HomeMy WebLinkAboutResolution - 629 - Lease Agreement - Ram Rod Industries - Building 712, LIA - 10/09/1980ALA:cl RESOLUTION #629 - 10/9/80
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 an Non -Aeronautical
Lease Agreement between the City of Lubbock and Ram Rod Industries, 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 9th day of October ,1980.
r Ah
B McALISTER, MAYOR
ATTEST:
Evelyn Gaffga, City Seer&-'a'"reasurer
APPROVED -AS TO CONTENT:
(/
Mafvin Coffee, DirleXor of Aviation
APPROVED AS TO FORM:
41
Angela . Adams, Assistant City Attorney
RESOLUTION #629 - 10/9/80
STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENT:
COUNTY OF LUBBOCK §
NON -AERONAUTICAL LEASE AGREEMENT
THIS AGREEMENT, entered into at Lubbock, Texas by and between the CITY OF
LUBBOCK, hereinafter referred to as "LESSOR", and RAM ROD INDUSTRIES, INC. a
Texas Corporation domiciled at 1322 B Grinnell Avenue, Lubbock County, Texas,
hereinafter called "LESSEE", Witnesseth:
WHEREAS, LESSOR owns and operates a public airport designated as LUBBOCK
INTERNATIONAL AIRPORT herein called "AIRPORT", and
WHEREAS, the LESSEE desires to use building no. 712 and certain unimproved
property described herein, for the manufacturing and storage of cotton trailer
modules; and
WHEREAS, LESSOR reserves the right to take any action it considers nec-
essary 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 the Airport which in the opinion of
LESSOR would limit the usefulness of the Airport or constitute a hazard to
aircraft; and
WHEREAS, it is agreed by LESSEE that during the time of war or national
emergency the LESSOR shall have the right to enter into an agreement with the
United States Government for military or naval use of part or all of the
landing area, the publicly owned air navigation facilities, and other area or
facilities of the Airport. And if any such agreement is executed, the pro-
visions of this instrument, insofar as they are inconsistent with the pro-
visions of the agreement with the Government, shall be terminated, and
WHEREAS, it is agreed that this agreement shall'be subordinate to the
provisions of any existing or future agreement between the LESSOR and the
United States relative to the operation and maintenance of the Airport, the
execution of which has been or may be required as a condition precedent to the
expenditure of federal funds for the development of the Airport; and
WHEREAS, all right, privileges and interests acquired herein by LESSEE at
the option of the LESSOR, following written notice of thirty (30) days, may be
suspended or finally terminated if such suspension or termination is found by
the LESSOR, acting in good faith, to be necessary to secure federal financial
aid for the development of the Airport, or further development and provisions
of aeronautical operations thereon; and,
WHEREAS, in the event the exercise of the rights reserved above by the
CITY makes the operation of this lease impractical, the LESSEE upon thirty days
notice to the LESSOR, shall have the right to cancel this lease; and
ARTICLE I
NOW THEREFORE, found in consideration of the covenants and conditions
herein contained and other valuable consideration the LESSOR authorizes the
LESSEE to exercise the rights, powers and privileges hereinafter set forth and
does hereby lease to the LESSEE the premises hereinafter described and being:
Building #712 located in the Industrial Section, Lubbock International
Airport and 16,000 square feet of unimproved property, the legal description of
which is contained in "Exhibit A" attached hereto and made a part hereof for
all purposes.
The original term of this agreement shall be for a period of five years,
commencing upon the date of execution. LESSEE shall have the option to extend
this agreement for.two five (5) year periods. Such option must be exercised in
writing ninety (90) days prior to expiration date of original term or expiration
of the first five (5) year option, as applicable. If the LESSEE desires to
exercise said options, the rental rate shall be in accordance with the calculations
as set forth herein plus CPI Index Increases.
ARTICLE II
In consideration of the rights and privileges herein granted, LESSEE shall
pay to the LESSOR a Building Rental for 16,000 square feet at the rate of .75
per square foot per year or TWELVE THOUSAND DOLLARS ($12,000.00) per year; and
a ground rental for 16,000 square feet at the rate of .0555 per square foot per
year or EIGHT HUNDRED EIGHTY EIGHT DOLLARS ($888.00) per year. Rnetal rates
set forth herein shall be paid to LESSOR by LESSEE monthly in advance by the
tenth day of each month, such monthly payment being SEVENTY-FOUR DOLLARS ($74.00)
for ground rental and ONE THOUSAND DOLLARS ($1,000.00) for building rental for
a total of ONE THOUSAND SEVENTY-FOUR DOLLARS ($1,074.00) per month.
The parties hereto mutually agree that the rental rates set forth above
shall be adjusted upward or downward for each ensuing year beginning January 1,
1981 in direct proportion to the fluctuation of the U.S. Department of Labor,
Bureau of Labor Statistics Cost of Living Index. For the purpose of computing
all adjustments, the Bureau of Labor Cost of Living Index as of January 1, 1980
shall be construed as the base period.
