# C E 1 W MA R 

### 2 4 201 0 AIRPORT/ENVIRONMENTA L LAW , AGC-60 0

U.S . DEPARTMEN T O FTRANSPORTATIO N FEDERA LAVIATIO N ADMINISTRATIO N I n th e Matte r

o f th e Federa l Aviatio n Administratio n Part

1 6 Forma l Complain t of : DESER T WING S JE T CENTER , LLC , a n Orego n Limite dLiability Company , an d SPIRI T FLIGHT , INC . db aWING S O F TH E CASCADES , an Orego n Corporation , Complainant . Docke t No . 16-09-0 7 CIT Y O FREDMOND' S RESPONS E T O FA A REQUES T FO R ADDITIONA LINFORMATIO N - H

- C 5 C" ^

In respons e t o th e Federa l Aviatio n Administration' s reques t for additional information . Respondent , Cit y o f

Redmond , respond s a s follows : 1 . Copie s o f

Respondent' s letter s fro mlender s indicatin g tha t th e leasehol dmortgag e protection s provision s i n th e Airpor t leas e ar e acceptabl e t o suppor t leasehol d financing o f

tenant . Neithe r Responden t

o r Respondent' s counse l hav e receive dan y letters , email , o r othe r correspondenc e fromlender s concernin g th e leaseholdmortgag e protection s provision s i n th e Airpor t lease . I n addition , neithe r Responden t

o r Respondent' s counse l hav e receive dan y letters , email , o r othe r correspondenc e fromlender s requestin g additiona l informatio n o r clarificatio n regardin g th e leaseholdmortgag e protection s provision s i n th e Airport lease . Attache da s Exhibi t 1 i s acop y o f

arecen t leaseholdmortgag e protectio n agreemen t use dt o financ e ahangar

purchase d at Respondent' s Airport . Page 1 - CIT Y O FREDMOND RESPONS E T O FA A REQUES T FO RADDITIONA LINFORMATIO N BRYANT , EMERSO N & FITCH , LL P ATTORNEY S A

T LA W 88 8 S.W . EVERGREE N AVENU E

RO . BO X 45 7 REDMOND , OREGO N 97756-010 3 TELEPHON E (541 ) 548-215 1 FA X (541 ) 548-189 52 . Pleas e detai l th e statu s o f th e Respondent' s counsel' s communication s wit hth e Complainant' s lende r

abou t th e leasehol dmortgag e protectio n clauses . Respondent' s counse l ha dn o conmiunication s withComplainant' s lende r abou t leasehol d mortgag e protectio n clauses . I n addition , non e o f Respondent' s staf

f hav e ha dan y communicatio n wit hComplainant' s lende r abou t leasehol dmortgag e protectio n clauses . Responden t an d Respondent' s counse l ar e unawar e o f th e identit y o f

Complainant' s purporte dlenders . Responden t repeatedl y advise dComplainan t o r Complainant' s attorne y o f Respondent' s willingnes s t o communicat e wit han y potentia l lender s concernin g th e leasehol dmortgag e protectio n clauses . 3 . Pleas e provid e atimelin e schedul e fo r tenan t constructio n o f

improvement s o n th e Airpor t wit hal l necessar y step s includin g Airpor t an dCit y approval s require dfo r a tenan t t o commenc e busines s o n th e Airport . Unde r Respondent' s developmen t cod e ther e ar e differen t

Sit e an dDesig n requirement s i f th e constructio n i s entirel y o n an dinterio r t o th e Airpor t

versu s i f th e constructio n i s fronting astreet . Complainant' s property fronted astree t an ds o Responden t

wil l addres s th e proces s unde r tha t applicabl e cod e provision . Tenan t submit s it s buildin g an dsite pla n t o Respondent' s Communit y Developmen t Departmen t

for review . I f

th e submissio n i s complet e (contain s al l th e plan s necessary for review ) th e sit e an ddesig n revie w take s approximatel y 7 5 days . Thi s tim e i s require dt o accommodat e th e publi c commen t

period , agenc y commen t period , an dt o prepar e staf f finding s an ddecision . Ther e i s an appea l proces s for

