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HomeMy WebLinkAboutResolution - 591 - Lease Agreement - Hertz Corp - Rental Space, LIA - 08/14/1980SMT:bs RESOLUTION #'-591_ 8/14/80 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 a Lease Agreement with the Hertz Corporation for rental space at the Lubbock International Airport, a copy of which is 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 14th day of August ,1980. BILL MCALISTER, MAYOR ATTEST .: - j elyn--Gaffg'a City Sec a ry easurer 'APPROVED AS TO CONTENT: J 'Marvin Coffee, D Yeltor o Aviation 11 ;APPROVED AS TO FORM: M. Tom, Asst. City Attorney RESOLUTION #. 591- 8/14/80 THE STATE OF TEXAS § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF LUBBOCK § LEASE AGREEMENT THIS AGREEMENT entered into by the City of Lubbock (referred to herein as CITY), a Home Rule Municipality of Lubbock County, Texas, and THE HERTZ CORPORATION (referred to herein as LESSEE) of 660 Madison Avenue, New York, New York 10021. T.TT TTTT] [l c+T7 TT T WHEREAS, CITY owns, controls and operates the Lubbock Inter- national Airport (referred to as AIRPORT), situated at Route 3, Lubbock, Lubbock County, Texas, and possesses the power and auth- ority to grant certain rights and privileges with respect thereto, including those hereinafter set forth; and WHEREAS, automobile rental services at the AIRPORT are an integral part of the necessary accommodations for ground trans- portation provided for passengers arriving at and departing from the AIRPORT in the promotion and development of air commerce and air transportation; and WHEREAS, LESSEE desires to make said automobile rental services available at the AIRPORT and is qualified and has the capacity for performing said services and to equip said facilities for use in connection therewith and further desires to lease certain space, and to obtain certain rights and privileges with respect to the operation of a rent -a -car service at said airport, upon the terms and conditions hereinafter provided. NOW THEREFORE, for and in consideration of the mutual promises, covenants, terms and conditions, both general and special, as hereinafter set forth, CITY hereby grants to LESSEE the rights and privileges hereinafter described; LESSEE agrees to assume the duties, responsibilities, and obligations as hereinafter set forth; and the pkrties hereto, for themselves, their successors and assigns, agree as follows: ARTICLE ONE LEASE OF DESCRIBED PREMISES CITY, upon mutual execution of this agreement, does lease and demise to LESSEE, the following premises located at the AIRPORT: A. TERMINAL - A description of this location is shown on the attached and incorporated "Exhibit A." B. GROUND - A description of this location is shown on the attached and incorporated "Exhibit B." C. CLOSE -IN VEHICLE PARKING AREA - A description of these locations are shown on the attached and incorporated "Exhibit C." ARTICLE TWO TERM The term of this lease shall be for five (5) years, beginning May 1, 1979, and terminating April 30, 1984 The CITY hereby grants to the LESSEE the option to extend this lease beyond the expiration date herein shown, for a period of five (5) successive years, unless termination occurs pursuant to Article Seven. LESSEE shall exercise such option period by giving the CITY at least thirty (30) days written notice of LESSEE's intention to exercise the option. ARTICLE THREE USE OF PREMISES The LESSEE is granted for the stated terms and conditions, a non-exclusive privilege of conducting a transient automobile rental service from the leased premises and for no other purpose. The number of passenger car rental concessions at the AIRPORT shall be no more than four (4) through December 31, 1981. ARTICLE FOUR RENTALS, RECORDS, AUDIT AND PLACE OF PAYMENT A. RENTAL 1. Terminal: The LESSEE shall pay to the CITY as rental the following: Ten per cent (10%) of LESSEE's annual gross revenue from its business operation from the AIRPORT or eight per cent (8%) of the previous year's annual,gross revenue or twenty -2- i thousand ($20,000) dollars, whichever of the three is the greater amount, but in no event will the annual payment be less than twenty thousand ($20,000) dollars. The rental is payable month by month at a rate of either ten per cent (10%) of the preceeding month's gross revenue or one -twelfth (1/12) of twenty thousand ($20,000) dollars, whichever is the greater amount. An adjust- ment-will djust-meet will be made at the end of each calender year, to bepaid by January 31 of each year during the term of this lease, inlorder to achieve the full annual payment. The monthly rental payments