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Home My WebLink AboutResolution - 5269 - Space Lease Agreement - Simmons Airlines Inc D_B_A American Eagle - Office Space - 09_10_1996RESOLUTION NO.5269 September 10, 1996 Item #29 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 Space Lease Agreement with Simmons Airlines, Inc. d/b/a American Eagle, attached herewith, which Agreement 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 loth day of September , 1996. Alex "Ty" gooke, Mayor Pro Tem ATTEST: arold Willard, linterim City Secretary APPROVED AS TO CONTENT: Mar . arle, Director of Aviation APPROVED AS TO FORM: Harold Willard, Assistant City Attorney HW :da/ccdocs/simmons. res August 5, 1996 RESOLUTION N0. 5269 September 10, 1996 Item #29 THE STATE OF TEXAS COUNTY OF LUBBOCK This LEASE AGREEMENT, hereinafter referred to as the "Agreement" or "Lease," is entered into at Lubbock, Texas, by and between the City of Lubbock, Texas, hereinafter referred to as "Lessor," and Simmons Airlines, Inc., d/b/a American Eagle, hereinafter referred to as "Lessee." WITNESSETH: WHEREAS, Lessor owns and operates a public airport designated as Lubbock International Airport and hereinafter called "Airport;" and WHEREAS, Lessor deems it advantageous to itself and to its operation of the Airport to lease unto Lessee certain office space described herein, together with certain privileges, rights, uses and interests therein, as hereinafter set forth; and WHEREAS, Lessee intends to utilize said office space herein leased for the purpose of performing customary and routine administrative tasks associated with airline operations; and WHEREAS, all other terms and conditions of Lessee's tenancy at the Airport are governed by the Certificated Passenger Airline Lease entered into between the Lessor and American Airlines, Inc. on or about February 23, 1984, which Lease's provisions and addendums thereto are incorporated herein by reference as part of this Agreement; and WHEREAS, the Airport Board of the City of Lubbock has approved and recommends that Lessee be granted this Agreement for the term hereinafter designated; WHEREAS, the City Council of the City of Lubbock accepts the recommendation of the Airport Board and finds that execution of this Lease will properly serve the public interest of the citizens of the City of Lubbock; ARTICLE I NOW THEREFORE, for and in consideration of the covenants and conditions herein contained and other valuable consideration, Lessor hereby authorizes Lessee to exercise the rights, powers and privileges hereinafter set forth and does hereby lease to the Lessee certain premises, hereinafter described and called "Leased Premises," which are designated on Exhibits A and B attached hereto and incorporated herein by reference as part of this Agreement. 1.01. LEASED PREMISES. The Leased Premises shall consist of two (2) offices which total approximately 348 square feet and which are located on the apron level of the Terminal Building of the Airport, as shown on Exhibit A, and one (1) office which is approximately 171 square feet and which is located on the second floor of the Terminal Building of the Airport, as shown on Exhibit B. 1.02. NON-EXCLUSIVE. It is understood and agreed that nothing herein contained shall be construed to grant or authorize the granting of an exclusive right within the meaning of Section 308(a) of the Civil Aeronautics Act. 1.03. PURPOSE. Lessee's use of said Leased Premises shall be for the sole purpose of performing customary and routine administrative tasks associated with airline operations. All such business operations at the Airport will be confined to the Leased Premises or those premises described in the above -referenced Agreement between Lessor and American Airlines, Inc. ARTICLE II TERM 2.01. The term of this Agreement shall commence on the 15th day of December, 1994, and end on the 30th day of September, 1999; provided, however, that either Lessor or Lessee may terminate this Agreement with or without cause upon thirty (30) days written notice to the other party. SPACE LEASE AGREEMENT SIMMONS AIRLINES, INC. d/b/a AMERICAN