HomeMy WebLinkAboutResolution - 4285 - Partial Assignment ARC Agreement From Gladieux Corporation To Host Services Inc - 10_14_1993Resolution No. 4285
October 14, 1993
Item #40
RESOLUTION
BE IT RESOLVED BY`THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized and
directed to execute for and on behalf of the City of Lubbock a Consent to
Sublease of the Restaurant Concession Agreement by and between the City of
Lubbock and Gladieux Corporation to Host Services, Inc., attached herewith,
which shall be spread upon the minutes of the Council and as spread upon
the minutes of this Council shall constitute and be a part of this
Resolution as if fully copied herein in detail.
Passed by the City Council this
ATTEST:
Betty N. Johnt"V- City Secretary
AZ VED AS TO CONT T:
Larry V/Poffmad, i ctor o
Transp ation
APPROVED AS TO FORM:
n Ross,Jr., ity ttorney
!� JCR:da/ALMA-D1/C-GLADUX.raa
October 6, 1993
i
j
LEASE AND CONCESSION AGREEMENT
This Agreement is entered into as of October 1st , 1993,
by and between Gladieux Corporation (hereinafter caarled "Lessor")
and Host Services, Inc. (hereinafter called "Lessee").
W I T N E S S E T H:
WHEREAS, Lessor and the City of. Lubbock entered into that
certain Restaurant Concession Agreement dated October 9, 1975,
as amended by Amendment, dated June 12, 1986 (hereinafter col-
lectively called the "Contract"), granting Lessor the right to
maintain food service and other concessions at the Lubbock
International Airport ("Airport"); and
WHEREAS,: Lessee desires to acquire the right to sell alco-
holic beverages in certain areas of the Airport wherein Lessor
holds the Concession rights and to operate the alcoholic beverage
concessions pursuant to the Texas Alcoholic Beverage Code and the
rules and regulations thereunder, and pursuant to the terms and
conditions of the Contract held by Lessor; and
WHEREAS, Lessor desires to contract for such exclusive ser-
vices with Lessee and to sublease the alcoholic beverage opera-
tion of said concession to Lessee, without being relieved of any
of the duties or obligations under the Contract;
NOW, THEREFORE, Lessor and Lessee in consideration of the
mutual promises herein contained, hereby agree as follows:
1. Leased Premises. In consideration of the covenants of
payment and performance stipulated herein, Lessor hereby grants
Lessee the exclusive right to provide alcoholic beverage service
to Lessor pursuant to the terms and conditions of: the Contract and
pursuant to the terms and conditions hereinafter stated, and Les-
sor hereby leases unto Lessee that certain portion of the building
and improvements known as Lubbock International Airport, located
at 6100 N. Quirt, Lubbock, Lubbock County, Texas, and marked on
Exhibit "A" attached hereto ("Leased Premises").
2. Use of Leased Premises. It is understood that the
Leased Premises shall be used by the Lessee solely for the purpose
of storage, display, service and sale of alcoholic beverages under
a mixed beverage permit,. and other licenses or permits which may
be issued to Lessee by the Texas Alcoholic Beverage Commission,
same to be used or occupied for no other purpose nor in any manner
except as provided herein. Lessor reserves the right to conduct
its normal business activities on the Leased Premises, and to use
the Leased Premises for any purpose it deems advisable except for
the sale of alcoholic beverages. Lessor agrees to use its best
efforts to conduct its business so as to cause the least possible
inconvenience to the business of Lessee.
3. Term. The term of this Lease shall commence upon issu-
ance of alco olic beverage permits to Lessee and shall continue
from year to year unless cancelled by either party at any time
giving the other at least thirty (30) days prior written notice.
4. Rental. (a) It is understood and agreed by the parties
that under the Contract, certain percentages of Lessee's gross
receipts as a subconcessionaire on the Leased Premises are payable
to the City of Lubbock. In addition to said payments, Lessee shall
pay as rental ('Rental") to Lessor, a sum equal to fourteen per-
cent (14%) of gross sales of the Lessee on the Leased Premises.
Rental shall be payable quarterly within thirty (30) days after
the end of each fiscal quarter of the Lessee. Lessee's records
of all sales shall be made available to Lessor during normal busi-
ness hours for inspection and audit. Such records shall be main-
tained by the Lessee for a period of not less than two (2) years.
(b) As used herein,. the term "Gross Sales" shall
include the entire amount of the gross receipts of Lessee from the
sale, preparation or service of mixed beverages or from the sale,
preparation or service of ice or non-alcoholic beverages that are
sold, prepared or served for the purposes of being mixed with alco-
holic beverages and consumed on the premises of the permittee;
provided, however, that any sales taxes imposed by state or federal
law which are paid by a purchaser of any item sold by Lessee and
directly payable to a taxing authority shall be excluded from the
computation of Gross Sales.
(c) In the event that the expenses of Lessor
for ad valorem taxes, electricity, water, sewer, heating, air con-
ditioning, repairs, maintenance, janitorial service and other costs
attributable to the operation of the Leased Premises and providing
the services provided for herein over which Lessor has no control
shall be increased over the same expenses incurred during 1993,
the Rental shall be increased by the amount of the such increased
costs which are attributable to the Leased Premises with such
adjustments to be made on a calendar quarter basis based on
demonstrated actual costs to Lessor.