being due on or before the 10th day of each month accompanied by a verified statement showing the preceeding month's gross revenue broken down between (1) time and mileage charges and (2) insurance policy or insurance waiver charges. For determining the rental due the CITY, gross revenue shall include the following: (1) All revenues received as to the time mileage charges for rental of automobiles, trucks or other vehicles; (2) Re'mbursements of or credits allowed to customers for gasoline and oil purchased by customers; (3) Charges for insurance policies sold the customer as well as any charges made the customer for insurance deductible waiver features. Payment received from customers covering the costs of damages to automobil s while rented or from emergency repairs made by the customers shall not be included in gross revenue. Revenue received from the sale of used cars as provided in Article Six B(4) shall be excluded from Lessee's annual gross revenue in Article Four A(1). 2. Ground lease.(Service Facility): The LESSEE shall pay to the CITY ground lease for the purpose of constructing a service facility on an area consisting of 50,000 square feet of exclusive lease area,.as_shown on Exhibit "B", at $.0555 per sq. ft. per year. The rental rate for both the terminal space and the ground lease will be adjusted upward or downward for each ensuing year beginning January 1, 1981, in direct proportion to the fluctuation in 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, -3- shall be construed as the base period. 3. Close -in vehicle parking area (Ready Car Area): THREE AND 50/100 ($3.50) DOLLARS per space per month in advance for its allocated parking spaces, as shown on Exhibit "C". Payment shall be received by the CITY, on or before the 10th day of each and every month during the term of this lease. This fee is subject to renegotiation at the expiration of the five (5) year term of this lease in the event that LESSEE accepts the option to renew for five (5) additional years. 4. Counter area: LESSEE shall be provided space for a counter area within the baggage claim area as shown on Exhibit "A." An annual fee of five hundred ($500.00) dollars will be paid to CITY for this counter space. Rent is payable in advance on or before the tenth (10th) day of each calendar year during the term of this lease. The pro rated portion of the current year's charge shall be paid with the payment for the first full calendar year of this lease. B. RECORDS The LESSEE, following accepted accounting practices and pro- cedures, will maintain true and accurate books, records and receipts which will show all of the gross revenue of all business transacted upon and within the AIRPORT. Within ninety days after the end of each calendar year during the term of this lease, or any extension thereof, LESSEE shall submit to the CITY, a verified statement of itsrg oss revenue for the preceeding year of operation. Such statement shall be certified by LESSEE'S financial officer and shall be accompanied by LESSEE's payment to the CITY for the previous year of business and payment due for such year of operation. In the event LESSEE's payment to the CITY for the previous year of business operation exceeds the amount required by this contract, the CITY shall reimburse LESSEE with an amount equal to the dif- ference between the sum required and the sum paid. -4- If this lease is terminated on any date other than the end of a calendar year, the statement and additional payment, if any, on the gross revenue required by this Article shall be submitted within sixty (60) days after the date of such termination. C. AUDIT All books, records, and receipts of all business transacted upon and within the AIRPORT will be kept or maintained at the AIRPORT or other place acceptable to the Director of Aviation, and will be available for inspection and examination during regular office hours by the Director of Aviation or authorized representatives of the CITY. For the purposes of determining accuracy of the monthly and annual statements of gross revenue required, the Director of Aviation may authorize the making of a spot test audit and base the findings for the entire period upon such audit, provided that the audit shall include at least twenty-five per cent (25%) of the total time of the period audited. - In addition, the Director of Aviation shall have the right during any one calendar year of this lease to authorize one audit of LESSEE's records pertaining to its operation on the AIRPORT. Such audits shall be undertaken by a reputable firm of independent Certified Public Accountants satisfactory to the