s fro m th e ke

ymilestone s show n i n Exhibi t A . Recipien t shal l submi t Exhibi t E , Reques t forChang e Orde r{For m 734-2648 ) t o th e ODOr s Projec t Liaiso n as soo n a

s Recipien t becomes awar e of an ypossibl e delay . Th e Reques t fo rChang e Orde rmus

t b e submitte d prio rt o th e mileston e completio n dat e show n i n Exhibi t A . Th e tillabl e forn i ca n b e downloade d on-lin e a t th e followin g address : http://www.oreaon.oov/ODOT/HWY/LGS/online.shtml . d . An ychanges t

o th e Projec

t scop e o rdeliver

yschedul e mus

t b e approve d b

yth e Connec/Orego n Oversigh t Committe e prio rt o executio n of a n amendmen t t o thi s Agreement . Th e Connec/Orego n Oversigh t Committe e ma ychoos e t o reques

t revie wb yth e Orego n Transportatio n Commission . Recipient' s obligatio n to maintai n an d operate th e Projec t wil l surviv

e terminatio n of thi s Agreement . 3 . Th e Recipien t mus

t produc e an d provid e al l documentatio n identifie d i n th e Projec t application , whic h include s th e Projec t ke ymilestones , schedule , budget an d cas h flow , feasibilit

yreadiness t o construct , pemiit s an d complete al l othe rpromise d elements . Th e documentatio n mus t Indicate th e likelihoo d th e Projec t ca n b e complete d i n th e tim e fram e planned . 4 . Upo n executio n o f thi s Agreement , Recipient , o rIt s Contracto rshal l fumls h an d maintai n I n effec

t a t al l time s durin g thi s Agreement , a Perfonnance Bond , i n a su m equa l t o th e Connec/Orego n gran t fund s tota l fo rthi s Project . a . Recipien t ca n us e Exhibi t C o rca n obtai n th e Perfontiance Bon d forn i b y contactin g ODOTs Connec/Orego n Progra m Manager . Th e bon d for m mus t b e notarize d b

yRecipient' s suret

ycompany , whic h i s authorize d t o d o busines s i n

# I I I I 1 Cit yo f Redmond/ODO T

Agreemen t No . 2494 4 Oregon , an d i s th e onl yacceptabl e fomi o f perfonnanc e security , unles s othen/vls e specifie d i n thi s Agreement . 6 . Recipien t shal l pa ytw o (2 ) percen t o f Recipient' s tota l Connec/Orego n gran t fun d amoun t plu s tw o (2 ) percen t o f it s twent y(20 ) percen t matc h requiremen t t o ODO T withi n ninet y(90 ) day s o f th e Agreemen t effectiv e date . Sai d fund s shal l b e availabl e fo rODO T t o conduct a statewid e multimoda l stud yo f th e transportatio n syste m a s mandate d b yth e Legislature . Reimbursemen t o f an ywor k perfonne d wil l no t b e mad e unti l ODO T ha s receive d thi s paymen t fro m Recipient . Th e tw o (2 ) percen t mayb e pai d b yth e Recipien t usin g on e o f tw o method s a s follows : a . Paymen t Metho d 1 : Recipien t shal l sen d a chec k fo r10 0 percen t o f th e tw o (2 ) percen t describe d abov e t o ODOT , Attn : Receipt s Technician , Transportatio n Building , 35 5 Capito l S t NE , Rm . 434 , Salem . O R 97301-3871 , withi n ninety(90 ) day s o f th e effectiv e dat e o f thi s Agreement . Th e chec k shal l identif

yth e Agreemen t numbe ran d Connec/Orego n Applicatio n number . b . Paymen t Metho d 2 : Recipien t shal l sen d a chec k t o th e addres s show n I n paragraph . 6 a aboy e fo rth e matc h amoun t an d as k ODOT.to . transfe rth e remaining amoun t o f th e tw o (2 ) percent , describe d above , fro m Recipient' s gran t t o a n ODO T accoun t t o cove rthi s cost . 6 . Recipien t shal l compl ywit h al l federal , state , an d loca l laws , regulations , executiv e order s an d ordinance s applicabl e t o th e wor k unde rthi s Agreement , Including , withou t limitation , th e provision s o f OR S 279A , 279 B an d 279C , a s applicable . Incorporate d herei n b yreferenc e an d mad e a par t hereof . Withou t limitin g th e generalit yo f th e foregoing . Recipien t expressl yagree s t o compl ywit h (i ) Titl e V I o f Civi l Right s Ac t o f 1964 ; (il ) Titl e V an d Sectio n 50 4 o f th e Rehabilitatio n Act o f 1973 ; (Hi ) th e American s wit h Disabilitie s Ac t o f 199 0 an d OR S 659A.142 ; (iv ) al l regulation s an d administrativ e rule s establishe d pursuan t t o th e foregoin g laws ; an d (v ) al l othe rapplicabl e requirement s o f federa l an d stat e civi l rights an d rehabilitatio n statutes , aile s an d regulations . 7 . Recipien t shall , t o th e exten t pennitte d b yth e Orego n Constitutio n an d th e Orego n Tort Claim s Act , indemnify , defend , save , an d hol d harmles s th e Stat e o f Oregon , Orego n Transportatio n Commissio n an d it s members , Orego n Departmen t o f Transportation , it s officer s an d employee s fro m an yan d al l claims , suits , o ractio n o f an ynatur e arisin g ou t o f activitie s o f Recipient , it s consultant , it s contractor , it s officers , subcontractors , agents , o remployee s unde rthi s Agreement . 8 . Notwithstandin g th e foregoin g defens e obligation s I n th e paragrap h above , neithe r Recipien t no ran yattorne yengage d b yRecipien t shal l defen d an yclai m i n th e nam e o f th e Stat e o f Orego n o ran yagencyo f th e Stat e o f Oregon , no rpurpor t t o act a sCityo f Redmond/ODO T

Agreemen t No . 2494 4 lega l representative o f th e Stat e o f Orego n o ran yo f Its agencies , withou t th e prio r writte n consen t o f th e Orego n Attome yGeneral . Th e Stat e o f Orego n may , a t anytim e a t it s electio n assum e it s ow n defens e an d settlennen t i n th e even t tha t i t determine s tha t Recipien t I s prohibite d fro m defendin g th e Stat e o f Oregon , o rtha t Recipien t I s no t adequatel ydefendin g th e Stat e o f Oregon' s Interests , o rtha t a n importan t governmenta l principl e I s a t Issu e o rtha t i t I s i n th e bes t interest s o f th e Stat e o f Orego n t o d o so . Th e Stat e o f Orego n reserves al l rights t o pursu e an y claim s i t ma yhav e agains t Recipien t I f th e Stat e o f Orego n elect s t o assum e it s ow n defense . 9 . Recipien t acknowledge s an d agree s tha t ODOT , th e Orego n Secretar yo f State' s Office , th e federa l govemment , an d it s dul yauthorize d representatives shal l hav e acces s t o th e books , documents , papers , an d record s o f Redplen t whic h ar e directl y pertinen t t o thi s Agreemen t fo rth e purpos e o f makin g audit , examinatfon , excerpts , an d transcript s fo ra perio d o f si x(6 ) year s afte rfina l payment . Copie s o f applicabl e record s wil l b e mad e availabl e upo n request . Paymen t fo rcost s o f copie s i s reimbursable b yth e requesting Party . 10 . If - Recipien t enter s int o a constructio n contrac t fo rperformanc e o f wor k .o n th e Project , the n Recipien t wil l require It s Contracto rt o provid e th e following : a . Contracto rshal l Indemnify , defen d an d hol d hamnles s ODOT fro m an d agains t al l claims , suits , actions , losses , damages , liabilities , cost s an d expense s o f an y natur e whatsoeve rresultin g from , arisin g ou t of , o rrelatin g t o th e activitie s o f Contracto ro rIt s ofiiceis,_emplQyfi^^-jELUbjcojnti^ctQrsH_jiiijag.en ^ Contract . b . Contracto ran d recipien t shal l nam e ODO T a s a thir d partybeneficiar yo f th e resultin g contract . c . Commercia l Genera l Liability . Contracto rshal l obtain , a t Contractor' s expense , an d kee p I n effect durin g th e ter m o f thi s Contract , Commercia l Genera l Liabilif y Insuranc e coverin g bodil yinjur yan d propert ydamag e I n a for m an d wit h coverage s tha t ar e satisfactor yt o ODOT . Thi s insuranc e wil l includ e persona l an d advertisin g Injur

yliabilify , product s an d complete d operations . Coverag e may b e writte n i n combinatio n wit h Automobil e Liabilif yInsuranc e (v^nt h separat e limits) . Coverag e wil l b e writte n o n a n occurrenc e basis . I f writte n I n conjunctio n wit h Automobil e Liabilit yth e combine d singl e limi t pe roccun^ence wil l no t b e les s tha n $ 1,000,00 0 fo reac h jo b sit e o rlocation . Eac h annua l aggregat e limi t wil l no t b e les s tha n $ 2,000,000 . d . Automobil e Liability . Contracto rshal l obtain , a t Contractor' s expense , an d kee p i n effec t durin g th e ter m o f thi s Contract , Commercia l Busines s Automobil e Liabilit yInsuranc e coverin g al l owned , non-owned , o rhire d vehicles . Thi s

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# p

i I

i 

# i I I I I I I I Cit

yo f Redmond/ODO

T Agreemen t No . 2494

4 coverag e ma

yb e writte n i n combinatio n wit h th e Commercia l Genera l Liabilit y Insurance (wit h separate limits) . Combined singl e limi t peroccunenc e wil l no t b e les s tha n $1,000,000 . e . Additiona l Insured . Th e liabilit yinsurance coverage , except Professiona l LiabH'ity, Enx)r s an d Omissions , o rWori^ers ' Compensation . I f Included , require d fo r performanc

e of th e Contrac

t wil l includ e ODO

T an d it s divisions , officer s an d emptoyee s a

s Additiona l Insure d bu t onl ywit h respect t o Contractor' s activitie s t o b e performe d unde rthi s Contract . Coverag e wil l b e primar yan d non-contributor

y wit h an yothe rinsuranc

e an d self-insurance . f . Notice of Cancellatio n o rChange . Ther e wil l b e n o cancellation , materia l change, - potentla l exhaustio n o

f aggregat e limit s o rnon-renewa l o f insurance coverage(s ) withou t thirt

y(30 ) day s writte n notice fro m Contractor' s o rit s lnsurer(s ) t o ODOT . An yfailure t

o compl ywit h th e reporting provision s of thi s claus e wil l constitute a materia l breac h o

f Contrac t an d wil l b e ground s fo rimmediate terminatto n o f thi s Contract . 11 . Recipient , an d It

s Contractors , shal l wor k

a s a n independen t contracto ran d shal l b e exclusivel yresponsibl e fo ral l cost s an d expense s relate d t o Its employmen t o f Individuali s to perform th e work unde rthi s Agreiemen^

^ retiremen t contributions , wori<ere ' compensation , unemploymen t taxes , an d state an d federa l incom e ta

xwithholdings . 12.Al l employers , includin g Recipient , that emplo ysubjec t worker s I n th e Stat e of Orego n shal l compl ywit h OR S 656.01 7 an d provid e th e require d Woricers ' Compensatio n coverag e unles s suc h employer s ar e exemp t unde rORS 656.126 . Recipien t shal l ensur

e tha t eac h o f its subcontractor e complie s wit h thes e requirements . 13 . Recipien t shall , upo n executio n o f thi s Agreemen t an d as a conditio n t o thi s Agreement , complet

e an d fil e wit h th e appropriate Count yCleri< , Exhibi t B , "Acknowledgmen t of ODO T Assistance" . Recipien t shal l provid e confirmatio n of thi s filin g b yfonwardin g t o ODOT' s Projec t Liaiso n a notarize d copyo f th e recorde d Exhibi t B . B

ymean s of sai d acknowledgment , a lie n shal l b e establishe d agains t sai d propert

yan d assets subjec

t t o th e satisfactio n of Recipient' s financia l obligations , th e continue d us e of sai d propert yfo rpubli cpurposes , an d th e maintenance o

f th e facilit

yo rservice a

t a leve l consisten t vWt

h norma l depreciatio n o rdeman d o rboth . ODOT' s Interest i n sai d propert yi s proportiona l t o th e state participatio n i n Project . Whil e i n defaul t of condition s underiyin g th e lien , Recipien t wil l b e ineligibl e t o receiv

e stat e fund s fro m anyODOT-administere d progra m fo rany projec t o n a street , road o rproperty . Th e Acknowledgmen t o f ODO T Assistance shal l remai n I n plac

e fo rth e usefu l lif e o f th e Project . Th e usefu l lif e of th e Projec t I sCit yo f Redmond/ODO T

