Loading...
HomeMy WebLinkAboutResolution - 4205 - Lease Agreement - Lykes Cartage Company - 1427.5 Sq Ft, LIA Terminal Building - 07_22_1993Resolution No. 4205 July 22, 1993 Item #16 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 by and between the City of Lubbock and Lykes Cartage Company, attached here- 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 fully copied herein in detail. Passed by the City Council this 22nd day of July , 1993. STON, MAYOR Randy Neugebauer, Mayor Pro Tem ATTEST: &0, a r-v,..,L etty M5 Oohngq,City Secretary APPROVED AS TO CONTENT: ation APPROVED AS TO FORM: Anthony Williams, Assistant ity Attorney AJW:js/LYKSCARS.RES D2-Agenda/March 2, 1993 Resolution No. 4205 July 22, 1993 Item #16 LUBBOCK INTERNATIONAL AIRPORT SPACE LEASE THE STATE OF TEXAS § COUNTY OF LUBBOCK § This Space Lease, 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 Lykes Cartage Co. Inc., d/b/a Trans -Drayage Co., 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, Lessee desires to lease approximately 1427.5 square feet of space in the Terminal Building at the Airport for the purpose of shipping and receiving freight; 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; and 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," in the Terminal Building at the Airport, which Leased Premises are designated on Exhibit A attached hereto and incorporated herein by reference. 1.01. LEASED PREMISES. The Leased Premises shall consist of an area of 1427.5 square feet, more or less, in the Terminal Building of the Airport, located in Lubbock County, Texas, and designated on Exhibit A attached hereto. In addition to the Leased Premises hereinabove described, Lessee is hereby granted the nonexclusive use of such space and facilities in and adjacent to the Terminal Building as may be designated by Lessor and which are necessary to provide Lessee with access to the Leased Premises. If new or additional facilities from which Lessee might conduct business are constructed at the Airport during the term of this Agreement, Lessee shall have the option of relocating its operations in such new or additional facilities upon such terms and conditions as are mutually agreeable between the parties to this Agreement. 1.02. NONEXCLUSIVE. 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 shipping and receiving freight. 1.04. SIGNS. Lessee shall have the right to place signs identifying Lessee's business on and in the Terminal Building at locations designated by the Director of Aviation of the City of Lubbock. Said signs shall be of a type, size and design approved in writing by the Director of Aviation. The installation of such signs must comply with all applicable City Codes and shall be without cost to Lessor. ARTICLE II TERM 2.01. The term of this Agreement shall be for a period of two (2) years commencing on the 1st day of February , 1993, and ending on the 1st day of February , 1995. - 2 - ARTICLE III RENTALS AND FEES 3.01. ER NTAL. In consideration of the rights and privileges herein granted, Lessee shall pay to Lessor an annual rental for the 1427.5 square feet of Leased Premises of SEVENTEEN THOUSAND EIGHT HUNDRED EIGHTY-SIX AND 57/100 DOLLARS ($17,886.57), which rental shall be payable in twelve equal monthly installments of ONE THOUSAND FOUR HUNDRED NINETY AND 55/100 DOLLARS ($1,490.55), prior to the tenth (loth) day of each month this Agreement is in effect. The aforesaid rental rate shall be adjusted upward or downward on January 1, 1994, 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. LANDING FEES. In addition to the above rental, if Lessee operates aircraft that either land at or take off from the Airport, Lessee shall also pay Lessor landing fees at the rate of $.625 per 1,000 lbs. of the approved maximum gross landing weight of each actual flight operated. As used herein, the phrase "approved maximum gross landing weight" shall mean the maximum landing weight for an aircraft approved by the Federal Aviation Administration for that aircraft. Not later than the fifth day of each month, Lessee shall file with the Director of Aviation a report of Lessee's actual landings at the Airport, if any, for the preceding month, which report shall include the number and type of aircraft making such landings. Upon receipt of such report, Lessor shall transmit to Lessee a statement of the landing fees incurred by Lessee for the preceding month. Payment shall be made by Lessee to Lessor on or before the 25th day of the month in which such statement is transmitted. Lessee shall further provide Lessor with a summary of the approved maximum gross landing weights for each type of aircraft Lessee operates at the Airport. No fees shall be incurred by Lessee under this Section 3.02 if Lessee does not operate aircraft at the Airport. - 3 - 3.03. DEPOSIT FOR SECURITY BADGES. In addition to the above rental and fees, Lessee shall pay the City a processing fee and a deposit for security badges for each of Lessee's employees on the Leased Premises. Lessor's Director of Aviation shall determine the amount of both the processing fee and deposit, each of which shall be reasonable and uniform for all similarly situated tenants at the Airport. Said deposit shall be refundable upon return of the badges to the Director of Aviation. 