CITY. The cost of such audit shall be borne one-half by LESSEE and one-half by the CITY, unless results of the audit reveal a discrepancy of more than five per cent (5%) between gross revenue reported in accordance with Section B and the gross revenue as determined by audit for any twelve-month period. In case of a discrepancy of more than five per cent (5%) in favor of the LESSEE, the -full cost of the audit shall be borne by the LESSEE. D. PAYMENT All payments that become due and payable by the LESSEE shall be made to the CITY OF LUBBOCK at the Office of the Director of Aviation, Lubbock Regional Airport, Lubbock, Texas, or as specified by the City Secretary -Treasurer.. -5- E. BREACH Any action taken by the LESSEE to induce its patrons or patrons of other car rental concessionaires at the AIRPORT to rent or receive vehicles in such a manner and at such places so as to diminish the gross revenue of car rental concessions under this agreement shall constitute a material breach hereof and a cause for the termination of this agreement by the CITY. ARTICLE FIVE OBLIGATIONS OF THE CITY A. CLEAR TITLE The CITY covenants and agrees that at and until the granting and delivery of this lease it is well seized of the leased pre- mises and has good title, free and clear of all liens and encum- brances having priority over this lease; and that the CITY has full right and authority to lease the premises described in the contract. B. MAINTENANCE OF AIRPORT The CITY covenants and agrees that it will during the period of this contract operate and maintain the AIRPORT as a public facility consistent with and pursuant to the Sponsor's Assurances given by the CITY OF LUBBOCK to the United States Government under the Federal Airport Act. C. CONDITIONS AND MAINTENANCE OF PREMISES The CITY shall assume no responsibility as to the condition of the leased premises and shall not assume responsibility for maintenance, upkeep or repair necessary to keep the premises in a safe and serviceable condition.. The CITY shall maintain roads, which may be relocated, on the AIRPORT access to the leased premises in a good and adequate condition for use by cars.and.trucks and shall maintain free and uninterrupted access.ty the leased premises over the roads at all times. -6- ARTICLE SIX OBLIGATIONS OF LESSEE A. NET LEASE This lease shall be without cost to the CITY for the develop- ment, maintenance and improvement of the leased premises. It shall be the sole responsibility of the LESSEE to keep, maintain, repair and operate the entirety of the demised premises and all improvements and facilities placed on the leased premises at LESSEE's sole cost and expense. B. PRIVILEGES AND CONDITIONS The CITY grants to the LESSEE the following general privi- leges, uses and rights, all of which are subject to the terms, conditions and covenants herein set forth and all of which shall be non-exclusive on the AIRPORT: 1. The general unrestricted use of all common terminal facilities and improvements which are now or may hereafter be connected with or appurtenant to the terminal building in such manner as may be necessary or convenient to the conduct of LESSEE's business. 2. The right of ingress to and egress from the leased pre- mises over and across common or public roadways serving the AIR- PORT for LESSEE, its agents and employees patrons and invitees, suppliers of service and furnishers of materials. The rights granted being subject to such ordinances, rules and regulations, existing or later promulgated. 3. The LESSEE is here granted the privilege of constructing improvements within the AIRPORT upon the leased premises as follows: (1) Terminal: Concession Counter (2) Grounds: Vehicle service building and/or canopy and vehicle storage area. The LESSEE shall have the right to and shall provide for the location, construction, alteration, extension, erection of new or existing improvements, maintenance and removal of improve- ments, in any lawful manner, upon the leased premises, for the -7- purpose of conducting a transient automobile rental service, pro- vided, that all plans and specifications for the construction, alteration, extension or erection of facilities and improvements including landscaping, shall be in compliance with applicable ordinances of the CITY OF LUBBOCK and shall require the written approval of the Director of Aviation before any construction or installation may be undertaken. 