HomeMy WebLinkAboutResolution - 092470L - Lease Agreement - Executive Hangars Of LBK Inc - Airport - 09_24_1970RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
r11-1
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 LEASE AGREEMENT
between the City of Lubbock and Executive Hangars of Lubbock, Inc., covering
lease of land at Lubbock Municipal, Airport and authorizing the cDnstruction of
T-Hangars thereon, attached h6re'with�: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 fuliy°dppi6d heroin in detail.
Passed by the City Council this 24th day of
ATTEST:
Lavdni4 Lowe, CitySecretary-Treasurer
APPROVED:
red O. Senter, Jr., Cityor6ey
:f t
i
ati two 4
TEE HANGAR GROUND RENTAL AGREEMENT
THIS LEASE AGREEMENT, made this 24th day of SEPTEMBER
19. 7, between the City of Lubbock, acting by and
f through its duly authorized Mayor (hereinafter referred to as "Lessor") and Executive
Han&ars of'Lubbodk;jnc.,
a corporation incorporated under the laws of the State of
Texas
, with its principal office at'Lubbock, To
owned jointly by the following individualat"
Name
'Address
O
1318 Broadway, Lubbock, Texas
-3403 - 43rd St., Lubbock Texas
4tA
3801 - 21st St., Lubbock, Texas
S:M
3601 - 21st St., Lubbock, Texas
77
16 Briercroft, Lubbock, Texas
•;
J"
•
Box 2587, Lubbock, Texas
r"
'• '
.
i•y 1613 - Avenue H, Lubbock, Texas
i i1�i6t9-A
' ' 1112 14th
,
• ''Cs7 c-.s�c,.1r
i'� r�u� .i�r.. + - St., Lubbock, Texas
3414 - 59th St., Lubbock, Texas
502 Avenue N, Lubbock, Texas
,
��,�•,- 1708 - 15th St., Lubbock; Texas
j.
..
fYtil
' rra.i
1408 -Texas Avenue, Lubbock, Texas
t ;'
r.
•1114 - Texas'Aveeue. Lubbock, Texas
;
om
�r
No Text
For and in consideration of the terms, conditions and covenants of this Lease
to be performed by Lessee, all of which Lessee accepts, Lessor does hereby lease
and let unto Lessee certain property (hereinafter called "Premises"), and certain
attendant privileges, uses and rights, as hereinafter specifically set out.
A. DESCRIPTION OF PREMISES LEASED
A 1.342 acre tract of land out of Section 28, Block A., Lubbock County,
Texas and being more particularly described as follows:
Beginning at a point for the Southwest and beginning corner of this tract,
whence the Southwest corner of Section 28, Block A, bears South 89059'30" West
•797.51 feet and South 0002' East 4649.15 feet;
Thence North 117.0 feet to a point for the Northwest corner of this tract;
Thence East 500.0 feet to a point for the Northeast corner of this tract,
said point also being 950.0,feet West of the Center -line of the North -South Runway;
Thence South along a line 950.0 feet West of and parallel to the Center -
".line of the North -South Runway, a distance of 117.0 feet to a point for the South-
east corner of this tract;
Thence West 500.0 feet to the place of Beginning. Containing 1.342 acres
The location of the leased -premises is set,forth on Exhibit A attached hereto
and by this reference made a part hereof.
B. PURPOSE
The purposes for which Lessee may use the premises described in paragraph
A. above are as" follows:
1. Lessee may engage in the business of Hangar Storage of aircraft and
'....!equipment owned only by or under.the control 'of the members of the Corporation at
the Lubbock Regional Airport.
2. Lessee proposes to construct a number of T-Hangar units on the leased
premises and will start construction within sixty (60) days and complete construc-
tion within one hundred -.twenty (120) days from date bf`execution'of this agreement.
ARTICLE II
A. The original term of this agreement shall commence on the 24th
day of SEPTIIMBER 19 70 and end on the 24th day of
SEPTEMBER l9 90 , a term of twenty years.