Agreemen t No . 2494 4 define d a s twenty(20 ) years . Reimbursemen t t o Recipien t wil l no t t> e mad e unti l a cop yo f th e recorded Exhibi t B ha s bee n fonwarde d to th e ODO T Project Liaison . 14 . Recipien t an d ODOT' s Projec t Liaiso n shall , upo n completio n o f al l on-sit e wori^ fo r th e Project , perfon n a n on-sit e review . Onc e review i s completed , th e ODO T Project Liaiso n shal l recommen d acceptanc e o f th e Project b ysignin g th e Connec/Orego n "Recommendatto n o f Acceptance " (Fon n 734-2649) , whic h wil l b e signe d byth e ODO T Projec

t Liaiso n an d Recipien t an d i s hereb yincorporate d b yreference. Th e ful l tex t o f th e abov e referenced exhibi t mayb e reviewe d an d downloade d a t th e followin g we b address : http://www.oreoon.aov/ODOT/HWY/LGS/docs/Fonns/COProlectAccept2649.do c 15 . Recipien t shall , at it s ow n expense , maintai n an d operat e th e Project upo n completio n an d throughou t th e usefu l lif e o f th e Project a t a minimu m leve l tha t i s consisten t wit h nomna l depreciatio n o rservic e deman d o rboth . ODO T an d Recipien t agre e tha t th e usefu l lif e o f thi s Project I s define d a s twent y(20 ) years . Recipien t has . b ysubmittin g it s applicatio n fo rthi s Connec/Orego n grant , represented an d certifie d t o sufficien t fund s an d t o it s abilit yt o operat e an d maintai n th e Project . ODO T mayconduc

t peri^^ ^ t o verif ytha t Projec

t i s bein g properl ymaintaine d an d continue s t o serv e th e purpos e fo rwhic h Connec/Orego n gran t fund s wer e provided . 16 . Maintenanc e responsibilitie s an d potentia l ODO T Inspection s o f th e Project shal l surviv e an yterminatio n o f thi s Agreement . 17 . Recipien t certifie s an d represent s tha t th e Individual(s ) signin g thi s Agreemen t ha s bee n authorize d t o ente rint o an d execut e thi s Agreemen t o n behal f o f Recipient , unde rth e directio n o rapprova l o f It s governin g body , commission , board , officers , members , o rrepresentatives , an d t o legall ybin d Recipien t an d shal l provid e ODO T proo f o f suc h authorifyupo n request . 18 . Recipient' s Projec

t Manage rI s Caroly n S . Novick , A.A.E. , P O Bo x726 , Redmond , O R 97756-0100 ; (541 ) 548-0646 , camen(gci.redmond.or.us , o rassigne d designe e upo n individual' s absence . ODOT s Project Liaiso n shal l b e notifie d i n writin g o f an y contac t informatio n change s durin g th e ten n o f thi s Agreement . ODO T OBLIGATION S 1 . Base d upo n th e Connec/Orego n gran t fun d allocatio n allowed , ODO T agree s t o pay Recipien t $1,500,000 , o reight y(80 ) percen t o f th e total eligibl e Project costs , whicheve ri s less . Eligibl e cost s fo rthi s Project wil l b e reimburse d a t eight y(80 ) percen t unti l th e $1,500,00 0 limi t i s reached . 8

### Cit

yo f Redmond/ODO

T Agreemen t No . 24944 2 . ODO T shall , upo n receipt of a monthl yinvoice an d update d monthl yprogress repor t o n th e Projec

t schedule , revie

w fo rapprova l an d mak e paymen t t o Recipien t fo r approve d eligibl e costs . 3 . Thi s Agreemen t I s contingen t upo n issuance an d sal e o f lotter ybond s sufficien t t o fun d thi s Project . Th e Agreemen t i s effective an d vwr k ma ybegi n upo n executio n o

f thi s Agreement , bu t ODOT' s obligatio n t o mak e Projec t payment s i s contingen t upo n th e issuanc

e an d sal e of lotter

ybond s b

yth e Stat e Treasurer . ODO T wil l notif

y Recipien t whe n suc h sal e has occurre d an d Connec/Orego n gran t fund s ar e available . 4 . ODO T shal l monito rth e Projec t fo rcomplianc

e an d notif

yth e Recipien t i n writin g i f I t appear s Recipien t i s fallin g t

o compl ywit h Multimoda l Transportatio n Fun d Progra m requirements a s specifie d I n OR S Chapte r367 : OA R Chapte r731 . Divisio n 35 . th e term s of thi s Agreemen t an d Recipient' s application . 5 . ODO T ma yimpos e sanction s against Recipien t fo rfailin g t o compl ywit h th e requirements governin g th e Multimoda l Transportatio n Fun d Program . Befor e imposin g sanctions , ODO T wil l sen d a potice t o cur e t o Recipient^^i^^^

^ roinpiywit h Prograrh^^^^^^

^ wil l allow fiftee n (15 ) day s fro m th e date th e notice to cur

e i s sen t fo rRecipien t t o respon d an d con-ec t th e deficiencie s noted . Th e followin g circumstance s ma ywan-ant sanctions : a . Wori< o n th e approve d Projec t has not bee n substantiall yinitiate d withi n si x(6 ) month s o f th e effective date of thi s Agreemen t o ri f continuou s progress o n th e Projec t has no t bee n maintaine d fo rsi x(6 ) months ; b . State of Orego n statutor yrequirements hav

e no t bee n met ; c . Ther e i s a significan t deviatio n fro m th e term s an d condition s o f thi s Agreement ; d . Significan t con-ectiv

e action s hav

e bee n foun d t o b e necessar yto protec

t th e integrif yof th e fund s fo rth e approve d Project , an d thos e corrective action s are not , o rwil l not , b e mad e withi n a reasonabl e time ; e . Ke yMilestone s show n i n th e Projec t schedul e are delaye d b ymor e tha n ninet

y (90 ) days ; o r f . Failur e t o submi t monthl yprogres s reports as require d i n Recipien t Obligations , Paragrap h numbe r2 . 6 . On e o rmor

e o f th e followin g sanction s ma yb e Impose d I f th e circumstance s liste d abov e ar e no t remedie d virtthi n th e tim e specifie d i n th e notice t o cure : 9Cif

yo f Redmond/ODO T Agreemen t No . 2494 4 a . Revocatfo n o f a n existin g award ; b . Withholdin g o f unexpende d funds ; c . Th e return o f unexpende d fund s o rrepaymen t o f expende d funds ; d . Th e barrin g o f th e Recipien t fro m applyin g fo rfutur e assistance ; o r e . Othe rremedie s tha t ma yb e Incorporate d int o thi s Agreement , 7 . Th e remedies se t fort h I n thi s Agreemen t ar e cumulative , ar e no t exclusive , an d ar e I n additio n t o an yothe rrights an d remedie s provide d b yiaw o runde rthi s Agreement . 8 . ODOT' s Project Liaiso n an d Recipien t shall , upo n completio n o f al l on-sit e vw)rk fo r Project , perfon n a n on-sit e review . Onc e revie wI s completed , th e ODO T Project Liaiso n shal l recommen d acceptanc e o f th e Projec t b ysignin g th e Connec/Orego n Recommendatio n o f Acceptanc e (For m 734-2549) , whic h wil l b e signe d b yth e ODO T Project Liaiso n an d Recipient . Upo n receip t o f signature s byth e Partie s th e ODO T Project Liaiso n shal l forwar d th e origina l signe d cop yt o th e ODO T Connec/Orego n Progra m Manager . 9 . ODOT' s Connec/Orego n Progra m Manage ri s th e Loca l Govemmen t Sectio n Manager , Loca l Govemmen t Section , 35 5 Capito l St . NE , Roo m 326 , Salem , O R 97301-3871 . 503.986.3640 . Martin.E.ANDERSEN(@odot.state.or.us , o rassigne d designe e upo n Individual' s absence . GENERA L PROVISION S 1 . Thi s Agreemen t mayb e terminate d effectiv e upo n deliveryo f writte n notic e t o Recipient , o ra t suc h late rdat e a s mayb e establishe d b yODO T unde ran yo f th e followin g conditions : a . I f Recipien t fail s t o perfon n an yo f th e provision s o f thi s Agreement , o rs o fail s t o pursu e th e wor k

a s t o endange rperformanc e o f thi s Agreemen t i n accordanc e wit h it s terms , an d withi n te n (10 ) day s o rsuc h longe rperio d a s ODO T may authorize , afte rreceip t o f writte n notic e fro m ODOT , fails t o correct suc h failures . b . Th e Legislatur e fail s t o approve , reduces , eliminate s o rothenws e Interfere s wit h appropriation s o f stat e expenditur e limitatio n t o th e exten t tha t lega l authorif yI s insufficien t t o enabl e ODOT . i n it s reasonable discretion , t o continu e makin g payment s unde rthi s Agreement . 1 0 

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yo f Redmond/ODO T Agreemen t No . 2494 4 c . ODOT , th e Departmen t o f Justice , o ra court o f competen t jurisdictio n detemiine s tha t stat e law , rules , regulatio n o rgukleline s ar e modified , changed , o r Interprete d i n suc h a wa ytha t th e activitie s describe d i n Exhibi t A ar e n o longe r allowabl e o rn o longe religibl e fo rfundin g propose d b ythi s Agreement . 2 . ODO T ma yimpos e on e o rmore o f th e sanction s describe d unde rODO T Obligations , Paragrap h 6 , withou t prio rnotic e an d withou t opportunityt o cure , i n th e even t ODO T detemriines : a . Statements , Information , o rrepresentation s i n th e Connec/Orego n applicatio n fo r thi s Project wer e false , misleading , fraudulen t o rmisrepresentattons ; o r b . Ther e ha s bee n a chang e i n circumstance s s o ttiat infonnatio n provide d I n th e applicatio n an d relie d upo n i n makin g th e gran t o rloan , o rrepresentation s concemin g consideration s I n th e selectio n o f thi s Project fo rConnec/Orego n II . pursuan t t o OA R 731-035-0060(8) , ar e n o longe rtru e o raccurate , 3 . Recipien t ma yterminat e thi s Agreemen t effectiv e upo n deliver yo f writte n notic e t o ODO T unde ran yo f th e followin g conditions : a . ODO T fails t o mak e payment s du e unde rthi s Agreement , o r b . ODO T fails t o perfor m an yo f th e provision s o f thi s Agreement , o rs o fail s t o pursu e th e wor k

a s t o endange rperformanc e o f thi s Agreemen t I n accordanc e wit h It s terms , an d withi n te n (10 ) day s o rsuc h longe rperio d a s Recipien t may authorize , afte rreceip t o f writte n notic e fro m Recipient , fail s t o con-ec t suc h failure . 4 . An yterminatio n o f thi s Agreemen t shal l no t prejudic e an yrights o robligation s accrue d t o th e partie s prio rt o termination . 5 . ODO T an d Recipien t ar e th e onl yPartie s t o thi s Agreemen t and , a s such , ar e th e onl yPartie s entitle d t o enforc e It s terms . Nothin g i n thi s Agreemen t give s o rshal l b e construe d t o giv e o rprovid e an ybenefit , direct , indirec t o rotherwis e t o thir d person s unles s suc h thir d person s ar e expressl yidentifie d b ynam e an d specificall y describe d a s Intende d t o b e beneficiarie s o f it s tenns . 6 . ODO T an d Recipien t heret o agre e tha t I f an yter m o rprovisio n o f thi s Agreemen t I s declare d b ya court o f competen t jurisdictio n t o b e invalid , unenforceable . Illega l o ri n conflic t wit h an ylaw . th e valldifyo f th e remaining term s an d provision s wil l no t b e affected , an d th e rights an d obligation s o f th e Partie s shal l b e construe d an d enforce d a s i f th e Agreemen t di d no t contai n th e particula rter m o rprovisio n hel d t o b e invalid . 1 1CIf