4. The right to sell used rental cars with the following restrictions: (1) Only those cars used at the Lubbock International Airport may be sold there. (2) The sale of such vehicles on Airport premises shall be restricted to LESSEE's vehicle service area as shown in Exhibit "B". C. MAINTENANCE 1. The LESSEE shall, at its own expense, provide janitorial and custodial services in all its leased premises. Said services may be provided by LESSEE alone or by LESSEE in conjunction with other tenants who are now or who may hereafter be a LESSEE at the AIRPORT. 2. The LESSEE accepts the leased premises in their present condition and shall, at its sole cost and expense, maintain the leased premises, buildings, impr vements and appurtenances, in a presentable condition consistent with good business practice and equal appearance and character td similar improvements in the terminal building and parking and service area. The LESSEE shall repair all damage to the leased premises or CITY owned property caused by its employees, patronsior its operations upon the AIR- PORT. The CITY shall be the sole judge of the quality of main- tenance and upon written notice from the Director of Aviation, the LESSEE shall be required to perform such maintenance as the CITY deems necessary. Failure by LESSEE to comply within thirty (30) days following receipt of the written notice from the Director of Aviation shall give the CITY the right to enter upon the leased premises and perform the necessary maintenance, the cost of which shall be borne by the LESSEE. 10 D. PROPERTY PERMANENTLY AFFIXED TO PREMISES Any property belonging to LESSEE which becomes permanently attached to the premises, shall become the property of the CITY upon termination of this contract whether upon expiration of the primary term or earlier under any provision of this lease agree- ment, except the following named improvements shall be treated in this manner: 1. Paving, fencing, fuel storage tanks and fuel lines shall be amortized over a period of ten (10) years. In the event that the LESSEE herein is not the successful bidder at the end of this term, the new operator, if one is accepted, shall purchase the above named improvements from the LESSEE paying the value of the remaining unamortized portion; otherwise, such improvements shall become the property of the CITY. 2. Service buildings constructed by LESSEE remain the property of LESSEE. In the event LESSEE is not a successful bidder to continue operations at the termination of this lease, the new LESSEE and this LESSEE should negotiate for the purchase of the service building. If the two parties are unable to reach an agreement on the purchase price, each party shall have an ap- praiser designated who shall appraise the buildings along with a third party appraiser for their fair market value. The average of the three appraisals shall be binding as the agreed price of the property. If for some reason the LESSEE terminates its oper- ations, the CITY has the first right of refusal to purchase at the fair market value. 3. Counters in the terminal building are considered the property of the CITY and will not be removed. E. REMOVAL OF LESSEE'S PROPERTY The LESSEE shall have the right, within fifteen (15) days after the termination of this lease, whether such termination comes upon expiration of the primary term or otherwise under any provision of this lease, to remove from the premises all of its furnitures, fixtures, equipment and furnishings which have not become the property of the CITY and it shall have the duty to restore the premises to their original condition, normal wear and tear alone excepted, provided the CITY shall have a lien on all sea of LESSEE's property to secure any unpaid rental or other charge due to CITY, and the right of removing LESSEE's property is made upon the condition that all amounts due and owing to the CITY have been paid in full by the LESSEE. Property left on the premises after thirty (30) days from the date of termination of the contract, no renewal agreement having been executed, shall be deemed abandoned and will become the property of the CITY and may be disposed of as the CITY sees fit, without liability to account to the LESSEE for the proceeds of any sale; and provided that the CITY, at its option, may charge rent from termination of the contract through the day of final removal of the property or of notification to the LESSEE of the abandonment of the property and taking of the CITY, as the case may be, which rent shall not be less than the fixed rent or minimum guarantee required to be paid by the LESSEE to the CITY. F. PARKING The Director of Aviation shall, from time to time, allocate among the various contract Car Rental Operators the parking spaces in the Ready Car Area of the AIRPORT in proportion to the number of vehicles regularly