B. Lessee shall have the option to extend this agreement for three five -gear
terms which shall begin simultaneously with the expiration of the preceeding term by
giving written notice to the Lessor to that effect, not less, than sixty daga prior
V.
to the expiration of original term or any extension thereof. The rental and/or fees
of the extension shall be renegotiated at that time. Readjustment of ground rental
may be renegotiated by either party upon written notice within ninety days prior
to the seventh anniversary of this agreement, and within ninety days prior to each
..fourth anniversary after said seventh anniversary.
C. NATIONAL EMERGENCY, In the event the rights and privileges hereunder area
:',suspeaded by reason of war or other national emergency, the term of this lease
shall be extended by the amount of the period of such suspension.
ARTICLE•III
RENTAL AND FEES
A. Ground rental for the gross land area, leased hereunder, shown on Exhibit A
.'',containing 58,500 square feet as defined in Article I, Paragraph A.at the rate of three
,.cents (3:) per square foot per year shall be paid to Lessor by Lessee. Ground rentals
`shall be paid monthly in advance on the first day of each month in a sum equal to
one-twelth of the annual ground rental due hereunder. Rental will he effective and
will commence the day the Lessor accepts the building constructed by Lessee, however,
In no event later than one hundred twenty (120).days`fro-m execution of this agreement.
74r
+ .. 'ARTICLE °,IV ,,
It is specifically agreed and understood by the undersigned that each shall
be jointly and severally liable and responsible for the terms and conditions here-
after referred to,as obligations and rights of Lessee.
A. ASSIGNMENT, TRANSFER, PLEDGE, SUBLEASE OR OTHERWISE ALIENATE THIS AGREEMENT.
Neither the Lessee or any individual stockholder shall at anytime assign,
transfer, pledge, sublease or otherwise alienate this agreement or any individual
interest herein, without the prior written consent of the Director of Aviation.
B. Lessee agrees that at no time.will any aircraft be stored on said.premises
except that owned and/or operated by or under the control of the.undersigned.
C. TAXES AND ASSESSMENTS
Lessee agrees to pay all taxes and assessments levied on the premises and
any other lawful taxes or assessments by any other governmental agency in connection
with its business which may be levied, promptly when due, and will promptly pay
when due all charges for water, electricity and any other utilities used in con-
nection with the operation of said facility.
D. NON-DISCRIMINATION
Lessee, his agents and employees will not discriminate against any person
or class of persons by reason of race, color, creed or national origin in providing
any services or in the useof any of its facilities provided for the public, in any
manner prohibited by Part 15 of the Federal Aviation Regulations. The Lessee fur-
ther agrees to comply with such enforcement procedures as the United States might
demand that the Lessor take in order to comply with the Sponsors' Assurances.
Lessee agrees to not discriminate against any employee or applicant for
employment because of race, creed, color•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 race, creed, color or national
-5-
origin. Such action shall includes,.but not,be limited to employment, upgrading,
demotion, or transfer, recruitment, layoff, rates of pay or other forms of compen-
sation,, and selection for training,•including.apprenticeship.
E. DEVELOPMENT OF AIRPORT
Y..
Lessee agrees that Lessor has the right to further develop or improve the
airport as it sees fit, regardless of the desires or views of Lessee, and without
interference or hindrance.
F. OPERATION OF AIRCRAFT, COMPLIANCE WITIL RULES AND REGULATIONS
Lessee agrees that it will operate aircraft at all times in compliance with
all'appLicable-federal, state and local rules and regulations and complying with all
.,_...present or future applicable statutes, ordinances, rules and regulations affecting
the use and operation of the hangar and airport.
G. INSPECTION OF BOOKS AND RECORDS
Lessee shall maintain complete books and records of all transactions, sales
and income resulting from its operation at Lubbock Regional Airport which books and
_"records may be inspected at anytime by the Lessor or its duly authorized represen-
tatives at Lubbock, Texas, upon reasonable notice to.Lessee. In the event Lessee
requests such inspection to be performed outside the Lubbock area, such request
may be honored at the Lessor's discretion; however, any and all expenses incurred
by so doing shall be reimbursed by the Lessee.