3.04. DEFAULT FOR FAILURE TO PAY RENTALS OR FEES. If Lessee fails to pay any rentals or fees due hereunder within thirty (30) days after Lessor transmits a statement therefore to Lessee, Lessor may, at its option, upon fifteen (15) days written notice to Lessee (unless in such fifteen day period Lessee shall have corrected such 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. 3.05. PAYMENTS. All payments that become due and payable by Lessee shall be made to the City of Lubbock at the office of the Director of Aviation, Lubbock International Airport, Lubbock, Texas, or as specified by the City Secretary. ARTICLE IV RIGHTS RESERVED TO LESSOR The following rights are reserved to Lessor, and Lessee agrees that all rights, powers and privileges granted under the terms of this Lease shall be subordinated to Lessor's rights as hereinafter stated. 4.01. AIRPORT HAZARDS. 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 the erection of 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. - 4 - 4.02. AGREEMENT WITH UNITED STATES. During 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 all or part of the landing area, the publicly owned air navigation facilities, and other area or facilities of the Airport. If any such agreement is executed, the provisions of this instrument, insofar as they are inconsistent with the provisions of the agreement with the Government, shall be suspended. 4.03. SUBORDINATION OF LESSEE'S RIGHTS. This Agreement shall be subordinate to the provisions of any existing or future agreement between the Lessor and the United States pertaining 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. 4.04. SUSPENSION OF LESSEE'S RIGHTS. All rights, privileges and interests acquired herein by Lessee, at the option of Lessor, following thirty (30) days written notice to Lessee, may be suspended if such suspension is found by Lessor, acting in good faith, to be necessary to secure federal financial aid for the development of the Airport, or further development of aeronautical operations thereon. ARTICLE V GENERAL CONDITIONS This Lease is granted subject to the following provisions and conditions: 5.01. RULES AND REGULATIONS. In conducting its business hereunder, Lessee shall comply with all applicable laws of the United States of America and the State of Texas; the rules and regulations promulgated by their authority pertaining to aviation and air navigation, and all reasonable and applicable rules, regulations and ordinances of the City of Lubbock now in force or hereafter prescribed or promulgated by authority or by law. - 5 - 5.02. IMPROVEMENTS OR ALTERATIONS. Lessee shall not make, permit or suffer any additions, improvements or alterations to the Leased Premises without prior written consent of the Director of Aviation of Lessor. Any such additions, improvements or alterations made with the consent of the Director of Aviation shall be solely at the expense of Lessee, and unless such consent provides specifically that title to the additions, improvements or alterations so made shall vest in Lessee, title thereto shall at all times remain in Lessor and such additions, improvements or alterations shall be subject to all terms and conditions of this instrument. 5.03. REMOVAL AND DEMOLITION. Lessee shall not remove or demolish, in whole or in part, any improvements that already exist on the Leased Premises without prior written consent of the Director of Aviation of Lessor, who may, in his discretion, condition such consent upon the obligation of Lessee to replace the same improvements specified in such consent upon termination of this Lease. The Director of Aviation shall not withhold consent unreasonably and shall not impose unreasonable conditions on his consent. 5.04. MECHANIC'S LIENS. Lessee shall not bind or attempt to bind Lessor for payment of any money in connection with installations, alterations, additions or repairs to the Leased Premises or to any of Lessee's equipment or facilities located on the Leased Premises and shall not permit any mechanic's, materialman's or contractor's liens to arise against the Leased Premises or any improvements, equipment, machinery or fixtures thereon belonging to Lessor, and Lessee expressly agrees that it will keep and save Lessor harmless from all costs and damages resulting from any lien or liens of any character created or that may be asserted through any act or thing done by Lessee. 