available for rental by the Operators and their business operations reflected by gross revenue. The LESSEE agrees to accept the parking spaces allocated to it and confine its automobile parking to that area. No additional parking area has been provided (except in exclusive leased service area) for the parking of LESSEE's vehicles and LESSEE is prohibited from parking its vehicles on any of the curbs, or entrance roads of the terminal area. G. SUBORDINATION OF LIEN Any person or firm holding a lien against any property to be used or installed by the LESSEE upon the leased premises shall execute a subordination agreement with the CITY, subordinating the lien against any item to the CITY's lien to secure payment of all amounts due the CITY under this contract. The LESSEE shall file a copy of each subordination agreement with the Director of Aviation. -10- H. STANDARD OF SERVICE The LESSEE shall conduct a first class transient automobile rental service, providing adequate service at all times to meet the demands for such service on the AIRPORT. The LESSEE agrees to conduct its business in a proper.::and courteous manner and to furnish prompt and efficient service, making available to the public clean, all late -model low mileage automobiles in good mechanical condition. The LESSEE agrees to charge fair, reasonable and non-dis- criminatory rates and charges for the rental of vehicles, however, the LESSEE may make reasonable and non-discriminatory discounts, rebates or other similar types of price reduction to volume cus- tomers. I. BUSINESS SOLICITATIONS All of LESSEE's business operations and solicitations will be confined to the leased premises. LESSEE agrees to have em- ployees of its own in attendance at the counter during all hours of scheduled airline operations. J. ADVERTISING The LESSEE will erect no signs and will distribute no ad- vertising matter in the AIRPORT without the prior written consent of the Director of Aviation. K. UTILITIES The LESSEE shall assume and pay for all costs or charges for metered utility services furnished LESSEE during the term hereof; provided that LESSEE shall have the right to connect to any storm and sanitary sewers and water and utility outlets, the cost of extension;,instailation and meters, where required, to be borne by the LESSEE. L. PAYMENT OF TAXES, FEES The LESSEE shall pay all federal, state and local govern- ments taxes license fees and occupation taxes levied on the bus- iness conducted on the leased premises, or on any of LESSEE's -11- property used in connection therewith. The LESSEE shall render for taxation pruposes all automobiles and other property used in connection with the business on the AIRPORT, and that all such property shall have its situs and domicile in Lubbock, Lubbock County, Texas. Taxation is subject to legal protest in accordance with the provisions of the taxing authority whose levy is questioned. Any protest is at the sole expense of LESSEE. Delinquency in payment of such obligations, after any protest has been settled, shall, at the option of the CITY, be cause for termination of this lease. M. REGULATIONS The LESSEE's officers, agents, employees and servants will obey all rules and regulations which may be promulgated by the CITY or its authorized agents.in charge of the AIRPORT, or by other lawful authority, to insure the safe and orderly conduct of operations and traffic on the AIRPORT. N. PROHIBITION OF SUBLEASES AND ASSIGNMENTS The LESSEE will not, directly or indirectly assign, sublet, sell, hypothecate or otherwise transfer this lease or any portion to the leased premises, without the prior written consent of the CITY. 0. REMOVAL OF TRASH LESSEE shall provide and use covered metal receptacles of a type designated by the Director of Aviation for all garbage, trash and other refuse. Piling of boxes, cartons, barrels or other similar items, in an unsightly or unsafe manner, on or about the demised premises, is prohibited. As long as normal municipal services provide for the collection and disposal of waste, or of certain types of waste in the same general area of the AIRPORT, LESSEE may be served by these facilities provided it abides by the regulations and ordinances applicable thereto. In the event such service is not available or is discontinued, 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 business at its sole expense. -12- P. INDEMNIFICATION AND INSURANCE 1. The CITY shall stand indemnified by the LESSEE as pro- vided by this contract. The LESSEE shall be deemed to be an in- dependent contractor and operator responsible to all parties for its respective acts or omissions and that the CITY shall in no way be responsible thereof. In the use of the AIRPORT generally or the leased premises specifically in the exercise or enjoyment of the privileges granted by.this contract, the LESSEE shall in- demnify and save harmless the CITY from any and all losses that may proximately result to the CITY because of any fault or negli- gence on the part of the LESSEE, its agents or employees or invitees and shall indemnify the CITY against any and all claims, demands, suits, judgments and losses whatsoever. 