H.~ CONDITIONS OF PREMISESa INSPECTION
Lessee shall, at its sole cost and expense, maintain the premises and the
,buildings, improvements and appurtenances thereto, in a presentable condition con-`
• sistent with good business practice and equal in appearance and character to other
similar improvements on said Airport. Lessee shall repair all damages to said
premises; shall maintain and,repair all,equipment thereon# including any drainage
installations, paving, curbs, islands,..buildings and improvements; and shall repaint
its own buildings as necessary.
Lessor shall be the sole judge of the quality of maintenance and upon
written notice by Lessor to Lessee, Lessee shall be required to perform whatever
maintenance Lessor deems necessary. If said maintenance is not undertaken by Lessee
within ten days after receipt of written notice, Lessor shall have the right to
enter upon the premises and perform the necessary maintenance, the cost of which
shall be borne by Lessee, and such cost shall be secured by a lien upon any improve —
meats placed upon said premises by Lessee.
1; UTILITIES
Lessee shall have the right to connect to any and all storm and sanitary.
sewers and water and utility outlets including metering devices at Its own cost
and Lessee sha and expense, e pay for any and all service charge& Incurred there—
for.
Lessee has the right -to construct and maintain its own septic tank and
tile field in an area designated by Lessor. Lessee will connect to sanitary sever
at Lessee's sole expense when Lessor provides sewage services to be located at.
r�the rear or west side of the lease plat line.,
J. TRASH, GARBAGE,- REFUSE, ETC.
Lessee.shall provide a complete and proper arrangement for the ade-q"te
sanitary handling and disposal, away from the airport, of all trash, garbage and
other refuse caused as a,result of.the operation of its business.
K. SIGNS
Lessee may not erect or cause to be erected on leased premisesanybill-,
boards or advertising signs without ,the ,prior written consent of Lessor.
L. INDEMNITY HOLD VAR11LESS
Lessee agrees to hold the Lessor free and harmless from loss from each
and every claim, and demand of whatsoever.aature made on behalf of or by any person
or persons resulting from Lessee's operation and/or use of the leased premises by
the Lessees, its agents, servants;•employees, and from all loss and damages by
reason of negligence of the Lessee, its agents, servants and employees.
M. USE OF AIRPORT
During the term of this lease, Lessee shall have the free and non -exclusive -
use in common with others at the airport, runways, ramps, parking area and any and
all public facilities available at the airport and the right of ingress to and
egress from the above described premises which right shall extend to Lessee's
employees, guests, and invitees:
If during the term of this agreement, the use of thee airport by Lessee is
temporarily suspended, restricted, or interferred with for a period of.ten (10) days
or more for reasons beyond the practical control of the Lessor in such manner as to
substantially affect the use of the hangar or operation of aircraft by Lessee all
rents during such period shall.abate and the term of the agreement shall, at the
election of Lessee, be extended for an.equivalent period of time.
N . IMPROVEMENTS
Lessee shall not make, permit, or suffer any improvements,-additiona, or
alterations thereto located on the leased property which constitute any major struc-
tural change or changes without prior written consent of the Director of Aviation.
The Lessee agrees to hold the "Lessor harmless from Mechanic's and Materialman's
Liens arising from any construction, additions, improvements, repairs or alters
tions effected by the Lessee.
0. PARKING
Lessee shall; at its sole cost and expense, construct adequate and suitable
pavement areas for use by its members for parking,.of aircraft and automobile parking
for its employees$ guests.or invitees. 11
• P. VEHICULAR MOVEMENT
-
Lessee will not permit the driving of vehicles by its employees, guests,
or invitees on the apron, taxiways, or runways, except for approved ingress and
egress to the premises herein leased.
Q. Lessee shall not engage in any type of commercial enterprise such as, but
not limited to the sale of fuels, lubricants, aircraft parts, or charter serviceso
those specifically stated.
'ARTICLE V
OBLIGATIONS AND RIGHTS OF LESSOR
A. SAFETY
.Y
Lessor reserves the right to take any action it considers necessary to
protect the aerial approaches of the airport against obstruction, together with
the right to prevent Lessee from erecting or permitting to be erected any building
or other structure on said leased premises, which, in the opinion of the Director
Of Aviation, would limit the usefulness`of the airport or constitute a hazard to
aircraft.
