INVITATION TO BID (ITB) MONTROSE REGIONAL AIRPORT HANGAR PROPERTY DEVELOPMENT

INVITATION TO BID (ITB) MONTROSE REGIONAL AIRPORT HANGAR PROPERTY DEVELOPMENT GENERAL INSTRUCTIONS Montrose County is accepting sealed bids from qualified individual(s) or firm(s) for the purchase of an existing hangar and lease of the underlying ground at Montrose Regional Airport. Once purchased, the hangar may be kept in place, remodeled, or demolished and replaced with a new building. The structure must comply with all applicable federal, state and local laws, rules, regulations, codes, ordinances, and standards. The structure may serve a commercial or non-commercial (personal) interest, but in accordance with Federal Aviation Administration (FAA) regulations, must have an aviation or aviation-related purpose. The purchaser shall own all improvements, existing and future, and the County shall own the real property. Within one (1) year of purchase, the purchaser must complete initial construction (if remodel, demolition, and/or construction are contemplated) and enter into a ground lease with Montrose County for a term of twenty (20) years. The Lessee shall have the option to extend the lease for an additional ten (10) years, if all lease provisions are met. The current market value of the hangar is $137,500. For award consideration, all bids must exceed this amount, and award may go to the highest responsive, responsible bid above $137,500. Bids are due no later than Thursday, November 30, 2017 at 2:00 PM. The Invitation to Bid contains this 11-page ITB document and Attachments 1 Property with Existing Hangar, 2 Sample Ground Lease, and any addenda that may be issued. Questions must be emailed to PropertyITB@montrosecounty.net no later than 2:00 PM on Tuesday, October 24, 2017. If a Bidder discovers any ambiguity, conflict, discrepancy, omission, or other error in the ITB, he/she must immediately email the address above and request modification or clarification. Clarifications, modifications, and answers to questions of general interest will be posted to the Montrose County website (www.montrosecounty.net) no later than 2:00 PM on Tuesday, October 31, 2017. Click the I Want To tab, then View and Register for Bids, Hangar Property Development and Related Documents at the bottom of the page to locate all addenda. To be considered for award, bidders must: 1. Guarantee bid for a minimum of sixty (60) days. 2. Comply with all ITB requirements. Failure to do so may result in disqualification. 3. Check the website for the latest information or instructions before submitting the bid. ITB changes, clarifications, or modifications may occur up to fourteen (14) calendar days before bid deadline. 4. Submit one (1) original bid and two (2) copies, for a total of three (3). 5. Mark sealed bid package: Hangar Property Development, DUE 11/30/17, 2:00 PM. The package exterior must bear the name of the bidding individual(s) or firm(s). 6. Submit the sealed bid package to Montrose Regional Airport, Attn: Lloyd Arnold, 2100 Airport Road, Montrose, CO 81401 no later than Thursday, November 30, 2017 at 2:00 PM, our clock. 7. All bids shall become the property of Montrose County and shall not be returnable. OPTIONAL PRE-BID CONFERENCE An optional pre-bid conference will be held on Tuesday, October 17, 2017, at 2:00 PM at Montrose Regional Airport Administration, 2100 Airport Road, Montrose, Colorado 81401. Airport representatives will be available to answer questions and conduct a tour of the hangar and real property. Answers to questions