2. The LESSEE shall..maintain at all times, at its sole expense, insurance with an insuranceunderwriter acceptable to the CITY and from one authorized to do business in the State of Texas, against claims of public liability.and property damage resulting from LESSEE's business activities at the AIRPORT. The amount of insurance coverage shall..be not less than FIFTY THOUSAND ($50,000.00) DOLLARS for property damage as a result of any one event; or less than ONE HUNDRED THOUSAND ($100,000.00) DOLLARS for personal injury or death of any one person in any one event; or less than THREE HUNDRED THOUSAND ($300,000.00).DOLLARS 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 Director of Aviation prior to entry upon the premises by the LESSEE. Each policy shall name the CITY as an additional insured as its interest may appear. Each policy shall also provide "It is agreed that insurer shall notify the Director of Aviation of the City of Lubbock, Texas, of any alteration, re- newal, 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." -13- The LESSEE shall provide workmen's compensation insurance to meet statutory requirements, if qualified. The workmen's compen- sation policy shall provide employer's liability insurance in the amount of ONE HUNDRED THOUSAND ($100,000.00) DOLLARS. Q. WAGES The LESSEE shall pay, or require the payment of, the pre- vailing rate of wages for each craft or workman employed by it, or by persons or firms engaged by it, for any alteration of premises or installation, maintenance or repair of vehicles fixtures, equipment and furnishings, used in its operations, as required by ordinances enacted pursuant to Article 5159a, V.A.C.S., as amended or as may be amended. The ordinances and statute and amendments thereto, are incorporated herein by references for all purposes. R. CONDUCT AND APPEARANCE OF EMPLOYEES Any employee in LESSEE's operations that may be deemed to be discourteous or objectionable on reasonable grounds shall be removed from employment on the premises on demand by CITY. CITY likewise reserves the right to eject any objectionable person or persons, including LESSEE's employees, from said premises, and upon the exercise of this authority through CITY's agents or employees, LESSEE hereby waives any right and all claims for damage against CITY or any of its agents, officials or employees. S LIENS PROHIBITED The LESSEE shall not bind, or attempt to bind, CITY for pay- ment of any money in connection with construction, repairing, alterations, additions or reconstruction work on the premises and that it shall not permit any mechanic's, materialman's or con- tractor's diens to arise against the premises or improvements thereon or any equipment, machinery and fixtures therein belonging to the CITY, and LESSEE expressly agrees that it will keep and save the premises and the CITY harmless from all costs and damages resulting from any liens or lien of any character created or that may be asserted through any act or thing done by the LESSEE. -14- In the event any mechanic's or other liens or orders for payment shall be filed against the premises or improvements there- on, or the CITY -owned property located therein, during the term hereof, LESSEE shall within ten (10) days cause the same to be cancelled and discharged of record, by bond or otherwise at the election and expense of LESSEE, and shall also defend on behalf of the CITY, at LESSEE's sole cost and expense, any action, suit or proceeding which may be brought thereon or for the enforcement of such lien or order. Failure of the LESSEE to comply with any requirement of this section or paragraph shall be cause for immediate termination of this contract by the CITY. T. NON-DISCRIMINATION PRACTICES LESSEE, its agents and employees will not discriminate a- gainst any person or class of persons by reason of age, race, color, creed or national origin in providing any services or in the use of any of its facilities provided for the public. The LESSEE further agrees to comply with such enforcement procedures as the United States might demand that the CITY 