ARTICLE III
This license is granted subject to the following provisions and conditions:
1.The license herein granted is subject.'to any and all applicable
laws, ordinances, rules and regulations pertaining to the Lubbock Airport.
2. The LESSEE shall not make, permit, or suffer any additions, improve-
ment or alterations.to.the property which constitute any major structural
change or changes without priorwritten consent of the LESSOR. Any such
additions, improvements or alterations made with the consent of the LESSOR
shall be solely at the expense of the LESSEE and unless such consent provides
specifically that title to the addition or improvements so made shall vest in
the LESSEE, title thereto shall at all times remain in the LESSOR and such
additions or improvements shall be subject to all terms and conditions of this
instrument. The LESSEE agrees to hold the LESSOR harmless from mechanic's
and materialman's liens arising.from any additions, improvements, repairs or
alterations effected by the LESSEE.
3. The LESSOR, acting by and through the Director of Aviation, or other
designated representative shall have the right to inspect the property at
all reasonable times .during the term of this license.
4. The LESSEE agrees that it will at all times during the term of this
license maintain in good and.serviceable condition all land, improvements,
facilities and equipment included herein, ordinary wear and tear excepted,
such maintenacne to.be the sole responsibility and obligation of the LESSEE.
5. Except as provided herein, any property of the LESSOR, or for which
the CITY may be responsible, which is damaged or destroyed incident to the
exercise of .the privileges herein granted shall be properly repaired or re-
placed by the LESSEE to the satisfaction of the LESSOR and its authorized rep-
resentatives, or in lieu of such repair or replacement, the LESSEE shall, if
so required by the LESSOR, pay to the LESSOR money in any amount,deemed suf-
ficient by the LESSOR to compensate for the loss sustained by the LESSOR by
reason of the loss of, damage to, or destruction of such property.
6. The LESSEE agrees to indemnify, defend and forever save the LESSOR,
their authorized agents, representatives and employees, harmless from and
against any and all penalties, liability, annoyances, or loss resulting from
claims or court action of any nature arising directly or indirectly out of.
any acts or omissions of the LESSEE, his agents, servants, guests, employees
or business visitors under this agreement.
7. The LESSEE shall maintain at all times, as its sole expense, in-
surance with an insurance underwriter acceptable to the LESSOR and from one
authorized to do business in the State of Texas, against claims of public
liability and,proper.ty damageresultingfrom LESSEE'S business activities
at the Airport. The amount of insurance coverage shallbe not less than
FIFTY THOUSAND DOLLARS ($50,000) for property damage as a result of any one
event, or less than ONE HUNDRED THOUSAND DOLLARS ($100,000) for personal injury
or death of any one person in any one event; or -less than THREE HUNDRED
THOUSAND DOLLARS ($300,000) for personal injury or death of two or more persons
in any one event. Certificates of insurance or other satisfactory evidence
shall be filed with the City Secretary prior to entry upon the premises by the
LESSEE. Each policy shall name the LESSOR, CITY OF LUBBOCK, as an additional
insured as its interest may appear. Each policy shall provide "It is agreed
that insurer shall notify the CITY OF LUBBOCK, TEXAS, of any alteration, renewal
or cancellation of this policy and that this policy.shall remain in full force
and effect until ten (10) days after such notice is received by the Director of
Aviation.
8. LESSEE shall furnish to the LESSOR satisfactory evidence that it
carries Workmen's Compensation Insurance in accordancewith the laws of the
State of Texas.
9. The LESSEE shall assume responsibility for the payment of all taxes
and assessments and public:utility charges becoming due on the property from
the date of execution of this agreement. The'LESSEE:agrees to pay all claims
or damages for or on account of water, lights, heat, power, sewage disposal,
and any other services or utilities furnished to or with respect to the property
or any part thereof. The LESSOR does not guarantee to furnish utilities or
utility services in .the .future. In the event utility service is not furnished
for reasons other than repair or installation -of lines or non-payment of
charges, LESSEE shall have the option to cancel this lease upon thirty days
notice to the LESSOR.
10. Within 30 days following the date of expiration or _termination of
this agreement, the LESSEE shall as required by the LESSOR, vacate said
premises, remove all property of the LESSEE and restore the land, improvements,
facilities and equipment included herein to as good condition on such date of
expiration or termination as when received, ordinary wear and tear excepted.
If the LESSEE shall fail or neglect to remove said property and so restore the
land, improvements, facilities and.equipment included herein, within 30 days
of said expiration or termination, then at the option of the LESSOR said
property shall either become the property of the LESSOR without compensation
therefor or the LESSOR may cause the property to be removed, the land, improve-
ments, facilities andequipment included herein to be restored at the expense
of the LESSEE and no claim for damages against the LESSOR or its officers,
agents, or employees shall be created or made on account.of such removal and
restoration.
11. The LESSEE, its agents and employees will not discriminate against
any person or class.of persons by reason of 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 the Federal Aviation Regulations.
The LESSEE 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 (CITY).