yo f Redmond/ODO T Agreemen t No . 2494 4 7 . Thi s Agreemen t ma

yb e execute d i n severa l counterpart s (facsimil e o rotherwise ) al l o f whic h whe n take n togethe rshal l constitut e on e agreemen t bindin g o n al l Parties , notwithstandin g tha t al l Partie s ar e no t signatorie s t o th e sam e counterpart . Eac h cop yo f thi s Agreemen t s o execute d shal l constitut e a n original . 8 . Thi s Agreemen t an d attache d exhibit s constitut e th e entir e agreemen t betwee n th e Partie s o n th e subject matte rhereof . Ther e ar e n o understandings , agreements , o r representations , ora l o rwritten , no t specifie d herei n regarding thi s Agreement . N o waiver , consent , modificatio n o rchang e o f term s o f thi s Agreemen t shal l bin d eithe r parfyunles s i n writin g an d signe d b ybot h partie s an d al l necessar yapproval s hav e bee n obtained . Suc h waiver , consent , modificatio n o rchange , i f made , shal l b e effectiv e onl yI n th e specifi c Instanc e an d fo rth e specifi c purpos e given . Th e failur e o f eithe rPart yt o enforc e an yprovisio n o f thi s Agreemen t shal l no t constitut e a waive rb ytha t Partyo f tha t o ran yothe rprovision . TH E PARTIES , b yexecutio n o f thi s Agreement , hereb yacknowledg e tha t eac h Party ha s rea d thi s Agreement , understand s It , an d agree s t o b e boun d b yit s term s an d conditions . Th e Orego n Transportatio n Commissio n o n Jun e 18 , 2003 , approve d Delegatio n Orde r No . 2 . whic h authorize s th e Directo rt o approv e an d execut e agreement s fo rday-to-da y operations . Day-to-da yoperation s includ e thos e activitie s required t o implemen t th e biennia l budge t approve d b yth e Legislature , includin g activitie s t o execut e a project i n th e Statewid e Transportatio n Improvemen t Program . SIGNATUR E PAG E T O FOLLO W

1 2

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Agreemen t No . 2494 4 Orego n Transportatb n Commissio n o n Jun e 20 , 2008 , approve d th e Connec/Orego n projec t applicatto n lis t an d delegate d authorit yt o th e Directo ro f th e Orego n Departmen t o f Transportatio n t o ente rint o project agreements . CIT Y O F REDMOND , b yan d throug h STAT E O F OREGON , b ; it s Cit yCounci l n d throug h 

## B vJJ^UT^AJLL^K ^ Dat e B y _ Dat e APPROVE D A S T O LEGA L SUFFICIENCY . Recipien t Counse l Dat e -g-tZ-o ^ Recipien t Contact : Caroly n S . Novic k P O Bo x72 6 Redmond , O R 97756-010 0 (541 ) 548-064 6 ext . 349 6 canien@ci.redmond.or.u s ODO T Contact : Loca l Govemmen t Sectio n Manage r Loca l Govemmen t Sectio n 35 5 Capito l St . NE . Roo m 32 6 Salem , O R 97301-387 1 503.986.364 0 Martin.E.ANDERSEN(5)odot.state.or.u s It s Departri^n t 

## By_2_4^ Directo r Dat e 

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## Dat r%'\}\'€>W ^ Dat e ^-/ /

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# IEXHIBI T A Statemen t o f Wor k Applicatio n Numbe rA4003 1 Nort h Sid e Carg o Ram p an d Developmen t Cit yo f Redmond-Redmon d Airpor t A . PROJEC T DESCRIPTIO N Thi s Project consist s o f th e constructio n o f a n aircraf t ramp t o b e use d solel yb yai r carg o companie s a t Robert s Fiel d - Redmon d Municipa l /Mrport . Th e Projec t Include s a 108,87 0 squar e foot ramp, an d th e additio n o f th e tax i connectio n t o ge t t o th e ne w ramp . B . PROJEC T KE Y MILESTONE S AN D SCHEDUL E 1 . Project ha s si x(6 ) Ke yMilestones . Ke yMilestone s ar e use d fo revaluatin g perfonnanc e o n Project an d determinin g leve l o f compensatio n fo rcomplete d wor k a s describe d i n th e Agreement . Ke yMilestone s canno t b e change d withou t a n amendmen t t o th e Agreement . Recipien t mayshif t tiie estimate d gran t fund s show n t)elo w betwee n milestone s withou t a n amendmen t t o th e Agreement , bu t shal l not . unde ran ycircumstano ^ Recipien t shal l report dhange s t o th e Estimate d Amount s correspondin g t o eac h Ke y Milestones , show n below , I n Recipient' s Monthl yRepor t t o th e ODO T Project Liaison . 2 . I f th e Recipien t anticipate s th e Project ke ymilestone s wil l b e delaye d b ymor e tha n ninet y(90 ) days . Recipien t shal l submi t a Reques t fo rChang e Orde r(se e attache d Exhibi t E ) t o th e ODO T Project Liaiso n a s soo n a s Recipien t become s awar e o f an y possibl e delay . Th e Reques t fo rChang e Orde rmus t b e submitte d prio rt o th e Ke y Mileston e completio n dat e show n i n thi s Exhibit . Th e anticipate d star

t dat e o f tiie Project is : 9/30/200 8 Th e estimate d completio n dat e o f th e Project is : 01/31/201 0 

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Tabl e 1 : Ke yMilestone s Ke y Mileston e 1 2 3 4 5 6 Descriptio n

Scopin g an d plannin g Righ t o f wa yan d lan d acquisitio n Pennit s Fina l plans/biddin g engineerin g document s Constructio n contrac t awar d Projec t completio n Estimate d Du e Dat e 10/31/200 8 N/ A N/ A 12/01/200 8 01/31/200 9 01/31/201 0 Tota l Projec t Cos t Estimat e Amoun t $55,00 0 $ 0 $ 0 $7,50 0 $75,00 0 $2,504,04 0 $2,641,54 0 Tabl e 2 - Fundin g Breakd_pw n A B C D E Tota l No t t o Excee d Gran t Fun d Allocatio n

ConnectOrego n 2 0 percen t require d matc h ConnectOrego n I I Tota l Othe rFund s I n Additio n t o 2 0 percen t Require d Matc h Tota l Projec t Fundin g $1,500,00 0 $375,00 0 $777,54 0 $1,875,00 0

$2,641,54 0 Tabl e 3- 2 Percen t Statewid e Multimoda l Stud yFe e Amoun t

2 percen t o f ConnectOrego n I I tota l fro m Tabl e 2 , lin e C ($37,500 ) C . BUDGE T Tota l No t t o Excee d payable t o Recipien t i s $1,500,000 . Tota l Projec t cost s ar e estimate d a t $2,641,540 . Th e Connec/Orego n gran t fun d allocatio n fo rthi s Project i s $1,500,000 . Recipien t shal l b e responsibl e fo ran y unanticipate d cost s ove rth e identifie d Connec/Orego n gran t fun d allocation .EXHIBI T A- 1 Ma p

eMfim e aaman n ui «

### EXHIBI T B Acknowledgmen t o f Stat e Assistanc e Agreemen t Number : 24944 Projec t Name : Nort h Sid e Carg o Ram p & Developmen t ACKNOWLEDGMEN T O F STAT E ASSISTANC E Th e propert

yan d assets unde rth e jurisdictio n o f Cif yo f Redmond , wer

e improve d wit h assistance fro m th e Stat e of Oregon , Departmen t of Transportatio n unde ra n agreemen t execute d betwee n Cit

yo f Redmond , an d th e Orego n Departmen t o f Transportatio n (ODOT ) date d . Suc h assistance was provide d t o Cit yof Redmond , I n reimbursement o f costs associate d wit h th e Nort h Sid e Carg o Ram p & Development . Th e us e an d dispositio n of sai d propert yi s subjec

t t o th e term s of th e abov e note d Agreement , copie s o f whic h ma ybe obtaine d fro m th e Directo ro f ODOT . By : Title : 

### SUBSCRIBE D an d SWOR N t o befor e m e thi s da

yof , 20 . NOTARYPUBLI C FO R OREGO N M ycommissio n expires :



# IExhibi t C STAT E O F OREGO N 

### ConnectOrego n Gran t Agreemen t Agreemen t Number : 2494 4 Project Name : Nortt i Sid e Carg o Ram p & Developmen t



### PERFORMANC E BON D Bon d No . Projec t Nam e Norti i Sid e Carg o Ram p & Development ,

^(Suret y#1 ) Bon d Amoun t No . 1 : $ .(Suret y#2) * Bon d Amoun t No . 2: * $ I f usin g multipl e suretie s Tota l Pena l Su m o f Bond: $ 1,500,000 , Y^PAQJP ^ 9^f^^^.9^'^K^^3 ^

sn d th e abov e identifie d Surefy(ies) , authorize d t o transac t suret ybusines s i n Oregon , a s Surety , hereb yjointl yan d severall ybin d oureelves , ou rrespectiv e heirs , executors , administrators , successor s an d assign s finnlyb ythes e present s t o payunt o ODO T th e su m o f (Tota l Pena l Su m o f Bond ) $1,500,000 , (provided , tha t w e th e Suretie s bin d ourselve s I n suc h su m "jointl yan d severally " a s wel l a s "severally " onl yfo rth e purpos e o f allowin g a join t actio n o raction s agains t an yo ral l o f us , an d fo ral l othe rpurpose s eac h Surefybind s itself , jointi yan d severall ywit h th e Recipient , fo rth e paymen t o f suc h su m onl ya s I s se t fort h opposit e th e nam e o f suc h Surefy) , an d WHEREAS , th e Recipien t ha s entere d Int o a n Agreemen t wit h th e ODOT ; an d WHEREAS , th e tenn s an d condition s o f th e Agreement , togethe rwit h applicabl e plans , standar d specifications , specia l provisions , schedul e o f perfonnance , an d Agreemen t budget , ar e mad e a par t o f thi s Performanc e Bon d b yreference , whethe ro rno t attache d t o th e Agreemen t (al l hereafte rcalle d "Agreemenf) ; an d WHEREAS , th e Recipien t ha s agree d t o perfon n th e Agreemen t i n accordanc e wit h th e terms , conditions , requirements , plan s an d specifications , an d schedul e o f Agreemen t price s whic h ar e se t fort h i n th e Agreemen t an d an yattachments , an d al l authorize d modification s o f th e Agreemen t whic h increas e th e amoun t o f th e work , o rth e cos t o f th e Agreement , o rconstitut e authorize d extension s o f time fo rperformanc e o f th e Agreement , notic e o f an ysuc h modification s hereb ybein g waive d b yth e Surety : NOW , THEREFORE , TH E CONDITIO N O F THI S BON D I S SUC H tha t i f th e Recipien t herei n shal l faithfull yan d trul yobserv e an d compl ywit h th e terms , condition s an d provision s o f th e Agreement , i n al l respects , an d shal l wel l an d trulyan d full yd o an dperfon n al l matter s an d thing s undertake n b yRecipien t o rit s subcontracto rt o b e

performe d unde rth e Agreemen t o rsubsequen t contract , upo n th e term s se t forti i therein , an d withi n th e tim e prescrit>e d therein , o ra s extende d a s provkje d i n th e Agreement , wit h o rwithou t notic e t o th e Sureties , an d shal l indemnifyan d sav e harmles s th e Stat e o f Oregon , Orego n Transportatio n Commissto n an d It s memljers , th e Connec/Orego n Subcommittee , ODOT , an d members thereof . It s officers , employee s an d agents , agains t an ydirec t o rindirect damage s o rclai m o f ever ykin d an d descriptio n tha t shal l b e suffere d o rclaime d t o b e suffere d I n connectks n wit h o r arisin g ou t o f th e performanc e o f th e Agreemen t o rsubsequen t contract b yth e Recipien t o rit s subcontractors , an d shal l i n al l respects perfor m sai d contrac t accordin g t o law , the n thi s obligatio n i s t o b e void ; otherwise , i t shal l remain i n ful l forc e an d effect . Nonpaymen t o f th e bon d premiu m wil l no t invalidat e thi s bon d no rshal l ODOT , o rth e above-reference d agency(ies) , b e obligate d fo rth e paymen t o f an ypremiums . Thi s bon d I s give n an d received unde rauthorifyo f OR S Chapte r279C , th e provision s o f whic h hereb yar e incorporate d int o thi s bon d an d mad e a par t hereof . TH E PARTIES , b yexecutio n o f thi s Agreement , hereb yacknowledg e tha t eac h Part y ha s rea d thi s Agreement , understand s it , an d agree s t o b e boun d b yIt s terni s an d conditions . Date d thi s _dayof .