EAGLE ARTICLE III RENTALS 3.01. RENTAL. In consideration of the rights and privileges herein granted, Lessee shall pay to Lessor an annual rental for the 348 square feet of Leased Premises of FOUR THOUSAND ONE HUNDRED SIXTY-FIVE AND 56/100 DOLLARS ($4,165.56), which rental shall be payable in twelve equal monthly installments of THREE HUNDRED FORTY-SEVEN AND 13/100 DOLLARS ($347.13), prior to the tenth (1 Oth) day of each month this Agreement is in effect. In further consideration of the rights and privileges herein granted, Lessee shall pay to Lessor an annual rental for the 171 square feet of Leased Premises of TWO THOUSAND EIGHT HUNDRED SEVENTY-TWO AND 80/100 DOLLARS ($2,872.80), which rental shall be payable in twelve equal monthly installments of TWO HUNDRED THIRTY-NINE AND 40/100 DOLLARS ($239.40), prior the tenth (IOth) day of each month this Agreement is in effect. The aforesaid rental rates shall be adjusted upward or downward on January 1, each year beginning on January 1, 1997, in direct proportion to the percentage increase or decrease for the preceding twelve (12) months in the Consumer Price Index published by the Bureau of Labor Statistics of the United States Department of Labor. 3.02. DEFAULT FOR FAILURE TO PAY RENTALS. If Lessee fails to pay any rentals due hereunder within twenty (20) days after Lessor transmits a statement thereof to Lessee, the Aviation Manager of Lessor may, at his option, upon ten (10) days written notice to Lessee (unless within such ten day period Lessee shall have corrected its failure to pay) immediately or at any time thereafter, enter into and upon the Leased Premises, or any part thereof in the name of the whole, and repossess the same without being deemed guilty of trespass. SPACE LEASE AGREEMENT SIMMONS AIRLINES, INC. d/b/a AMERICAN EAGLE 3.03. PAYMENTS. All payments that become due and payable by Lessee shall be made to the City of Lubbock at the office of the Aviation Manager, Lubbock International Airport, Lubbock, Texas, 5401 N. Martin Luther King Blvd., Rt. 3 Box 389, Lubbock, Texas 79401. ARTICLE IV OBLIGATIONS OF LESSEE 4.01. MAINTENANCE OF LEASED PREMISES. During the term of this Agreement, Lessee shall maintain the Leased Premises in good order and repair consistent with good business practices and shall provide, at its own expense, a complete and proper arrangement for the adequate sanitary handling and disposal, away from the Airport, of all trash, garbage and other refuse resulting from Lessee's use of the Leased Premises. 4.02. ALTERATIONS ADDITIONS OR IMPROVEMENTS. Lessee shall make no alterations, additions or improvements to the Leased Premises without the prior written approval of the Aviation Manager of Lessor. 4.03. ASSIGNMENT AND SUBLETTING. Lessee shall not sell, assign, sublet or transfer this Agreement or any portion thereof without the written consent of the Aviation Manager of Lessor. ARTICLE V MISCELLANEOUS PROVISIONS 5.01. NOTICES. Notices to the Lessor provided for herein shall be sufficient if sent by certified mail, postage prepaid, addressed to the Aviation Manager, Route 3, Box 389, Lubbock, Texas 79041, and notices to Lessee, if sent by certified mail, postage prepaid, to the address for Lessee on file with the Aviation Manager for Lessor. SPACE LEASE AGREEMENT SIMMONS AIRLINES, INC. d/b/a AMERICAN EAGLE PAGE 4 5.02. HOLDING OVER. In the event Lessee remains in possession of the Leased Premises after the expiration of this Agreement, without any written renewal or extension of this Agreement, such holding over shall not be deemed as a renewal or extension of this Lease, and may be terminated at any time by the Aviation Manager of Lessor. Executed this in t day of September , 1996. D/B AONS gI�ES, GLE./. CITY OF L _� � rM4 �vwM VfLV ��AILAitA}�iIlLYCS�21ZL�lCjC'�jLX�i3�1.1C�h Alex "Ty" Cooke, Mayor Pro Tem ATTEST: ATTEST: Ha 'ro 1'd1'W'-i'11Tand 1$$ Interim City Secretary APPROVED A O CONTENT: �l - - Mark arle Avia ion Manager HW:da cityatt\LA-EAGLE.doc April 4, 1996 APPROVED AS TO FORM: l arold Willard, Assistant City Attorney SPACE LEASE AGREEMENT SIMMONS AIRLINES, INC. d/b/a AMERICAN EAGLE PAGE 5