asked at the pre-bid conference will be available on the County website no later than 2:00 PM on Tuesday, October 31, 2017, as indicated in GENERAL INSTRUCTIONS above. Bidders must follow the instructions provided for submitting questions on this solicitation. Any communication with County elected officials, officers, or employees, other than as outlined above shall be considered a violation of ITB terms and may result in bid disqualification. It shall be the bidder s responsibility to be aware of and knowledgeable of project, jurisdictional, and legal requirements. Failure to become familiar with and comply with any requirements will not relieve the awarded individual(s) or firm(s) of their bid obligations and/or contract obligations. BID OPENING/AWARD Bids will be opened publicly and read aloud on Thursday, November 30, 2017 at 2:15 PM at Montrose Regional Airport Administration, 2100 Airport Road, Montrose, CO 81401. Award is anticipated promptly at a regularly scheduled meeting of the Board of County Commissioners. Meetings are open to the public; see http://www.montrosecounty.net for meeting schedules. All bidders will be notified of the decision by mail. No project work whatsoever shall commence until all necessary documents are received and approved in writing by the County. The Board of County Commissioners may award the bid to the highest responsive, responsible bidder. In reviewing the bids it receives, the County reserves the right to reject, for any reason whatsoever, any and all bids, and to waive any informality or irregularity in a bid. The County will enter into lease negotiations with the successful bidder. If negotiations do not result in a completed contract, the County reserves the right to negotiate with other bidders. The action to award a contract is subject to approval by the Board of County Commissioners. The submission of a bid does not in any way commit the County to enter into an agreement with that bidder or any bidder. TIMELINE Dates are subject to change as necessary. Invitation to Bid (ITB) Available Sunday, September 24, 2017 Optional Pre-Bid Conference Tuesday, October 17, 2017, 2:00 PM Written Questions Deadline Tuesday, October 24, 2017, 2:00 PM Written Answers Provided Tuesday, October 31, 2017, 2:00 PM Bids Due Thursday, November 30, 2017, 2:00 PM Bid Opening Thursday, November 30, 2017, 2:15 PM Project Award/Commissioner Meeting Wednesday, December 6, 2017 at 9:30 AM Lease Executed and Hangar Operational Within one (1) year of award (Please note that County offices will be closed on Friday, November 10 th in observance of Veterans Day, and Thursday and Friday, November 23 rd and 24 th for Thanksgiving.) BACKGROUND Montrose County, operator of Montrose Regional Airport, owns seven (7) hangars on airport property. All others are privately owned on ground leased from the County. The hangar at 1360 Airport Road is no longer needed, and the hangar and property are now being offered to the public for development. FAA regulations require all airport property to serve an aviation or aviation-related purpose. According to Montrose County Assessor records, the building was constructed of metal in 1972. The structure is approximately 4,790 square feet and consists of a 20 x 47.5 office space on the north end, adjacent hangar space of 48 x 60, and a shop area, approximately 20 x 48 on the south end (see

Attachment 1 Property with Existing Hangar). Three (3) sides of the building are outside the Airport Operations Area (AOA). A sliding hangar door, approximately 15 x 53 offers direct airside access. Entry into the offices on the north end is through a pedestrian door. The office space consists of a reception area, 2 private offices, a storage room, and an airside conference room with high end storage cabinetry. A pedestrian door leads from the reception space into the hangar. In addition to the 15 x 53 airside hangar door, the hangar is equipped with a pedestrian door on the east (air side), a pedestrian door on the west (street) side, two restrooms, numerous storage closets, and utility apparatus. The shop area on the south end consists of two (2) rooms: an airside shop and a smaller, street side classroom. Each room is accessed from the hangar via a pedestrian door. The classroom has an additional pedestrian door to the street. The shop has built-in work counters and storage areas. The offices and building exterior are considered to be in average to good condition. The hangar and shop sections are in fair condition. Throughout its life, the structure has housed a variety of businesses, including rental car, helicopter tour, and non-profits, and most recently has been used as airport office space and for heavy equipment storage. The structure is flanked to the south by a county-owned hangar, currently leased to an airframe and power plant repair business, and to the north by a privately-owned hangar with an airport ground lease. The real property to be leased at 1360 Airport Road is approximately 145 feet by 145 feet and near the southwest corner of the airport parcel, in Section 21 Township 49 Range 9, of the City of Montrose. It appears that the last recorded survey was performed in 1980. The County purchased the hangar in December of 2013 for the appraised value of $120,000. An appraisal conducted on August 24, 2017 lists a current market value of $137,500. The property is free of any liens and/or encumbrances. No property taxes have been incurred from the County s date of purchase, since the County is tax-exempt. Water and sewer taps are in place, as well as water, electric and heating utilities. It is not known whether the building or ground have ever been tested for hazardous materials, and the County makes no warranty regarding the environmental condition of the building or ground. QUALIFICATIONS The successful candidate(s) must: Possess the authority and financial ability to assume long-term lease obligations, as determined by Montrose County. Be free of outstanding bankruptcies or judgments within the past three (3) years. Possess the ability and resources to be operational within one year of award. SCOPE OF WORK PURCHASE, EXISTING HANGAR USE, DEMOLITION, CONSTRUCTION/REMODEL The one (1) year timeline for project completion begins when the project is awarded by the Montrose County Board of County Commissioners. Please note that some requirements listed below may overlap in scope and that some requirements may be performed concurrently. The County will assist as practicable, but final responsibility for meeting project requirements rests with the awarded individual(s)/firm(s). Hangar Purchase Bid price for the purchase of the hangar must exceed the market value of $137,500.00. The purchase price is for the hangar structure and attachments only; no personal property is included. The purchase of the building is at its current condition and location, with no expressed or implied warranties or guarantees. The new owner must enter into a lease with Montrose County for use of the real estate on which the hangar is located.