LESSEE agrees to not discriminate againstanyemployee or applicant for
employment because of race, creed, color, sex 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, sex or national origin. Such action shall include, but not be
limited to employment,. upgrading, demotion, or transfer, recruitment, layoff,
rates of pay or other forms of compensation, and selection for:training,.in-
cluding apprenticeship.
The LESSEE will conduct its activities and operate its facilities in
accordance with the requirements of Section 504 of the Rehabilitation Act of
1973 and will assure that no qualified handicapped person shall, solely by
reason of his or her handicap be excluded from participation in, be denied
the benefits of, or otherwise be subjected to discrimination, including dis-
crimination in employment, under any program or activity of the LESSEE.
12. The LESSEE warrants that it has not employed any person employed
by the LESSOR to solicit or secure this Lease Agreement upon any .agreement
for a commission,.percentage, brokerage, or contingent fee.
13. Except with prior written consent of the LESSOR the LESSEE shall
not sublet:any-part of the premises or assign the license or any of its rights
hereunder.
14. The failureof the LESSOR to insist in any one or more instance upon
performance of any of the terms orconditions of this license shall not be
construed as a waiver or relinquishment of the future performance of any such
term or conditions but the LESSEE'S obligation with .respect to such future
performance shall continue in full force and effect.
15. The obligation of the LESSEE to maintain the property to the satis-
faction of the LESSOR orits representative and to restore the same to its
present condition shall extend not only to the property hereinabove described
but to the adjacent streets and roadways .used for ingress and egress to said
property, except for ordinary wear and tear occasioned bynormaland customary
uses.
16. LESSEE shall provide a complete and proper arrangement for the adequate
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 at its sole
expense.
17. LESSEE agrees that the LESSOR shall have, and it hereby grants the
LESSOR a lien on all LESSEE'S property of whatsoever nature placed in or upon
the premises, to guarantee the payment of any and all arrearages.
ARTICLE IV
This agreement is subject to termination_ for the reasons set forth below,
provided that 30 days written notice is given to the non -terminating party.
The LESSEE may terminate upon the happening of any of the following:
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 notice from the LESSEE 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 fa-
cilities in such a manner as to substantially restrict the LESSEE from operat-
ing under the terms of ,this agreement, if such restriction is to continue or
has continued for a period of three (3) months or more.
The LESSOR may terminate upon the happening of any of the following:
1. If the LESSEE shall file a voluntary petition of bankruptcy; or,
if the proceedings in bankruptcyshall be instituted against it and it is
thereafter adjudicated a bankrupt pursuant to such proceedings; or if a
court shall take jurisdiciton 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 divested of its rights,
powers and privileges under this agreement by other operation of law.
2. If the LESSEE shall abandon and discontinue operations under this
agreement.
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 this Agreement.
4. If the LESSEE shall failto perform, keep and observe all.of the
covenants and conditions contained in this agreement to be performed, kept
and observed by it.
5. If the LESSEE shall fail to abide by all applicable laws, ordinances
and rules and regulations of the.United States, State of Texas, City of Lubbock,
or Director of Aviation of the City of Lubbock.
Executed this 9thday of October , 1980.
ROD INDUSTRIES, INC.
ATTEST:
CVOFLUBCK, TEXAS
BI L McALISTER, MAYOR
ATTEST:
E elyn G fga, ity ary
APPROVED AS TO CONTENT:
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Marvin Coffee, D ctor of Aviation
APPROVED AS TO FORM:
Angela Cdams, Asst. City Attorney
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METES AND BOUNDS DESCRIPTION for a 16,000 square foot tract in.Section 2,
Block D-3, Lubbock County, Texas, being further described as follows:
BEGINNING at a h" iron rod set for the Northeast corner of this tract,'
from whence the Northeast corner of Section 2, Block D-3, bears East
717.67 feet and North 4731.7 feet;
THENCE N. 89054140" W. a distance of 198.5 feet to a iron rod set for
the Northwest corner of this tract;
THENCE S.;00005'20" W. a distance of 80.6 feet to a " iron rod set for
the Southwest corner of this tract;
THENCE S. 89054140" E. a distance of 198.5 feet to a iron rod set for
the Southeast corner of this tract; s
THENCE N. 00005'20" E. a distance of 80.6 feet to the Point of Beginning.
I, J. Stan Piper, Registered Public _ HUGO REED AND ASSOC ZATESt
Surveyor, do hereby certify that this OF r Land Surveyors and Civil iiiiii4i
plat is true and correct as surveyed 1706 14th Street
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on the ground. Q _ 0 1960* ,'' Lubbock, Texas p�1
Telephone ��►x�s n
P1 ER i It. 3A 11
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J. an Piper �" iS14 Drawn by: J Et ABtBiF
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R stered Public Surveyor° .qE. �a O Sheet / o£ / Revisedii�,'s ;
Lubbock, Texas w' j SVa ��� Revised by I�
Registered Seal No. 1974 �y Field book /JT
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