5.05. LESSEE'S DUTY TO DEFEND. In the event any mechanic's or other liens or orders for payment shall be filed against the Leased Premises or improvements thereon, or the property of Lessor located thereon, during the term of this Agreement, Lessee shall within ten (10) days cause the same to be cancelled and - 6 - discharged of record by bond or otherwise, at the election and expense of Lessee, and shall also defend on behalf of Lessor, at Lessee's sole cost and expense, any action, suit or proceeding which may be brought thereon or for the enforcement of such liens or orders. 5.06. LESSOR'S RIGHT TO INSPECT. Lessor, acting by and through its Director of Aviation or other designated representative, shall have the right to inspect the Leased Premises at all reasonable times during the term of this Lease. 5.07. JANITORIAL SERVICES. Lessee shall, at its own expense, provide janitorial services for the Leased Premises. said services may be provided by Lessee alone, or by Lessee in conjunction with other tenants who are now or may hereafter be Lessees at the Airport. 5.08. MAINTENANCE BY LESSOR. Lessor shall be responsible for and shall perform exterior building maintenance, including roof structural maintenance and maintenance of heating and air conditioning units, maintenance to parking lots, drives, sidewalks and aircraft surfaces. 5.09. MAINTENANCE BY LESSEE. Lessee agrees that it will at all times during the term of this Lease maintain, without cost to Lessor, the Leased Premises and all facilities and equipment thereon (including but not limited to installed equipment owned by Lessee) in a good and serviceable condition, ordinary wear and tear excepted. Lessee shall relamp light fixtures as necessary and shall repaint the interior of the Leased Premises as necessary. All such maintenance, repairs and replacement shall be of quality equal to the original condition in materials and workmanship. All paint colors or schemes shall harmonize with the decor of the Terminal Building and shall be subject to the prior approval of the Director of Aviation of Lessor. 5.10. LESSEE'S DUTY TO REPAIR. Except as provided herein, any property of Lessor, or for which Lessor may be responsible, which is damaged or destroyed incident to the exercise of the rights or privileges herein granted, or which damage or destruction is occasioned by the negligence of Lessee, its - 7 - employees, agents, servants, patrons or invitees, shall be properly repaired or replaced by Lessee to the satisfaction of Lessor and its authorized representatives, or in lieu of such repair or replacement, Lessee shall, if so required by Lessor, pay Lessor money in any amount deemed sufficient by Lessor to compensate for the loss sustained or expense incurred by Lessor by reason of the loss of, damage to, or destruction of such property. 5.11. TRASH DISPOSAL. Lessee shall, at its sole expense, provide 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 its business operations authorized by this Agreement. 5.12. UTILITIES. Lessee agrees to pay for all utility charges resulting from or connected with Lessee's use of the Leased Premises. 5.13. TAXES AND LICENSES. Lessee shall pay all taxes of whatever character that may be lawfully levied or charged upon Lessee's leasehold improvements and upon Lessee's use of the Leased Premises. Lessee shall obtain and pay for all licenses or permits necessary or required by law for the construction of any additional improvements, the installation of equipment and furnishings, and any other licenses necessary for the conduct of its business. 5.14. HOLD HARMLESS. Lessee agrees to indemnify, defend and forever save Lessor, its authorized agents, representatives and employees, harmless from and against any and all penalties, liability, annoyances or losses resulting from claims or court actions of any nature arising directly or indirectly out of any acts or omissions of Lessee, its agents, servants, guests, employees or business visitors under this Agreement. 5.15. PUBLIC LIABILITY AND PROPERTY DAMAGE INSURANCE. Lessee shall maintain at all times during the term of this Lease, at its sole expense, insurance with an insurance underwriter acceptable to Lessor and 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 not be less than ONE HUNDRED THOUSAND DOLLARS ($100,000) for property damages as a result of any one event, or less than THREE HUNDRED THOUSAND DOLLARS ($300,000) for personal injury or death of any one person in any one event, or less than FIVE HUNDRED THOUSAND DOLLARS ($500,000) for personal injury or death of two or more persons in any one event. All policies shall contain an agreement on the part of the respective insurers, waiving the right of such insurers to subrogation. Certificates of insurance or other satisfactory evidence of insurance shall be filed with the City Secretary of the City of Lubbock and an additional copy of such certificates given to the Director of Aviation prior to the commencement of the term of this Lease. Each policy shall name the City of Lubbock as an additional insured as its interest may appear, require the insurer to notify the Director of Aviation of the City of Lubbock, Texas, of any alteration, nonrenewal or cancellation, and remain in full force and effect until at least ten (10) days after such notice of alteration, nonrenewal or cancellation is received by the Director of Aviation. 