The County shall issue a Bill of Sale as soon as practicable once the project is awarded. Upon purchase of the hangar, the new owner(s) shall be responsible for payment of utilities. The new owner(s) shall provide the County, within ten (10) days of award, evidence that utilities have been transferred to the new owner(s) as of the date of purchase. The County shall remove all personal property from the hangar as soon as practicable, but no later than sixty (60) days from date of sale. Use of Existing Hangar The following requirements apply, if electing to use the existing hangar: The awarded individual(s)/firm(s) shall comply with all applicable federal, state, and local laws, rules, regulations, codes, ordinances, and standards regarding use and any future construction. This includes, but is not limited to the Federal Aviation Administration (FAA), Transportation Safety Administration (TSA), Occupational Health and Safety Administration (OSHA), State of Colorado, Montrose County, Montrose Regional Airport and City of Montrose. Commercial use is subject to approval by the FAA, Montrose Regional Airport, Montrose County, the City of Montrose, and other jurisdictions as may be required. The awarded individual(s)/firm(s) shall comply with the Minimum Standards of Montrose Regional Airport, found at http://www.montrosecounty.net/254/minimum-standards-rules-regulations. All costs of construction, security, administration, operation and maintenance are the responsibility of the awarded individual(s)/firm(s). Demolition If demolition of the existing hangar is contemplated, the scope of work shall include the following: The awarded individual(s)/firm(s) shall be responsible for the total demolition cost. Montrose County and Montrose Regional Airport shall bear no financial responsibility for demolition. Demolition shall commence only after written approval, i.e., Notice to Proceed with Demolition, is issued by Airport Management. Demolition must be performed by a professional firm, properly licensed and insured as necessary, and with demonstrated experience in structural demolition. Use of explosives is not permitted. The awarded individual(s)/firm(s) must provide the County with a demolition contract, executed with the chosen professional firm prior to start of demolition. The awarded individual(s)/firm(s) shall obtain Airport Management s written approval of a safety plan prior to start of demolition. At a minimum, the plan shall include general provisions for protection of workers, the public, airport property, aircraft, security gates, utilities, roads, streets, walkways, businesses and vehicle traffic in the area; safe passage of demolition vehicles, airport vehicles, public vehicles and pedestrian traffic; dust and noise control measures; and additional measures to be undertaken in the event of hazardous materials or other hazardous contaminants. The awarded individual(s)/firm(s) must comply with all governing Environmental Protection Agency (EPA), state and local notification requirements. Prior to demolition, the County shall be provided with written evidence of compliance with all such notification requirements, including the absence of hazardous materials/contaminants on the property. Prior to demolition, the Contractor shall locate and protect all utilities. Chemicals, gases, acids, flammable or other dangerous materials must be drained, purged, or otherwise removed, collected and disposed of before demolition begins. All structural components, remaining building contents, and associated waste/debris must be removed from the site, with further disposition at the Contractor s option. Stockpiling, storing, or selling any items on-site is prohibited.