th e Tenan t

o r an adversel y impacte dproperty owne r t o see k revie w o f

th e staf f findings an ddecisio n document . Th e tim e for appea l i s i n additio n t o th e 7 5 day revie w period . Th e sit e an ddesig n revie w i s no t complet e unti l al l appeal s ar e exhausted . Onc e th e findings an ddecisio n ar e final. Tenan t can reques t

abuildin g permi t

fromth e city . Durin g thi s proces s Tenan t wil l provid e th e detai l plan s (plumbing , electrical , structural , etc. ) for review . Thi s revie w take s 3 t o 4 weeks . Th e buildin g permi t applicatio n i s reviewe db y th e Buildin g Department , Publi c Works , Wast e Wate r Department , Engineering , Airport , an dFinance . Onc e Pag e 2 - CIT Y O FREDMON D RESPONS E T O FA A REQUES T FO RADDITIONA L INFORMATIO N BRYANT , EMERSO N S c FITCH , LL

P ATTORNEY S A

T LA W 88 8 S.W . EVERGREE N AVENU E

RO . BOX 45 7 REDMOND , OREGO N 97756-010 3 TELEPHON E (541 ) 548-215 1 FA X (541 ) 548-189 5approved , th e Tenan t o r contractor

i s notifie dt o com e in , pic k u p th e buildin g permi t

an dinspectio n cards , an dpay an y require dfee s (e.g. , buildin g permit , inspections , syste mdevelopmen t charges) . Tenan t ca n no w begi n construction . Unde r th e term s o f

Complainant' s lease , i t

mus t begi n constructio n withi n 18 0 day s o f final site an ddesig n approva l (se e P g 1 o f E x 7 t o Respondent' s Answer) . Durin g construction . Tenan t wil l cal l for

progres s inspections , whic hare conducte dth e nex t day . Onc e th e buildin g i s complete dTenan t notifie s th e Buildin g Departmen t t o prepar e a certificat e o f

occupancy . That

proces s take s approximatel y tw o week s t o allo w fo r th e certificat e t o b e route dt o an dsigne dof f b y al l city departments . 4 . I f th e Airpor t

Sponso r record s atenant' s lease , i s th e Sponso r grantin g apropert y interes t t o th e tenan t

o n th e Airport ? Pleas e identif y th e natur e an dexten t o f tha t propert y interest . I t i s Respondent' s polic y not t o recor datenant' s lease . However , Responden t (an dOrego n law ) consider s awritte n lease , whethe r o r not recorded , a n interes t

i n th e rea l property for

th e term o f th e lease , provide dtenan t complie s wit hit s obligation s imde r tha t lease . Date dthi s 17t

hday o f March , 2010 . BRYANT , EMERSO N & FITCH , LL P

STEVE N D . BRYANT , OS B #91530 2 O f Attorney s for

Sponsor , City o f

Redmon d

Page 3 - CIT Y O FREDMON D RESPONS E T O FA

A REQUES T FO RADDITIONA L INFORMATIO N BRYANT , EMERSO N & FITCH , LL P ATTORNEY S A

T LA W 88 8 S.W . EVERGREE N AVENU E

RO . BO X 45 7 REDMOND , OREGO N 97756-010 3 TELEPHON E (541 ) 548-215 1 FA X (541 ) 548-189 5

### LEASEHOLD MORTGAGE PROTECTIO N AGREEMENT

THI S AGREEMENT i s mad e thi s _ ^ da

y o f May , 200 9 by an

dbetwee n TH E CIT Y O F REDMOND , amunicipa

l corporation o f

the Stat e o f Oregon , hereinafte

r calle d"OWNER" , and^GAR Y ROBERTS , hereinafte r called"LENDER" . WITNESETH : Whereas , Owne

r own s certain real propert y locateda

t Robert s Field , Redmon

dMunicipa

l Airpor t tha t i s subjec t to aLease , acopy o f

tha t Leas e i s attacheda s Exhibit 1 t o thi s Agreement ; an d Whereas , Lende

r i s providing financin

g to th e curren

t holde r o f the above describedLease (Tenant ) fo r Tenant' s purchas e o f

th e Leas e an

dleaseholdImprovements ; an d Whereas , Cit

y an dLende r desir e t o provid e securit y fo r Lende r i n the above describedLease . NOW , THEREFORE , IN CONSIDERATIO N O FTH E MUTUA LCOVENANTS , TERMS , AGREEMENTS , PRIVILEGE S AN D OBLIGATION S CONTAINED I N THI S AGREEMENT , I T I S HEREB Y AGREED B Y AN D BETWEE