Oivgo n O«p«[lm«nto r ' T«n«port.iiong

Y ATTORNEY-IN-FACT : (Power-of'Attorne ymus t accompan yeac h bond ) Nam e :.20O 8 PRINCIPAL : By . Signatur e Officia l Capacify Attest : Signatur e Addres s Cif y Stat e Zi p Corporatio n Secretary SURETY : (Ad d signature s fo reach i I f usin g multipl e bonds ) Phon e FaxConnectOrego n MONTHL Y PROGRES S REPOR T Overvie w o f Action s an d Responsibilitie s

. EXHIBI T D Wh o initiate s th e fonn ? Th e ConnectOrego n Projec t Recipient . Actio n require d b yth e Recipient : Fil l ou t th e Monthl yProgres s Repor t an d sen d t o th e ODOT Project Liaiso n byth e establishe d monthl yreport date . Whe n i s th e for m processed ? Montfily , o n th e dat e establishe d a s th e monthl y progres s repor

t du e date , tiiroughout th e lif e o f th e Project . Wher e doe s th e Recipien t sen d th e form ? T o th e ODO T Project Liaiso n identifie d i n th e Notic e t o Procee d Lette ro ra s late ridentifie d by ODO T i f ODO T Project Liaiso n ha s changed . Actio n require d b yODO T Project Liaison : Th e ODO T Projec t Liaiso n review s th e Monthl y Progres s Report . Th e ODOT Project Liaiso n contact s Loca l Governmen t Sectio n Manage rI f Recipien t i s no t submittin g reports .

734-266 8 (5/08 ) Overvie w

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### EXHIBI T "D "

LOCATE D I N TH E NEl/ 4 NW)/ 4 O F SECTIO N 22 , T15S. , R.15E. , WM. , CIT Y O F REDMOND . DESCHUTE S COUNTY , OREGO N FUTUR E LEAS E COKIMENCIN G A

T POIN T "fl" . FRO M WHIC H A2-1/2 " BRAS S CA P MONUMENTIN C TH E NORTHWES T CORNE R O F SECTIO N 22 . TOWNSHI P 1 5 SOUTH , RANG E 1 3 EAST. WILLAMETTE MERIDIAN BEARS Nar27'or w- 2341.2 5 FEET , AN D FRO M WHIC H A2-1/2 " BRAS S CAP MONUMENTIN C TH E NORTH 1/ 4 CORNE R O F SAI D SECTIO N 2 2 BEARS N44-52'48^' E - 489.0 8 FEET , SAI D POIN T "B " BEIN G TH E POIN T O F BEGINNING : THENC E N53'08-00" W - 80.0 0 FEET : THENC E S3V52'0Cr w- 155.0 0 FEEJ : THENC E SSffOBVC E - 80.0 0 FEET : THENC E N3V52'00'' E - 155.0 0 FEE T T O TH E POIN T O F BEGINNING . TH E SAM E CONTAININ G 12.40 0 SQUAR E FEET .

S1 6 S2 1 S1 5

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REGISTERE D PROFESSIONA L LAN D SURVEYO R OREGO N JUL r15 . 198 3 WILUA M G . BAHRK E ^ 203 9 > R«newo l Dote : 12/31/0 9 PREPARE D AUGUS T 7 . 200 3 POVE yAN D ASSOC. . LAti D SURVEYOR S P.O . BO X 131 . REDMOND . O R 9775 6 (541 ) 548-677 8 08-Oa8/00-000/AP1.DW G

### EXHI3I T "C "

LOCATE D I N TH E NEl/ 4 NWl/ 4 O F SECTIO N 22 . T15S. , R.13E. . W.M. , CIT Y O F REDMOND . DESCHUTE S COUNTY . OREGO N FUELING-PARKIN G LEAS E COMMENCIN G A

T POIN T "A" , FRO M WHIC H A2 - 1/2 ' BRAS S CA P MONUMENTIN G TH E NORTHWES T CORNE R O F SECTIO N 22 , TOWNSHI P 1 5 SOUTH , RANG E 1 3 EAST , WILLAMEU E MERIDIAN BEAR S N81'37'39'' W - 2536.0 0 FEET . AN D FROM WHIC H A2-1/2 " BRASS CA P MONUMENTIN C TH E NORT H 1/ 4 CORNE R O F SAI D SECTIO N 2 2 BEARS N22'22'07" E - 397.7 5 FEET . SAI D POIN T "A " BEIN G TH E POIN T O F BEGINNING : THENC E S31'52'0Cr w- 239.2 2 FEET : THENC E S58'08'00'' E - 74.0 0 FEET : THENC E N31'52'00'' E - 175.3 6 FEET ; THENC E 90.8 2 FEE T ALON G TH E ARC O F A100.0 0 FOO T RADIU S CUR\fE . CONCA'/ E WEST . TH E LON G CHOR D O F WHIC H BEARS N05'50'54" E - 87.7 3 FEET : THENC E N8r00'0O'' W - 38.5 4 FEET T O TH E POIN T O F BEGINNING . TH E SAM E CONTAININ G 17.62 7 SQUAR E FEET . S1 6 52 1 S1 5

S2 2 1/ ^ 

### •{XI - ^
REGISTERE D PROFESSIONA L LAN D SURVE?rO R OREGO N JUL Y 15 . 198 3 WILL'AV I G . BAHRK E ^ 203 9 R«r.«wc l Dote : 12/31/0 9 PREPARE D AUGUS T 7 . 200 8 POVEY AA/

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### oa-oaa/QQ-ooQ/A P i .ow e 

# I

### EXHIBI T "B "

LOCATE D I N TH E NEl/ 4 NWl/ 4 O F SECTIO N 22 . T15S. , R.13E. , W.M. , CIT Y O F REDMOND , DESCHUTE S COUNTY , OREGO N HANGA R LEAS E COMMENCIN G A

T POIN T "A" , FRO M WHIC H A2-1/2 " BRAS S CAP MONUMENTIN G TH E NORTHWES T CORNE R O F SECTIO N 22 , TOWNSHI P 1 5 SOUTH . RANG E 1 3 EAST . WILLAMETT E MERIDIAN BEARS N81'37'39'' W - 2536.0 0 FEET . AN D FROM WHIC H A2-1/2 " BRAS S CAP MONUMENTIN G TH E NORT H 1/ 4 CORNE R O F SAI D SECTIO N 2 2 BEAR S N22'22'0r E - 397.7 5 FEET . SAI D POIN T "A " BEIN G TH E POIN T O F BEGINNING : THENC E S3r52'00'' W - 239.2 2 FEET ; THENC E N58r08'00'' W - 175.7 7 FEET ; THENC E N3V52'00'' E - 155.0 0 FEET : THENC E N76'20-00" E - 42.8 2 FEET : THENC E S5745'00'' E - 18.2 4 FEET : THENC E S81'00'00" E - 138.4 0 FEET T O TH E POIN T O F BEGINNING . TH E SAM E CONTAININ G 35.56 9 SQUAR E FEET .

S1 6 32 1 S1 5

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I ' REGISTERE D I PROFESSIONA L LAN D SURVEYO R OREGO N JUL Y IS . 19B 3 WILUA M G . BAHRKE ^ 203 9 > RcnewQ l Dote : 12/31/0 9 PREPARE D AUGUS T 7 . 200 8 POVE Y AN D ASSOC. . LAA/ O SURVEYOR

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### V 4 2-1/2 ' BRAS S CA P

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3 WILUA M G . BAHRK E 

### ^ 2P^ 9 < Renewa l Dote : 12/31/0 9 ^'REPARE D AUGUS

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### LEGEN D MONUMEN T T

O B E SE T A T A FUTUR E DATE - • CURV E DATA NO . RADIU S LENGTH DELT ABEARIN G CHOR D C f 'IOO.OQ ' '90.82 ' ~5ZQ2'i'i ' NOfsb'si'E'i???! ' 

### TI E T O NORT H UN E NW1/ 4 POIN T DIRECTIO N AN D DISTANC E DIRECTIO N AN D DISTANC E NO . T

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# I

betwee n airpor t

light s an dothers , resul t i n glar e i n th e eye s o f pilot s usin g th e airport , impai r visibilit y i n th e vicinit y o f th e airport , creat e bir dstric t hazards , o r

otherwis e i

n an y way endange r

o r interfer e withth e landing , takeof f o r maneuverin g o f

aircraf t intendin g t o us e th e airport . I n th e even t th e aforesai dcovenan t

i s breached , th e Owne r reserve s th e right

t o ente r o n th e lan dconveye dhereunde r an dcaus e th e abatemen t o f suc hinterferenc e a t

th e expens e o f

Tenant . I N WITM:S S WHEREO Fth e partie s heret o hav e cause dthi s agreemen t t o b e executed . LE S SCHWA B WAREHOUS E CENTER , L\C . Core y J Secr e TH E CIT Y O FREDMON D
Ala n Unger , Mayo r ATTEST :
Cit y Recorder
Pag e 1 4 • Leas e Agreemen t

# I I Thi s agreemen t shal l b e deeme dt o hav e bee n mad e in , an dperformanc e thereo f shal l b e construe di n accordanc e withth e law s o f th e Stat e o f

Oregon . I . Cost s an dAttorne y Fee s I n th e even t

sui t o r actio n i s institute dt o enforc e an y o f th e term s o f

thi s contract , th e prevailin g part y shal l b e entitle dt o recove r fromth e othe r

part y suc hsu ma s th e court ma y adjudg e reasonabl e a s attorney' s fee s a t tria l o r o n appea l o f

suc hsui t

o r action , i n additio n t o al l othe r

sum s provide db y law . J . Nondiscriminatio n Pursuan t t o Titl e V I o f

th e Civi l Right s Ac t

o f 1964 . an db y Par t

1 5 o f th e Federa l Aviatio n Regulations , Tenan t agree s i t

wil l no t o n th e ground s o f

race , creed , color , nationa l origin , o r

sex , discriminat e o r

permi t discriminatio n agains t

an y perso n o r

grou p o f person s i n an y manne r

prohibite db y Part

1 5 o f th e Federa l Aviatio n Regulations . Th e Tenan t furthe r assure s tha t

i t wil l undertak e a

n affirmativ e actio n progra ma s require dby 1 4 CF RPar t

152 , Subpar t

E , t o insur e tha t

n o perso n shal l o n th e groun do f race , creed , color , nationa l origin , o r se x b e exclude dfromparticipatin g i n an y employmen t activitie s covere di n 1 4 CF RPar t 152 , Subpar t

E . Th e Tenan t

assure s tha t

n o perso n shal l b e exclude do n thes e ground s fro mparticipatin g i n o r receivin g th e service s o r benefit s o f an y progra mo r

activit y covere db y thi s subpart . Th e Tenan t assure s tha t

i t wil l requir e tha t it s covei'e dsuborganization s provid e assurance s t o th e Tenan t tha t the y similarl y wil l undertak e affirmativ e actio n program s an dtha t the y wil l requir e assurance s fro mthei r suborganizations , a s require db y 1 4 CF RPar t 152 , Subpar t

