HomeMy WebLinkAboutResolution - 2021-R0156 - Amendment No.1 to Lease Agreement with Hertz 4.27.2021Resolution No. 2021-R0156
Item No. 6.17
April 27, 2021
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock is hereby authorized and directed to execute
for and on behalf of the City of Lubbock, Amendment No. 1 to that certain Lease Agreement
dated March 22, 2018, in connection with certain real property located at the Lubbock Preston
Smith International Airport (LPSIA), by and between the City of Lubbock and The Hertz
Corporation, and related documents. Said Amendment is attached hereto and incorporated in
this resolution as if fully set forth herein and shall be included in the minutes of the City
Council.
Passed by the City Council on
ATTEST:
Rebe ca Garza, City Se et ry
APPROVED AS TO CONTENT:
Director of Aviation
April 27, 2021
��-y
DANIEL M. POPE, MAYOR
First Assistant City Attorney
ccdocs/RES.Amend #1 Agrmt- The Hertz Corporation
April 8, 2021
Resolution No. 2021-R0156
FIRST AMENDMENT To LEASE AGREEMENT
This First Amendment to Lease Agreement ("Amendment") is entered into on the
27th day of April , 2021 by and between the City of Lubbock, Texas, a Texas
municipal corporation ("Lessor") and The Hertz Corporation ("Lessee"), collectively the
"Parties".
WHEREAS, Parties entered into a lease (the "Lease") dated March 22, 2018
(Resolution No. 2018-R0111) in connection with certain real property described therein
and located at the Lubbock Preston Smith International Airport (the "Premises") to be
used by Lessee in the course of its rental car business; and
WHEREAS, the Lease provides for certain percentage fee amounts and
minimum annual guarantees that shall be tendered to the Lessor by the Lessee, as well
as abatement of said guarantees in particular instances of severely reduced revenue to
Lessee; and
WHEREAS, due to the uncertainty and persistence of the effect of COVID-19 on
operations and car rentals at the Lubbock Preston Smith International Airport, the
Parties now desire to amend the Lease to allow for periods of abatement that are
reasonable and beneficial to both Parties; and
WHEREAS, the Parties desire that all other remaining terms and conditions set
forth in the Lease remain in full force and effect.
NOW THEREFORE, in consideration of the promises made herein, and for other
good and valuable consideration the receipt and sufficiency of which is hereby
acknowledged, the Parties hereto agree as follows:
1. Article Four, Section E of the Lease is amended to read as follows, and shall
have retroactive application to the first day of the Agreement year 2020 and
apply only to Agreement years beginning 2020 and 2021 (Agreement year
2020 is September 1, 2020 — August 31, 2021. Agreement year 2021 is
September 1, 2021 — August 31, 2022):
"E. LESSEE'S ABATEMENT RIGHTS
1. In the event one or more of the following conditions occur during
the Term hereof, Lessee's MAG shall be abated for the period of
time the condition or conditions continue to exist:
a) If, for any reason, the number of passengers deplaning on
scheduled airline flights at the Airport during any monthly
period shall be less than 85% of the number of such deplaning
passengers for the same month of 2019.
b) If the operation of Lessee's car rental business at the Airport,
through no fault of Lessee, is adversely affected by shortages
or other disruptions in the supply of automobiles, gasoline, or
other goods necessary for the operation thereof, and there is a
material diminution of gross revenues by 20% in Lessee's
gross revenues hereunder for a period of thirty (30) or more
Amendment to Lease Agreement
City of Lubbock/Hertz Page 1 of 2
consecutive days attributable to such shortages or other
disruptions.
2. During the period of abatement, Lessee will continue to pay to the
City the Percentage Fee and the City will return to Lessee any
minimum annual guaranteed payment which may have been
prepaid. In the event any of the above conditions continue for a
period in excess of eighteen (18) consecutive months, Lessee
shall have the right to terminate this Agreement."
2. All other terms and conditions of the Lease shall continue in full force and
effect for all purposes.
CITY OF LUBBOCK, Lessor The Hertz Corporation, Lessee
DANIEL M. POPE,'Mayor Stephen Blum
Senior Vice President
Real Estate & Facilities
ATTEST:
RebecdaGarza, City Secre
APPROVE AS TO CONTENT:
Kelly C pbell, Executive Director of Aviation
-• . 0 SUM
Amendment to Lease Agreement
City of Lubbock/Hertz Page 2 of 2