(d) All rental payments shall be made to Lessor
at the address set forth herein for notice or at such other address
as Lessor may from time to time designate in writing.
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(e) It is agreed by the parties hereto that a
mutually satisfactory and equitable adjustment (either increase or
decrease) in the agreed rent required to be paid hereunder shall be
negotiated at the end of each year of the term of this Lease. Any
adjustment shall be evidenced by a written amendment to this Lease
respecting the rent, a verified copy of which shall be filed with
the Texas Alcoholic Beverage Commission within thirty (30) days of
its execution.
5. Condition of Leased Premises Fixtures and Improve-
ments. Lessee takes and accepts the Leased.Premi-ses as is in its
present condition. Lessor makes no representations or warranties
with respect to the fitness of said Leased Premises for use by
Lessee. The Lessee also takes the storage, cooling and display
facilities of the Lessor as is. The payment for the use of such
fixtures and improvements is included in the Rental. Lessor shall
replace such fixtures as necessary at its cost. Lessor shall
furnish and maintain in good condition all furniture, fixtures and
other items which may be reasonably necessary in the sale of
alcoholic beverages by the Lessee hereunder, the title to which
shall be retained by Lessor.
6. Default. Upon default by one party under the terms of
this Lease, the other party may, at its option, give the defaulting
party written notice of its intention to terminate this Lease unless
said defaultiis cured within fifteen (15) days from the receipt of
such notice. If the defaulting party fails or refuses to cure the
default during the 15-day period, this Lease shall be terminated at
the end of such period. If Lessee is the defaulting party, Lessee
shall, upon termination, remove itself from the Leased Premises
immediately, and upon Lessee's failure to do so, Lessor may remove
Lessee at Lessee's expense, without prejudice to Lessor's right to
recover past due rentals or to sue for damages. Any default under
the Texas Alcoholic Beverage Code shall be deemed a default here-
under.
7. Assignment and Subletting. Lessee shall not assign
this Lease or sublet the Leased Premises, or any part thereof,
except with the prior written consent of Lessor.
S. Signs. Lessee shall not place any signs at, on, or about
the Leased Premises without the prior consent of the Lessor.
9. Alterations and Improvements. No alterations or
improvements shall be made by Lessee except with the written
consent of Lessor, and any alterations and improvements made with
such consent shall become the property of the Lessor and shall
remain upon and be surrendered with the Leased Premises as a part
thereof at the termination of the Lease. Lessee shall place no
furniture or fixtures on the Leased Premises without the prior
written consent of Lessor. At the end of the lease term, Lessee
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will peaceably end possession of the'Leased Premises and will return
to the Lessor. the Leased Premises, including all fixtures (except
those purchased by Lessee) in as good condition as at the time pos-
session thereof is delivered to Lessee, reasonable wear and tear
excepted.
10. Cash Registers. Lessor shall provide. its cash registers
for the use of Lessee in the sale of alcoholic beverages; provided,
however, such cash registers shall, each be coded such that every
sale of alcoholic beverages shall'beso indicated on the tapes of
every machine. Total sales of alcoholic beverages from such cash,
registers shall be computed daily and delivered to Lessee.
Lessee's payment of the Rental includes the use of such cash
registers.
11. Advertisinq. In addition to the general advertising done
by the Lessor, the Lessee may advertise the sale of alcoholic
beverages. The expense connected with advertising of alcoholic
beverages shall be paid -by Lessee.
12. compliance with Law. Lessee shall comply with all
governmental laws, ordinances and regulations applicable to the use
of the Leased Premises.
13. Hold Harmless. Lessor shall not be liable to Lessee or
Lessee's employees, agents or invitees or to any other person
whomsoever, for any injury to person or damage to property on or
about the Leased Premises caused by the negligence or misconduct of
Lessee, its employees or agents, and Lessee agrees to indemnify
Lessor and hold it harmless from any loss, expense or claims
arising out of any such damage or injury.
14. Insurance. Lessee covenants to keep in force at all
times adequate public liability insurance, in amounts and with
companies acceptable to Lessor. Such policies of insurance shall
afford protection to Lessor as well as to Lessee, and certificates
evidencing the existence and effectiveness of such policies of
insurance shall be delivered by Lessee to Lessor upon Lessor's
request. Lessor agrees to keep in effect fire and extended
coverage insurance on all fixtures and improvements. Lessee shall
reimburse Lessor for its pro rats share of all increases in
insurance over the year in which the lease term commenced. Pro
rata shares shall be calculated on a square foot of Leased Premises
to square foot of total area used basis.
15. Waiver of Subrogation. Each party hereto waives any and
every claim which arises or may arise in its favor and against the
other party hereto during the term of this lease of any renewal or
extension thereof for any and all loss of, or damage to, any of its
property located within or upon, or constituting a part of, the
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premises leased to Lessee hereunder, which loss or damage is
recoverable under said insurance policies. Said mutual waivers
shall be in addition to and not in limitation or derogation of, any
other waiver or release contained in this Lease with respect to any
loss of, or damage to, property of the parties hereto..