E , t o th e sam e effect . Th e Owne r

reserve s th e right

t o tak e suc hactio n a s th e Unite dState s ma y direc t t o enforc e th e provision s o f thes e covenants . K . Righ t

o f flJRh; Th e Owne r

reserve s unt o itself, it s successor s an dassigns , for th e us e an dbenefi t

o f th e publi c arigh t

o f fligh t fo r th e passag e o f

aircraf t i n th e airspac e abov e th e surfac e o f th e rea l propert y describe dabove , togethe r wit hth e right

t o caus e i n sai dairspac e stic hnois e a s ma y b e inheren t

i n th e operatio n o f

aircraft , no w know n o r hereafte r

used , for navigatio n o f

o r fligh t i n th e sai dairspace , an dfo r us e o f sai dairspac e fo r

landin g on , takin g of f fro mo r operaun g o n th e Redmon dMunicipa l Airport . Th e Tenan t

expressl y agree s fo r

itself , it s successor s an dassign s tha t i t wil l no t erec t no r permi t th e erectio n o f

an y structur e o f

objec t no r permi t th e growt ho f

an y tre e o n th e lan dconveye dhereunde r tha t woul dviolat e th e standard s establishe di n Federa l Aviatio n Regulations , Par t

77 , Object s Affectin g Navigabl e Airspace , a s amended . I n th e even t

th e aforementione dcovenan t i s breached , th e Ovme r reserve s th e right

t o ente r o n th e lan dconveye dhereunde r t o remove , lower , mar k o r ligh t th e offendin g structure , tree , o r

othe r objects , al l o f

whic hshal l b e a t

th e expens e o f

th e Tenant . Th e Tenan t

expressl y agree s fo r

itself , it s siurcessor s an dassign s t o preven t an y us e o f th e abov e describe drea l propert y whic hwoul dinterfer e wit hlandin g o r takin g oH

^ o f | aircraf t a t th e Redmon dMunicipa l Airport , o r otherwis e constitut e ahazard . Suc h | hazard s includ e use s tha t creat e electrica l interferenc e wit hnavigationa l signal s o r radi o | communicatio n betwee n th e airpor t an daircraft , mak e i t

difficul t fo r fHot s t o distinguis h I Pag e 1 3 - Leas e Agreonen t I '—^—^^—TM—•^•^^

—uI n additio n to th e above . Owne r wil l Joi n i n executin g an y an dal l instrument s whic hlegal counse l for

an y lende r

o n th e securit y o f

Tenant' s leasehol destat e ma y reasonabl y requir e i n orde r t o accomplis hth e same , provide dthat nothin g herei n shal l b e construe da s obligatio n Owne r

t o incu r an y persona l liabilit y fo r repaymen t

o f an y suc hloan , no r

a s subordinatio n th e Owner' s right s an dreversionar y interes t i n an dto th e lease dpropert y to an y suc hencumbrance . C . Non-Waive r Waive r b y eithe r

part y o r stric t performanc e o f

an y provisio n o f

thi s agreemen t

shal l no t b e awaive r

o f o r prejudic e th e parties ' right t o requir e stric t

performanc e o f

th e sam e provisio n o f

th e futur e o r

o f an y othe r

provision . Acceptanc e o f eithe r part y o f performanc e allowin g adefaul t wil l no t b e deeme dawaive r

o f suc hdefault . N o waive r b y eithe r part y o f adefaul t wil l constitut e awaive r o f an y othe r

default . D . P?a<;?fa

l fosstssip n S o lon g a s Tenan t

complie s wit hal l provision s o f thi s agreement . Owne r wil l defen d Tenant' s right

t o quie t enjoymen t

o f th e lease dpropert y an dal l rights tha t ar e license dor permitte dunde r

thi s lease . 

### E . tMss i Al l notice s o r

communication s require dunde r thi s agreemen t

shal l b e deeme dt o b e propert y serve di f

sen t b y certifie dmai l t o th e las t addres s previousl y furnishe db y th e partie s hereto . Unti l hereafte r change db y th e partie s b y notic e i n writing , notice s shal l b e sen t t o Owne r

at : TH E CIT Y O FREDMOND , P O Bo x 726 , Redmond , Orego n 97756 , an dt o th e Tenan t

at : LE S SCHWA B WAREHOUS E CENTER , INC. , 2090 0 N E Coole y Road , Bend , Oregon , 97701 . Dat e o f servic e o f

suc hnotic e i s th e dat e suc hnotic e i s deposite di n apos t offic e o f th e Unite dState s Pos t

Offic e Department , postag e prepaid . F . Invalidit y Th e invalidit y o f

an y provisio n o f

thi s agreemen t

wil l no t affec t th e othe r

provisions , unles s th e purpos e o f

th e partie s i n makin g thi s agreemen t woul db e thereb y frustrated . G . Wan-anties/Guarantee s Owne r make s n o warranty , guarantee , o r avermen t

o f an y natur e whatsoeve r

concemin g th e physica l conditio n o f th e lease dproperty , it s suitabilit y o f th e propose d improvements , o r

th e availabilit y o f

utilities . Tenan t

ha s ha daful l opportunit y t o inspec t th e lease dpropert y and , excep t a s otherwis e provide di n thi s lease , accept s th e lease d propert y a s is . I t

i s agree dtha t

th e Owne r

wil l no t b e responsibl e fo r

an y loss , damage , o r cost s whic hma y b e incurre db y th e Tenan t b y reaso n o f

th e conditio n o f

th e lease d property . H . Interpretatio n Pag e 1 2 - Leas e Agreemen t

# I I I I corporatio n withwhic hTenan t ma y merg e o r

consolidat e par t

thereo f an dwhic hTenan t

ma y merg e o r consolidat e par t

thereo f an dwhic hwil l assum e Tenant' s obligatio n hereunder . Tenan t shal l pa y Owner' s cos t

t o approv e th e subleas e o r assignment . Th e amoun t t o b e pai dwil l b e se t b y th e Cit y Counci l b y resolution . B . Leasehol dMortgag e Protectio n I t i s recognize dtha t

Tenan t may , fro mtim e t o time , encumbe r

thi s leas e fo r

financin g purposes . Thi s lease , therefore , i s subjec t t o th e followin g provisions :

1 ) Th e Tenan t

i s t o furnis hth e Owne r a n execute dcounterpar t o f an y suc h mortgage . 2 ) An y notice , demand , othe r documen t

o f an y kin dwhateve r

serve db y Owne r upo n Tenan t

including , bu t

no t limite dt o notic e o f

defaul t unde r th e lease , shal l als o b e serve do n th e lender , bu t Owne r shal l no t b e require dt o serv e an assigne e o f

th e Lende r

unles s an dunti l acop y o f th e assignmen t

i s serve d upo n th e Owner . 3 ) Wheneve r

ownershi p o f

th e mortgag e passe s int o th e hand s o f mor e tha n on e party , al l suc howner s mus t fiimis hth e Owne r

awritte n designatio n o f th e part y t o b e serve do n behal f o f al l suc howners . 4 ) Th e lende r

shal l hav e th e right

t o cur e Tenant' s default s an dperformal l hi s covenants . 5 ) A s t o an y defaul t

o f breac ho f

covenan t

tha t ca n b e cure db y lende r withou t takin g possessio n o f

th e lease dproperty , th e lende r shal l hav e sixt y (60 ) day s t o cur e suc hdefaul t

o r breache s afte r

Owne r ha s give n th e lende r

notic e o f intentio n t o terminat e th e leas e o r disposses s Tenant . 6 ) A s t o an y defaul t

o r breac htha t

ca n onl y b e cure db y takin g possession , th e Owne r ma y require th e lende r t o fiimis hareasonable guarante e o f it s performanc e unde r

th e leas e o f

al l Tenant' s obligations , includin g th e car e o f al l default s an dbreaches , an dtha t lende r wil l procee dwit hreasonabl e diligenc e t o tak e possessio n o f th e lease dpropert y an deithe r foreclos e th e mortgag e o r

acquir e th e leasehol db y assigiunen t i n lie u o f

foreclosure . 7 ) An y acquisitio n o f

th e leasehol db y th e lende r ma y b e take n i n th e nam e o f a nominee . 8 ) Th e Owne r

wil l no t

terminat e th e leas e a s lon g a s lende r perform s promptl y al l o f

it s covenant s i n th e guarantee . 9 ) I n cas e o f

terminatio n o f

th e leas e fo r

defaul t o r breac ho f

covenan t b y Tenant , th e lende r

ma y serv e notic e o n Owne r o f it s desir e t o ente r

int o ane w leas e fo r th e balanc e o f

th e ter ma t

th e sam e rentals an dwit hth e sam e covenant s containe di n th e lease . Th e notic e t o b e serve do n th e Owne r thirt y (30 ) day s prio r t o terminatio n b y th e Owner , whic hnotic e shal l b e accompanie db y a paymen t o f al l arrear s o f

leas e payment s an dareasonable su mt o compensat e th e OwTie

r fo r expenses , includin g reasonabl e attome y fees , an destablishin g th e ne w relationship an daguarante e satisfactor y t o Owne r tha t lende r wil l cur e al l Tenant' s default s an dbreache s othe r tha n arrear s i n leas e payments . Th e ne w leas e wil l commenc e a s o f th e terminatio n o f

th e ol done , bu t

shal l b e prio r an dsuperio r

t o al l rights, lien s an dencumbrance s tha t woul dhav e bee n extinguishe db y foreclosur e t o lende r i f t h e lende r

s o demands . A statemen t o f thi s obligatio n shal l b e include di n al l subleases . Pag e 1 1 - Leas e Agreemen t

# I

1 ) Tenan t

shal l vacat e th e propert y immediately , remov e an y propert y o f Tenan t includin g fixture s whic hTenan t i s require dt o remov e a t th e en do f

th e agreemen t

terms , performan y clean-u p alteration s o r othe r work require da

t th e en do f

th e term , an ddelive r

al l key s t o Owner . An y persona l propert y remainin g afte r

terminatio n o f

th e leas e shal l b e th e propert y o f Owner . 2 ) Owne r

ma y reenter , tak e possessio n o f th e lease dpropert y an dremov e an y person s an dpropert y b y lega l action . SECTIO N lO.TERMINATIO N A . Upo n terminatio n o f th e agreement , Tenan t

shal l surrende r

th e lease dpropert y i n goo dcondition , norma l wea r an dtea r excepte dprovide dnorma l maintenanc e ha s bee n provided . Building s constructe db y th e Tenan t withpermissio n fro mth e Owne r shal l no t b e removed . B . Upo n terminatio n o f th e agreement , th e buildin g an dal l improvement s whic har e apar t o f thi s leas e shal l becom e th e exclusiv e propert y o f th e Owner . An y persona l propert y remainin g o n th e lease dpropert y a t th e terminatio n o f

th e leas e shal l b e th e propert y o f Owner . C . Upo n terminatio n o f thi s agreemen t

