CITY OF MERCED

"Gatewav to Yosemite"

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Merced Regional Airport Office 209'385-6873 Fax:-!09!388-8994

May 30, 2014

Mr. Kevin Schlemmer

Chief: EAS & Domestic Analysis Division, X-53

Office of Aviation Analysis, Room W86-309

U.S. Department of Transportation

1200 ew Jersey Ave SE

Washington, DC 20590

RE: DOT 2014-5-9, DOCKET 0 T-1998-3521

Essential Air Service (EAS) Program Proposals for Merced, Califomia

Dear Mr. Schlemmer,

The US Department of Transportation (DOT) has issued a Request for Proposals for EAS service

to Merced, California. Great Lakes Airlines has been providing this service since September

2008.

The City of Merced welcomes propo al from all airlines and is ready to work with airlines in

the development of their proposals.

If directed by the DOT, the City wishes to have a seamless transition of air service if a different

air service provider is selected. To as ist in this, we arc providing each potential proposer (that

we know of) with identical information on the lease of the Merced Regional Airport Terminal; a

cost which should be reflected in their formal EAS proposals.

The lease cost for the Merced terminal is $5.100 monthly or S61 ,200 annually. In the event that

a proposer includes different lease rate information in their proposal, the Department is advised

that information is inaccurate. Due to local economic conditions. our lease rates have not risen in

over four years.

Please contact our Airport Manager, Ron Elliott at ~Il.ioi\!.~lInu ~cU.\.)r I or 209-385-6873

with any question' or concerns, V·/e look forward to a smooth and seamless transition.

Sincerely,

John M. Bramble

City Manager
Parties:

Premises:

Term:

Terms Sheet for Lease, Merced Regional Airport Terminal

Lessor: The City of Merced, 678 West 18th Street. Merced California 95340

("City")

Lessee: TBD

The leased Premises are located at the Merced Regional Airport Terminal, 20

Macready Drive, Merced, CA, and consist of approximately 834 quare feet of

offices and counters for Lessee's exclusive use. 768 square feet(approximarcly)

of modular building space and approximately 1,250 square feel of common area

for Lessee's non-exclusive use, including restrooms and lobby. Lessee also

receives non-exclusive rights to use of the Airport and its aviation improvements,

including aprons, taxiways, and runways.

The Term of the Lease shall be a minimum of two (2) years.

Commencement Date: Commencement Date of the Lease shall be

Rent: The Monthly Rent is: $5, 100 monthly.

Payment of Rents: Lessee shall pay Rents each month in advance. with the first month'

payment due within five days of the execution of the Lease by both partie.

Lessee shall make a Good FL, Deposit of$5,000 upon execution of the Lease by

the parties. in the form of ca~h.

Deposits:

Uses: The leased Premises shall be used for the purpose of commercial passenger

aviation, including pas cnger assembly, ticketing and sales, and waiting. Uses

may be subject to Federal Aviation Administration rules and restrictions.

Maintenance: Lessee shall keep the Premises and all improvements in good repair and

condition.

Common Area Maintenance and Utilities: Lessee acknowledges that Lessor provides

common area maintenance and janitorial service 10 non-exclusive use areas of the

Premises, and utilities (electricity and natural gas) to both exclusive and nonexclusive use areas of the Premises. As compensation, Lessee shall pay $850.00

per month in Common Area Maintenance charges.

Landing Fees: Notwithstanding any other policy or rate established for use of the Merced

Regional Airport. Le 'see shall pay to City SIS.00 for each landing at the Airport.

Taxes:

Other:

Lessee shall pay all property taxes, liens or assessments when due, without offset

or reduction by Lessor.

Other provisions shall be included in the Lease, covering nondiscrimination,

notice, default '. and .ure of defaults. F.ll. requirement. and other.
Broker: Neither patty is represented by a broker in this transaction.

Conditions: Any Lease Agreement is subject to the approval of the Merced City Council, and

may be subject to the consent of the Federal Aviation Administration.