5.16. FIRE INSURANCE. Lessee shall insure for fire and extended coverage risks all of Lessee's improvements on the Leased Premises and shall keep such insurance in full force and effect during the entire term of this Lease. Such insurance shall be in an amount equal to the full insurable replacement value of such improvements. All fire insurance policies shall contain loss payable endorsements in favor of the parties as their respective interests may appear hereunder, and an agreement on the part of the insurers waiving the right of such insurers to subrogation. Lessee shall furnish three (3) copies of certificates of insurance or other satisfactory evidence of compliance with this provision to the City Secretary of the City of Lubbock prior to taking possession of the Leased Premises. CW= 5.17. LESSEE SHALL VACATE. On or before the date of expiration of this Agreement, Lessee shall, as required by Lessor, vacate said Leased Premises, remove all property of Lessee, and restore the Leased Premises and any improvements, facilities and equipment thereon to as good condition on such date of expiration as when received, ordinary wear and tear excepted. If, however, this Lease is terminated pursuant to Article VI, Lessee shall vacate the Leased Premises, remove said property, and restore the Leased Premises, and any improvements, facilities and equipment thereon as aforesaid within thirty (30) days following the date of such termination; provided, however, that Lessee's right to remove its property is subject to the condition that Lessee has paid in full all amounts due and owed to Lessor under this Agreement. If Lessee shall fail or neglect to remove said property and so restore the Leased Premises and all improvements, facilities and equipment thereon on or before said expiration or within thirty (30) days of such termination, then at the option of Lessor, said property shall either become the property of Lessor without compensation therefor or Lessor may cause such property to be removed, the Leased Premises and any improvements, facilities and equipment included thereon to be restored at the expense of Lessee, and no claim for damages against Lessor, or its officers, agents or employees shall be created or made on account of such removal and restoration. 5.18. NONDISCRIMINATION. Lessee, its agents and employees will not discriminate against any person or class of persons by reason of race, color, sex, religion or national origin in providing any services or in the use of any of its facilities provided for the public; nor shall Lessee discriminate against any person or class of persons on the basis of age in a manner that violates any prohibition against such discrimination under the Age Discrimination Act of 1975, 42 U.S.C. 6101 et sea. Lessee further agrees to comply with such enforcement procedures as the United States might demand that Lessor take in order to comply with the Sponsor's Assurances. - 10 - Lessee agrees to not discriminate against any employees or applicants for employment because of race, color, age, sex, religion or national origin. Lessee also agrees to take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, age, sex, religion 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, including apprenticeship. Lessee will also 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 discrimination in employment, under any program or activity of Lessee. 5.19. WARRANTY OF NO SOLICITATION. Lessee warrants that it has not employed any person employed by Lessor to solicit or secure this Agreement upon any agreement for a commission, percentage, brokerage or contingent fee. 5.20. NO ASSIGNMENT OR SUBLETTING. Except with prior written consent of the Director of Aviation of the Lessor, Lessee shall not sublet any part of the Leased Premises or assign any of its rights hereunder. No such assignment or subletting made with Lessor's consent shall affect Lessee's obligations to make all required rental and fee payments hereunder upon default of any assignee or subtenant. 5.21. WAIVE R. The failure of Lessor to insist in any one or more instance upon performance of any of the terms or conditions of this Lease shall not be construed as a waiver or relinquishment of the future performance of any such terms or conditions, and Lessee's obligation with respect to such future performance shall continue to be in full force and effect. =0= 5.22. LESSOR'S RIGHT TO LEASE REMAINING PORTIONS OF BUILDING. Lessee agrees that Lessor has the right to lease remaining portions of the Terminal Building to any other tenants as Lessor desires. 