(provide dth e terminatio n wa s no t fo r a defaul t b y Tenant) , Tenan t

shal l hav e th e right

o f firs t opportunit y t o leas e th e propert y an d improvement s firomth e Owne r fo r five (5 ) year s an drenewable ever y five years , thereafte r wit h aimua l leas e payment s equa l t o te n percen t o f fai r marke t valv e o f lan dan dimprovements , an d o n suc hothe r

tenns , includin g adjustment s t o th e leas e payments , a s ar e acceptabl e t o both Owne r an dTenant. . SECTIO N ILEiVUNENTDOiVLU N A . Effec t

o f Tota l Condemnatio n I n th e even t th e entir e lease dpropert y shal l b e appropriate do r

take n unde r

th e powe r

o f th e eminen t

domai n b y an y publi c o r quasi-publi c authority , thi s leas e shal l terminat e an dexpir e a s o f th e dat e o f

suc htaking , an dTenan t shal l thereupo n b e release dfro man y liabilit y thereafte r accruin g hereunder . B . Effec t

o f Partia l Copdemnatio n I n th e even t aportio n o f

th e lease dpropert y shal l b e s o appropriate do r

take n an dth e remainde r o f th e propert y shal l no t

b e suitabl e fo r

us e the n bein g mad e o f

th e propert y b y Tenant , o r i f th e remainde r

o f th e propert y i s no t

on e undivide d parce l o f property . Tenan t

shal l hav e th e right

t o tenninat e thi s leas e a s o f th e dat e o f

suc htakin g o n givin g t o Owne r

writte n nodc e o f

suc hterminatio n withi n 12 0 day s afte r Owne r ha s notifie d Teiumt i n writin g tha t

thi s propert y ha s l)ee n appropriate do r taken . I f

ther e i s disagreemen t betwee n th e Owne r

an dTenan t

o n th e effec t

o f partia l condemnation , th e issu e o f suitabl e us e shal l b e determine db y arbitration . In th e even t o f suc hpartia l takin g an dTenan t doe s no t

s o terminat e thi s lease , the n thi s leas e shal l continu e i n fiill forc e an deffec t a s t o par t

no t taken , an d th e renta l t o b e pai db y Tenan t durin g th e remainde r o f th e ter mshal l b e adjuste da s proportionat e t o th e are ataken . C . Condemnatio n .\war dAn y awar do r settlemen t

mad e i n eminen t

domai n proceeding s involvin g th e lease dpropert y shal l b e distribute da s betwee n th e Owne r an dTenan t a s follows : 1 ) Th e Owne r shal l receiv e al l sma s awarde da s compensatio n fo r th e takin g o f th e land . 2 ) Th e Tenan t

shal l receiv e thos e sum s fo r an y improvement s taken . SECTIO N 12.GENERA LPROVISION S A . Assignmen t

an dSublease s Th e Tenan t wil l no t assig n thi s agreemen t

o r subleas e th e lease dproperty , o r

transfe r an y rights hereunde r

withou t th e consen t

o f th e Owne r

i n writin g whic hshal l no t

b e withhel dunreasonably . Consen t shal l no t b e require dfo r

an assignmen t

t o a Pag e 1 0 - Leas e Agreemen tAl l additions , alteration s an drepair s exceedin g 25 % o f th e valu e o f

th e existin g building(s ) o r th e lease dproperty , shal l b e subjec t t o th e Buildin g an dth e Improvemen t provision s o f

Sectio n 4 o f thi s lease . SECTIO N 8 . EVENT S O FDEFAUL T A . Defaul t

i n Leas e Pavmen t 1 ) Failur e o f

Tenan t t o mak e leas e payment s provide dfo r i n thi s agreemen t withi n five (5 ) workin g day s followin g writte n notic e o f delinquency . 2 ) Failur e o f

Tenan t t o mak e leas e payment s provide dfo r i n thi s agreemen t

o n th e du e dat e i f

Owne r sen t adefaul t notic e unde r

sectio n 8 A (1 ) durin g th e prio r 1 2 months . B . Defaul t

i n Othe r Covenant s 1 ) Failur e o f

Tenan t t o compl y wit han y ter mo r conditio n o r

fulfil l an y obligatio n o f

thi s agreemen t

withi n thirt y (30 ) day s afte r writte n notic e b y Owne r specifyin g th e natur e o f th e defaul t

wit hreasonabl e particularity . Owne r ma y allo w Tenan t

additiona l tim e t o correc t th e defaul t

i f th e defaul t

i s o f suc hanatur e tha t

i t canno t b e completel y remedie dwithi n th e thirt y (30 ) day perio dan dTenan t

proceed s wit hreasonabl e diligenc e an di n goo dfait ht o effec t th e remed y a s soo n a s practicable . 2 ) Failur e o f

Tenan t t o compl y wit han y ter mo r conditio n o r

fulfil l an y obligatio n o f

thi s agreemen t

i f Owne r sen t adefaul t

notic e unde r

sectio n 8 B(l ) fo r th e sam e violatio n dtirin g th e prio r 1 2 months . Tenan t

shal l no t

b e entitle dt o remed y an y defaul t o r cur e unde r

thi s subsectio n withou t th e writte n consen t

o f Owner . C . Abandonmen t Followin g construction , th e failur e o f th e Tenan t

t o occup y th e propert y fo r thirty (30 ) day s o r mor e fo r

th e purpose s permitte dunde r thi s agreemen t

unles s suc hfailur e i s excuse dunde r

othe r provision s o f

thi s agreemen t

shal l constitut e abandonment . Thi s thirt y (30 ) da y perio dshal l begi n onl y afte r writte n notic e b y Owne r specifyin g abandonmen t

o f th e lease dproperty . SECTIO N 9 . REMEDIE S O N DEFAUL T I n th e even t

o f adefault , th e Owne r

ma y terminat e th e agreemen t b y writte n notic e sen t b y certifie dmai l t o Tenant . Owne r ma y includ e th e notic e o f defaul t wit hth e notic e requiredunde r sectio n 8 A I o r

sectio n 8 B 1 . I f

th e propert y i s abandone db y th e Tenant , terminatio n shal l b e automati c an dwithou t

furthe r notice . 

### A . .Qamags s I n th e even t

o f terminatio n o r

default . Owne r

shal l b e entitle dt o recove r immediately , withou t waitin g unti l th e du e dat e o f an y futur e leas e paymen t o r unti l th e dat e fixe dfo r expiratio n o f

th e agreemen t

term , th e followin g amount s a s damages : 1 ) Th e reasonabl e cost s o f reentr y an drelettin g includin g withou t limitatio n th e cos t o f an y clea n up , refurbishing, remova l o f Tenant' s propert y an dfixnires , o r an y othe r

expens e occasione db y Tenant' s failur e t o qui t th e propert y upo n terminatio n an dt o leav e the mi n th e require dcondition , 2 ) Th e los s o f

reasonabl e renta l valu e fro mth e dat e o f defaul t unti l ane w Tenan t ha s been , o r

wit hth e exercis e o f

reasonabl e effort s coul dhav e bee n secured , B . Reentry afte r

Terminatio n ?ag c 9 - Leas e Agreemen t

# I I L . Securit y an dAirpor t Regulation s Tenant , it s employees , contractors , subcontractors , licensees , subtenants , an dinvites , shal l observ e an dcompl y withal l rules , regulations , an ddirection s o f th e Federa l Aviatio n Administratio n an dth e Transportatio n Securit y Administratio n an dwithth e term s an dcondition s o f th e Airpor t

Securit y Progra ma s fro mtim e t o tim e may b e amended . The y shal l als o compl y withal l curren t an dfutur e airpor t

regulation s an d policie s adopte db y th e Owner . SECTIO N 5 . RIGHT S O FOWNE R Owne r shal l hav e th e right

durin g th e leas e ter mt o pay an y taxes , assessments , water , sewe r o r othe r charge s agains t

th e lease dproperty . Th e amoun t pai dshal l b e a n additiona l leas e paymen t du e firomTenan t

at th e nex t leas e paymen t

da y afte r

suc hpaymen t

wit hinteres t

thereo n a t

th e rat e o f 10 % pe r annu mfromth e dat e o f paymen t thereo f b y Owner , unti l th e repaymen t thereo f t o Owne r b y Tenant . I f th e Owner , a t

it s option , shal l advanc e o r pa y an y suc htaxes , insurance , assessments , water , sewe r o r othe r charges , o r

pay , cance l an dclea r

of f an y ta x sales , lien s o r

charge s an dclaim s o n an dagains t

th e lease dpropert y o r

th e reversionary interes t therein , i t

shal l no t

b e obligator y o n Owne r t o inquir e int o th e validit y o f suc htaxes , assessments , water , sewer , o r othe r charge , o r an y suc h ta x sale . Provided , however , tha t i f Tenan t shal l b e activel y prosecutin g it s administrativ e o r

lega l remedie s i n protes t o f an y tax , assessment , water , sewer , o r othe r charges . Owne r shal l no t hav e th e right

t o pa y o r

advanc e sum s referabl e theret o unti l suc hremedie s shal l hav e bee n exhausted . SECTIO N 6 . RIGH T T O ENTE RAN D INSPEC T Owne r an dit s authorize demployees , agents , contractors , subcontractor s an dothe r representative s shal l hav e th e righ t a t al l reasonabl e time s durin g th e ter mo f thi s lease , t o ente r upo n th e lease dpropert y t o inspec t an dascertai n th e condition s o f th e sam e o r

fo r an y othe r purpos e whatsoever . Owne r i s no t require dt o provid e notic e t o Tenan t o r an y suc hinspection . Tenan t shal l immediatel y provid e acces s fo r inspectio n upo n deman db y Owner . I t i s understoo dan dagree db y an dbetwee n th e partie s tha t at th e completio n o f

construction , th e Cit y shal l b e provide dacop y o f th e buildin g plan s an dspecification s fo r th e improvements . Owne r ma y fto mtim e t o tim e inspec t th e lease dpropert y t o ensur e tha t th e propert y i s maintaine di n goo dcondition , reasonabl e wea r an dtea r excepted . Prio r

t o th e completio n o f

th e leas e term . Owne r

ma y inspec t

th e propert y an di f

ther e ar e deficiencies . Owne r may requir e thos e deficiencie s t o b e correcte dbefor e th e lease dpropert y i s turne dove r t o Th e Cit y o f Redmon da t

th e en do f

th e leas e term , SECTIO N 7 . DA>UG E O RDESTRUCTIO N I f th e lease dpropert y an dimprovement s ar e destroye dl ^ fire o r othe r casualty . Tenan t

shal l hav e th e optio n o f

eithe r (a ) terminatin g di e leas e an dprovid e th e Owne r wit hth e proceed s o f th e insuranc e o n th e building , o r (b ) repairing th e damag e a t it s ow n expense . I f an y repairs o r

reconstructio n undertake n b y th e Tenan t pursuan t

t o thi s sectio n ar e no t substantiall y complete d(85% ) withi n on e yea r o f th e dat e o f

th e settlemen t

o f th e insuranc e clai mfo r th e lease dpropert y tha t wa s damaged . Owne r

ma y tenninat e thi s agreonen t i n whol e o r i n par t upo n notice . T o Tenan t Pag e 8 - Leas e Agreemen t