The Transportation Security Administration (TSA) requires all items in the vicinity of the airfield to be secured. This includes all materials, trash, debris and/or miscellaneous items that could become airborne, due to the extreme danger to aircraft. Any fines levied against Montrose County and/or Montrose Regional Airport by the TSA, FAA or other agency as a result of the Contractor s negligence or violation regarding this policy shall be forwarded to the Contractor, who shall be responsible for reimbursement to the County. If asbestos or other hazardous materials or contaminants are discovered, the Contractor shall be responsible for abatement and remediation at the Contractor s sole expense, and shall provide the County with evidence of its safe removal and disposal before starting or resuming work. If any soil contamination is present, the Contractor shall be responsible for removal and remediation at the Contractor s sole expense and must provide the County with evidence of its safe removal and remediation before beginning or resuming work. Any damage to Airport property, vehicles or equipment; adjacent business facilities, vehicles, or equipment; or public facilities, utilities, vehicles, or equipment caused by demolition shall be promptly repaired at Contractor s sole expense. Construction or Remodeling If construction or remodeling is contemplated, the scope of work shall include the following: The purpose, use and design of any new structure or changes to an existing structure are subject to approval by the FAA, Montrose Regional Airport, Montrose County, the City of Montrose, and other jurisdictions as may be required. The awarded individual(s)/firm(s) shall submit all required forms to, and obtain approval from the Federal Aviation Administration (FAA) for all construction as necessary, and provide evidence of such to Airport Management before work begins. The Contractor shall submit to the City of Montrose for approval all City-required documentation. The Contractor shall provide Montrose County with evidence of approval of plans, specifications, and schedule by the FAA and the City of Montrose, and obtain County s final written approval prior to beginning construction. The awarded individual(s)/firm(s) shall provide the County with a current property survey prior to commencement of construction. Construction shall be performed by a professional firm, properly licensed, insured, qualified and experienced in construction. The awarded individual(s)/firm(s) shall locate and protect all utilities before starting construction. The Airport must issue a written Notice to Proceed with Construction before construction begins. The awarded individual(s)/firm(s) understand that they are independent contractors, not employees of Montrose County, and assume full responsibility for provision and payment of any and all construction and construction related costs, including but not limited to materials, labor, supplies, equipment, licensing, fees, permits, security badges, and utilities, as required. All subcontractors must be identified by the Contractor and approved by the Airport in writing prior to use. Security gates must be locked and secured at all times, and all employees working on the airfield must have a Montrose Regional Airport Air Operations Area (AOA) identification badge or be escorted by an AOA badge holder at all times during the work. Escorts must remain in close proximity, within view of non-badged personnel at all times. For complete badging requirements, please see http://www.montrosecounty.net/692/sida-and-aoa-badge-identification-requir. The project site shall be kept free of trash accumulation. All items, including loose debris, must be properly secured to avoid becoming airborne. Any fines levied against Montrose County and/or Montrose Regional Airport by the TSA, FAA or other agency as a result of Contractor negligence shall be forwarded to the Contractor, who shall be responsible for reimbursing the County.

The Contractor shall perform all construction activities in a safe, professional, workmanlike manner in accordance with all applicable federal, state and local requirements. The Contractor shall provide to Airport Management three (3) copies of as-built drawings upon completion of construction. Any future improvements to the site shall be in accordance with lease terms. The complete project, from purchase to certificate of occupancy must be finished no later than one (1) year from the date of award. The County may grant an extension of the one (1) year deadline if conditions warrant. Any extension of the construction deadline shall be at the County s sole discretion. SCOPE OF WORK - GROUND LEASE The awarded individual(s)/firm(s) shall provide the County with a current property survey. In accordance with FAA regulations, the lease and all improvements must serve an aviation or aviation-related purpose. The Airport ground lease is subject to approval by the Board of County Commissioners of Montrose County. The lease term shall be for twenty (20) years, with the Lessee s option to renew for ten (10) additional years, if all lease provisions have been met. The structure shall be used only for the purposes outlined in the ground lease. The Lessee shall follow all required security procedures, including but not limited to security gates and security badge requirements. The Lessee must maintain proper insurance and provide evidence of such upon Lessee s execution of the lease, prior to consideration by the Board of County Commissioners. Such proof must also be provided at policy renewal and if changing carriers or terms and conditions. Lease fees have been established according to commercial or non-commercial/personal use of the structure. A personal lease shall only permit storage of the Lessee s aircraft - and for a period of thirty (30) or fewer consecutive days, the storage of guests aircraft. Renting or subletting under a personal use lease is prohibited; a landlord/tenant arrangement with monetary or other consideration is classified as a commercial use. The Director of Aviation shall make the final decision as to whether a personal or commercial lease is appropriate. If usage is determined to be personal, the Lessee shall pay the County the current annual personal use rate per square foot for the leased ground. The current rate is $0.19 per square foot per year for the leased ground. If usage is determined to be commercial, the Lessee shall pay the County, on an annual basis, $0.19 per square foot for the leased ground, and an additional fee for the building footprint. The current fee for the building footprint is $1.00 per square foot per year. Both fees comprise the rental rate. The annual rental rate shall be adjusted each subsequent year throughout the lease term using the consumer price index for all urban consumers (CPI-U). The Lessee must operate and maintain the leased premises and improvement(s) in a safe, clean condition and shall be responsible for all costs of building operation and maintenance. The lease shall be assignable only with the prior written consent of Montrose County. Breach of any lease terms may be grounds for termination. For further details, see Attachment 2 Sample Ground Lease. Please note that the sample lease is a representation only and does not necessarily reflect final negotiated terms and conditions.