16. Utilities. Lessor shall provide all utilities for the
Leased Premises including air-conditioning and heating and
refrigeration space to the extent reasonably required by. the Lessee
and to the extent ordinarily provided by similar Lessors. Lessee's
payment of the rental includes utilities.
17. Taxes. Lessor shall pay all real property ad valorem
taxes on the Leased Premises. Lessee agrees to reimburse Lessor
for its pro rata share of all real property tax increases over the
taxes in the year in which the Lease commenced. Pro rata shares
shall be calculated on a square foot of Leased Premises to square
foot of total area used basis.
18. Repairs. All repairs to the Leased Premises, fixtures
and improvement, shall be made by the Lessor; provided, however,
the Lessor may assess the Lessee its pro rata share of all such
expenses if such repairs were caused by the actions of the Lessee
over and above normal wear and tear.
19. Destruction of Leased Premises. In the event the Leased
Premises are damaged or destroyed, or in the event that the area
used in the Leased Premises is damaged to such an extent as it
shall not be open for business on a regular basis within thirty
(30) days of such event, then the Lessee or'the Lessor may, at its
option, terminate this Lease by then(lo) days prior written notice
to the other party.
20. Exclusive Control of Activities. The Lessee shall have
the exclusive use, occupancy and control over all
alcoholic -beverage -permit -related activities carried out on the
Licensed Premises, including but not limited to the absolute and
irrevocable right, so long as this Lease is in effect, to
designate, control and terminate employees engaged in
alcoholic -beverage -permit -related activities, and to provide for
and control the purchase, storage and sale of alcoholic beverages
on the Licensed Premises; and a non-exclusive right to the use,
occupancy and control of the Leased Premises. Provided, however,
the Lessee shall permit Lessor's customers open and free access to
and through such Leased Premises.
21. Landlord's Lien. Lessor waives any contractual
landlord's lien and agrees to subordinate any statutory or
constitutional lien to any financing or security interest granted
by the Lessee to finance its inventory or its operations.
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22. Subordination. This Lease and the term and estate hereby
granted are and shall be subject and subordinate to any mortgages
or deeds of trust which now or may hereafter affect the real
property of which the Leased Premises form a part; and Lessee shall
execute and deliver upon demand of Lessor. any and all instruments
as required subordinating in -the manner requested by Lessor, this
Lease and such mortgage or deed of trust.
23. Ouiet Enjoyment. Lessor warrants that it has full right
and power to execute and perform this Lease and to grant the estate
demised herein and that Lessee, on payment of the estate demised
herein and that Lessee, on payment of the Rental and performing the
covenants herein contained, shall peaceably and quietly have, hold
and enjoy the Leased Premises during the full term of this Lease
and any extension or renewal thereof; provided, however, that
Lessee accepts this Lease subject and subordinate to any leases and
recorded mortgage, deed of trust, or other lien presently existing
upon the Leased Premises, and the Operating Lease.
24. Waiver .of Default. No waiver by the parties hereto of
any default or breach of any term, condition or covenant of this
Lease shall be deemed to be waiver of any subsequent default or
breach of the same or any other term, condition or covenant
contained herein.
25. Force Maieure. Lessor shall not be required to perform
any term, condition or covenant in this Lease so long as such
performance is delayed or prevented by force majeure, which shall
mean acts of God, strikes, lockouts, material or labor restrictions
by any governmental authority, civil riot, floods, and any other
cause not reasonably within the control of Lessor and which by the
exercise of due diligence Lessor is unable, wholly or in part, to
prevent or overcome.
26. Exhibits. All exhibits, attachments, annexed instruments
and addenda referred to herein shall be considered a part hereof
for all purposes with the same force and effect as if copied at
full length herein.
27. Captions. The captions or headings of paragraphs in this
Lease are inserted for convenience only, and shall not be
considered in construing the provisions hereof if any question of
intent should arise.
28. Successors. The terms, conditions and covenants
contained in this Lease shall apply to, inure to the benefit of,
and be binding upon the parties hereto and their respective
successors in interest, and assigns and legal representatives
except as otherwise herein expressly provided.
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29. Notices. Any notice or document required or permitted
to be deliverecEhereunder shall be deemed to be delired whether
actually received or not when deposited in the United States mail,
postage prepaid, registered or certified mail, return receipt
requested, addressed to .the parties hereto at the respective
addresses set out opposite their names below, or at such other
address as they have theretofore specified by written notice
delivered in accordance herewith:
Lessor: GLADIEUX CORPORATION
Marriott Drive
Washington, D.C. 20058
LESSEE: HOST SERVICES, INC.
5151 Belt Line Road, Suite 500
Dallas, Texas 75240
30. EffectiVee Date. This Lease shall be and become effective
as of the date first a ve written.
IN WITNESS WHEREOF, the parties have hereunto set their hands
the day and year above written.
LESSOR:
GLADIEUX CORPORATION
TITLE: %QF,#su c Et
LESSEE:
HOST SERVICES, INC.
TITLE:
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tom' �'`a •• 'rII �_'----- ,— ...._ __ �"'•• .,�.,y � ��✓ .