# I

However , s o lon g a s th e ne t wortho f

Tenan t exceed s Twent y Millio n Dollar s ($20,000,000) , Tenan t

shal l hav e th e right

t o self-insur e th e risk

tha t woul dotherwis e b e covere db y th e insuranc e policie s require dt o b e maintaine dunde r thi s Section , I n th e even t Tenant' s ne t

wort hfall s belo w Twent y Millio n Dollar s ($20,000,000 ) o r i f i t terminate s it s progra mo f self-insurance . Tenan t shal l promptl y giv e Owne r writte n notic e o f suc heven t

accompanie db y acertificat e o f insuranc e fro mathird-part y insuranc e compan y whic hevidence s th e existenc e o f th e insuranc e coverag e require dt o b e maintaine dpursuan t

t o th e term s o f

thi s Section . J . Insuranc e Th e Tenan t

shall , a t al l time s durin g th e ter mo f thi s lease , an dat

Tenant' s sol e expense , kee p al l improvement s whic har e no w o r hereafte r apar t o f th e lease dpropert y insure d agains t los s o r damag e b y fire an dth e extende dcoverag e hazard s fo r th e full replacement valu e o f suc himprovements . Losse s shal l b e payabl e t o th e Owne r an dTenan t

accordin g t o thei r respectiv e interest s a s provide dfo r i n thi s lease , provided , however , Tenan t may , a t it s election , appl y an y amoun t accrue dfroman insure dlos s t o th e restoratio n o r repai r o f th e lease dproperty . An y los s adjustmen t shal l requir e th e writte n consen t o f bot hth e Owne r an dTenant . Suc hinsuranc e shal l nam e th e Owne r a s a n additiona l name dinsure d wit hacertificat e providin g thirt y (30 ) day s notic e t o Owne r prio r t o cancellation . Tenan t shal l fiimis hth e Owne r acertificat e evidencin g th e date , amoun t an dtyp e o f

insuranc e tha t ha s bee n procure dpursuan t t o th e agreement . I f

asubtenan t

provide s proo f

o f insuranc e sufficien t

imde r thi s sectio n namin g th e Owne r a s a n additiona l name dinsure d suc hproo f

shal l satisf

y thi s requirement . However , s o lon g a s th e ne t wort ho f

Tenan t exceed s Twent y Millio n Dollar s ($20,000,000) , Tenan t

shal l hav e th e right

t o self-insur e th e risk

tha t woul dotherwis e b e covere db y th e insuranc e policie s require dt o b e maintaine dunde r thi s Section . I n th e even t Tenant' s ne t

wort hfall s belo w Twent y Millio n Dollar s ($20,000,000 ) o r i f i t terminate s it s progra mo f self-insurance . Tenan t shal l promptl y giv e Owne r writte n notic e o f suc heven t

accompanie db y acertificat e o f insuranc e from athird-part y insuranc e compan y whic hevidence s th e existenc e o f th e insuranc e coverag e require dt o b e maintaine dpursuan t

t o th e term s o f

thi s Section . K . ^''•^"W^Mf

f yif?^?'*"r'r Tenan t shal l no t

us e an y hazardou s o r

toxi c substance s a s define di n Orego n Revise d Law s 453.00 5 withou t

prio r writte n notic e t o Owner . Sai dNotic e shal l identif y th e substanc e t o b e used , th e are ai n whic hth e substanc e i s used , th e manne r i n whic hth e substanc e i s t o b e store dan dapplied , an dplan s t o dispos e o f an y excess . Owne r

ha s th e optio n o f refusing t o consen t

t o suc huse , storag e o r

disposa l o f

toxi c substances ; Tenant' s failur e t o compl y wit hsuc hadecisio n shal l constitut e a n even t o f defaul t b y Tenant , Al l hazardou s o r

toxi c material s shal l b e use dstrictl y i n accordanc e wit hal l applicabl e laws , rule s an dordinance s an dTenan t shal l no t allo w an y hazardou s o r toxi c wast e int o th e air , ground , o r

wate r tha t i s no t i n complianc e wit hsai dlaw s an dregulations. Tenan t shal l indemnif y an dhol dOwne r

harmles s fro man y claim , liability , loss , cos t o r expens e (includin g bu t

withou t limitation , attorney s fees ) resulting fromhazardou s o r to,xi c waste s place do n th e propert y b y Tenant . Pag e 7 - Leas e Agreemen t9 ) Cleanin g parts : I t i s no t permitte dfo r

an y perso n t o clea n an y aircraft , engine s o r

part s o f aircraf t i n an aircraf

t hanga r o r withi n fifty (50 ) feet

o f anothe r aircraft , buildin g o r

hanga r withan y flammable liquid . 10 ) Runnin g engines : N o perso n shal l ru n th e engin e o f an y aircraf

t i n an y aircraf t hangar . F . Lien s Tenan t agree s t o pay , whe n due , al l stun s o f mone y that

ma y becom e du e fo r or purportin g t o b e fo r

an y labor , services , materials , supplies , utilities , furnishing , machiner y o r

equipmen t

whic hhav e bee n furnishe do r ordere dwit hTenant' s consen t t o b e furnishe dt o o r

fo r th e Tenan t

in , upo n o r

abou t th e lease dproperty , whic hma y b e secure db y an y lie n agains t th e lease dproperty , Owner' s interest s i n th e lease dproperty , o r th e improvement s t o th e lease dproperty . Tenan t wil l caus e eac hsuc hlie n t o b e full y discharge dan drelease dat th e tim e th e perfonnanc e o f an y obligatio n secure db y an y suc hlie n mature s o r

become s due , provide dthat th e Tenan t

may i n goo dfaithcontes t an y lien s filedo r

established , an di n suc heven t ma y permi t

th e item s s o conteste dt o remai n undischarge dan dunsatisfie ddurin g th e perio do f suc hcontest . G . Taxes , Assessment s Tenan t agree s t o pa y an y taxes , assessment s (includin g Loca l Improvemen t Distric t assessments) , water , sewe r o r othe r charge s o n th e lease dpropert y a s the y becom e du e provide dth e Tenan t

ma y mgoo dfait hcontes t an y suc hliabilit y filedo r established , an d i n suc heven t

ma y permi t

th e item s s o conteste dt o remai n undischarge dan dunsatisfie d durin g th e perio do f

suc hcontest , H . iDdsimui] ^ Tenan t agree s full y t o indemnify , sav e harmles s an ddefen dth e Owner , th e Redmon d Cit y Counci l an dth e City o f Redmon dofficer s an demployee s fro man dagains t al l claim s an daction s an dal l expense s incidenta l t o th e investigatio n an ddefens e thereof , base dupo n o r

arisin g ou t

o f al l damage s o r

injurie s t o thir dperson s o r thei r property , cause db y Tenant' s negligen t o r intentiona l act s o r

omission s i n th e occupatio n an dus e o f th e lease dpropert y o r

an y othe r

airpor t propert y b y Tenant , it s subtenant s o r employees , OwTie r shal l giv e t o th e Tenan t promp t an dreasonabl e notic e o f an y suc hclaim s o r actions , an dth e Tenan t

shal l hav e th e right

t o investigate , compromis e an ddefen dsame , provide dsuc hclai mi s no t th e resul t

o f th e negligen t

ac t o f Owner . I , Liabilit y Insuranc e Tenan t agree s t o procur e an dmaintai n at it s cos t durin g th e tem i o f

thi s agreemen t

o r an y renewa l hereof, bodil y injury an dpropert y damag e insuranc e whic hshal l cove r al l risks arisin g directl y o r

indirectl y ou t

o f Tenant' s activitie s on , o r an y conditio n of

, th e lease d property , whethe r

o r no t relatedt o a n occurrenc e cause do r contribute dt o b y th e Owner' s negligence . Th e polic y limit s shal l no t b e les s tha n $1,000,00 0 pe r inciden t fo r eac h persona l injur y an dpropert y damage . Suc hmsuranc e shal l nam e th e Owne r a s additiona l name dinsure dwit hacertificat e providin g thirt y (30 ) day s notic e t o Owne r prio r t o cancellation . Tenan t

shal l furnis ht o th e Owne r acertificat e evidencin g th e date , amoun t an dtyp e o f

insuranc e tha t

ha s l>ee n procure dpursuan t

t o th e agreemeiu . I f

asub-tenan t provicte s proo f

o f insuranc e sufficien t

unde r thi s sectio n namin g th e Owne r a s a n additiona l name dinsure dsuc hproo f shal l satisf

y thi s requirement . Pag e 6 - Leas e Agreemen tTenant shal l exercis e du e andreasonabl e care an dcautio n t o prevent

andcontro l fire o

n th e propert

y an dt o tha

t en dshall adhere t o the following minimumstandard s o r other requirement s particula

r t o Tenant' s us e o f

th e propert

y a s set fort h b y th e Fir e Marshal : 1 ) Access : Precaution s shal l be taken to ensur e read y acces s to hangar s from al l sides . Th e spac e aroundhangar s shal l no t b e usedfo

r th e storag e o f

an y combustibl e material s andal l vegetatio n shal l b e kep t trinune di

n afire saf

e manner . 2 ) Portabl e fir e extinguisher : Portabl e fir e extinguisher

suitabl e fo

r flammabl e o r

combustibl e liqui dan

delectrical typ e fires shal l b e installe din th e aircraf t hanga r an dservice dannually . AB C type/minimum2A:10B C rating . Us e o f an y fire extinguisher

under an y circumstance s shall b e reporte dt o th e manager o f the airpor t an d th e fire chie f

immediatel y afte

r use . 3 ) Combustibl e storage : N o perso n shall store combustibl e material s o r other hazardou s material s i n a

n aircraf t hanga r excep t i n container s approve db y th e Fir e Marshal . 4 ) Ope

n Flame : Ope

n flame, flame-producing devic e o r other sourc e o f ignitio n (examples ; gas , o r gasoline/propan e heaters , weldin g apparatus , etc. ) shal l no t b e pennitte di

n an y hangar . 5 ) Transferrin g Fuel : N o flammable or combustibl e liqui dshall be dispense dint o o r

remove dfro

mth e fue l syste mof

a n aircraf t withi n an y aircraf t hangar . a ) Flammabl e material i s an y material tha

t wil l readil y ignite fromcommon source s o f hea t o r an y materia l that wil l ignit e at

atemperature o f

600 ' F o r less. b ) Flammabl e liqui di s an y liqui dhavin g aflash poin t belo w 100 ° Fan

d havin g avaipo

r pressure not

exceedin g 4 0 pound s pe r square inc h (absolute ) a

t 100 ° F . 6 ) Smoking : No smokin g i s permitte do n th e Airpor t Operatin g Are aexcep t i n designate dareas . 7 ) Repairin g aircraft : All aircraf t repairs requirin g th e us e o f ope n flames, spark-producin g device s or th e heatin g o f

part s abov e 500 ° Fshal l no t b e permitte di n a

n aircraf t hangar . 8 ) Applicatio n o f

flammable o r

combustibl e liqui dfinishes: Th e applicatio n o f Clas s I o r

Clas s I I liqui dfinishes i s prohibite dunles s al l o f th e followin g condition s ar e met : a) The applicatio n method s an dprocedure s are in accordanc e wit h Articl e 4 5 o f th e Unifor

mFire Code ; an d b ) Th e applicatio n o f th e liqui dfinishi s accomplishe di n a n {qsprove

d location , (note tha

t n o location s o n airpo n property ar e currently approved ) Pag e 5 - Leas e Agreement

# I

th e request

o f eithe r party . I n calculatin g th e fai r marke t valu e o f th e lease dproperty , th e valu e shal l b e eithe r

th e valu e agree dupo n b y th e partie s o r it s appraise dvalue . I f

th e partie s canno t agre e upo n on e license dappraise r t o prepar e th e appraisal , bot hpartie s shal l obtai n appraisal s an dth e fai r

marke t valu e shal l b e th e averag e o f Owner' s appraisa l an dTenant' s appraisal . SECTIO N 4 . OBLIGATION S O FTENAN T Th e Tenan t

shal l hav e th e followin g obligations : 

### A . UjcQfthePrppgrt y Tenan t shal l b e entitle dt o us e th e Propert y fo r th e developmen t

an doperatio n o f

an airplan e hange r

t o maintain , store , an doperat e aircraf t use db y Tenan t

an dit s affiliate s durin g th e cours e o f

thei r business . Tenan t

agree s t o us e th e leas e propert y an dt o conformt o al l presen t

an dfutur e applicabl e law s an dregulation s o f an y publi c authorit y affectin g th e lease dpropert y an dus e o f th e lease dproperty . 