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, 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 age, race, creed, color, or national origin. Such action shall include, but not be limited to employment, upgrading, demotion, or transfer, re- cruitment, layoff, rates of pay or other forms of compensation, and selection for training, including apprenticeship. -15- ARTICLE SEVEN TERMINATION,. -CANCELLATION A. TERMINATION This lease shall terminate at the end of the full term here- of and LESSEE shall have no further right or interest in any _of the lands or improvements hereby demised, except as provided in Article Six. B. CANCELLATION BY LESSEE This lease shall be subject to cancellation by LESSEE after the happening of one or more of the following events: 1. The permanent abandonment of the AIRPORT as an air terminal. 2. The lawful assumption by the United States Government, or any authorized agency thereof, of the operation, control or use of the AIRPORT, or any substantial part or parts thereof, in such a manner as substantially to restrict LESSEE for a period of at least ninety (90) days from operating thereon. 3. Issuance by any court of competent jurisdiction of an injunction in any way preventing or -restraining the use and oper- ation of the AIRPORT,: and the remaining in force of�such injunction for a- period of at least ninety (90) days. 4. The default by the CITY in the performance of any cov- enant or agreement herein required to be performed by the CITY and the failure of the CITY to remedy such default for a period of sixty (60) days after receipt from LESSEE of�written notice to remedy the same. LESSEE may exercise such right of termination by thirty (30) days advance written notice to the CITY at any time after the lapse of the applicable periods of time and this lease shall term- inate as of .the thirtieth (30th) day. Rental due hereunder shall be payable only to the effective date of said termination. -16- C. CITY'S OPTION TO CANCEL The CITY may cancel this lease giving LESSEE thirty (30) days advance written notice, upon or after the happening of any one of the following events: 1. The filing of a voluntary petition in bankruptcy by LESSEE. 2. The institution of proceedings in bankruptcy against LESSEE, unless such proceedings are vacated within sixty (60) days after initiation thereof. 3. The taking by the court of jurisdiction of LESSEE and its assets pursuant to proceedings brought under the provisions of any reorginization act, unless such proceedings are.vacated within sixty (60) days after initiation thereof. 4 The appointment of a receiver of LESSEE's assets, un- less such proceedings are vacated within sixty (60) days after initiation thereof. 5. Any assignment of LESSEE's assets for the benefit of creditors. 6. The taking of LESSEE's leasehold interest by execution or other process of law. ,7. The divestiture of LESSEE's estate herein by other operation of law. 8. The default by LESSEE in the performance of any covenant or agreement herein contained and the failure of LESSEE to remedy ,such default within thirty (30) days after receipt from the CITY of written notice to remedy same. No waiver of default by the CITY of any of the obligations to be performed by LESSEE shall be construed to be or act as a waiver of any subsequent default. Acceptance of rental by the CITY for any period or periods after default by LESSEE of any of LESSEE's obligations hereunder shall not be deemed a waiver by the CITY of its right to cancel this lease for such default. -17- ARTICLE EIGHT GENERAL A. TIME OF EMERGENCY During time of war or national emergency, the CITY shall have the right to lease the landing area or any part thereof to the United States for government use, and, if any such lease is executed, the provisions of this instrument, insofar as they are inconsistent with the provisions of the lease to the Government, shall be suspended. B. SPONSOR'S ASSURANCE SUBORDINATION This lease shall be subordinate to the provisions of any existing or future agreement between the CITY 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. Should the effect of such agreement with the United States be to take any.of the property under lease or sub- stantially destroy the commercial value of such improvements, the CITY shall not be held�.liable therefor. C. REPLACEMENT AFTER DAMAGE It is agreed between the parties hereto, that, in the event said building is damaged by fire or other accidental cause during the term hereof so as to become totally or partially untenant- able, the CITY shall have the option to restore the premises to their former condition. The CITY shall