.a . as .�•• �� "�. • ♦ ♦
MAIN LEVEL
LUBBOCK INTERNATIONAL AIRPORT
EXHIBIT "A"
F
�• �i of ' �••� /'� . �" ��:•
APRON LEVEL
LUBBOCK INTERNATIONAL AIRPORT
EXHIBIT "A"
CONSENT TO SUBLEASE
THE STATE OF TEXAS
COUNTY OF LUBBOCK
WHEREAS, the City of Lubbock and Gladieux Food Services, Inc.,
said corporation having changed its name to Gladieux Corporation
(hereinafter referred to as "Gladieux") entered into a Restaurant Concession
Agreement, dated October 9, 1975, as amended by that certain Amendment
dated June 12, 1986 (hereinafter referred to collectively as the "Concession
Agreement"), granting the right and privilege to operate a food and
beverage concession in the Airport Administration Building at Lubbock
International Airport, and
WHEREAS, Gladieux has requested permission from the City of
Lubbock to sublet the alcoholic beverage operation of said concession to
Host Services, Inc., a Texas corporation, (hereinafter referred to as "Host"),
without being relieved of any of its duties or obligations under the
Concession Agreement;
NOW, THEREFORE: it is hereby agreed as follows:
1. Without waiving any of its rights under the Concession
Agreement, the City of Lubbock does hereby give its written consent to
such sublease, a copy of the Lease and Concession Agreement between
Gladieux and Host being attached hereto as Exhibit "A", upon the condition
that Gladieux remain liable for the full, faithful and complete performance of
the aforesaid Concession Agreement.
2. The terms of this Consent to Sublease shall not act as an
amendment or alteration of any of the provisions, terms and conditions of
the Concession Agreement, except that both Gladieux and Host shall be
hereafter bound under the terms of the Concession Agreement.
ATTEST:
Betty . Joh on, City Secretary
APPROVED AS TO CONTENT:
Larry V. offman,
Directorvof Transportation
APPROVED AS TO FORM:
�dhn C. Ross, Jr., City Aftorney
JCR:daA-D 10/C-G LADUX. w w
October 5, 1993
GLADIEUX CORPORATION
BY:°t^'�
ATTEST:
HOST SERVICES, INC.
CZ.u.lnak..C-e._
Therese W. Lawrence, Presider
ATTEST:
Thomas C. Lawrence, Secretary
Consent to Sublease -- Gladieux Corporation -- Page 2
C'4ei
5 Nt i `'F `.yN.tom` ;- !'fG•v,..e ^� 1°Y'�Y�' } �+ 44
r
RESTAURANT CONCESSION AGRCEMENT
,. THIS ACIMEMRNT entered into thi s y� 9t.17 _ _tiny or., _ c)caol:cr ,
1975, by and between Lho CITY OF LURh3CK, hereinafter referred to as
"LESSOR", and GLADIEUX FOOD SERVICES, INC., a corporation duly organized
}
and existing under the laws of the State of.Ohio, with an office and
principal place of business located in the City of Toledo, Ohio, hereinafter
referred to as "LESSEE".
W ITNF,SSETH :
WHEREAS, Lessor is now the owner of the Lubbock Regional Airport,
and is the owner of certain buildings and improvements erected thereon, and
WHEREAS, Lessor desires to enter into a restaurant concession agreement
with Gladieux Food Services, Inc. covering A fifteen (15) year period
beginning on February 1st , 1976, and continuing until the 31st
day of January 1991. .
NOLI THERrroRE 1,ias AGREMENT WITNESSETH:
In consideration of the mutual covenants, promises and agreements
herein contained, the said parties hereby covenant, promise and agree with
each other as follows:
1. Lessor does hereby lease unto Lessee the premises in the new
Airport Administration Building known as the kitchen, dining room, coffee
shop, private club or lounge, gift shop, and related areas, all as shown
on the plan of said premises, a copy of the plans being hereto attached
Y
marked "Exhibit A", and made a part hereof, which premises will be located
' in the new Airport Administration Building, and further Po g grants to Lessee
the exclusive liquor (if and when legal), restaurant and concession sales
or the entire airport terminal, including lobby of Administration Building,
and including merchandising and vending machines, cigarettes; candy, gum,
cigars, cold and hot drinks, and the rights to any and all machines above
described placed upon said premises, and except any vending machines for
employees and within exclusive leased areas.
Concessions granted herein are described as novelties, news, magazines,
books and tobacco items and do not include items as specialty shops, such as,
but not limited to, ladies wear, flowers, game machines, shine, book store,
smoke shop, or airline VIP club exclusively operated and controlled by an
airline, etc.
The rights granted herein to be provided by Lessee may be provided by
Lessor to another party if Lessee fails to provide the services within
one hundred fifty (150) days upon notice by Lessor. '
The above machines which Lessee has the right to operate shall be
placed in the lobby of the Airport Administration Puilding or elsewhere,
and the locations must be approved by the Director of Aviation, which approval
will not be unreasonably withheld.
Said term is to he for a full fifteen (15) years commencing on February
1st 1976, and continuing until the 31st day of January , 1991,
with the right to renew said lease for an additional five (5) year period
if agreeable with Lessor at that time.