B. MAINTENANCE OF PUBLIC AREA
Lessor reserves the right, but shall not be obligated to Lessee, to
maintain and keep in repair the landing area of the airport and all publicly owned
facilities of the airport, together with the right to direct•and control all acti-
..vities of Lessee in this regard.
C. STANDARDS
Lessor reserves the right to establish standards for the construction, main-
tenance, alterations, repairs, additions or improvements of Lessee's facilities.
This will include structural design, color, materials, used, landscaping and main-
tenance of Lessee's facilities and leased premises►
D. UTILITIES
Lessor agrees to construct the necessary sewage facilities to serve
Lessee where Lessee may connect at'the edge of leased premises at such time
determined by Lessor.
E. SERVICE ROAD
Lessor agrees to construct a public service road and permit Lessee to.
connect to said service road in such manner to provide Lessee ingress and egress
to the leased premises.
F. TAXIWAY•
Lessor agrees to construct a connecting taxiway for the aeronautical
use, of Lessee's employees, guests and invitees.
ARTICLE NI
TERMINATION
A. TERMINATION BY LESSEE.
This agreement shall be subject to cancellation by Lessee in the event
of the happening of any one or more of the following contingencies without lia-
bility to the Lessor:
1. The permanent abandonment of the Airport as an air terminal.
2. The issuance by any court of competent jurisdiction of an injunction
in any way preventing or restraining the use of the Airport and the remaining in
force of such injunction for at least thirty (30) days.
3. The breach by the Lessor of any of the terms, covenants or conditions
of this Agreement to be kept, performed and observed by the Lessor, . and the failure
of the Lessor to .remedy such .breach for a period of sixty (60) days after written
' -10 -
•' notice from the Lessee addressed to Director of Aviation or his equivalent successor
of the existence of such breach.
4. The assumption by the'United States Government, or any authorized agency
of same, of the operation, control or use of the Airport and its facilities in such
a manner as to substantially restrict the Lessee from operating said facilities,
if such restriction be continued for a period of three (3) months or more.-
B. TERMINATION BY LESSOR
This Agreement shall be subject to cancellation by the Lessor in the event
of the happening of any one or more of the following contingencieat
1. If the Lessee shall file a voluntary petition of bankruptcy; or, if'
proceedings in bankruptcy shall be instituted against it and it is thereafter
adjudicated a bankrupt pursuant to such proceedings; or if a court shall take
jurisdiction of Lessee and its assets pursuant to proceedings brought under the
provisions of any federal reorganization act; or if a -Receiver for Lessee's assets
is appointed; or if Lessee shall be diveated of its rights, powers and privileges .
under this agreement -by other operation of Lax.
2. If the Lessee shall.abandon and discontinue the conduct and operation
of said facilities.
3. If the Lessee shall default in or fail to make any payments at the
time and in the amounts as required of it under thi.a.Agreement.
4. If the Lessee shall fail to perform, keep and observe all of the
`.' covenants and conditions contained in this Agreement to be performed, kept and
observed by it.
S. If the Lessee shall fail to abide by all applicable laws, ordinances,
rules and regulations enacted or promulgated by the United States or any agency
thereof, State of Texas, City"of Lubbock, or Director of Aviation of the City of
• Lubbock.
Lessor, acting by and through the Director of Aviation, shall give written
notice to Lessee to correct or cure any default, failure to perform or breach of
covenant or conditions within thirty (30) days from the date of such notice, and if
the default, failure to perform or breach complained of shall not have been corrected
within such time in a manner satisfactory to the Lessor, then, and in such event,
Lessor shall have the right, at once and without further notice to Lessee, to declare
this Agreement terminated And to enter upon and take full possession of the leased
area and, provided further that upon the happening of any one of the contingencies
enumerated in.Subsection B theraf, this Agreement shall he deemed to be breached
by Lessee and thereupon "ipso facto" and without entry or any other action by
Lessor the Agreement shall terminate, subject to be reinstated if Subsection B-1
is reason for termination only if such involuntary bankruptcy or insolvency pro-
ceedings, petition for organization trusteeship, receivership or other legal act
divesting Lessee of its rights under this Agreement shall be denied, set aside,
vacated or terminated in Lessee's favor within thirty (30) days from the happening
of the contingency. Upon the happening of said latter events, this agreement shall
k' .:.be reinstated as if there had been no breach occasioned by the happening of said
contingencies, provided that Lessee shall within ten (10) days after the final
denial, vacating or setting aside of such petition on the vacating, terminating or.