give LESSEE notice in writing of the exercise of the option within thirty (30) days of occurance of such damage, if the CITY elects to exercise the option. If the option is exercised, the.CITY shall proceed with due diligence to restore the premises; there shall be an abate- ment of the rent until repairs have been made for the time and to the extent for which premises, or part thereof, have been un - tenantable. Should the CITY not exercise the option, the lease of such portion of the leased premises shall cease and terminate effective with the date of damage -by fire or other accidental -cause. -18- D. CONFLICT OF INTEREST The LESSEE acknowledges that it is informed that Texas law prohibits contracts between the CITY and its "officers" and "employees," and that the prohibition extends to an officer and employee of CITY agencies such as CITY -owned utilities and certain CITY boards and commissions, and to contracts with any partner- ship, corporation or other organization in which the officer or employee has an interest. LESSEE certifies (and this contract is made in reliance thereon) that neither it nor any person having an interest in this contract is an officer or employee of CITY or any of its agencies. E. LIEN OR BOND LESSEE must provide to the CITY either a lien upon all of its property, now or at any time hereafter placed in or upon the said premises, all exemptions of such property, or any of it, being hereby waived, or a performance bond in the amount of ONE HUNDRED THOUSAND DOLLARS ($100,000.00), to be reviewed annually, to secure the prompt payment of the charges herein stipulated to be paid for the use of said premises. F. RIGHT OF INSPECTION The CITY reserves the right to conduct inspections, at reasonable times of the leased premises to insure that fire, safety, and sanitation regulations and other provisions contained in this lease are being adhered to by the LESSEE. G. TERMINATION OF LEASE, SURRENDER OF LEASED PREMISES AND OWNERSHIP OF IMPROVEMENTS The LESSEE covenants and agrees that at the expiration of the lease term or at the earlier termination as provided in this lease agreement, it will quit and surrender the leased premises and the improvements in good state and condition, reasonable wear and tear, acts of God andother casualties excepted, and the CITY shall have the right to take possession of the leased premises and the improvements, subject to the limitations provided by Article Six D(1), (2) and (3) of the lease, with or without process of law. -19- H. HEADINGS The paragraph headings contained herein are for convenience in reference and are not intended to define, extend or limit the .scope of any provisions of this agreement. I. NOTICES Notices to the CITY required or appropriate under this contract shall be deemed sufficient if in writing and mailed, registered or certified mail, postage prepaid, addressed to the Director of Aviation, Lubbock Regional Airport, Route 3, Box 389, Lubbock, Texas 79401. Notices to the LESSEE shall be deemed sufficient if in writing and mailed, registered or certified mail, postage prepaid, addressed to the LESSEE at the address on file with the Director of Aviation. J. ENTIRE AGREEMENT This contract constitutes the entire agreement, and any other written or parole agreement with CITY being expressly waived by LESSEE. EXECUTED this 14th day of August 1980 LESSEE THE CITY OF LUBBOCK THE HERTZ CORPORATION BY: _ oec president, B LL McALIS'TER,-MAYOR TitltYroperties 8 Concessions AT EST: Date May 228 1980 2 Extelyn Gaffga City Secretary -Treasurer, APPROVED AS TO CONTENT: Ma vin Co Director of Aviation APPROVED AS TO FORM: Susan M. Tom, Asst. City Attorney ♦ ` ♦ % . � � x, •, - • 111 {{ Ul • jt f ' . 1.1 1 l � • , '''-� t l1 �1 IN7�lZNttT IC*AA L Atg-vc .• i 1 `Teem i Wild_ { - EX VAIk�I i "�'� 'oo, .01 ol Ax, $TING PAVINrt 70 eaE f2!✓MOVMD AHO ALL U"rILI'TIE.c=- ISIbTA►LLED OUP-IN<k PH&45F- I NEw E r l PLGYEE P, ,,QKIrkSr DF -i CRi PTIOty N E:W FAV N G - PHA4bE I nEt.l Pss�,YlNcr - Pr-��.x� � L.vaDct,- INTEr- NATtomm- AIRPORT RENTAL C&F . �5e?-V%CF- ItKE EXHIBIT l vrw-w •, err +. _.Q� .-/\Ir-J I INS", /I I j: 17 -40 II j !l•- ,�//' r�•1 � j Ali � -y�1p •�. � .�, ,. .' _ � :' T -.'C• .1 �� �ll•.1�� f �.�!• l � `; / �• , ,,'� j' ; i t . I,I: •)t. :J I' ..,�•. �I. :)t .:jc .Jr.. 11 ''jl. ;l .. jF.. ? : ?I- .,�I:,` jt; .3,..-.t,.r ,�, / — 3� SPACFs AT _9' = :3061 into • � I , • . , , � � �_• Vis, _ I - r-1 A _ °. I I E, (of _- --- -- 100'_ - � - ....�� ;; -� - �_ lV��� ;r �. 5���,�•� � _ .._ gip• � s, _ -- CO I 113 - .) I ��. O o. ji Vo �IA 24 J loo, 00. . _ . • �-�F•;g[�Gk •j_,N-t�,RN�411dN�L !`�Ih��►�.T I