In consideration thereof, the Lessee promises and agrees to pay Lessor
the amounts provided below as soon as Lessee has been notified that the
2.
i
expanded and improved facilities arc ready for operation, a.nd Lessee in
• writing acknowledges that said premises have been completed and are ready
for operation.
Rental & Investment Schedule:
Rental Rates on Sales
up to $500,000
All Other Sales Save
L Except Alcoholic Bever-
ages V.1hich May be Legally
Amt. Lessee Spends Newspapers & Gift & Novelty Private Club Sold in Places Other
for Eciuipnent Periodicals Items Sales Than a Private Club
Up to $50,000 5% 10: 9.5• 4 1 5t
$50,000 - $1001000 5% 1014 8.2% �' 8.2%
ea,d�
$100,000 - $150,000 5% 10% 6.8% 6.8♦
$150,000 - $200,000 SL 10% 5.4t 5.4%
These rates are based on annual sales up to
$500,000. As sales increase, the rental rate
will also increase, with each increase of
$50,000 annually above $500,000; the rental
on All Other Sales" will increase an addi-
tional 1/43 of total "all Other Sales"; but
in any event, rental will never increase more
than 4 1/2ic above the base rate.
Private club rental will be the rate indicated
above except on those private club sales in
excess of $42,000 annually the rental shall be
as Indicated for the first $42,000 annual sales
and 10": rental shall be paid on those sales
exceeding $42,000 annually, and on those sales
exceeding $90,000 annually the rental shall be
12% of those sales exceeding $90,000 annually.
Gross sales shall include all monies received by Lessee from the sale
of any and all articles and other things upon or from the leased premises,
and from any and all services rendered and operations and business of every
kind conducted upon or from the leased premises less the deduction of State
and Federal sales and excise taxes.
Lessee further agrees that rentals due hereunder shall be due and payable
monthly in arrears on or before the 20th day of each and every month thereafter
3.
expanded and improved facilities arc ready for operation, a.nd Lessee in
• writing acknowledges that said premises have been completed and are ready
for operation.
Rental & Investment Schedule:
Rental Rates on Sales
up to $500,000
All Other Sales Save
L Except Alcoholic Bever-
ages V.1hich May be Legally
Amt. Lessee Spends Newspapers & Gift & Novelty Private Club Sold in Places Other
for Eciuipnent Periodicals Items Sales Than a Private Club
Up to $50,000 5% 10: 9.5• 4 1 5t
$50,000 - $1001000 5% 1014 8.2% �' 8.2%
ea,d�
$100,000 - $150,000 5% 10% 6.8% 6.8♦
$150,000 - $200,000 SL 10% 5.4t 5.4%
These rates are based on annual sales up to
$500,000. As sales increase, the rental rate
will also increase, with each increase of
$50,000 annually above $500,000; the rental
on All Other Sales" will increase an addi-
tional 1/43 of total "all Other Sales"; but
in any event, rental will never increase more
than 4 1/2ic above the base rate.
Private club rental will be the rate indicated
above except on those private club sales in
excess of $42,000 annually the rental shall be
as Indicated for the first $42,000 annual sales
and 10": rental shall be paid on those sales
exceeding $42,000 annually, and on those sales
exceeding $90,000 annually the rental shall be
12% of those sales exceeding $90,000 annually.
Gross sales shall include all monies received by Lessee from the sale
of any and all articles and other things upon or from the leased premises,
and from any and all services rendered and operations and business of every
kind conducted upon or from the leased premises less the deduction of State
and Federal sales and excise taxes.
Lessee further agrees that rentals due hereunder shall be due and payable
monthly in arrears on or before the 20th day of each and every month thereafter
3.
.-.--during the term of this agreement. Adjustmonts.for^varying percentages over
and above the minimum rentals shall be computed annually and shall'be due
�= on or before 20 days after the anniversary date of the lease.
If and when alcoholic mixed beverages in an open bar become legal on the
Airport premises Lessee and Lessor will negotiate a percentage rental rate to
apply to that portion of gross sales.
2. Lessor agrees to furnish ventilation, heat, light, air-conditioning,
and water of fifteen grain (or less) hardness in the demised premises at
no cost to Lessee, and to bring all the lines and pipes up to .the point of
connection in accordance with the plans hereto attached and hereinbefore -
referred to so that the Lessee can connect its equipment and appliances to
said connections, and all without cost to Lessee, and Lessor is to keep the
equipment for the furnishing of said heat, light, air-conditioning, and water
In good repair during the term of this lease without cost to Lessee. Lessor
further agrees to provide sewage and drainage lines including installation,
maintenance, except that which is caused by negligence of Lessee, and repair
thereof. In the furnishing of water and lights, the Lessee will exercise
prudent management to prevent waste. If waste is excessive, the Lessor may
meter or otherwise determine the extent of waste and charge Lessee for excess
usage. '
3. Lessor agrees to finalize at the earliest possible time its construe-
tion program which shall be in substantial compliance with. certain floor plans
.1jereto attached, marked "Exhibit A" and made a part hereof. Specifically
these plans will provide for the following, at no cost to Lessee:
a) Provide adequate heating and air-conditioning for the
premises and provide necessary facilities to assure
adequate utilities for the proper operation of Lessee's
equipment.