setting aside of such appointment, pay or discharge any and all sums of money
.:.which may have become due under this Agreement in the interim and shall likewise,
fully perform and discharge all other obligations which may have occured and/or
become payable in the interim, and,
Provided, further, that in the event that defaults, failure to perform and breaches
by Lessee ,of its -obligations under this Agreement to be perfovmed, kept and observed
by it -shall recur from time to time, then upon written recommendation by the
Director of Aviation to Lessor, the Lessor may terminate this Agreement. In such
event the Lessor shall give written notice of such termination to said Lessee and
the Agreement shall terminate within ten (10) days from the date of said notice.
The acceptance of rentals and fees by the Lessor for any period or periods after
a default of any of the terms, covenants and conditions herein contained to be
performed, kept and observed by Lessee shall not be deemed a waiver of any rights
on the part of the Lessor to cancel this Agreement for failure by Lessee to so
perform, keep or observe any of the terms, covenants or conditions hereof to be
performed, kept and observed. No waiver by the Lessor, its officers, agents orb
employees of any of the terms of this Agreement to be kept, performed and observed
by the Lessee shall be construed to be or act as a waiver by the Lessor of any
subsequent default on the part of the Lessee.
C. OWNERSHIP
Within.ninety (90) days after expiration of this agreement as herein pro-
vided, the Lessee shall remove all improvements, constructed or placed thereon such
as buildings, equipment, goods, chattels and fixtures,belonging to it and to restore
the premises then under occupancy to the condition in which they were received,
reasonable wear and tear and damage by fire or the elements excepted if requested
by the Lessor at its option upon thirty (30) days' written notice prior to expir-
ation. In the event of the failure on the part of Lessee to immediately remove
from the premises all property owned by it under the requirements set forth in this
paragraph, the'Lessor may effect such removal and restore such property at Lessee's
expense. Lessee covenants and agrees to pay all reasonable costs, attorney's fees
and expenses that shall be incurred by the Lessor in enforcing the covenants and
conditions of this agreements In event the Lessee fails to pay` expenses.within
A
-13-
•
thirty (30) days such property will be deemed abandoned and title will revert to the
Lessor; however, this in no way relieves the Lessee of the debt incurred.
In the event Lessor terminates this agreement for cause as contained herein
or if Lessee discontinues operation at anytime prior to expiration the Lessojr re—
tains ownership to Lessee's improvements to the extent of the rentals due for the
then remaining term.
Do SUBORDINATION PROVISION
This lease shall be subordinate to the provisions of any existing or
future agreement between the Lebsor and the United Stateag relative to the opera—
tion and maintenance of.the airport.
ARTICLEXII
NOTICE
Any required notice to the Lessor provided for herein shall be sufficient if
sent by registered or certified mail, postage prepaid, to the Director of Aviation.
Route 3, Box 201, Lubbock, Texas 79401, and any such notice to the Lessee shall be
sufficient If sentinthe same manner addressed.to'Exeeutive Hatgars,of*Lubbock,
Inc., 1708 15th Street; 'Lubbock, 'Texas 79401 or such other addresses as may be
designated by the Lessor or Lessee in writing from time to time.
IN WITNESS WHEREOF, the parties have executed this agreement this '_241i
day 0 . f ... .. SEPTEMBER j'; 1970 by its duly authorized officers.'
THE CITY OF -;UB ddK-
p,
BY
Haypt:W Lubbock
�r+.. .. . � . p
No Text
6