5.23. DUTY TO PREVENT UNAUTHORIZED ACCESS. Lessee shall prohibit unauthorized persons from obtaining access or entry into the air operations area and any other sterile area at the Airport through those Airport premises which Lessee either controls or has possession of under this Agreement; and Lessee agrees that in the event that a civil penalty or fine is levied against the Airport or Lessor as a result of Lessee's failure to comply or act in accordance with this provision, or any other applicable federal, state or local statutes, ordinances, rules and regulations affecting the use, occupancy or operation of any of said premises, Lessee shall immediately reimburse the Lessor the full amount of the penalty or fine and correct the act or omission leading to, causing or contributing to the violation. ARTICLE VI TERMINATION This Agreement is subject to termination for the reasons set forth below, provided that thirty (30) days written notice is given to the nonterminating party. 6.01. LESSEE'S RIGHT TO TERMINATE. Lessee may terminate upon the happening of any of the following: A. The permanent abandonment of the Airport as an air terminal by Lessor. B. The issuance by any court of competent jurisdiction of an injunction in any way preventing or restraining the use of the Leased Premises for at least thirty (30) days. C. The breach by Lessor of any of the terms, covenants or conditions of this Agreement to be kept, performed and observed by Lessor, and the failure of Lessor to remedy such breach for a period of sixty (60) days after written notice from Lessee of the existence of such breach. - 12 - D. 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 Lessee from operating under the terms of this Agreement, if such restriction is to continue or has continued for a period of three (3) months or more. E. Lessee ceases operations at the Airport for six (6) months after notifying the Director of Aviation of the City of Lubbock in writing of the date on which Lessee either has ceased operations or intends to cease operations. 6.02. LESSOR'S RIGHT TO TERMINATE. Lessor may terminate upon the happening of any of the following: A. If Lessee shall file a voluntary petition of bankruptcy; or if the proceedings in bankruptcy shall be instituted against Lessee and Lessee is thereafter adjudicated as 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 under state or federal law; or if Lessee shall be divested of its rights, powers and privileges under this Agreement by other operation of law. B. If Lessee shall abandon and discontinue operations under this Agreement. C. If Lessee shall default in or fail to make any rental or fee payments at the time and in the amounts required under this Agreement. D. If 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 Lessee. E. If Lessee shall fail to abide by all applicable laws, ordinances and rules and regulations of the United States, State of Texas, City of Lubbock and Director of Aviation of the City of Lubbock. - 13 - F. If Lessor, acting in good faith, finds termination of the rights, privileges and interests of Lessee acquired under this Lease to be necessary to secure federal financial aid for the development of the Airport, or further development of aeronautical operations thereon. 6.03. FIRE DAMAGE. In the event the Leased Premises are damaged by fire or other accidental cause during the term of this Agreement so as to become totally or partially unusable, Lessor shall have the option to restore such Leased Premises. If Lessor exercises its option to restore the same, Lessor shall proceed with due diligence. If the damage is so extensive as to amount practically to the total destruction of the utility of the Leased Premises for the uses expressed in this Agreement, Lessee's obligation to pay rentals and fees hereunder shall abate for the time and to the extent that the Leased Premises have been rendered unusable. Should Lessor not exercise its option to restore the Leased Premises, this Lease shall terminate, such termination to be effective on the date of damage by fire or other accidental cause, and all rentals and fees due pursuant to this Agreement shall be apportioned to that date. ARTICLE VII MISCELLANEOUS PROVISIONS 7.01. NOTICES. Notices to City provided for herein shall be sufficient if sent by certified mail, postage prepaid, addressed to the Director of Aviation, Route 3, Box 389, Lubbock, Texas 79401, and notices to Lessee, if sent by certified mail, postage prepaid, to the address for Lessee on file with the Director of Aviation for Lessor. 7.03. 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 - 14 - extension of this Lease, and may be terminated at any time by Lessor. Executed this 22nd day of July , 1993. LYRES CARTAGE CO. INC. D/B/A TRANS --DRAYAGE CO. BY: ��JOE L� , P.ZZSSIDENT ATTEST: HW.dw cunt-agr/D4/A-Lykes.dcc rev. February 15. 1993 CITY OF LUBBOCK, TEXAS BY: 0�4 D VID R. STON, MAYOR Randy Neugebauer, Mayor Pro Tem ATTEST: S es�t ate- Betty M. Johnson, City Secretary APP VED AS TO CONTENT: Bern E. Case, Director of Aviation APPROVED AS TO FORM: H rold Willard, Assistant City Attorney - 15 - Q t x W APRON LEVEL MAIN LEVEL rOe1M e ae aoo AIR CARRIER TERMINAL BUILDING