4.
b) Provide at the discretion of Lessor certain restaurant
equipment to the extent possible within the budget
established and/or revised for said project.
c) Provide decorative and other lighting fixtues, limited
to the extent possible within the budget reference. in
(b) above.
d) Provide finished walls, floors, and ceilings not to
include special decor.
4. Lessee will furnish the additional restaurant equiMent for the
new facilities to take care of the operation in the foreseeable future.
This investment by Lessee will determine the rental schedule in
Article 1 above. The investment will be not less than $50,000 nor more
than $200,000.
5. Lessee shall provide the following serv5.ces at said Airport at all
times during the term of this agreement, and at their own cost and expense.
a) First class restaurant service during all of the hours
customary for a restaurant business,' including service
for all flights.
b) Inside janitorial service and electrical power and gas
used in the operation of said restaurant for cooking
purposes only, providing that said Lessor shall cause
to be installed free of cost to Lessee, separate meters
so that said fuels are correctly metered, and said fuels,
if furnished through Lessor, are to be paid for by Lessee
at the rate set forth in ordinary utility contracts cover-
ing commercial users.
S.
LI
c) Lessee to, furnish its own equipment (other than noted in
3. (b) above) utensils, dishes, silverware, china, tables
and chairs needed to operate a first class restaurant,
including bar and back bar for a private club or lounge.
d) Lessee shall furnish adequate personnel to furnish the
above mentioned services. Said personnel to be uniformly
and neatly dressed.
e) Lessee agrees to, at all times, at his own expense, keep
the premises neat, clean, attractive, safe and orderly,
free of waste, refuse and debris and shall provide complete
and proper arrangement for the sanitary handling and disposal
of trash, garbage and other refuse caused as a result of its
activities at the airport.
f) Lessee agrees that Lessor reserves the right to determine
the location and manner in which publications and or other
materials may be displayed in Lessee's leased area.
_._. 6. Lessee shall take good care of the property, fixtures and appurtenances
and suffer no waste, and shall at its own expense repair its own equipment
and return the premises in good order upon the termination of the use thereof,
except ordinary wear and tear, and shall at all times keep the premises clean
and attractive.
7. Said restaurant and other leased areas shall be operated in strict
compliance with the laws of the State of Texas, all applicable security
requirements on the airport, all applicable health regulations, the ordinances
of the City of Lubbock, and the rules and regulation of the Director of
Aviation, and Lessee shall pay for all licenses and permits necessary for
4L
the operation of said restaurant and shall pay all fees, taxes and charges
assessed under state, local or Federal statutes or ordinances insofar as
they are applicable.
S. Any loss from the operation of said restaurant and other leased
areas shall be borne by Lessee, and further Lessee shall indemnify and save
harmless the Lessor from any and all claims of third parties for damages of
any kind or nature which nay hereafter be made against Lessor on account of
any personal injuries or property damage resulting from the use of said
premises, and for this purpose said Lessee shall carry adequate Worknen's _
Compensation Insurance and Public Liability Insurance. The policy limits
of the latter to be not less than One Hundred Thousand Dollars ($100,000.00)
for one person and Three Hundred Thousand Dollars ($300,000.00) for any one
accident involving injury to more than one person with property damage
insurance of not less than Fifty Thousand Dollars ($50,000.00) for any one
accident.. The public liability and property damage insurance shall name
the City as -one of the parties insured.
9. The Lessor reserves the right to make improvements and repairs
at its own expense during the tern of this agreement and agrees to maintain
in good repair the space herein leased to the Lessee.
10. The Lessee agrees to keep accurate records, books and accounts,
and the Lessor or its representatives shall have the right to examine and
audit said books in order to determine the cross sales on said premises at
any reasonable time and will make such records available at Lubbock, Texas.
11. The'Lessee covenants that at the termination of this agreement
it will surrender the premises to Lessor without notice further than is
herein provided in as good condition as when entered into by said Lessee,
.I
reasonable wear and tear excepted. Lessee will have the option at the
expiration or termination of this agreement, or any renewal thereof, to
remove the fixtures, equipment and utensils installed by Lessee, or to
receive from the City or a successor concessionaire, the undepreciated
value of its fixtures and equipment, if Lessee decides to leave said fixtures
and equipment.
12. The privileges contained herein are personal, and the Lessee
agrees that it will not assign, sub -let or underlet the same, or any part
thereof, without the express consent of Lessor in writing.
13. Nothing in this agreement shall be construed as granting to Lessee'
any right to operate any other business or concession on the airport premises
except as enumerated herein. Lessor specifically reserves the right to grant
to other concessionaires the privileges not specifically contained within
the scope of this agreement.
14. Lessor is now operating a parking lot on the airport premises
from which compensation is collected for the privilege of parking motor
vehicles therein. Lessor and Lessee agree that patrons using the restaurant
and/or club facilities shall be granted the privilege of parking in the
parking facilities for a period not exceeding two (2) hours without charge,
provided there is a four dollar ($4.00) minimum purchase or such other figure
as may be mutually agreed to from time to time.
Lessor further agrees that in the event the parking privileges
are leased to any other person, that a provision providing for this free
parking as above provided shall be included in any parking lease.