INDEMNIFICATION AND INSURANCE Indemnification. The awarded individual or firm will be expected to agree to hold Montrose County, its elected officials, officers and employees, harmless from any and all claims for damage, injury, loss of property resulting from the awarded individual or firm s use of the property, construction, remodeling or other incidents related to that use. Insurance. The awarded individual or firm must purchase and maintain, at its own cost, primary insurance(s) with the minimum coverage limits described below. Insurance(s) must be with insurers and formats acceptable to Montrose County, covering all premises and operations, and in force from the beginning of the project through the warranty period. The awarded individual or firm will be responsible for any deductible losses required in its insurance(s). Commercial General Liability Combined single limits of one million dollars ($1,000,000) each occurrence Two million dollars ($2,000,000) aggregate Coverage must include bodily injury, broad form property damage (including completed operations), personal injury (including coverage for contractual and employee acts), blanket contractual, independent contractors, products and completed operations. The policy must also contain a provision for severability of interests. Montrose County, Montrose Regional Airport must be named on the certificate as additional insured. Liability One million dollars ($1,000,000) each occurrence Two million dollars ($2,000,000) aggregate BID BOND Each bidder must submit a bid bond, cashier s check, or certified check, payable to Montrose County in the amount of five per cent (5%) of the price bid for purchase of the hangar, as a guarantee that the awarded bidder will execute a Bill of Sale; remodel, or demolish and erect a new structure, as applicable; and execute a ground lease with Montrose County. Bids received without a bid bond, cashier s check, or certified check will not be considered. The bid bond will be returned to the successful bidder after Board approval and execution of the ground lease. Unsuccessful bidders will receive their bonds back as soon as possible after award. SUBMITTALS Bidders must submit all of the following: Bid Form (provided below) Schedule and References form (provided below) Subcontractors form (provided below) Acknowledgment form (provided below) Past three (3) years financial statements, such as corporate income statements, individual tax returns, or other evidence of financial history/stability Acknowledgment of Addenda (see GENERAL INSTRUCTIONS, page 1) Bid Bond

BID FORM BIDDERS MUST USE AND RETURN THIS FORM Hangar Bid Price (must exceed $137,500.00) $ Name and Address of Firm(s)/Individual(s) to appear on Bill of Sale Name and Address of Firm(s)/Individual(s) to appear on Ground Lease For Ground Lease: Type of Organization Individual/Sole Proprietor Joint Venture Limited Liability Company Partnership/Limited Partnership Corporation Any bankruptcies within the past 3 years? Yes No Any outstanding judgments within the past 3 years? Yes No Please explain your current plan for the existing hangar (use as is, remodel, or demolish and build new) and your aviation or aviation-related purpose. If the plan changes, the County must be notified and written approval must be obtained before construction begins. Signature Print Name/Title Name of Firm, if applicable Phone Email

SCHEDULE and REFERENCES BIDDERS MUST USE AND RETURN THIS FORM If remodeling or demolition and new construction are intended, please complete below, or state N/A. If plans are to use the hangar in its current state, but later change to include remodeling or demolition and new construction, the County must be notified and grant approval prior to construction commencement. Demolition Company Name/Address Demolition Manager Email Phone Pre-Demolition/Planning Indicate length of time needed Demolition Indicate length of time needed Construction Manager Email Phone Remodel/Construction Indicate length of time needed to complete Approximate size/dimensions of structure Provide 3 business references. REFERENCES 1. Name Phone Address Contact Person Relationship Years known 2. Name Phone Address Contact Person Relationship Years known 3. Name Phone Address Contact Person Relationship Years known

SUBCONTRACTORS BIDDERS MUST USE AND RETURN THIS FORM List all subcontractors intended for use on the project (or indicate N/A). Attach additional sheets if necessary. All subcontractors must be approved before use. Any additions, deletions, or changes to subcontractors must be provided to Airport Management and approved in writing prior to use. If the County and/or Airport Management object(s) to the use of any given subcontractor, the Contractor agrees to find a replacement that is suitable to the County and/or Airport Management. 1. Company Name 2. Company Name 3. Company Name 4. Company Name 5. Company Name 6. Company Name 7. Subcontractor Name Subcontractor Address

ACKNOWLEDGMENT BIDDERS MUST USE AND RETURN THIS FORM The undersigned, having carefully read and considered the Invitation to Bid Montrose Regional Airport Hangar Property Development, does hereby offer to perform such services on behalf of the County of Montrose, in the manner described and subject to the terms and conditions set forth in the Invitation to Bid. The undersigned gives permission for Montrose County to contact business references provided in this bid, and any others for whom the undersigned has performed work. The undersigned further states that this bid is made in good faith and is not founded on, or in consequence of, any collusion, anticompetitive agreement or other type of anticompetitive activities between themselves and any other interested party, in restraint of free competition. Authorized Signature Print Name Title Company Name/Address Date Phone Email