N TH E PARTIE S HERET O A S FOLLOWS : 1 . Owne

r agree s tha

t it will not terminat e th e Leas e a s to Lender, s o lon g a s Lende

r performs promptl

y all of it s obligation s unde

r thi s Agreement . Lende

r agree s i t will perfor

m promptl y all o f its obligation s unde

r thi s Agreement . 2 . An y notice , demand , o r

othe r documen t of an y kindwhatsoeve

r serve db y Owne r upo n Tenan t including , bu

t no t limitedto notic e o f

defaul t unde r the lease , shal

l als o b e serve

do n Lender . Servic e shall b e accomplisheda s providedi n the Leas e an

dshall be deliveredto Lende r a t the followin

g addres s (or

suc h other addres s a s designatedby Lende r i n writing t o Owner) : Gar y Roberts 7 0 Passage Irvine , C A 9260 3

PACi V / Pag e I - Leasehol dMortgag e Protectio n Agreemen t 

### EXHiBr r PAO E /of? )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 serv ^ upo n th e Owner . I n addition , 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 partie s t o th e mortgag e mus t furnis hth e Owner

a writte n designatio n o f

asingl e part y t o b e serve dwithnotices , whic hwil l b e deeme dt o b e servic e o n al l partie s t o th e mortgage . 3 . An y diang e o f

th e abov e addres s o r

an y othe r notic e requiredb y thi s agreemen t shal l b e serve do n Owne r

at th e followin g address : City o f Redmon d P O Bo x 726 , Redmond , Orego n 977S 6 4 . Lende r

shal l hav e th e right

t o cur e an y o f

Tenant' s default s o r

performan y o f

Tenant' s covenant s a s require dunde r th e Lease. a ) Fo r an y defaul t

o r breac ho f

covenan t that can 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 sixty (60 ) day s t o cur e suc hdefaul t o r breache s after

Owne r ha s give n Lender

notic e o f intentio n t o terminat e th e Leas e o r disposses s Tenant . b ) Fo r an y de&ul t

o r breac ho f

covenan t tha t ca n onl y b e cure db y takin g possession . Owne r may requir e Lende r

t o furnis hareasonabl e guarante e o f it s performanc e unde r

th e Leas e o f all Tenant' s obligations , includin g th e car e o f al l default s an dbreaches . Owne r wil l permi t Lende r reaswiabl e tim e t o tak e possessio n o f th e Lease dproperty throug ha n assignmen t o f Lease , Court

Order , o r othe r means . 5 . I f Owne r terminate s th e Leas e fo r defaul t o r breac ho f

covenan t b y Tenant , 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 for

th e balanc e o f

th e terma

t th e sam e rentals an dwit hth e sam e covenant s containe di n th e origina l Lease . Lende r shal l servic e notic e o f it s electio n t o ente r

int o ane w Leas e o n Owne r a t leas t thirty (30 ) day s prio r

t o terminatio n b y Owner . Th e notic e shal l b e accompanie db y apaymen t o f all arrear s o f

leas e payment s an dareasonabl e su mt o compensat e th e Owne r fo r expenses , includin g reasonabl e attorne y fee s fo r

establishin g th e ne w Lease , an daguarante e satisfactory t o Owne r tha t lende r wil l cur e al l Tenant' s default s an dbreache s othe r than arrear s i n Leas e payments . Th e ne w leas e EXHBi r ' Pag e 2 - Leasehol dMortgag e Protectio n Agreemen t ,• } / ^ « PAG E J . 0) r 6wil l commenc e a s o f th e terminatio n o f

th e ol dLease , bu t

shal l b e deeme deffectiv e a s o f th e effectiv e dat e o f

th e original leas e 6 . Owne r

shal l permi t

Lende r t o acquir e th e Leas e in th e nam e o f anominee . I N WITNES S WHEREO Fth e partie s heret o hav e cause dthi s agreemen t t o b e executed . LENDER : GAR Y ROBE l