### B . Mldiog s Al l improvement s including , bu t no t limite dto , building s an dramp s shal l b e constructe d t o conformt o al l applicabl e rule s an dregulation s o f th e Cit y o f

Redmond , th e Stat e o f Oregon , an dth e FAA . Prio r t o an y constructio n o f

an y ramp , buildin g o r

buildings , al l buildin g plan s an dsit e plan s mus t b e approve db y th e Owner , a s th e owne r o f th e property . Thi s i s separat e froman di n additio n t o an y Sit e an dDesig n Revie w o r approval s fro man y othe r agency . I t

i s agree dtha t

upo n th e constructio n o f an y ram p o r building s b y Tenant , tha t th e Owne r

shal l hav e n o responsibilitie s wit hrespec t t o maintenance , repai r

o r alteration s t o an y ram p o r buildings , an dTenan t

shal l hav e th e ful

l responsibilit y t o maintai n th e improvements . C . Maintenanc e Tenan t shal l kee p an dmaintai n th e lease dpropert y an dal l improvement s o f an y kin d whic hma y b e erected , installe do r mad e thereo n b y Tenan t i n goo dan dsubstantia l repair an dcondition , includin g th e exterio r conditio n thereof, an dal l landscapin g an dshal l mak e al l necessar y repafrs an dalteration s thereto . Tenan t shal l provid e prope r

container s for tras han dgarbag e an dshal l kee p th e lease dpropert y free an dclea r o f rubbish , debri s an dlitte r a t al l times . D . Improvement s b v Tenan t Tenant , subjec t

t o Owner' s writte n approva l an dan y othe r require dapprovals , may install , erec t

o r plac e i n o r

abou t th e lease dproperty , building s o r expan dan y building s whic hTenan t

consider s appropriat e t o th e operatio n o f it s business . Al l building s shal l b e th e propert y o f

Owne r upo n th e terminatio n o f thi s lease . Prio r

t o an y construction , alteratio n o r

change s upo n th e property , Tenan t shal l submi t

t o Owne r

(a s th e propert y owner ) final plan s an dspecifications , sit e us e plan , an darchitectura l rendering thereo f an dshal l no t

commenc e an y constructio n unti l i t ha s receivedOwner' s writte n i^pproval . Owne r shal l tak e actio n concemin g plan s and/o r specification s submitte dt o i t withi n forty-fiv e (45 ) days . Th e approva l b y Owne r i s separat e froman y othe r require d approvals , includin g Sit e an dDesig n Review . E . Fir e Preventio n Pag e 4 - Leas e Agreemen t

# I F . Fuelint ^ Tanks . I n addition , an dsubjec t t o Owner' s approval . Tenan t ma y b e permitte dt o instal l an d maintai n afuelin g tan k t o stor e an dprovid e fiiel us e solel y t o fiiel aircraf t house db y Tenan t an dit s affiliate s a t

th e Redmon dAirport . I n orde r fo r aTenan t hav e storag e o f

o r dispens e fuel o n th e airport , Tenan t mus t b e complianc e wit hth e standard s fo r Aircraf t Fue l Servicing , whic hhav e bee n establishe db y th e Nationa l Fir e Protectin g Association s NFP A 407 . Tenan t

wil l compl y wit han y othe r loca l o r stat e fire cod e regulations . In addition . Tenan t

wil l compl y wit h1 4 CF RPar t 139.32 1 Handlin g an dstorin g o f hazardou s substance s an dmaterials . Outline di n 139.32 1 ar e trainin g requirement s fo r fuelin g personnel , whic hinclud e initia l an drecunen t training . Th e airpor t

wil l b e conductin g quarterl y inspection s o f fue l storag e facilities , fuel dispensin g vehicle s an d trainin g record s i n orde r t o verif y complianc e wit hthes e regulation s continue s t o b e maintained . Tenan t

wil l als o b e require dt o pa y t o owne r aftiel flowage fe e a s se t b y Owner , an dt o compl y wit han y fue l flowag e reportin g requirement s se t b y Owner . SECTIO N 2 . TER M A . Origina l Term . Th e ter mo f

thi s leas e shal l b e fo r

aperio do f

twent y (20 ) years , fro mth e dat e o f thi s leas e (fro mSeptembe r

10,200 8 throug hSeptembe r 9,2030) . B . Extende dTenn . Owne r shal l hav e th e righ t

t o tw o five (5 ) yea r

leas e extension s o f

thi s lease . A reques t t o exten dth e leas e mus t b e i n writin g an dmus t b e mad e a t

leas t sixt y (60 ) days , bu t

n o mor e tha n one-hundre dan deight y (180 ) day s prio r t o th e en do f

th e leas e term . SECTIO N 3 . LEAS E FE E Fo r th e first yea r o f th e Lease , th e Leas e fe e fo r th e lease dpropert y shal l b e base do n afair marke t leas e valu e o f

twenty-on e cent s ($0.21 ) pe r squar e foot . Th e initia l aimua l fe e for th e lease dpropert y shal l b e $ 11,171.16 . Th e annua l leas e fe e shal l b e pai di n twelv e (12 ) equa l monthl y increments . Th e firs t paymen t shal l b e du e an dpayabl e o n Octobe r I , 200 8 i n th e amoun t

o f $930.03 . Eac hmonthl y paymen t i s du e i n advanc e o n th e 1 " da y o f eac hmonth , becomin g delinquen t i f unpai db y th e lO* " da y o f th e month . Delinquen t payment s shal l bea r

interes t at th e rat e o f

twelv e percen t

(12% ) pe r aimu man dshal l b e du e an dpayabl e withou t demand . Th e leas e paymen t

shal l b e adjuste dthre e (3 ) year s firo mth e dat e o f

thi s leas e an da t

th e en do f ever y thre e (3 ) yea r

perio dthereafte r

b y th e percentag e chang e i n th e Consume r Pric e Inde x (Urban-Wes t

C ) publishe db y th e U.S . Departmen t o f Labo r ove r th e prio r

thre e (3 ) years . I f

th e inde x cite dabov e i s discontinued , the n Owne r shal l designat e th e replacement index . A t th e en do f

th e five (5 ) yea r

perio dfromth e initia l dat e o f thi s lease , an dat

th e en do f

eac h five (5 ) yea r

perio dthereafter , th e fai r marke t valu e o f thi s lease dpropert y ma y b e adjuste dat Pag e 3 - Leas e Agreemen t3 ) Owne r shal l provid e pave dacces s fro mth e lease dpropert y t o th e airfiel d fo r Tenant' s aircraft . Owne r wil l provid e th e pavin g specification s fo r th e airfiel dram p b y Octobe r

15 , 2008 . Owne r

shal l complet e th e pave dacces s consistin g o f approximatel y 385 0 squar e fee t connectin g th e lease dpropert y t o th e Butle r Aircraf t ram p b y Novembe r

15 , 2008 . I f

th e acces s i s no t

complete db y tha t

date . Tenan t

ha s th e right t o construc t

th e acces s consisten t

wit hth e pavin g specification s an dOwne r shal l reimburs e Tenan t

fo r it s actua l cost s t o construc t th e access . D . Acces s an dUtilities . 1 ) N o late r

tha n Octobe r

15 , 2008 , Owne r

wil l provid e Tenan t

wit h reasonabl e share dacces s t o th e lease dpropert y vi aadrivewa y ove r Owner' s adjacen t propert y (t o b e use db y Tenan t fo r constructio n an dacces s t o th e lease dproperty ) an d ont o th e airfiel db y mean s o f a n automati c securit y gate . Th e adjacen t propert y i s currentl y lease db y Owner' s Publi c Work s Department . T o th e bes t o f Owner' s ability , Tenant' s acces s ove r

Owner' s propert y shal l b e uninterrupted . Th e share dacces s i s a s generall y describe do n EXHIBI T H . Th e share dacces s wil l mee t al l standard s an d requirement s o f

th e City o f

Redmon d(includin g Publi c Work s an dth e Fir e Department) , Federa l Aviatio n Administration , an dth e Transportatio n Securit y Adn>unistration . I f pavin g i s no t

otherwis e require dt o mee t th e abov e standards , the n Owne r shal l pav e th e share dacces s n o late r

tha n Jun e 15 , 2009 . I f th e share dacces s doe s no t mee t th e abov e standard s o r

th e standard s ar e no t

otherwis e waive db y Octobe r 15 , 2008 , Tenan t

ha s th e right t o construc t

th e share dacces s consisten t wit hth e standard s an drequirement s an d Owne r shal l reimburs e Tenan t

fo r it s actua l cost s t o construc t th e share daccess . 2 ) Owne r

wil l permi t

Tenan t t o instal l an dmaintai n it s undergroun dutilitie s v/ithi n th e utilit y corridor s a s describe do n EXHIBI T H . Tenant' s us e o f th e utilit y corridor s shal l compl y withal l Cit y o f Redmon dcod e an dpubli c work s standard s £ . Constructio n o f

Tenan t Improvements . Tenan t agree s t o construc t

th e improvement s describe di n EXHIBI T H o n th e lease d propert y withi n on e (1 ) yea r o f th e dat e o f

thi s lease . Tenan t

understand s tha t

i t mus t obtai n al l require dapproval s prio r t o construction , includin g approva l b y th e Cit y throug hSit e an dDesig n Revie w proces s an dan y requiredFA A approvals . City' s issuanc e o f

abuildin g permi t

t o Tenan t

shal l constitut e al l Cit y approvals . Al l constructio n mus t

mee t Cit y o f Redmon dcod e requirement s an dal l Airpor t regulations an dpolicie s i n effec t

a s o f th e dat e o f

thi s lease . I f

Tenan t fail s t o complet e o r substantiall y complet e th e improvement s withi n on e (1 ) year , thi s leas e shal l terminat e withou t furthe r actio n by eithe r

party . Teiuui t

ma y reques t

fro mOwne r

a n extensio n o f tim e t o complet e th e improvements . An y suc hextensio n i s solel y withi n th e discretio n o f Owner .

Pag e 2 • Leas e Agreemen tLEAS E AGREEMEN T

THI S AGREEMEN T i s mad e thi s 10t h da y o f September . 200 8 b

y an dbetween TH E CIT Y O FREDMOND , amunicipal corporatio n o f th e State o f

Oregon , hereinafte

r calle d "OWNER" , an

dLE S SCHWA B WAREHOUS E CENTER , INC , hereinafte r calle d "TENANT" . WITNESETH : IN CONSIDERATIO N O FTH E MUTUALCOVENANTS , TERMS , AGREEMENTS , PRIVILEGE S AND OBLIGATION S CONTAINE D IN THI S AGREEMENT , I T I S HEREB Y AGREE D B Y AN D BETWEE N TH E PARTIE S HERET O A S FOLLOWS : SECTIO N 1 . LEASE D PROPERTY , RIGH T O FFIRS T REFUSAL , CONSTRUCTIO N A . Leas e Are aan dRigh t of Fira t Refiisai Owne r agree s t o anddoe s leas e t o th e Tenant , an dTenant lease s fromOwner , th e propert y describe di n EXHIBIT S B an dC an da s mappe do n EXHIBI T A , (th e "lease d property" ) subjec t

t o a n easement

fo r utility purpose s a s se t

fort h o n th e attache d EXHIBI T A . lll«MMiapi«QRBIBpnV4>«IBinil«Mit^ ^ additionali pr»yftih«onii»tinB.ftfi.thaiipropwty . d«80Bbtdi aEXUHBIT P an da » miyyt J i o n EXHIBI T A . Th e right o f first refusal mus t

b e exercise dwithi n 3 0 day s afte r notic e fromOwne

r that i t ha s abon afide ofTe

r t o leas e th e propert

y firo manother party . B . Possession . Tenan t shal l b e entitle dt o possessio n o f th e lease dpropert

y o n o r before September

22 , 2008 . Owner

wil l provid e notic e t o Tenant i f i t ca n take possessio n prio r

t o September 22 , 2008 . I f

Owne r ha s not complete dth e fill or

canno t deliver possessio n of

th e propert y b y Septembe r

22,2008 , Tenant

ma y terminate thi s lease . C . Owner

Improvements . 1 ) Owne r

shal l fill the propert

y consistent

with th e gradin g pla

n attache da s EXHIBI T E . Owner

wil l slop e th e fill a

t a2: 1 rati o wher e possibl e alon g th e northern lin e o f th e Property . Al l fill wor k provide db y Owner

shal l b e effectedin accordanc e wit h prevailin g engineerin g standard s i n appropriate measure dlifts an dcompactio n standard s (95 % minimum) . A t th e conclusio n o f

th e fillin g project . Owne

r wil l provid e t o Tenant

astandar dengineere dfill repor t certifyin g that'th e fill wa s i^operl y engineered . 2 ) Owne r

shall temporarily relocate th e securit y fenc e s o tha

t Tenant' s constructio n wil l occur

outsid e th e securit

y fence . Th e relocatedsecurit y fenc e shal l b e locate da s describe din EXHIBI T F . Upo n completio n o f Tenant' s improvements , Owne r shal l relocate th e securit

y fenc e s o tha

t i t connect s a s describe di n EXHIBI T G .
Pag e 1 - Leas e .Agreemen t 

## BODBn * A 3 PAOBJSL2 .