Lessor also agrees to provide employee parking for Lessee's employees
at the same charge and same location as provided other airport tenant employees.
B.
15. The Lessee is and shall be an independent contractor in the
performance of this contract, and Lessee shall have no authority to incur
any obligation or indebtedness in the name of, or on behalf of Lessor, or
in any manner act for it or on its behalf.
16. If default be made in the payment of the rental above reserved
or any part thereof, or if any of the covenants or agreements herein contained
to be kept'by the Lessee, it shall be lawful for the Lessor, after thirty (30)
days previous written notice to Lessee, or at any time thereafter at the
election of the Lessor and without further notice, unless the Lessee within
said thirty (30) days commences and prosecutes with due diligence the curing
of such default, to declare such term ended and to re-enter said premises or.
any part thereof either with or without process of law and to expel and put
out any person or persons occupying the same, and the said premises to
repossess and enjoy as before this demise. Upon so re-entering, the Lessor
shall not be bound to have terminated and need not terminate this lease until
it so desires.
In'the event that Lessee shall become insolvent or shall be
adjudged a bankrupt or file proceedings under Chapter 11 of the Bankruptcy
Act, then, and in that event, at the option of the Lessor, said Lessor shall
have the right to declare this lease terminated.
17. It is further agreed that Lessee, its agent and employees will not
discriminate against any person or class of persons by reason of age, sex,
race, color, creed or national origin in providing any services or in the
use of any of its facilities provided for the public, in any manner
prohibited by Part 15 of the Federal Aviation Regulations. The Lessee
9.
further agrees to comply with such enforcement procedures as the United
States might demand that the Lessor take in order to comply with the
Sponsor's Assurances.
Lessee agrees to not discriminate against any employee or applicant
for employment because of age, sex, race, color, creed or national origin.
The Lessee agrees to take affirmative action to insure that applicants are
employed and that employees are tested during employment without regard'to
their age, sex, race, color, creed or national origin. Such action shall
include, but not be limited to, employment, upgrading, demotion or transfer,
recruitment, lay-off, rates of pay or other fo,:ms of compensation, and
selection for training, including apprenticeship.
18. Lessee shall indemnify fully and save harmless City; its officers,
agents and employees from any and all claims and actions and any and all
expenses incidental to the investigation and defense thereof, based upon
or arising out of damages or injuries to third persons or their property,
caused by the fault or negligence of Lessee, its agents or employees in the
use or occupancy of the premises and privileges hereunder.
19. The failure of the Lessor or the Director of Aviation to insist
in any one or more instances upon performance of any of the terms or
conditions of this lease shall not be construed as a waiver or relinguish-
ment of the future performance of any such terms or conditions by the Lessee's
obligation with respect to such future performance shall continue in full
force and effect.
20.
IN WITNESS WHEREOFt the parties have hereunto set their hands and +
signatures the day and year first above written.
Signed and Acknowledged
in the Presence of:
ATTEST:
Secretary, City Lubbock
APPROVED:
Di ector of Aviation
ATTEST:
Secretary
CORPOkATE SEAL
11.
CITY OF LUBBOCK
By I ��l s5
Mayor, City of Lubbock
APPROVED AS TO FORM:
City Attorney
GLADIEUX FOOD SERVICES, INC.
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AMENDMENT - '
THIS AMENDMENT, made and executed this 12th day of
.June , 1986, by and between CITY OF LU880CK
"Lessor" and GLADIEUX CORPORATION, a wholly owned subsidiary of
Marriott Corporation ("Lessee);
W I T N E S S E T Hs
WHEREAS, Lessee and Lessor are parties to a certain Food
Service Management Agreement, dated October 9, 1975, as amended,
("Agreement"), whereby Lessee manages and operates Lessor's food
service operation and concessions at Lubbock Regional Airport;
WHEREAS, the parties now desire to further amend the
aforesaid Agreement;
NOW THEREFORE, in consideration of the promises herein
contained and for other good and valuable consideration, the
parties hereto agree as follows:
1. The last page of Exhibit A, as attached to the Agree-
ment, shall be deleted in its entirety and Lessee
hereby relinquishes the "Upper Level" to Lessor for use
as shall not be inconsistent with the "exclusive
liquor, restaurant and concession sales for the entire
airport terminal" granted to Lessee in the Agreement.
The parties hereto agree that a lounge not open to the
public is a use which is not inconsistent with the
"exclusive liquor, restaurant and concession sales for
the entire airport terminal" granted to Lessee.
2. The second "WHEREAS" clause shall be deleted in its
entirety and the following substituted therefor:
"WHEREAS, Lessor desires to enter into a restau-
rant concession agreement with Lessee, covering a
twenty-five (25) year period, commencing February
1, 1976 and continuing until January 31, 2001."
3. The fifth paragraph of Section 1 shall be deleted in
its entirety and the following substituted therefor:
"Said term is to be for twenty-five (25) years
commencing February 1, 1976 and continuing until
January 31, 2001."
4. The sixth paragraph, Rental Section,•of Section 1 shall
be deleted in so for as it relates to Liquor Sales
Rental and the following substituted therefor:
"Liquor Sales Rental will equal ten percent (10%)
of gross sales until. January 31, 1991 and twelve
percent (12%) from February 1, 1991 and until the
Agreement terminates."