OWNER : TH E aX Y O FREDMON D Georg e Endicott , Mayo r ATTEST : Cit y Recorde r

Pag e 3 - Leasehol dMortgag e Protectio n Agreemen t EXHIBT F/ 

### PAC E, ? p f 3CERTIFICAT E O FSERVIC E

I hereb y certif

y tha t I serve dth e foregoin g CIT Y O FREDMOND' S RESPONS E T O FA A REQUES T FO RADDITIONA LINFORMATIO N o n th e followin g b y depositin g atru e cop y o f sam e i n th e U.S . Mai l i n Redmond , Oregon , o n th e 17 * day o f March , 2010 , containe di n aseale d envelope , wit hpostag e pai dan daddresse da s follows : Offic e o f th e Chie f Counse l Attention : FA A Part i 6 Airport 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 Deser t Wing s Je t

Cente r L.L.C . Spiri t Fligh t Inc . db aWing s o f

th e Cascade s c/o Mary A . Schu , Presiden t an dOwne r 77 7 S.E . Salmo n Avenu e Redmond , Orego n 9775 6 Georg e Endicott , Mayo r City o f Redmon d 71 6 S.W . Evergree n Avenu e Redmond , O R9775 6 BRYAMIIEMERSO N & FITCH , LL P

STEVE N D . BRYANT , OS B #91530 2 O f Attorney s for

Sponsor , Cit

y o f Redmon d I hereb y certif

y tha t th e foregoin g i s atru e an dcorrec t cop y o f th e original . DATE D thi s 17 * day o f

March , 2010 .

BRYANT , EMERSO N & FITCH , LL P /s / STEVE N D . BRYAN T STEVE N D . BRYANT , OS B #91530 2 O f Attorney s for

Sponsor , Cit

y o f Redmon d BRYANT , EMERSO N & FITCH , LL P ATTORNEY S A

T LA W 88 8 S.W . EVERGREE N AVENU E

RO . BOX 45 7 REDMOND , OREGO N 97756010 3 TELEPHON E (541 ) 548-215 1 FA X (541 ) 548-189 5CERTIFICAT E O FSERVIC E

I hereb y certif

y tha t I serve dth e foregoin g CIT Y O FREDMOND' S RESPONS E T O FA A REQUES T FO RADDITIONA LINFORMATIO N o n th e followin g b y depositin g atru e cop y o f sam e i n th e U.S . Mai l i n Redmond , Oregon , o n th e 17 * day o f March , 2010 , containe di n aseale d envelope , withpostag e pai dan daddresse da s follows : Offic e o f th e Chie f Coimse l Attention : FA A Part i 6 Airport 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 Desert Wing s Je t

Cente r L.L.C . Spiri t Fligh t Inc . db aWing s o f

th e Cascade s c/o Mary A . Schu , Presiden t an dOwne r 77 7 S.E . Salmo n Avenu e Redmond , Orego n 9775 6 Georg e Endicott , Mayo r City o f Redmon d 71 6 S.W . Evergree n Avenu e Redmond , O R9775 6 BRYANT , EMERSO N & FITCH , LL P /s / STEVE N D . BRYAN

T STEVE N D . BRYANT , OS B #91530 2 O f Attomey s for

Sponsor , City o f

Redmon d I hereb y certif

y tha t th e foregoin g i s atru e an dcorrec t cop y o f th e original . DATE D thi s 17 * day o f

March , 2010 .

BRYANI^MERSO N & FITCH , LL P

STEVE N D . BRYANT , OS B #91530 2 O f Attomey s for

Sponsor , City o f

Redmon d BRYANT , EMERSO N & FITCH , LL P ATTORNEY S A

T LA W 88 8 S.W . EVERGREE N AVENU E

RO . BO X 45 7 REDMOND , OREGO N 97756-010 3 TELEPHON E (541 ) 548-215 1 FA X (541 ) 548-189 5