5. Section 4 shall be deleted in its entirety and follow-
ing substituted therefor:
"Lessee will make an investment of approximately
Three Hundred Thousand Dollars ($300,000') for
renovations throughout the airport terminal,
including the construction of a new cocktail
lounge ("Investment"). Should any supplemental
air conditioning be required due to the activities
of the Lessee such cost shall be borne by the
Lessee. Lessor Will stub in water and sewer
lines. The amount of the Investment will be
amortized over a ten (10) year period. In the
event the Agreement is terminated prior to the
time that the Investment is fully amortized,
Lessor agrees to reimburse Lessee the unamortized
amount of the Investment within thirty (30) days
after the termination date. One percent (1%) of
gross sales, excluding in-flight gross sales, per
year will be placed into a reserve fund by Lessee
for use by Lessee to refurbish areas in the
airport terminal. In the event one percent (1%)
or any part thereof is not used by Lessee for
refurbishments within any year, the amount will be
placed into the reserve fund. If any amounts
remain in the reserve fund at the termination of
the Agreement, such amounts will be the property
of Lessee."
6. This Amendment is effective April 1, 1966, and there-
after, unless amended. All other terms and conditions
contained in the Agreement shall remain unchanged and
In full force and effect, except by necessary implica-
tion.
IN WITNESS WHEREOF, the parties hereto have caused this
Amendment to be signed by their duly authorized officers and
their respective corporate seals to be affixed and attested, all
done the day and year first above written.
CITY OF LUBBOCK
BY:
B. C. McMINN, MAYOR
ATTEST:
ens to Boyd, City Sec'reta y
APPROVED AS TO CONTENT:
Marvin Coffee rector of
Aviation
APPROVED AS TO FOR
Michele Hart, Assistant City
Attorney
GL•ADIEUX OR TION
BY:
ICE PRESIDE
ATTE T:
i71�vr.�'
Assistan Se r to ary
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MAIN LEVEL
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AIR CARRIER TERMINAL BUILDING
Gladieux Lease
Exhibit A Main Level Concession Area (Po..; --AN
CITY OF LUBBOCK
COUNTY OF LUBBOCK
STATE OF TEXAS
AFFIDAVIT
Before me, the undersigned authority, personally appeared Betty M.
Johnson, who, being by me duly sworn, deposed as follows:
My name is Betty M. Johnson, I am of sound mind, capable of making
this affidavit, and personally acquainted with the facts herein stated:
I am the deputy custodian of the records of the City Secretary's
Office for the City of Lubbock, Texas. Attached hereto is a copy of the
Resolution No. 4285 and related documents, from the official records of
the City of Lubbock. These records are kept by me, the City Secretary,
in the regular course of business, and it was in the regular course of
business of the City Secretary of the City of Lubbock, Texas or an
employee or representatives of the City Secretary of the City of
Lubbock, Texas, with knowledge of the act, event, condition, opinion, or
diagnosis, recorded to make the record or to transmit information
thereof to be included in such record; and the record was made at or
near the time or reasonably soon thereafter. The records attached hereto
are the original or exact duplicates of the original.
Affi
BEFORE ME, the undersigned authority, a Notary Public in and for
said County, Texas, on this day personally appeared Betty M. Johnson,
known to me to be the person whose name is subscribed to the foregoing
instrument and acknowledged to me that she executed the same for the
purposes and consideration therein expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this 19th day of October,
1993,
(Seal)
BEATRIZ M. RODRIGUEZ I O� i 2
• o ary u ic, a o e as
j*q?AkgodT«a Commission Expires: /03/95
CITY OF LUBBOCK
COUNTY OF LUBBOCK
STATE OF TEXAS
AFFIDAVIT
Before me, the undersigned authority, personally appeared Betty M.
Johnson, who, being by me duly sworn, deposed as follows:
My name is Betty M. Johnson, I am of sound mind, capable of making
this affidavit, and personally acquainted with the facts herein stated:
I am the deputy custodian of the records of the City Secretary's
Office for the City of Lubbock, Texas. Attached hereto is a copy of the
Resolution No. 4285 and related documents, from the official records of
the City of Lubbock. These records are kept by me, the City Secretary,
in the regular course of business, and it was in the regular course of
business of the City Secretary of the City of Lubbock, Texas or an
employee or representatives of -the City Secretary of the City of
Lubbock, Texas, with knowledge of the act, event, condition, opinion, or
diagnosis, recorded to make the record or to transmit information
thereof to be included in such record; and the record was made at or
near the time or reasonably soon thereafter. The records attached hereto
are the original or exact duplicates of the original.
BEFORE ME, the undersigned authority, a Notary Public in and for
said County, Texas, on this day personally appeared Betty M. Johnson,
known to me to be the person whose name is subscribed to the foregoing
instrument and acknowledged to me that she executed the same for the
purposes and consideration therein expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this 19th day of October,
1993.
BEATRIZM.RODRIGUEZ ary u ic, a o xas
eur�uese.�neerTa„ Commission Ex fires: A4/03/95
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